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Posted: 1/3/2014 7:00:45 AM EDT
I'm interested in setting up an FFL for gunsmith work.  I'm Armorer certified with the .mil and I'm enrolled in a Glock course as well as the Colt Rifle/1911 courses.  I want to start work on the side of my .mil commitments to work on firearms.  I plan on adding capabilities later on.  Has anyone gone this route?  I know I have to get a business license and be able to be zoned for a business.  What is your advice for someone starting out doing this.  

v/r
Matthew
Link Posted: 1/3/2014 7:43:44 AM EDT
[#1]
Move to AZ.
Link Posted: 1/3/2014 7:58:04 AM EDT
[#2]
Business license depends on your state and local laws.  Sales tax licenses will be required.  You know about the zoning issues, which are the biggest pitfall for part-timers who want to do this from their apartment or (god forbid) live in the barracks or something.

Check with local LEO, as some have requirements to register with them and/or report sales.

More importantly, you need to figure out your business plan… how will you solicit clientele?  Will you advertise?  How?  How much? Where?

Have you figured out a pricing structure and rates?

You're gonna need insurance.  How much are you going to spend on tools and tooling?
Link Posted: 1/3/2014 10:30:39 AM EDT
[#3]
Quoted:
What is your advice for someone starting out doing this.
View Quote

Learn the difference between gunsmithing and manufacturing (it's not obvious) and if you think you will be doing any manufacturing as the ATF defines it, get the Type 07 not the Type 01 license.
Link Posted: 1/3/2014 1:52:19 PM EDT
[#4]
Not going to be in CA much longer.  Headed to AL.  I'm not planning on manufacturing.  I'm thinking FFL because you leave a lower overnight for me to assemble, it takes a couple days, so ATF says I need an FFL technically.  I'm going to invest in a larger safe for work only.  What I'm really looking at is all the basic tools for AR assembly really.  Same with Glock etc.  I'm not doing and RMR installation, cerakote or the like.  I've started working a business plan and I've got an idea on how I want to advertise.
Link Posted: 1/3/2014 3:06:29 PM EDT
[#5]
In MS I have to have the County Business License plus the MS Resale Certificate. For the FFL I'm an 01.

Want to hang a sign that says gunsmith. Better learn about 22 lr's, you will see more of these in the shop than anything else.
Link Posted: 1/3/2014 6:52:05 PM EDT
[#6]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
I'm not planning on manufacturing.  I'm thinking FFL because you leave a lower overnight for me to assemble, it takes a couple days, so ATF says I need an FFL technically.
View Quote


Assembly IS manufacturing. You would need an 07, not 01.
Link Posted: 1/3/2014 7:11:09 PM EDT
[#7]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


Assembly IS manufacturing. You would need an 07, not 01.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
I'm not planning on manufacturing.  I'm thinking FFL because you leave a lower overnight for me to assemble, it takes a couple days, so ATF says I need an FFL technically.


Assembly IS manufacturing. You would need an 07, not 01.


As Bubbles said the differences between gunsmithing and manufacturing are not obvious. A customer leaving a lower + parts for an FFL to assemble is gunsmithing - 01. FFL buying lowers + parts and assembling for sale is manufacturing - 07.

Also, overnight does not matter. If you are in the business of firearms, FFL is needed. Even if no guns are on your premises after COB.
Link Posted: 1/4/2014 5:37:47 AM EDT
[#8]
So if I'm not dealing in lowers, but just assembling customer provided, thats still considered manufacturing?  As in I need an 07 rather than an 01?
Link Posted: 1/4/2014 6:30:30 AM EDT
[#9]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
So if I'm not dealing in lowers, but just assembling customer provided, thats still considered manufacturing?  As in I need an 07 rather than an 01?
View Quote


No that is gunsmithing.
Link Posted: 1/4/2014 2:14:07 PM EDT
[#10]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
So if I'm not dealing in lowers, but just assembling customer provided, thats still considered manufacturing?  As in I need an 07 rather than an 01?
View Quote

http://www.atf.gov/content/firearms/firearms-industry/guides/publications-firearms-national-firearms-act-handbook
Read 7.2.3 in the Manufacturing section.  And yes, while the publication is entitled "The NFA Handbook" the description of the difference between manufacturing and gunsmithing is the same for both Title I and Title II firearms.
Link Posted: 1/5/2014 4:41:22 PM EDT
[#11]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

http://www.atf.gov/content/firearms/firearms-industry/guides/publications-firearms-national-firearms-act-handbook
Read 7.2.3 in the Manufacturing section.  And yes, while the publication is entitled "The NFA Handbook" the description of the difference between manufacturing and gunsmithing is the same for both Title I and Title II firearms.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
So if I'm not dealing in lowers, but just assembling customer provided, thats still considered manufacturing?  As in I need an 07 rather than an 01?

http://www.atf.gov/content/firearms/firearms-industry/guides/publications-firearms-national-firearms-act-handbook
Read 7.2.3 in the Manufacturing section.  And yes, while the publication is entitled "The NFA Handbook" the description of the difference between manufacturing and gunsmithing is the same for both Title I and Title II firearms.


It says the difference is that a manufacturer prepares the firearm to be sold.  How is the OP doing that?
Link Posted: 1/5/2014 4:47:17 PM EDT
[#12]
I'll make it stupid simple

If a customer brings you his lower and asks you to add stuff to it such as a upper, etc. That is gunsmithing.

If you buy a lower and put a upper on it. You are manufacturing.

Sure you can get a 07 FFL and have the ability to be a dealer, manufacturer of ammunition, and firearms. However that $2250 ITAR is a turn off for most.
Link Posted: 3/13/2014 5:55:35 AM EDT
[#13]
I know this is a older thread but It has the same subject that I am interested in. I am preparing to get my 01  for sales and gunsmithing. It is my understanding that I can sell a customer a lower and a parts kit and gunsmithing services to assemble the weapon. Correct?  Or should they be considered two separate transactions?
Link Posted: 3/13/2014 6:33:35 AM EDT
[#14]
Lower on one invoice, LPK and gunsmithing on a second invoice.
Link Posted: 3/13/2014 6:55:46 AM EDT
[#15]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Lower on one invoice, LPK and gunsmithing on a second invoice.
View Quote


Thank you bubbles.
Link Posted: 4/19/2014 2:58:34 PM EDT
[#16]
This has been my take on it and the plan that I had for gunsmithing. Basically the firearm "lower" has to come in and go out in your book as the same type (other). Once transferred out of your book you can then build the lower for the receiving party.

Now tagging along to that, since a stripped lower or complete lower both transfer as an "other" assuming you don't live somewhere they have to be transferred as long gun like CA I believe it is. How would that go about putting together a few lowers and selling as complete to begin? Since they would in fact transfer the same as a stripped lower. Obviously the gunsmithing route is a more "secure" method of doing it, but have been curious as to this.
Link Posted: 4/19/2014 7:17:41 PM EDT
[#17]
Taking a stripped lower to a complete lower is also defined as manufacturing.
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