Firearm & Gun Forum - FireArmsTalk.com

Firearm & Gun Forum - FireArmsTalk.com (http://www.firearmstalk.com/forums/)
-   NFA/Class 3 & FFL Discussion (http://www.firearmstalk.com/forums/f47/)
-   -   Me 0-1 ATF (http://www.firearmstalk.com/forums/f47/me-0-1-atf-58630/)

KAG 02-24-2012 12:53 AM

Me 0-1 ATF
 
Background:
I started a machine shop with my cousin as my business partner. We got our FFL two years ago to try test the market out for ourselves. Recently my cousin got a great job doing what he loves (writing). So since he was not committed to the shop anymore and wanted to move his life in a different direction he asked if I was interested in buying his portion of the partnership. I said yes.

Situation:
Well I notified the ATF three weeks ago and Tuesday I got a call telling me I am losing my FFL. Twi agents came over yesterday and had me sign a peice of note book paper saying a "voluntarily" give up my FFL. This is so that I can re-apply.

The agent said because it was a partnership and now its now then the FFL is null and void. They said the "entity with the FFL was the partnership and now that it has ended the entity is over.

Final Thoughts:
I understand needing a new FFL number but having to reapply is ridiculous!!! I have already been cleared by the ATF!!! I have never had a problem with them before this.

Anyways, its not a death blow. We were have other, non-firearm, contracts. This will give us time to finish tooling up for AR15 lowers (who doesn't need another AR?!?).

I smell a "The ATF Sucks" AR15 80% Lower Giveaway Contest!!!

scottybaccus 02-24-2012 01:52 AM

Forgive me for busting your chops a bit.

It seems you could have played it differently. Had you slowed down dissolution of the partnership enough to research the implications, maybe you could have started your independent application apart from the partnership, then closed your business with your cousin after it came through. I just think you acted hastily on the partnership without due consideration of the most important piece of the puzzle. Lucky for you, it's only formalities and processing that need to be done now.

trip286 02-24-2012 02:47 AM

Scotty may be a bit harsh there, but I agree. I simply would have probably chosen slightly different wording to say so.

c3shooter 02-24-2012 02:55 AM

1. That sux
2. Be glad you do not have to deal with the BATFE from an explosives standpoint.

The issue really is that the ATF did not license YOU- they licensed the business. You did not ask, but will offer some free legal advice- you REALLY want to talk to an attorney about incorporating if you have not already done so. Really.

scottybaccus 02-24-2012 03:02 PM

Quote:

Originally Posted by c3shooter (Post 718628)
you REALLY want to talk to an attorney about incorporating if you have not already done so. Really.

Agreed.

The difference is that any leagal action you face would be against your company, where unincorporated it is against you, your assets and your wallet.

KAG 02-28-2012 01:39 AM

I see what you mean Scotty, however I only have 30 days to let them know of the dissolution. I figured this was coming.

C3,
Free legal advice is the best! Yes, I am soon to be an LLC (that rhymes).

Hindsight, there was nothing I could do. I just made this my full time job and moved to a part time position at my old job, some of which can be done at home.

I will work on making some other parts in the mean time.

wjnfirearms 02-28-2012 04:20 PM

What it comes down to is that any changes to the FFL, other than simply changing location, requires a re-application. Typical burocratic BS.

As to incorporating, it is best for some people and their situations, not so much for others where staying a sole proprietorship and getting insurance works better. The tax issues are the crux of the matter. It's in your best interest to talk to a financial pro that you trust about your particular situation before jumping in to the corporate world and what will be best for you to do, or not to do. Lawyers often aren't that well versed on all of the tax intracacies, so also talk to someone who is. A licensed tax pro who specializes in this only is the best person. My wife is a senior tax pro and has seen CPAs screw up peoples tax returns, so be careful here. I was one of those people some time back.

KAG 02-29-2012 12:55 AM

.....you can also change your trade name with out a new application...thought I would throw that in there


All times are GMT. The time now is 02:47 PM.

Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.