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Posted: 3/1/2002 5:56:23 PM EDT
How does a guy get into the business of making guns at a cost low enough to sell for a profit?
Link Posted: 3/1/2002 6:27:15 PM EDT
As I understand it, you cannot "assemble" or "make" firearms for sale unless you have the appropriate licenses and have paid the appropriate taxes.

As for the economics of firearms manufacturing and retail, you'd better ask the pros.
Link Posted: 3/1/2002 9:47:30 PM EDT
[Last Edit: 3/2/2002 8:10:26 AM EDT by mattsd]
*********************************************­*********disclaimer,i am no lawyer , so fuck you if thier is a problem what i say *******************************************­*********************************************­****

um, get an ffl, thats not very expensive, and buy receivers and assymble them on kits. thats not really manfacturing, more like actingas an armorer.
Link Posted: 3/1/2002 10:07:24 PM EDT
Negatory. You need both a federal manufacturing license and you have to collect the excise tax that firearms and ammo manufacturers must charge all customers except LE and the U.S. Military. (That's why some pump shotguns and some ammo is marked LE only: To indicate the excise tax has not been paid. It has nothing to do with the products themselves.)

Even building from completed virgin receivers is iffy. While the receiver's manufacturer has paid excise tax on it, it's only for the value of the receiver. When you buy the other parts, no excise tax has been paid on them, and so the government considers this cheating them out of some of their due.

Remember, BATF is (and was designed to be) a tax collection agency. It's the only one with its own SWAT team, though.

The odds are, if ya build a coupla guns for some buddies, the BATF will ignore you, but when strangers start showing up with cash in hand, better put on yr vest and call Randy Weaver's lawyers.

Link Posted: 3/2/2002 4:10:50 AM EDT
[Last Edit: 3/2/2002 6:39:57 AM EDT by Hermit]
Matt,, You gonna give advice like that you better volunteer yourself to be the persons wife in the big house. Tony has it dead on with his post too. It used to be easy but times have changed with the Feds wanting to collect more taxes. If you are going to sell "engaged in the business" you need an 07 maufacturers license and you need to pay FET, federal excise tax on all firearms manufactured. The ATF definition of "manufacturer" also includes "part time" and the definition of "manufacturing" is not what you would think it is. A bag of all the parts to make a rifle is a "firearm" "manufactured rifle" by definition even before assembly. Notice how 98% companies sell a stripped lower seperate from the rest? And that if it is a complete kit it says FET paid? That is how they avoid FET paperwork and taxes making the person in possesion of all the parts the manufacturer. If you buy a lower then a kit and assemble YOU are the manufacturer and could be liable for the tax. It is tricky for a gunsmith, non mfg to do also. If he builds and sells it there is tax to pay and if he builds it for you out of your supplied parts you are the manufacturer and technically tax is due when a manufactured weapon is "sold" or "put into use". ATF does allow individuals to build a firearm for their own use under their guidelines but the minute you "engage in the business" you need an 07 lic. People also don't know the fine line between a gunsmith with a regular ffl and an 07 ffl. All about paying 11%, 10% on pistols for all manufactured firearms, ammo too. Everyone be careful orange pajamas suk. I call a local ATF office when I have questions and they are helpful people. Hermit
Link Posted: 3/2/2002 7:05:14 AM EDT
Don't worry Matt. You can be my bitchThe way things are going we may all be in the pen anyway. They'll probably have to grant early release to murderers and rapists to make room for all of us.
Link Posted: 3/2/2002 7:23:43 AM EDT
[Last Edit: 3/2/2002 7:25:04 AM EDT by shaggy]
I'll probably get flamed for saying it, but what the hell...

Even if you're just going to assemble the guns, in addition to making sure you have all the appropriate licenses and paid the excise taxes, you should also make sure you have plenty of liability insurance. If one gun has a problem which causes an injury, you, the manufacturer(s) of the parts, and the manufacturer of the ammo will be sued for everything you're worth (and more).
Link Posted: 3/2/2002 9:51:35 AM EDT
Shaggy,, I don't think anyone is going to flame you for that, a good point indeed. While I don't think properly assembled rifles from quality parts will ever be a problem unless you are in front ot the business end. But there is always the Bubba out there with a pocket full of home made proof loads that are "really going to impress" the buddies at the gravel pit.
There are 2 schools of thought here though on liability ins. If you have insurance some scumsucker is definetely glomming on and comming after whatever you have. If you have no insurance and no assets they will spend their energy on fatter fawns? Hermit

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