Quoted: I have read over the threads on getting a Class III MG. Am I correct in thinking it's a $200 tax, FBI check and a letter from my CLEO. The only tough part is the CLEO, right?
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Yes and no. The CLEO needs to directly sign your form 4. You don't need a letter or anything else like that.
The $200 tax is applied for each form 4 transfer. If your in state and buy from an individual, that is one transfer. Or if you buy from a Class III dealer (form 3 to form 4) that is one transfer. However, if you buy from an individual out of state, you have to pay two transfers (which you can work out with the seller). It would go something like this: Seller to Class III dealer in his/her state (Form 4 to Form 3) $200 tax. Dealer to Dealer (Form 3 to Form 3) no tax. Dealer in your state to you (Form 3 to Form 4) $200 tax. Bottom line is there can be a $400 tax involved if you buy out of state.
Also, are there MG kits you can buy to assemble or do you have to buy one that was built before a certain date.
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You could buy a Lightning link, Drop in Autosear, or a registered receiver and build the rifle around the registered part. However, most RRs come with the full gun. (Note: I would recommend a RR).
Lastly, can you convert a AR15 to an M16 by buying the correct parts, legally I mean??
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The answer to the question I think your asking is no. However, if you buy a registered DIAS or LL, you can add those to a pre-existing gun (since it is the DIAS and/or LL that is the registered part.