I am grateful for everyone's input. After playing phone tag with the ATF lady for 2 weeks I straight up asked Do I have to register myself as a business in order to use this license? I have no intention of selling or swapping with other licensees and only buy one or 2 rifles a year. The response was as clear and straight foreward.
According to the ATF in order to qualify as a C&R the weapon must be classified as a C&R. I think this was a "DUH" answer, but the next I think will help will help any future members with this question out.
The ATF has no problem with anyone applying and authorizing an FFL-03, however the State of NJ does. This State does not recognize anyone having an FFL-03. Even though said weapon(s) were all purchased legally the State can come a knockin' and give you grief.
AT this time I withdrew my request mainly because my wife is going through some medical issues right now and don't need the added aggrevation of having someone come to my home and ask to see what I have and my C&R book.