Thinking about getting licensed for NFA firearms

[ajridgedell]

Just posted a different question in silencersmithing section but I think this question fits here... I am licensed as type 7 FFL; if I pay the 500$ a year (i think) to be manufacturer of NFA firearms is it possible to save myself money on stamps if I manufacture say 4 and transfer them to LLC or how does that work if I don't renew and I want them to stay in the LLC name. With an FFL I can just transfer firearms to personal collection with no 4473 and all that.

[Bendersquint]

Just posted a different question in silencersmithing section but I think this question fits here... I am licensed as type 7 FFL; if I pay the 500$ a year (i think) to be manufacturer of NFA firearms is it possible to save myself money on stamps if I manufacture say 4 and transfer them to LLC or how does that work if I don't renew and I want them to stay in the LLC name. With an FFL I can just transfer firearms to personal collection with no 4473 and all that.

You can not avoid the transfer taxes on NFA items.

[ajridgedell]

When a manufacturer of NFA firearms manufactures a firearm (silencer in this case) and keeps it in their inventory or as dealer sample do they pay for a tax stamp or only the transferee (if that's a word) upon purchase or transfer?

[Bendersquint]

When a manufacturer of NFA firearms manufactures a firearm (silencer in this case) and keeps it in their inventory or as dealer sample do they pay for a tax stamp or only the transferee (if that's a word) upon purchase or transfer?

Only when its transferred out of their inventory is tax due.

To another SOT is covered by the SOT's tax stamp.

To an individual/entity/company etc... $200 per transfer.

[David Hineline]

If your license is a LLC, corporation you can't just retain the inventory as a person. A transfer must be involved.

If you are paying your SOT to avoid paying taxes, then you are doing it for the wrong reason.

[UpTheHill]

If your license is a LLC, corporation you can't just retain the inventory as a person. A transfer must be involved.

if you are keeping the LLC just not renewing the SOT, then the LLC can remain the owner of the NFA item on the form 3 that was used to send it to you. if you disolve the LLC then you must have it transfered to you on a form 4.

If you are paying your SOT to avoid paying taxes, then you are doing it for the wrong reason.

exactly, you might save on the $200 tax stamp, but you'll have to pay the annual fee to renew your LLC forever

[ajridgedell]

If your license is a LLC, corporation you can't just retain the inventory as a person. A transfer must be involved.

if you are keeping the LLC just not renewing the SOT, then the LLC can remain the owner of the NFA item on the form 3 that was used to send it to you. if you disolve the LLC then you must have it transfered to you on a form 4.

If you are paying your SOT to avoid paying taxes, then you are doing it for the wrong reason.

exactly, you might save on the $200 tax stamp, but you'll have to pay the annual fee to renew your LLC forever

I see, Thanks for the input. I'm gunna hold off on the SOT till I know I have enough customers interested in such items. It definitely wouldn't be something I would want to just do for year just to avoid paying 200$ stamps then not renewing, but I was curious how it all worked.

[66427vette]

Get it. Stock items deep and laugh on way to bank every week.

[ajridgedell]

Yeah, I got my hands full with my business as it is. On the verge of needing to hire so I need to get my primary business squared away before I start playing with anything else right now.