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Last minute tips for setting up my shop?

2K views 12 replies 5 participants last post by  Davyj14 
#1 ·
Okay, So I know I need to have an FFL to buy firearms online, I do plan on applying for my NFA permit the minute I turn 21, and I know all guns I make to sell will require a serial number, as well as the place of manufacture. I also know about SBR paperwork (But whether or not it only has to be done once or per build I have yet to determine.) I admit I have much to learn about guns laws, and for those that live in south Carolina, do you have anything I should know about?
 
#2 ·
To manufacture guns you will need a type 07 FFL, manufacturing. You also have to register with the State Department for ITAR, which is a few grand! Once you have that, you can make non-NFA guns to sell. The regs state you must mark them all with the name of the business, city and state, caliber, and a unique serial number. Minimum size and depth standards apply.

If you want to make NFA items, you have to pay an annual Special Occupational Tax, $500 or $1000 based on sales volume. Once you have your SOT, you can make anything you want (except DDs, those are a different license). Once an NFA item is created, you have (IIRC) 24 hours to report it's creation on a FORM 2. Basically, if you made an NFA item(s) that day, the last thing you do before going home is fill out the form and submit it.

If you are making SBRs or whatever without the 07/SOT, each one requires it's own Form 1 which has to be approved before you can make it. And tax paid on each one.


What is an "NFA permit"? Something NC requires?
 
#3 ·
So with an 07 type FFL, I wont have to keep filling out Form 1s?
 
#10 ·
No, NFA items made by a licensed NFA manufacturer are not registered on a Form 1. They are registered on a Form 2, which is a report of firearms made that day. Essentially the same info is reported, but no pre-approval or tax is needed. Non-NFA firearms you just record in your FFL record book, and once a year you file one form stating you made say 25 handguns, 30 rifles, and no shotguns. All they want is a total on that one.

Also, I hear of people making builds of salvaged parts and selling them to a gun shop where I regularly visit. It seems to happen a lot where I live, and most of them do not have FFL permits. How are these people not getting busted?

Because LE aren't psychic? Unless someone tells them, assuming they are using commercial receivers, there would be little reason to suspect they are being assembled without a license. An audit of the books might catch it, like 15 receivers sold to Joe X, then a few weeks later 15 rifles bought from Joe X with the same serial #s...


BTW, you can make and design SBR prototypes without actually making an SBR. Just leave the stock off and you have a handgun, not a rifle. Or silver solder/weld on a muzzle extension to make it legal length. You can always add the stock or remove the extension later when legal to do so. The only issue is don't have a "spare" stock that can only fit your handgun.
 
#4 ·
Also, I hear of people making builds of salvaged parts and selling them to a gun shop where I regularly visit. It seems to happen a lot where I live, and most of them do not have FFL permits. How are these people not getting busted?
 
#6 ·
Alright so I've decided to postpone all my
Plans for setting up shop until I'm of age to receive ALL the licensing I need. I'm not going to risk ANYTHING from ruining this. I'll admit I'm VERY eager for this. And I do understand that it's never been illegal to make your own guns as long as they're 922R compliant and they're not transferred in anyway. And I am trying to design my own AK variants, and when it comes to SBR rifles, I need to be 21 to make and register it right?
 
#7 ·
You should be aware that any advice you receive is here is not equal to the advice of a $350/hour attorney and, better still, if you can get it, a letter of confirmation from the the ATF. Better you wait until you have deep enough pockets to afford this before you get yourself in trouble.
 
#9 ·
Well for now, until I receive the proper licensing and approval, I'm only going to build prototypes for my own use, as per ATF regulation.
 
#11 ·
I'm almost 19. Will I have to wait until making the Handgun SBR Prototypes or is the 21+ law only for purchasing?

And since 922r seems to only apply to rifles, are the M92 Krinkov handguns subject to 922r?
 
#12 ·
There are conflicting accounts on making versus buying, so I can't give you a firm answer. What I would do is file the form 1 and see if it gets approved. Worst case scenario, they deny it and refund your $200. AFAIK, it is similar to the handgun situation, an FFL can't sell you one, but possession and acquisition through NON FFL means is allowed because the law is silent on this. Of course, ATF can always say Congress' INTENT was to deny blah blah blah sorry about your luck, wait 2 years even without law on their side.

Correct, 922R only applies to rifles and shotguns, handguns are not affected.
 
#13 ·
These m92 kits are impossible to find, especially at a reasonable price. I had money saved up for tools and parts, but I was recently in a car accident and my car was totaled, so my last few paychecks have been going to help me buy a new car.
 
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