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Posted: 3/24/2011 9:52:51 PM EDT
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I am starting my endeavor to acquire an FFL for my LLC. It will be home based for the start (may change in the future).
What I want to do is deal and assemble firearms. My question is, if I am going to assemble/manufacture firearms, do I need an type 01 to deal, AND a type 07 to manufacture? Or can I get away with just a type 07 and be able to deal with that? |
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Per ATF website:
Q: Does an importer or manufacturer of firearms also need a dealer’s license? No, as long as the importer or manufacturer is engaged in the business of dealing in firearms at the licensed premises in the same type of firearms authorized by the importer’s or manufacturer’s license.
[27 CFR 478.41(b)] |
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Quoted:
Just in case you weren't familiar, if you are a manufacturer, you will be required to pay ITAR registration fees which are $2250 a year. I keep reading that you have to pay ITAR.... I also keep reading ITAR is optional if your not intending to export.... Where can I find the correct information? |
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Quoted:
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Just in case you weren't familiar, if you are a manufacturer, you will be required to pay ITAR registration fees which are $2250 a year. I keep reading that you have to pay ITAR.... I also keep reading ITAR is optional if your not intending to export.... Where can I find the correct information? Click here and go to section 122.1 (a) where you'll read: Any person who engages in the United States in the business of either manufacturing or exporting defense articles or furnishing defense services is required to register" There are a few exceptions but I don't see anything that is worthwhile unless you only plan on making "sporting" shotguns. You can find the main site here It sucks but I think it's pretty clear, I didn't want to believe it either. |
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Ahh... FML
Here's the deal - I like to build guns as a hobby. I would also like to get an FFL to deal firearms on the side. A few buddies of mine want me to build them a rifle. So for me to get them a receiver, and build them the rifle they want... It's going to cost me $2,500 a year just for a very very small business on the side? I really hate the R/W/B weenie... |
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Well from what I've read there may be a few legal options. Check out this FAQ from the ATF scroll to the bottom and look at number 5. Looks like that may fit your needs. Just buy and transfer the receiver make sure to transfer it OUT in your book as a sale and then IN for gunsmithing. The distinction all seems to be in the timing so you may get away with just a type 1 instead of a 7. It still may be worth getting the 7 if you thought you might grow down the road, nothing says you have to start manufacturing right away.
Of course this is all just my humble opinion, I"m not a lawyer so this isn't legal advice. But I did stay at a Holiday Inn Express last night :) |
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I've thought about that, and that's probably the way I will go.
Can someone interpret #6 for me? #6
A company acquires one receiver, assembles one firearm, and sells the firearm. The company is not manufacturing firearms as a regular course of trade or business and is not engaged in the business of manufacturing firearms. This company does not need to be licensed as a manufacturer. |
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Quoted:
I've thought about that, and that's probably the way I will go. Can someone interpret #6 for me? #6
A company acquires one receiver, assembles one firearm, and sells the firearm. The company is not manufacturing firearms as a regular course of trade or business and is not engaged in the business of manufacturing firearms. This company does not need to be licensed as a manufacturer. It means you did it ONE time, not as a regular course of business. |
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Quoted:
Quoted:
I've thought about that, and that's probably the way I will go. Can someone interpret #6 for me? #6
A company acquires one receiver, assembles one firearm, and sells the firearm. The company is not manufacturing firearms as a regular course of trade or business and is not engaged in the business of manufacturing firearms. This company does not need to be licensed as a manufacturer. It means you did it ONE time, not as a regular course of business. Sounds good to me. I'm not looking to build firearms for a business. I just have some friends that want a rifle by their means. But on the other hand, I do want to be a dealer and/or transfers on the side. Not looking to make a living off this, but more so as a hobby and help with other areas of money. Thanks guys. |
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Quoted: Quoted: Quoted: I've thought about that, and that's probably the way I will go. Can someone interpret #6 for me? #6 A company acquires one receiver, assembles one firearm, and sells the firearm. The company is not manufacturing firearms as a regular course of trade or business and is not engaged in the business of manufacturing firearms. This company does not need to be licensed as a manufacturer. It means you did it ONE time, not as a regular course of business. Sounds good to me. I'm not looking to build firearms for a business. I just have some friends that want a rifle by their means. But on the other hand, I do want to be a dealer and/or transfers on the side. Not looking to make a living off this, but more so as a hobby and help with other areas of money. Thanks guys. If you are not wanting to be a full on manufacturer, why don't you help them make their selections for parts. Then go to their house for an evening and teach them how to build the rifle and let them do the work while you assist and have a few tasty cocktails? |
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