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Max Online: 16728 @ 03/25/12 08:51 AM
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#6611438 - 01/01/17 06:48 PM Getting FFL....
Mook Offline
Pro Tracker

Registered: 10/15/11
Posts: 1214
Loc: Tyler, TX
Questions about difference between 01,02 and 07

01&02 allow me to buy and sell, can I not do consignment under 01?

Under number 07 can I do everything that 02 can do? And do production of firearms?

i want to be able to do buying, selling, consignment and if I felt the desire in the future to do production....

Thanks

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#6611734 - 01/01/17 09:48 PM Re: Getting FFL.... [Re: Mook]
boonee Offline
Veteran Tracker

Registered: 01/09/11
Posts: 2109
Loc: Mesquite
I'm a 01, yes you can buy, sell, consignment's, and do transfers. My local ATF inspector said I could also do gunsmith work also, BUT will need to be in a separate book. (I don't work on customers guns!)
02 is a pawn broker, some really strange rules on them...
07 Is a annual fee license, and very expensive compared to a 01.
That said, ATF told me IF you buy a AR lower assy. and a AR upper and put together, you are assembling a firearm and will need a 07. SO... I don't do that!
_________________________
Avenger Firearms 214-577-5818
avengerfirearms@gmail.com

Lifetime NRA member

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#6611845 - 01/02/17 12:36 AM Re: Getting FFL.... [Re: boonee]
ChadTRG42 Online   happy
THF Trophy Hunter

Registered: 09/16/09
Posts: 9988
Loc: Lewisville, TX
Originally Posted By: boonee
That said, ATF told me IF you buy a AR lower assy. and a AR upper and put together, you are assembling a firearm and will need a 07. SO... I don't do that!

I don't believe that is correct. An 07 is for the mfg of a firearm, as in creating the action or receiver and giving it a serial number. If you purchase a lower receiver that is already serialized, then you are dealing in firearms, which is what the 01 is for. 07 is for mfg the action/receiver, and also allows you to mfg ammo.
_________________________

www.DallasReloads.com
Type 01 and Type 06 FFL

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#6615362 - 01/03/17 09:47 PM Re: Getting FFL.... [Re: Mook]
boonee Offline
Veteran Tracker

Registered: 01/09/11
Posts: 2109
Loc: Mesquite
Yep, I was in business for less than 3 months and was "audited" she asked about the receivers I had ordered in. That's when she told me that taking 2 sub assemblies and putting them together was "creating" a firearm, that was manufacturing. I just said "yes ma'am" That I will be selling lower assemblies and upper assemblies, not putting them together. texas
_________________________
Avenger Firearms 214-577-5818
avengerfirearms@gmail.com

Lifetime NRA member

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#6615474 - 01/03/17 11:47 PM Re: Getting FFL.... [Re: ChadTRG42]
Sniper John Online   happy

gumshoe

Registered: 08/31/05
Posts: 16456
Loc: North Texas
Originally Posted By: ChadTRG42
Originally Posted By: boonee
That said, ATF told me IF you buy a AR lower assy. and a AR upper and put together, you are assembling a firearm and will need a 07. SO... I don't do that!

I don't believe that is correct. An 07 is for the mfg of a firearm, as in creating the action or receiver and giving it a serial number. If you purchase a lower receiver that is already serialized, then you are dealing in firearms, which is what the 01 is for. 07 is for mfg the action/receiver, and also allows you to mfg ammo.


We can't apply Logic with the BATF determinations. Scroll down to just past half way down this page for a list of about a dozen listed examples and scenarios of what is and is not manufacturing.

http://www.akleg.gov/basis/get_documents.asp?session=26&docid=4535
_________________________

"Onward up many a frightening creek, though your arms may get sore and your sneakers may leak. Oh! The places you'll go!" ~ Dr. Seuss

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#6615478 - 01/03/17 11:54 PM Re: Getting FFL.... [Re: Mook]
Sniper John Online   happy

gumshoe

Registered: 08/31/05
Posts: 16456
Loc: North Texas
From the above .pdf.

1. A company produces a quantity of firearm frames or receivers for sale to customers who will assemble firearms.

The company is engaged in the business of manufacturing firearms and should be licensed as a manufacturer of firearms.

2. A company produces frames or receivers for another company that assembles and sells the firearms.

Both companies are engaged in the business of manufacturing firearms and each should be licensed as a manufacturer of firearms.

3. A company provides frames to a subcontractor company that performs machining operations on the frames and returns the frames to the original company which assembles and sells the completed firearms.

Both companies are engaged in the business of manufacturing firearms and should be licensed as manufacturers of firearms.

4. A company produces barrels for firearms and sells the barrels to another company that assembles and sells complete firearms.

Because barrels are not firearms, the company that manufactures the barrels is not a manufacturer of firearms. The company that assembles and sells the firearms should be licensed as a manufacturer of firearms.

5. A company receives firearm frames from individual customers, attaches stocks and barrels and returns the firearms to the customers for the customers' personal use.

The operations performed on the firearms were not for the purpose of sale or distribution. The company should be licensed as a dealer or gunsmith, not as a manufacturer of firearms.

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.

7. An individual acquires frames or receivers and assembles firearms for his personal use, not for sale or distribution.

The individual is not manufacturing firearms for sale or distribution and is not required to be a licensed manufacturer.

8. A gunsmith regularly buys military type firearms, Mausers etc., and “sporterizes” them for resale.

The gunsmith is in the business of manufacturing firearms and should be licensed as a manufacturer.

9. A gunsmith buys semiautomatic pistols or revolvers and modifies the slides to accept new Style f sights. The sights are not usually sold with these firearms and do not attach to the existing mounting openings.

The gunsmith offers these firearms for sale. This would be considered the manufacturing of firearms and the gunsmith should be licensed as a manufacturer.

10. A gunsmith buys government model pistols and installs “drop-in” precision trigger parts or other “drop-in parts” for the purpose of resale.

This would be considered the manufacturing of firearms, as the gunsmith is purchasing the firearms, modifying the firearms and selling them. The gunsmith should be licensed as a manufacturer.

11. A gunsmith buys surplus military rifles, bends the bolts to accept a scope, and then drills the receivers for a scope base. The gunsmith offers these firearms for sale.

This would be considered the manufacturing of firearms and the gunsmith should be licensed as a manufacturer.

12. A gunsmith buys surplus military rifles or pistols and removes the stocks, adds new stocks or pistol grips, cleans the firearms, then sends the firearms to a separate contractor for bluing. These firearms are then sold to the public.

This would be considered manufacturing of firearms and the gunsmith should be licensed as a manufacturer.

13. A company purchases surplus firearms, cleans the firearms then offers them for sale to the public.

The company does not need to be licensed as a manufacturer.

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#6622792 - 01/08/17 05:03 PM Re: Getting FFL.... [Re: Mook]
Mook Offline
Pro Tracker

Registered: 10/15/11
Posts: 1214
Loc: Tyler, TX
I am attempting to set up an S-Corp for my FFL and legal zoom was talking about 4 different state licenses I would need to be compliant....

I know that I need to check with local regulations to make sure my location is able to hose the business

but are there other state licenses I will need?

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