Finally decided to apply for my FFL

[Yankee1956]

As the title says, I had my town meeting last week for zone approval (with conditions)and just today got my LLC acceptance! Now the big question, 01 or 07? I had originally wanted my 01 to buy AR's for resale and save on the transfer fee's since that cuts into my bottom line. I was reading more into it and I may actually need a 07 for what I want to do? Basically buy AR's and strip them,sell the parts individually, including the receivers.. but would this constitute manufacturing? Bound book would read Rifle in, Other out? That doesn't sound like it would fly with a 01? Obviously I know if I buy a stripped lower and build it up into a functional AR that is manufacturing,but what about disassembly?
I'm going to call ATF tech branch tomorrow to get a definite answer,but what do some of you think?

 

[quinnjalan]

07 with SOT. Might as well have all the fun since you are going to the bother.

 

[KBCraig]

My first thought was to question that business model, then I remembered that I get ads for complete ARs for way less than the sum of the parts.

So sure, go for that if you want to do all the breakdown and sell individual parts or parts kits. Stripped lowers are so cheap that you could probably destroy those and not worry about how to log them out (you shouldn't, because that's a real dick move).

If I was doing anything other an 03 (CRFFL), and I had the cash, I'd go 07 SOT for sure. Lots of toys are available with that ticket that you can't get otherwise. And you can do transfers.

 

[Uzi2]

07 SOT

 

[gerrycaruso]

It's my understanding that an 01 is a dealer's license and an 07 is a manufacturer's license. If this is correct, get an 07 and make yourself an inexpensive machinegun.

 

[Lank]

How much of a PITA was it?

Hiw much did it cost end to end?

 

[kingson]

An 01 FFL is to deal in firearms, ie buy and sell. An 07 FFL can do all the same things as an 01 FFL but they can also manufacture firearms. Just remember if as an 07 you manufacture and put into commerce (ie sell) over 50 firearms a year you will have to pay the excise tax on all the 50 guns you manufactured and any over that. If you keep it under 50 then no excise tax.
If you where to get an SOT with an 01 FFL then you can deal in NFA items.
If you get a SOT with an 07 FFL you can deal and make NFA items. You can also purchase no law letter machine gun.
The SOT is $1000 a year if you do over $500000 a year in sales or $500 if you do under that.
01 FFL cost $200 for the application and $90 on the renewal (every 3 years)
07 FFL cost $150 for application and $150 on the renewal (every 3 years)
With an 07 FFL you need to file a report on all the types of guns you manufactured and put into commerce. It's easy to do.

It all depends on what you want to do. Do you want to buy and sell firearms or do you want to have the option of making them and also buy and sell them? An 07 gives you that option.

 

[hv55maxx]

I took it a few years ago now, but i think it was a Jim Finnerty class on "How to FFL." He does the mass reloading biz. His was pretty Mass heavy, but generl FFL topics were covered. FFL123 .com is also a good program. The $50 is worth the tips.

 

[DarthRevan]

As stated already, you want 07

 

[Yankee1956]

Seems as the consensus is to go with the 07, which I will do. I love building guns and it's my passion.I'm pretty good at building AK's, got all the jigs,presses etc. AR's are cool too but to me they are like Legos. I'm already in the process of getting my office area set up in the basement (finished basement) getting my security in order and have a nice 42 gun Liberty Safe in my shopping cart. So far it's a lot of work having new floors put in,paint,setting up my PC/Desk area and file cabinet. Already bought my bound book too! A little nervous about the IOI interview not gonna lie, but I have all my ducks in a row

Not looking to make a living off of this, more as a hobby I enjoy, helps my wife is the bread winner and my financer. If this turns out to make some good money so be it but not looking to get rich haha, more like something to do.
I've started looking for distributors also, Lipsey's, PSA,Silencer Shop etc but obviously waiting to get my 07 before i apply.
I will see how the 07 works out and then get my 02 to further the business. Time will tell...
This is my first real business venture, I'm excited to see what happens. As always Feedback/Advice is much appreciated!

 

[Yankee1956]

It's my understanding that an 01 is a dealer's license and an 07 is a manufacturer's license. If this is correct, get an 07 and make yourself an inexpensive machinegun.

My first would most likely be a Sten

 

[dcmdon]

An 07 can do anything an 01 can do.
There are a ton of things an 07 can do that an 01 can't do.

Add a class 2 SOT to an 07 and you can pretty much build or buy anything.

Always wanted a select fire M4? Well you can build one for $600 if you are really thrifty.

Been dreaming about an integrally suppressed, select fire HK MP5-SD since you were just a pup? Well, you can build one for about $2800.

There is a slight difference in cost.
01 - $200 for initial application. $100 per renewal.
07 - $150 for both initial application and renewal.

 

[JDL]

My first thought was to question that business model, then I remembered that I get ads for complete ARs for way less than the sum of the parts.

So sure, go for that if you want to do all the breakdown and sell individual parts or parts kits. Stripped lowers are so cheap that you could probably destroy those and not worry about how to log them out (you shouldn't, because that's a real dick move).

If I was doing anything other an 03 (CRFFL), and I had the cash, I'd go 07 SOT for sure. Lots of toys are available with that ticket that you can't get otherwise. And you can do transfers.

Cut in three and log them as destroyed.

 

[dcmdon]

As the title says, I had my town meeting last week for zone approval (with conditions)and just today got my LLC acceptance! Now the big question, 01 or 07? I had originally wanted my 01 to buy AR's for resale and save on the transfer fee's since that cuts into my bottom line. I was reading more into it and I may actually need a 07 for what I want to do? Basically buy AR's and strip them,sell the parts individually, including the receivers.. but would this constitute manufacturing? Bound book would read Rifle in, Other out? That doesn't sound like it would fly with a 01? Obviously I know if I buy a stripped lower and build it up into a functional AR that is manufacturing,but what about disassembly?
I'm going to call ATF tech branch tomorrow to get a definite answer,but what do some of you think?

I just read your OP.

What you describe is not manufacturing, but I'd get an 07 anyway. Either way, this is a question to ask of your ATF contact when you are getting the license.

You would book in a rifle. Then you would book it out with the description indicating the date and line number where you book it back in as a receiver. There is no such thing as "Other" in ATF law. An "other" is simply a firearm.