If barrel is 16 inches or longer not a problem. If barrel is under 16 inches you get into that short barrel rifle clause of the new ATF second amendment.
The ATI folding stock is ONLY to be installed once you get ATF approval (AND buy the $200 stamp) for a short barrel rifle according to their web site. If you do not want to go that route, but want the correct LOOK, you can take the folding stock off of an airsoft MP40 and PERMANENTLY attach it in the closed position. There is also a stock on the market that is held in place (closed) with magnets - it supposably comes with an ATF letter saying it is not a stock since it would not hold up in the open position when firing live ammo.