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Can An "01 FFL" Business Make a NFA Firearm?
#1
question 
OK, I'm 75% sure the answer is yes. I just want to see what everyone's opinion is on this question. I have my own firearms business with an "01" FFL. I DO NOT have the SOT stamp and don't plan on it. Am I, as the business (a LLC), permitted to use a Form 1 and build a NFA firearm (in this instance, a short barrel rifle)?

The only thing I could really find on this was on the ATF's website (http://www.atf.gov/firearms/faq/manufact...unsmithing). On the last question regarding if gunsmiths who have "01" FFLs need an "07" FFL, the #7 instance gives the example: An individual acquires frames or receivers and assembles firearms for his personal use, not for sale or distribution. In response the ATF says: The individual is not manufacturing firearms for sale or distribution and is not required to be a licensed manufacturer.

I understand that in this case my business would be the owner of the SBR and I'm totally fine with that. It is kind of nice to have the name of my business engraved on the lower receiver rather than the name of a trust if I were to go that route.
"There is no hunting like the hunting of man. And those who have hunted armed men long enough and liked it, never care for anything else thereafter."
-Ernest Hemingway
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#2
An 01 FFL cannot manufacture firearms of any kind as an 01 FFL is just a dealer license. Dealing with NFA items as a business requires a different FFL and an SOT. Without those, you can't build an SBR under the business name.
Interdum feror cupidine partium magnarum Europae vincendarum
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#3
I ask because an 01 FFL can occasionally manufacture firearms and still not need an 07 FFL. Plus, this isn't for resale. This is for my personal collection.

As far as the SOT goes, I was told that technically any 01 FFL can sell an NFA item. They would just have to pay the $200 for each transfer.

Is what I've been told by other dealers a line of crap or is there something legit about it?

OR Look at it this way...

If you can make/purchase a NFA firearm under a trust or LLC, does the fact that your LLC has an 01 FFL now prevent your business from owning a NFA firearm?
"There is no hunting like the hunting of man. And those who have hunted armed men long enough and liked it, never care for anything else thereafter."
-Ernest Hemingway
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#4
Warpt762x39;105975 Wrote:An 01 FFL cannot manufacture firearms of any kind as an 01 FFL is just a dealer license. Dealing with NFA items as a business requires a different FFL and an SOT. Without those, you can't build an SBR under the business name.

I don't think this is correct. I believe you can still make an SBR as a Type 1 FFL but it has to be on a Form 1 (tax paid) as opposed to a Form 2 (tax free for SOT's).
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#5
bac0nfat;106008 Wrote:I believe you can still make an SBR as a Type 1 FFL but it has to be on a Form 1 (tax paid) as opposed to a Form 2 (tax free for SOT's).

That's pretty much the impression I was under. I believe that the SOT payment is mainly for those who are doing regular business as a Class 3 dealer. They just save money per year by not having to pay $200 each time they transfer something. Am I correct in thinking this way?
"There is no hunting like the hunting of man. And those who have hunted armed men long enough and liked it, never care for anything else thereafter."
-Ernest Hemingway
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#6
shademtarmory;106026 Wrote:
bac0nfat;106008 Wrote:I believe you can still make an SBR as a Type 1 FFL but it has to be on a Form 1 (tax paid) as opposed to a Form 2 (tax free for SOT's).

That's pretty much the impression I was under. I believe that the SOT payment is mainly for those who are doing regular business as a Class 3 dealer. They just save money per year by not having to pay $200 each time they transfer something. Am I correct in thinking this way?

That's what I've always understood based on talking to SOT's, however I'm not in the business myself so I'm not 100% sure.
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#7
I emailed the ATF last night, both the NFA unit and FFL unit. The NFA unit got back to me right away this morning. I'm very surprised with that. Anyway, here's what I asked...

Quote:I am an FFL holder and do not have a SOT stamp. I am writing to inquire about a few things that aren't immediately clear to me as far as how to deal with NFA regulated firearms.

1. Can a "01 FFL" who does not have the SOT stamp have a NFA firearm transferred to the business and then to a customer? I ask this because from what I've read, it seems to suggest that this is legal. It's just that a transfer tax would have to be paid to transfer the NFA firearm to the non-SOT dealer and then another transfer tax be paid to transfer the NFA firearm from the non-SOT dealer to the buyer. Am I correct in stating this?

2. Can a "01 FFL" who does not have the SOT stamp make a NFA firearm as long as the 01 FFL uses a Form 1 to assemble the firearm?

What I was thinking of doing was assembling a NFA firearm (short barrel rifle) for purposes of display. My company would retain ownership of the NFA firearm for that purpose. I asked question 1 in the event that I would decide to eventually transfer the NFA firearm to my personal collection should I ever decide to close the business.

Here's the very simple response I got back from a specialist at the NFA unit...

Quote:Yes and Yes as long as the tax is being paid. Thanks.

So, I guess that pretty much answers my question. There we have it.
"There is no hunting like the hunting of man. And those who have hunted armed men long enough and liked it, never care for anything else thereafter."
-Ernest Hemingway
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#8
I think you do not need any FFL to make a firearm for personal use. As long as it is not automatic. Is that correct?
tonyfac, proud to be a member of pa2a.org since Sep 2012.
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#9
(06-18-2013, 04:44 PM)tonyfac Wrote: I think you do not need any FFL to make a firearm for personal use. As long as it is not automatic. Is that correct?

That is correct. I only asked this question because I want to make the firearm under my business name which happens to have the FFL.

Sent from my SAMSUNG-SGH-I317 using Tapatalk 2
"There is no hunting like the hunting of man. And those who have hunted armed men long enough and liked it, never care for anything else thereafter."
-Ernest Hemingway
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#10
You can't build any gun you want. It has to fall within current firearms laws. You can't build an SBR or AOW without going through NFA channels.
Interdum feror cupidine partium magnarum Europae vincendarum
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