HOW TO get a Class 7 (Manufacture) FFL in MD

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  • Jerry M

    Ultimate Member
    Jun 13, 2007
    1,691
    Glen Burnie MD
    Positive:
    Class 7 allows you to manufacturer firearms for sale.

    Just offhand a list of not so Positive:
    Zoning of your property has allows industry;
    Your facilities has to be able to receive large shipments of steel and other supplies;
    Having disposal income to buy expensive machinery to create your firearms;
    installing the proper wattage electric service;
    Wiring your work area;
    Installing air lines for compressors;
    Having the math skills and experience of running said machinery;
    Be actively involved in the firearms selling business.

    Good Luck in your adventure.
     

    marc0nline

    Member
    Mar 24, 2019
    81
    Southern Maryland
    Positive:
    Class 7 allows you to manufacturer firearms for sale.

    Just offhand a list of not so Positive:
    Zoning of your property has allows industry;
    Your facilities has to be able to receive large shipments of steel and other supplies;
    Having disposal income to buy expensive machinery to create your firearms;
    installing the proper wattage electric service;
    Wiring your work area;
    Installing air lines for compressors;
    Having the math skills and experience of running said machinery;
    Be actively involved in the firearms selling business.

    Good Luck in your adventure.
    It doesn't have to be the full weapon, right. I could just make a part for a particular weapon, right? I'm asking.
     

    RRomig

    Ultimate Member
    Industry Partner
    MDS Supporter
    Aug 30, 2021
    1,963
    Burtonsville MD
    It doesn't have to be the full weapon, right. I could just make a part for a particular weapon, right? I'm asking.
    Most parts you don’t need an ffl.
    If you’re looking at making serialized parts then you do need an 07. Also if your looking at making NFA items then you need an 07 and carry a SOT.
     

    lazarus

    Ultimate Member
    Jun 23, 2015
    13,741
    Most parts you don’t need an ffl.
    If you’re looking at making serialized parts then you do need an 07. Also if your looking at making NFA items then you need an 07 and carry a SOT.
    That.

    And in the business. So you’ll legitimately need to be making and selling some of them. At least on infrequent occasions. ATF doesn’t really have a good definition for in the business. IRS does. Don’t make a profit three years in a row and whatever you are doing the IRS considers you a hobbyist…

    Of course you could choose not to write off costs and just pay taxes on a small number made every year. But just making stuff for yourself or using it to have an FFL to receive firearms is going to get the jaundiced eye of the ATF yanking your license. They do audit all FFL types that aren’t FFL-03 periodically and are going to have questions if you never transfer things as a manufacturer and probably will if you are only transferring small single digit stuff a year.
     

    Biggfoot44

    Ultimate Member
    Aug 2, 2009
    33,299
    The current ATF definition of " manufacturing " is overly broad , and includes things engraving , and certain accuruzing . So not necessarily need a full production line machine shop . Could plausibly be not much more than assembling AR or 1911 from components , stamping with your brand name , with you as manufacturer . and pay the 11% tax .

    For " how easy " part , see the dozens of threads about getting a " regular " FFL , and the 007 is a minor thing to add .

    Adding some more -

    It's a fine line for some classes of gunsmith . If customer provides their Gun X , and xyz modifications , that's a repair . If 'smith performs xyz modifications to a Brand X gun in inventory to increase its value and desirability , then ATF , at their whim , could accuse of being a Manufacturer , and needing an 007 .

    " Engaging in Business " has a Catch-22 you could drive a convoy of trucks through . Active enough for ATF to at least issue a Restraining Letter , but 10 times too small for IRS to consider a legitimate business .
     
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