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Building my own AR, I've been asked by several friends if I can build them one. My understanding is that I need only a Class 1 FFL as long as I am buying the lowers from a manufacturer and not actually manufacturing them myself, correct? And at what point would I need the Class 7? If I buy an 80% lower do I need one?

Thanks for any info, I think I confused the BATFE by not knowing what I should be asking. They thought I didn't need one for what I described but I think they thought I was selling a single AR privately (Florida, no FFL required on private sales). My impression is that I would be running a business if I built to order, even for only a few guns a year.

Thanks,

Jeff
 

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I'd call ATF and ask them. My understanding is you don't need an FFL to build non-NFA weapons so long as you don't intend to sell them, or "make a living" selling them. Still though, I'm no ATF agent or FFL holder so you should ask one or both
 

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Building my own AR, I've been asked by several friends if I can build them one. My understanding is that I need only a Class 1 FFL as long as I am buying the lowers from a manufacturer and not actually manufacturing them myself, correct? And at what point would I need the Class 7? If I buy an 80% lower do I need one?

Thanks for any info, I think I confused the BATFE by not knowing what I should be asking. They thought I didn't need one for what I described but I think they thought I was selling a single AR privately (Florida, no FFL required on private sales). My impression is that I would be running a business if I built to order, even for only a few guns a year.

Thanks,

Jeff
If you are building AR's you need a Type 07 FFL. Now, what I've been told by my IOI is you can order the upper and lower, mark the lower out of your book (transfer it) then have them turn right back around and hand it to you to be built. At that point it becomes a gunsmith issue not a manufacture issue.
 

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If you are putting an upper on a lower you are manufacturing. You need a 07 FFL. If a customer brings you a lower and asks you to put a upper on it. That is gunsmithing and only requires a type 1 FFL.

If you are buying a 80% lower that is not considered a firearm, and does not require a FFL to purchase.

A type 07 FFL allows you to be a dealer, firearms manufacturer, and ammunition manufacturer.
A type 01 FFL allows you to be a dealer, and perform gunsmithing on customer's firearms.

Be wary for a 07 FFL you need to register with ITAR which is $2,250 yearly. You will also need to pay federal excise tax after your 50th firearm that you "manufactured".
 

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...there will also be the considerations of Brady Law...ATF 5300.4 QUESTIONS AND ANSWERS (I) which describes the in/out bound book to be used when firearm left overnight for repair...no 4473 when returned to same person who brought it in, responsibility for who you return it to being to your knowledge legal to receive it...etc...
...might end up hiring a secretary for all the paperwork/records/licenses...
 
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