AR-15 assembly and sale hobby

Discussion in 'AR-15 Discussion' started by bige91603, Aug 14, 2012.

  1. bige91603

    bige91603 New Member

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    Is a permit/license (anything special) needed to assemble AR-15s and sell them as a hobby/side business? I feel as it is not but just want to make sure before I start
     
  2. purehavoc

    purehavoc New Member

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    Yes you are going to need a FFL .
     

  3. c3shooter

    c3shooter Administrator Staff Member

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    Yes indeedy that requires a license- probably several. To start with-

    A Type 7 Federal Firearms License- Title 1 manufacturer of firearms and ammunition, who may also act as dealer; may not manufacture or deal in destructive devices, ammunition for destructive devices, or armor piercing ammunition. Must also register with the Department Of State under the ITAR Current registration costs start at $2,250 per year. Can also manufacture & deal in Title II NFA firearms with class 2 tax stamp.

    You will also pay a Federal Excise Tax of rifles that you make. You will also need a business license, etc in order for the BATF to issue you a Type 7 FFL.
     
  4. JonM

    JonM Moderator

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    *edit* bahhhh C3 beat me to it

    yes. you need to have a FFL that allows the manufacture of firearms. buying a pre-assembled upper and a pre-assembled lower then you putting the two together and pushing the pins in and selling it for profit constiutes intent to manufacturer for profit. or any variation thereof.

    now that being said a lot of people have bought a rifle or put one together found something better and sold or traded for a different one. thats legal to do.

    the difference is doing it intentionally and making money at it as a hobby/business. when the atf tracks you down its going to be hard explaining that its just for fun if your not following the rules
     
  5. bige91603

    bige91603 New Member

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    Alright probably more than I would want to get in to right now being a college student. Maybe down the road. Thanks for all the help!
     
  6. CHLChris

    CHLChris New Member

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    That's lame!!

    I just had to say it. It seems like such an American impulse to want to buy parts, put them together, and sell the product. One shouldn't have to buy all sorts of expensive licenses.

    AAAAHHHHHHHH!!!!!!!!!

    Okay, now that that's out of my system. Just run the numbers and see if the licenses pencil out. But if you aren't doing anything but putting parts together, it probably won't pencil out since you aren't really adding a lot of value. Best of luck, though. I wish you didn't have to do all that extra stuff.
     
    Last edited: Aug 14, 2012
  7. mountainman13

    mountainman13 New Member

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    Huh? I need context
     
  8. CHLChris

    CHLChris New Member

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    What? The OP asked if he could sell AR-15's that he put together in his living room. c3shooter and JonM told the OP he needs to purchase and maintain at least a couple of licensures, including an FFL and ITAR something or other. Then I exclaimed that the OP shouldn't have to pay for licensure for that in this great country of ours with the right to keep and bear arms.

    All on the same page.

    I wasn't clear?
     
  9. mountainman13

    mountainman13 New Member

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    Ah, ok, I'm picking up what you're putting down. I wish it were that way.
     
  10. CHLChris

    CHLChris New Member

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    Okay, I edited a little to make it more clear.
     
  11. Quentin

    Quentin New Member

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    Now if you wanted to charge a little to help people put together their AR you might avoid the FFL. They of course would have to buy the parts, especially the lower receiver.

    Still, if you're making money as a business you'd have to check into laws that pertain. And what if a rifle blew up in someone's face. I don't know, how about for a sideline building bicycles for other students? :D
     
  12. X-mark

    X-mark New Member

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    If you want to build something and avoid the licenses, you can consider building complete uppers...which can sell very well on its own!
     
  13. bige91603

    bige91603 New Member

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    That is actually a great idea, especially because my lgs sells lowers but not uppers at all
     
  14. CHLChris

    CHLChris New Member

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    And uppers aren't firearms. Perhaps you could skip all of the FFL side of things...

    But definitely don't take legal advice from me!