Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
BCM
User Panel

Site Notices
Posted: 4/30/2015 12:03:16 AM EDT
Planning on doing transfers for people. Also planning on building ar's. Planning on doing it for profit. Planning on doing it out of my home. Planning on doing gun repairs and refinishes. Planning on getting a professional hot bluing set up And putting that in a shed a safe distance from house. looks like i would have to pay fee for type 1 and 7 for a total of $350. would like to set my hours by appointment only. Planning on not having stock on hand but more of a catalog of firearms i could order for people. Maybe a web site. Bluing and transfers being the main focus.  And if i had to set hours it would be Monday only. Any knowledgeable info would be appreciated.
Link Posted: 4/30/2015 1:25:58 AM EDT
[#1]
Insurance..? You will be holding others property for days weeks. Liability Insurance ?
Zoning.. You need to check it ?
Refinishing.. You need 2 1/2 horse motors w/dual spindles  and 3 polishing wheels.. I forget 6 or 8 inch ? with different grit.plus matchless cloth wheel Minimum. And room to do the work on the wheels .maybe a bead blaster.
Bluing.. You will need lots of fresh air. Blueing is caustic .zoning again..! EPA ? Spill mitigation ? Propane burners.. Water near by.
At least 2 work tables 5' long and deep enough to hold tool boxes etc.. and still have 1.5' of clear space for assembly and disassembly.
Significant pile of tools...a shit ton actually !
AR Work.. See above
Transfers and ATF--- Bound Book ? Old school hand written everything or Computer ? If computer...software ?

You are looking at pretty good coin just to get started !  

Link Posted: 4/30/2015 1:55:26 AM EDT
[#2]
I have most the tools and access to a small machine shop lathe, mill, and tooling. blueing may need to be forgotten. Due to epa type problems. I dont know about zoning but its a house. Im eye sight from two auto garages and a railroad and I can see a metal working factory that does many things by the railroad. And just around the corner is two high tec machinery shops. One makes air crafts parts and the other plastic pellet machinery for dow. But i dont know. I was planning on doing paper and filing for records. I currently have about 600 sqft of ground level space that is open i can dedicate. I have no idea about insurance. Thank you for the response. Maybe just repairs and transfers. Ive been doing repairs for years but for friends and had them bring it and leave with it while i wait for parts. I was going to lag bolt cabinets to the block walls I also may be able to get an old credit union safe a friend has offered me.
Link Posted: 4/30/2015 7:08:29 AM EDT
[#3]
If you have a Type 7 (manufacturer), you don't need the Type 1, but you will be subject to ITAR which is $2K+. I forget the exact figure...
Link Posted: 4/30/2015 7:21:38 AM EDT
[#4]
What AlabamaPaul said.  Type 07 FFL plus ITAR ($2250/year).  Do you have a business plan?
Link Posted: 4/30/2015 7:45:24 AM EDT
[#5]
Zoning? Don't waste your time even applying until you've checked if you can operate out of your home.
Link Posted: 4/30/2015 2:23:50 PM EDT
[#6]
These are exactly the things i want to hear. That i didn't find while poking around. Im reading into the itar but sounds like a Pain in the A. Thank you for your very educated responses.
Link Posted: 4/30/2015 4:35:18 PM EDT
[#7]
If paying ITAR will make or break you then you need to rethink your business plan.
Link Posted: 4/30/2015 7:54:01 PM EDT
[#8]
it was more of a side business idea but it would take a lot of 20$ transfers to make up that 2250 tax. in my area there are people wanting 40-50 for transfers so there is hole in the market and most dealers wont touch internet stuff. and no one does bluing locally. closest is over an hour away.
Link Posted: 4/30/2015 7:57:17 PM EDT
[#9]
i have back burnered the idea for now. im also in the process of renewing my lapsed builders licence. a much less troubling business.  I have gotten tired of others getting rich off my hard labor.
Link Posted: 4/30/2015 8:11:02 PM EDT
[#10]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
it was more of a side business idea but it would take a lot of 20$ transfers to make up that 2250 tax.....
View Quote

You don't need to pay ITAR unless you are manufacturing items on the ITAR list.
Link Posted: 4/30/2015 11:04:52 PM EDT
[#11]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

You don't need to pay ITAR unless you are manufacturing items on the ITAR list.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
it was more of a side business idea but it would take a lot of 20$ transfers to make up that 2250 tax.....

You don't need to pay ITAR unless you are manufacturing items on the ITAR list.

This.  Get the 01 for gunsmithing and transfers, dump the cobble together AR's plan, which is what requires the 07.  Besides, with lowers and parts super cheap these days most people DIY anyway, we have an 07 and do maybe 3 AR's a year.  There's more money in fixing them than making them.
Link Posted: 5/1/2015 5:31:47 PM EDT
[#12]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

This.  Get the 01 for gunsmithing and transfers, dump the cobble together AR's plan, which is what requires the 07.  Besides, with lowers and parts super cheap these days most people DIY anyway, we have an 07 and do maybe 3 AR's a year.  There's more money in fixing them than making them.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
it was more of a side business idea but it would take a lot of 20$ transfers to make up that 2250 tax.....

You don't need to pay ITAR unless you are manufacturing items on the ITAR list.

This.  Get the 01 for gunsmithing and transfers, dump the cobble together AR's plan, which is what requires the 07.  Besides, with lowers and parts super cheap these days most people DIY anyway, we have an 07 and do maybe 3 AR's a year.  There's more money in fixing them than making them.

this. Also thank you all for the great very on point advice
Link Posted: 5/6/2015 8:53:12 AM EDT
[#13]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

This.  Get the 01 for gunsmithing and transfers, dump the cobble together AR's plan, which is what requires the 07.  Besides, with lowers and parts super cheap these days most people DIY anyway, we have an 07 and do maybe 3 AR's a year.  There's more money in fixing them than making them.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
it was more of a side business idea but it would take a lot of 20$ transfers to make up that 2250 tax.....

You don't need to pay ITAR unless you are manufacturing items on the ITAR list.

This.  Get the 01 for gunsmithing and transfers, dump the cobble together AR's plan, which is what requires the 07.  Besides, with lowers and parts super cheap these days most people DIY anyway, we have an 07 and do maybe 3 AR's a year.  There's more money in fixing them than making them.



I always chuckle at the "build AR's" part of a business proposal. Who pays somebody else to build an AR for them? You either buy a factory gun or build one yourself. It's not like there's a steep learning curve for wielding a pin punch. It's a questionable business model to assume that once you have hobbled together a couple of AR rifles the world is going to beat a path to your door to benefit from your vast skill.
Link Posted: 5/6/2015 9:22:38 AM EDT
[#14]
Discussion ForumsJump to Quoted PostQuote History
Quoted:



I always chuckle at the "build AR's" part of a business proposal. Who pays somebody else to build an AR for them? You either buy a factory gun or build one yourself. It's not like there's a steep learning curve for wielding a pin punch. It's a questionable business model to assume that once you have hobbled together a couple of AR rifles the world is going to beat a path to your door to benefit from your vast skill.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
Quoted:
it was more of a side business idea but it would take a lot of 20$ transfers to make up that 2250 tax.....

You don't need to pay ITAR unless you are manufacturing items on the ITAR list.

This.  Get the 01 for gunsmithing and transfers, dump the cobble together AR's plan, which is what requires the 07.  Besides, with lowers and parts super cheap these days most people DIY anyway, we have an 07 and do maybe 3 AR's a year.  There's more money in fixing them than making them.



I always chuckle at the "build AR's" part of a business proposal. Who pays somebody else to build an AR for them? You either buy a factory gun or build one yourself. It's not like there's a steep learning curve for wielding a pin punch. It's a questionable business model to assume that once you have hobbled together a couple of AR rifles the world is going to beat a path to your door to benefit from your vast skill.

Two years ago at the Dallas Market Hall show I was three tables away from a dealer selling $699 AR's that he was building in his shop from parts........he sold 150+ that weekend. I cringe at the thought of where he sourced his parts kits, barrels, etc.  His lowers were a hodgpodge of brands.

I'm sure he turned a profit because he was there for 4-5 shows and probably did other shows as well. He disappeared this time last year when gun prices plummeted.

There will always be the buyer who has no interest in building his own, but wants something custom. They are few and far between in the AR world.
Link Posted: 5/6/2015 11:17:50 AM EDT
[#15]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

Two years ago at the Dallas Market Hall show I was three tables away from a dealer selling $699 AR's that he was building in his shop from parts........he sold 150+ that weekend. I cringe at the thought of where he sourced his parts kits, barrels, etc.  His lowers were a hodgpodge of brands.

I'm sure he turned a profit because he was there for 4-5 shows and probably did other shows as well. He disappeared this time last year when gun prices plummeted.

There will always be the buyer who has no interest in building his own, but wants something custom. They are few and far between in the AR world.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
Quoted:
Quoted:
it was more of a side business idea but it would take a lot of 20$ transfers to make up that 2250 tax.....

You don't need to pay ITAR unless you are manufacturing items on the ITAR list.

This.  Get the 01 for gunsmithing and transfers, dump the cobble together AR's plan, which is what requires the 07.  Besides, with lowers and parts super cheap these days most people DIY anyway, we have an 07 and do maybe 3 AR's a year.  There's more money in fixing them than making them.



I always chuckle at the "build AR's" part of a business proposal. Who pays somebody else to build an AR for them? You either buy a factory gun or build one yourself. It's not like there's a steep learning curve for wielding a pin punch. It's a questionable business model to assume that once you have hobbled together a couple of AR rifles the world is going to beat a path to your door to benefit from your vast skill.

Two years ago at the Dallas Market Hall show I was three tables away from a dealer selling $699 AR's that he was building in his shop from parts........he sold 150+ that weekend. I cringe at the thought of where he sourced his parts kits, barrels, etc.  His lowers were a hodgpodge of brands.

I'm sure he turned a profit because he was there for 4-5 shows and probably did other shows as well. He disappeared this time last year when gun prices plummeted.

There will always be the buyer who has no interest in building his own, but wants something custom. They are few and far between in the AR world.

Does buying a complete lower ($149 PSA or such) and a complete upper constitue "building" and need an 07?
Link Posted: 5/6/2015 11:30:25 AM EDT
[#16]
Yep. The receiver would come in as an "Other" and leave as a "Rifle", so something happened in between.



You could build up the lower and upper to market as a kit though...
Link Posted: 5/6/2015 12:24:39 PM EDT
[#17]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Yep. The receiver would come in as an "Other" and leave as a "Rifle", so something happened in between.

You could build up the lower and upper to market as a kit though...
View Quote

I don't think you can build the lowers either. Need to be sold as received as far as I know.
Link Posted: 5/6/2015 1:27:19 PM EDT
[#18]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Yep. The receiver would come in as an "Other" and leave as a "Rifle", so something happened in between.

You could build up the lower and upper to market as a kit though...
View Quote

Nope.  ATF-TTB nixed that years ago, the feds want their FAET.  An 01 caught doing it is at risk of getting nailed for tax evasion.

Similarly an 01 can't take in a stripped receiver and sell it as a complete receiver.  ATF has drawn lines on gunsmithing versus manufacturing.
Link Posted: 5/6/2015 2:44:00 PM EDT
[#19]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Similarly an 01 can't take in a stripped receiver and sell it as a complete receiver....
View Quote

It's still a receiver. Shouldn't change anything.
Link Posted: 5/6/2015 2:52:36 PM EDT
[#20]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

It's still a receiver. Shouldn't change anything.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Similarly an 01 can't take in a stripped receiver and sell it as a complete receiver....

It's still a receiver. Shouldn't change anything.

You know that.  I know that.  Hell it should be obvious to anyone with a clue BUT we're talking about a tax and regulatory agency.  The only difference between the ATF and the IRS is the IRS gives more consistent answers to tax questions.
Link Posted: 5/6/2015 3:10:42 PM EDT
[#21]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

It's still a receiver. Shouldn't change anything.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Similarly an 01 can't take in a stripped receiver and sell it as a complete receiver....

It's still a receiver. Shouldn't change anything.

How is that any different than strapping parts on a gun to sell which they nixed also. It's been a long time since I saw the memo/letter whatever but my impression was you couldn't improve or add to a gun unless you sold it and then took it in and did so after the fact for the customer.

Sell stripped + parts kit to customer after transfer is complete you can install the kit as a gunsmith for the customer.


Been a while since I've been behind the counter so I haven't followed as much as I should recently.
Close Join Our Mail List to Stay Up To Date! Win a FREE Membership!

Sign up for the ARFCOM weekly newsletter and be entered to win a free ARFCOM membership. One new winner* is announced every week!

You will receive an email every Friday morning featuring the latest chatter from the hottest topics, breaking news surrounding legislation, as well as exclusive deals only available to ARFCOM email subscribers.


By signing up you agree to our User Agreement. *Must have a registered ARFCOM account to win.
Top Top