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Old May 26, 2001, 08:37 PM   #5
chetchat
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Join Date: November 6, 1999
Location: Miami, FL USA
Posts: 73
Quote:
Corporate route is very sketchy at best.
Comments on going the "corporate route", and a few quibbles with some statements made.

Quote:
ATF has become very apprehensive about any approval that does not have a face.
This is misleading. The CEO/President of the corporation - or a designated corporate officer - is the "face" of the corporation and signs off on the Form 4 transfer, same as any other individual. After the weapon transfer is approved, a NICS check is performed on the signee. I don't know of any transfers where this check does not occur.

I DO agree that the BATF is taking a long hard look at the corporate acquistion process, possibly looking to rescind or modify it in the future.

Quote:
They want individual accountability should anything happen to the firearm.
This implies that there is some sort of penalty the BATF assigns if "anything" happens to the weapon. Not true. Unless one is a FFL holder, there is not even a requirement to report a loss or theft af a NFA weapon. The BATF has a rule requiring reporting same, but there is no penalty for not complying. Obviously any sane person would report this, both in the hopes of quick recovery and return of the weapon, and hoping that future NFA acquisitions would not be refused. Additionally, NFA weapons are usually accorded a higher security level by their owners for protection from theft. Again, not required, but prudent.

Quote:
When you also go the corporate way, you open
up your home (or where ever the firearm resides) to ATF
inspection any time, because you no longer have individual
rights (seen it done!).
Again, not true. Unless you are an FFL or SOT holder you forfeit no rights to spontaneous inspection by any LEA, BATF or otherwise. As a corporation it is prudent to maintain a record of the whereabouts of NFA weapons should one be in the possession of a qualified/authorized employee. I don't doubt you when you say you've "seen it done", but I'd suggest there either was a FFL/SOT involved, or a search warrant, or the search was permitted by the owner of the weapons. Again, a corporate owner of NFA weapons gives up no rights accorded to individuals.

Quote:
And besides, any Class III firearm in the possession of a corporation when it is devolved must be turned in. No exceptions.
The weapons can be transferred to another qualified individual or corporation prior to corporate dissolution.

Keep in mind certain things regarding corporate ownership of NFA weapons :

- Only corporate officers or employees specifically designated may be in physical possession of the weapon, and should be noted as such in corporate records;

- Any officer or designated employee should have copies of the corporate record document allowing possession as well as articles of incorporation, etc - as well as a copy of the Form 4 - with them when they are in possession of the weapon. Some states REQUIRE this, some don't. Basically, you want to demonstrate to LE that you are within your rights to have the weapon;

- No one who would otherwise be restricted from NFA ownership may be in possession of the weapon. If your cousin or brother-in-law is part of the corporation, and they couldn't pass a NICS or 4473 form application? Then they can't play with the company's new toys.

Personally, I'd prefer to have the CLEO signoff; if you haven't tried that route, you should - don't go corporate because you think it's less complicated, go only if local LEOs won't sign for political reasons, etc.
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