I was just wondering. Does one need any type of FFL license to sell ARs that one assembles himself??
How many? How often?
Those two questions need answers, before a definitive yes or no can be provided to your question.
ETA: If you’re referring to producing future rifles, with the sole intention of selling them, then yes you do need an FFL. You’ll become a gun dealer at that point and require licensing. If you’re talking about rifles you already made and had intended to keep, but are now wanting to sell, that’s different.
I really don’t know. I’m just asking because I am receiving some inquiries. Is it 6 per year?
If you are selling off guns that you owned/purchased with the intent to once keep, but later decided to sell for profit… that’s one thing. And legal. Even a large estate collection.
If you’re looking to assemble and sell guns for a profit (business) or are selling off large collections, finding more, reselling, etc… that’s entirely different… and requires the appropriate licensing (FFL).
Not sure if there is a magic number or not, without delving back into the regulations myself… but honestly would err on the side of caution and avoid the BATFE’s radar at all costs.
Cliffnotes: If you’re looking to assemble and sell rifles to people, you need an FFL.
Call your local ATF field office. They were real helpful and frieldnly when I called with questions.
Thanks for the info guys. I really appreciate it!
Thats most likely going to be your best route. They may have to transfer you around, but try and get a copy of the section they reference; and follow it to the letter.
Thanks guys. I will call the New Orleans BATF Field Office tomorrow. Better safe than sorry
Every state has different gun laws. Good move in contacting your local BATF.
If you are “engaged in the business” of selling firearms, you need a license.
The law defines being "engaged in the business this way:
(D) as applied to a dealer in firearms, as defined in section 921 (a)(11)(B), a person who devotes time, attention, and labor to engaging in such activity as a regular course of trade or business with the principal objective of livelihood and profit, but such term shall not include a person who makes occasional repairs of firearms, or who occasionally fits special barrels, stocks, or trigger mechanisms to firearms;
I don’t think there is a magic number of gun sales permitted before one is thought to be doing it as a business, but case law I have read cited both replenishment of inventory, that is, buying another example of a type of gun recently sold, and buying/selling multiples of the same make/model firearm. Those examples were used as evidence that the defendants were dealing without a license.
I can guarantee that if you tell ATF that you will be buying AR lowers, with the principal intent to resell later, they will say you need a license.
I went down this path and got all the info and for me it wasn’t worth all the hassle. To be completely on the up and up you need an 07 FFL(manufacturer) not just an 01(dealer). You dont necessarily need an 01, but then you can run background checks and sell direct, otherwise I was advised to hook up with an 01 and sell them the rifle and then have them sell it to your customer. If you build over a certain amount per year(I think it was 50, but I cant quite remember, might have been 60) you have to then comply with the FET rules, which can require big money up front.
What was advised to me was to simply have the person who wanted the rifle purchase the lower and have you assemble it for them or advise them on the assembly. You could purchase all of the other non-FFL parts. I am guessing this would be for friends and everybody is local. For me, I had a lot of co-workers who live around the country who wanted me to build them, for this I would have had to get an FFL because I was going to have to buy the lower and do everything and then ship them the rifle.
I am sure there are others who can speak more to this like Grant who actually does this stuff for a living. I chose not to even go down the path because it was to much of a hassle for me to produce less than 50 guns per year and I personally wasn’t going to be doing it for a living.
Thanks. I’m still researching the whole process, so if anyone can give further info, I’d appreciate it.