Corporate registration for C&R

[rjacobs]

I am getting ready to move to Missouri and am wanting to build an SBR. Per Missouri law I must have an FFL, a C&R suffices. From what I have found out, the area I am moving to(St. Louis) is not overly difficult to have a CLEO sign off on a Form 1 for an individual, however most people say its much easier to simply form a corporation to hold the C&R FFL(trust's can not hold an FFL in Missouri) to simply avoid having to have a CLEO sign off. I can not find anything on the ATF website regarding what type of corporation can hold an FFL though, just that a corporation can hold one(obviously). Do I need a regular Corporation, S corp, will an LLC work?

[rjacobs]

Nobody has an FFL registered to a corporation or knows what type of corporations the ATF accepts?

[HirosStorageUnit]

All I can say is I am aware of a trust being issued a C&R FFL. Dont know if this answers your question but I have seen the Liscense.

[rjacobs]

Trust's can not hold FFL's in Missouri.

[6450]

Trust's can not hold FFL's in Missouri.

That is accurate but, some have been issued in error. My attempt was rejected a few years ago.

Can a Gun (NFA) Trust be Issued a Curios and Relics License?
April 28th, 2009
The short answer is NO. The BATFE is in charge of licensing Federal Firearms Licenses (FFL). A Type 03 License is a license for collectors of “Curios and Relics,” also referred to as a C&R License. As the BATFE states, a C&R License pertains exclusively to firearms classified as curios and relics, and it’s purpose is to facilitate a personal collection. It is NOT a license to buy and sell curios and relics.” The C&R license is specifically prescribed in the law at 18 U.S.C 923(b).

So why can’t a trust own a C&R but can own a NFA firearms? If one looks to 27 C.F.R 478.11, which is part of the Gun Control Act (GCA), in relation to licensing, it starts by stating, “When used in this part and in forms prescribed under this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meanings ascribed in this section.” Moreover a “person” is defined as “Any individual, corporation, company, association, firm, partnership, society, or joint stock company.” Whereas, in 27 C.F.R. 479.11, which pertains to ownership of NFA firearms, a “person” is defined as “A partnership, company, association, trust, estate, or corporation, as well as a natural person.” Thus, while “trust” is included in the defintion of a person for purposes of ownerships of NFA firearms, it is not included for purposes of licensing.

This is a serious issue for Missouri residents who must have an FFL to purchase NFA firearms. There is at least one individual in Missouri who claims the BATFE issued a C&R License to his trust, which is in violation of the law. Luckily, when he applied for a transfer with his trust, the BATFE kicked it back because he did not include a Declaration of Trust and Schedule A. Hence, the trust does not own an assets that could be forfeited. Any individual considering a gun trust should speak with a competent attorney so that he/she does not find him/herself facing the possibility of a criminal prosecution and forfeiture.

http://blog.princelaw.com/2009/4/28/...relics-license

[rjacobs]

Ah, I didnt realize it was federal law, I had just read that it wasn't allowed in Missouri(which is true because it isnt allowed in any state).

It still doesnt answer the question of can a corporation formed as an LLC hold an FFL.

[6450]

Ah, I didnt realize it was federal law, I had just read that it wasn't allowed in Missouri(which is true because it isnt allowed in any state).

It still doesnt answer the question of can a corporation formed as an LLC hold an FFL.

I'm not 100% sure. I went the C&R route after discussing it with my atty. His statement on the S Corp or LLC was, why would you want to? Your hobby then becomes a business. Paperwork, insurance, taxes and all of the other compliance issues that come along are a waste of time.

That is a lot of work and expense for an SBR. I own guite a few NFA items and the C&R was the way to go in MO.
Hope this helps.

[rjacobs]

I'm not 100% sure. I went the C&R route after discussing it with my atty. His statement on the S Corp or LLC was, why would you want to? Your hobby then becomes a business. Paperwork, insurance, taxes and all of the other compliance issues that come along are a waste of time.

That is a lot of work and expense for an SBR. I own guite a few NFA items and the C&R was the way to go in MO.
Hope this helps.

Well, my reasoning was to avoid the need for CLEO sign off, but after getting up here and finding out a few things, I dont think CLEO sign off will be a big deal(after finding out some things when I moved up here). An LLC doesnt really have any insurance, tax or any other compliance thing's(at least not mandated). You dont need insurance for it, if you dont make a profit, you dont pay taxes, and they only cost $50 a year. But I think just getting the C&R individually and getting my CLEO sign off will probably be the way for me to go since some new things came to light after the move.