NFA stamp question.


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Clockwerk
April 5, 2011, 10:51 PM
I was at my local gun store today and I was starting a sbr project and I asked one of the workers about ways to acquire a tax stamp to do so and he told me that the easiest way is through a trust is that true? What are some of the other ways to get the tax stamp? I am located in Texas if that helps and sorry for my ignorance haha I am new to the whole NFA deal.

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fulltanghalo
April 5, 2011, 11:45 PM
What are some of the other ways to get the tax stamp?

Individual - If you build an NFA item on a Form 1 your name/city/state is engraved on it. Requires CLEO signature, fingerprint cards & Passport Photos every time you buy an NFA item.

Trust - If you build an NFA item on a Form 1 your Trust's name/city/state is engraved on it. It could be "last name" NFA Trust or "whatever you think up" NFA Trust. I've been told by the lawyer that did mine that if you name your trust something that might raise eyebrows, you may experience delays in your Form 1/4 approvals. No CLEO signature/fingerprint cards/passport photos required. Trust is generally not required to be recorded with the state and though no CLEO signature there are some states that require you to notify your CLEO when you have NFA item(s) so check local laws.

Corp.- Same as above just with the Corp name/city/state engraved on Form 1 builds. Has the additional requirements of your states laws regarding filings, and possibly yearly fees to keep a corp active.

LLC - Same as above just with the LLC name/city/state engraved on Form 1 builds. Has the additional requirements of your states laws regarding filings, and possibly yearly fees to keep a LLC active.

IMO Trusts allow for the most privacy, generally no additional costs to maintain, bypass an unwilling to sign CLEO, and the time/cost of CLEO signatures/fingerprinting/photos. So my answer is yes, Trusts are the easiest way to own NFA items, but YMMV

If I missed anything or am off-base the above :banghead:, others please correct me.

Retooferab
April 6, 2011, 12:08 AM
I think that about covers it.

I did mine on an individual but if I had it to do over I would get a trust. If I just had one I would pay the tax again to move it to a trust but I'm up to five now.

Clockwerk
April 6, 2011, 12:26 AM
They said the trust charges about 200-400 dollars does that sound about right? That's not including the tax stamp.

fulltanghalo
April 6, 2011, 09:21 AM
Of the three lawyers I know of in FL that do NFA Trusts, one had charged $195, but in a weird reverse economics of scale has started charging $395 because they of "unprecedented demand". Another charges $250, but had a gunshow deal, $50 off for anyone who saw him at his booth and had their paperwork in 7 days after the show. The third one wants $600 for his :eek:

So I've seen a range of $200-$600, though $600 seems to be the highest I've ever seen.

TexasRifleman
April 6, 2011, 10:06 AM
I was at my local gun store today and I was starting a sbr project and I asked one of the workers about ways to acquire a tax stamp to do so and he told me that the easiest way is through a trust is that true?

The trust is not the easiest if your local CLEO will sign the forms. It's probably more useful in the long run since you can put more than one person on it, but it's not easiest if you only plan on having one NFA firearm.

If you are going to start collecting things the trust will be worth fooling with over time but for one item, I don't think I would fool with it. Just depends on your long term plans.

Ironman
April 6, 2011, 10:40 AM
Fulltanghalo- I know who you are talking about. lol

They did mine for $195 and another friends at the same price, then a year goes by and I refer more people to them only to find out they raised the price to $395. Stupid.

The Law
April 6, 2011, 11:14 AM
The information presented above is accurate. There is no "one size fits all" with acquiring a stamp. For some, the individual route is best while others may find a corp./llc or trust better suited to their needs. Each method has its own advantages and disadvantages and you should be familiar with all of them before making a decision.

As to fees, that is really dependent on the particular market and client needs. Here in Vegas, I'm pricing mine around the $200-$300 mark and think that's about as high as I can go. Most of my clients are buying inexpensive suppressors, not $20k+ full autos. If you can swing the cash for a FA M-16, $600 on a trust is nothing.

Clockwerk
April 6, 2011, 11:39 AM
Thank you all for the information. I'll need to do some serious research before I dive into this then.

wally
April 11, 2011, 10:52 PM
I got a full auto as an individual since my first Wife's family had the political pull to get it signed. Since I no longer have that lever to pull, I did a trust to do SBR and suppressor.

Got the SBR stamp today, sent in Jan 11, received Aprl 11. The suppressor is about six weeks behind. I've plans for two more SBRs later this year.

In Texas, the trust route is easy. Used the lawyer from our pre-paid legal plan at work, who handles all our routine affairs for like $15/month.

GoingQuiet
April 12, 2011, 01:03 AM
I was at my local gun store today and I was starting a sbr project and I asked one of the workers about ways to acquire a tax stamp to do so and he told me that the easiest way is through a trust is that true? What are some of the other ways to get the tax stamp? I am located in Texas if that helps and sorry for my ignorance haha I am new to the whole NFA deal.
It depends on your area - if you can't get a CLEO signature, your only real choice is a trust.

MasterSergeantA
June 16, 2011, 01:35 PM
GoingQuiet makes a valid point. If you absolutely cannot get a CLEO signature, a trust is a viable option. Some folks have used the Willmaker software to set up a basic trust. Not bad if you are only creating it for purposes of acquiring NFA stuff. But trust law does change state-to-state occasionally and unless you have a lawyer involved, you might find yourself with your NFA items locked in a trust that you no longer legally control. Unlikely perhaps, but possible. If your local sheriff/chief of police is not NFA friendly (and we have some even here in Arizona that are not), you can have a judge or justice of the peace sign off, if you know one. CLEO is defined a couple of different ways under the law.

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