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Raybathm

Purchase Sole Proprietor - pre may samples

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Hi,

I have a question about a potential purchase of a business. If you purchase a sole proprietor's business with pre-may samples, can the pre-may samples go with the business?

Thanks in Advance,

Ray Browning

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Not generally in a sole proprietorship since it is not a separate entity like a partnership or corp.  The proprietor is the "company"  and you being a different proprietor, assets would need to "transfer" to directly to you, vs. a company type setup where the company exists separately regardless of who actually owns it.   A pre-may sample can only transfer to an SOT,

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Assuming the FFL you're buying the business from is still a licensed FFL/SOT then they likely would.  The current owner informs his IOI that he intends to sell you his business, then you would apply for your own FFL at the same location as the current owner's FFL (assuming you're keeping the same location or at the new location if you're not). Once your FFL is approved you get the SOT paid and you can then file tax free transfers on all of the NFA items in the previous owner's inventory.  In an acquaintance's case, the previous owner's FFL was scheduled to run out while he was waiting for his new FFL to be approved and the ATF issued a 6 month temporary license to the selling owner to continue his business while the ownership transfer/FFL application was in process. They then allowed all items to transfer tax free.  I can't speak of any other cases but that's one I'm familiar with that worked out without issue.

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THE KEY ANSWER TO YOUR QUESTION DEPENDS ON WHEN THE EXISTING LIC EXPIRES. If you don't have an active NFA dealers lic lic before his expires and no extension is provided, the "pre-may" sample's could be temp transferred to a active dealer until yours is active. there is no fee's for the transfer's but you would not want the guns worn out or otherwise abused while waiting so get someone reputable to work with. if your lic IS active they can go with the business sale and all is GOOD!


I only accept postal money orders. contact me DIRECTLY before sending any funds                                           email  myoldiron@outlook.com        

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