View Full Version : How does the "Corporation Loophole" work?
February 6, 2001, 12:40 AM
I already have a S-type Corporation, does this save me any trouble in obtaining NFA or Class III weaponry? On the Serbu website they allude to a corporation loophole but what are the specifics?
February 6, 2001, 03:37 AM
Only way a Corporate entity can obtain a NFA weapon is that corporation must also have a Class III license.
February 6, 2001, 09:47 AM
I may be wrong, but a "class 3 license" is not needed to purchase NFA items. Form 4, tax stamp, and chief LEO signature are needed.
The corporation loophole is that corporations do not require the chief LEO signature, so in jurisdictions where the chief LEO will not sign off, having a corporation make the purchase gets around this.
The downside is that if the corporation is ever dissolved, the weapons must be sold or otherwise disposed of.
As to whether a sub S corp. will work, I don't know.
February 8, 2001, 04:15 AM
I'd be very surprised if S Corporation status is pertinent. That is a tax concept (as I imagine TaxPhd knows ...), not an otherwise legal concept for corporations.
An S Corp is just a regular corp with a special tax election.
Now, what would you all it ... Tommy, Inc.? ;)
Regards from AZ
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