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Can you be appointment only? No.
How long minimum do you have to be open? Can your bussiness be a part of the household?
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BATF will permit a home based business if zoning allows it. It is difficult to do without a commercial front but if you are a shooting range, and your open for example fri, sat, sun. then there shouldn't be a problem, there is signage that you have to have posted at your point-of-sale etc. All transfers have to take place at the licensed location.
If you only do rentals and do not sell C3s can you stay in bussiness in the eyes of the ATF?
>>>>BATF wouldn't find that kind of operation favorable at all if you are a C2 manufacturing MG's. You could be a private NFA owner and rent your MG's all you want or a 01/C3 dealer and rent. But if you start a business strickly for building post-ban MG's to rent, you ain't going to last long.<<<
There is a range locally that rents several post samples. How did they do it?
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If they are in the business of selling C3 weapons with transfers on the books and they happen to have post samples in inventory, BATF probably won't say much. Remember to get a post sample, you need a PD letter. Now if you are in the business strickly for rentals, you will still need a PD letter to get a post-sample weapon. You should demo that weapon to the PD that requested it. If you are trying to obtain post-samples for the purpose of rentals, then you are breaking the law.
BATF does't permit you to be a dealer for the purpose of getting around the Tax.
Im not worried about a tax. If I do this it will be for a profit.
That is tax evasion pure and simple. Being a NFA mfr. for the purpose of having cheap shooters is not permitted either.
Nope. If we went into bussiness we would probably rent 8 guns and have 2 personal ones.
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Let me try to clarify this further.
All transferable machine guns can be owned by private citizens, they are received on a [b]Form4 [/b]there is a $200 transfer tax per NFA item.
Class 3 dealers can possess pre-May 86 dealer samples and keep them once their SOT or FFL expires.
C3 dealers can possess post-may 86 dealer samples if requested by a PD for the purpose of a sales demo.
If the dealer allows the SOT to lapse, they weapons must be cut up or sold prior to the SOT expiring.
When a C3 dealer aquires a pre-may or post-may sample, he receives them on a [b]Form 3[/b], a tax exempt transfer, no $200. Just like when you buy goods for resale and you don't pay state sales tax. If you use your C3 (or state sales tax ID) to avoid paying the $200 transfer tax (or sales tax) you are breaking the law, and BATF has prosecuted people for this.
If you bought transferable machine guns on a Form 4 for a rental operation, there would be no questions because you would pay $200 on each one.
[b]Best thing I can do is recommend you buy the Machine Gun Dealers Bible by Dan Shea. You can get it from the Small Arms Review website. [/b]
Again to clairify things further:
A type 07 and a SOT and the State Dept fee makes you a [b]Class 2 manufacturer[/b] you will have to meet environmental standards.
A type 01 and a SOT makes you a FFL that can buy & sell machine guns.
Here is what I would do if I were you:
1. Form a corporation, ABC Gun Club LLC or what ever.
2. Buy transferable machine guns. With the Corp, you don't need to go thru the fingerprint and LEO signoff and the transfer only takes 30 days instead of 6 months. Start with one or two fun guns, 1919's are a good deal right now. As you make money, buy more and add them to your inventory. By taking this approach, BATF is out of the picture totally. You don't have to worry about any legal compliance, inspections, getting PD demo letters, doing the demos, having transfers on your books to legitimize your license, keeping all the paperwork. Etc. Just for the BATF fees, you will pay $700 out of pocket up front then $500 every year for the SOT. THe SOT isn't prorated, it runs from July 1 to June 30 so if you pay now, you will pay $500 again July 1. For the first two years, thats $1200 in fees. That's 6 $200 private transfers without the hassle of BATF. Yes, trasnferables cost more. But what other commodity do you know of that you can buy,use, then resale for more than you paid for it? Take out a home eq loan to buy your first transferable MG(s). Get your rental business going and you will be set without gov't looking over your shoulder.