Responsible Person on Type 07 FFL

Discussion in 'NFA/Class 3 & FFL Discussion' started by kcjdf, Apr 1, 2018.

  1. kcjdf

    kcjdf New Member

    I have been scouring the web looking for this answer, and before asking it of the IOI, I thought I'd post here (and maybe help someone else looking in the future).

    I am being listed as a Responsible Person on an FFL (all paperwork submitted, fees paid, just waiting at this point). As many know, the definition of the term is extremely vague. The only information I have been able to find basically states that a responsible person is someone who has authority to conduct the business of the FFL as it pertains to firearms. Other places state that they should be willing to treat the FFL as their own.

    The problem is that I haven't found any information about how this relates to the business conducted by a type 07 (manufacturer) FFL. Is a responsible person allowed to manufacture since that is the "business" of the FFL, or is it limited to book-keeping, sales, etc?

    If you know, please state your source (experience, conversation with IOI, you ARE a type 07 and have people working with you, etc)...
  2. FFL01user

    FFL01user Active Member

    Being listed as a responsible person under a 07 FFL is no different than if it was a 01 FFL. The responsible person essentially becomes an officer of the business - "a Responsible Person is, in the case of a Corporation, Partnership, or Association, any
    individual possessing, directly or indirectly, the power to direct or cause the direction of the management, policies, and practices of the Corporation, Partnership, or Association, insofar as they pertain to firearms".
    That person can run the business and effect changes to the practices and policies of that business. The responsible person becomes part of that FFL and can manufacture under that FFL just like an employee of that business can.
    Think of a big box store selling firearms (Dick's, Cabela's, etc.). The guy behind the counter is not a responsible person under that businesses FFL. He cannot change or dictate business practices or sign documents for the business. He is an employee selling firearms under that businesses license. Same thing for a 07. Employees of the business do the manufacturing, but they are not responsible persons under that businesses license.
    Google your query and read the instructions for ATF form 07. There's a lot of information out there.
    In a nutshell, the responsible person can be as liable for any claims, judgements, lawsuits etc. against the business as the person named on the FFL.
    My sons can conduct business under my FFL as they can be considered simple employees. I am responsible for everything they may do. Would I ever list them as responsible persons? No way...