FFL?


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TheGrouch
July 11, 2006, 07:07 AM
I've looked for the answer to this question with no result.

Are you required to get an FFL if you are selling an "excessive" number of guns over Internet auction sites?


These transactions are always shipped directly to an FFL holder which does the neccessary paperwork. So we're legal there. I've just got a bug lately to buy and repair/restore different guns and make some money on the side. Anyone have an idea if they Feds get their panties in a twist over scenarios like this?

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Zrex
July 11, 2006, 07:30 AM
I've just got a bug lately to buy and repair/restore different guns and make some money on the side.

You are not selling your personal collection. You are buying, repairing and reselling firearms to generate income. Sounds like you should get your FFL before you get dinged for dealing without a license.

Bruce333
July 11, 2006, 09:01 AM
The term "dealer" means (A) any person engaged in the business of selling firearms at wholesale or retail, (B) any person engaged in the business of repairing firearms or of making or fitting special barrels, stocks, or trigger mechanisms to firearms, or (C) any person who is a pawnbroker. The term "licensed dealer" means any dealer who is licensed under the provisions of this chapter.

The term "engaged in the business" means -- (snip)
(C) as applied to a dealer in firearms, as defined in section 921(a)(11)(A), a person who devotes time, attention, and labor to dealing in firearms as a regular course of trade or business with the principal objective of livelihood and profit through the repetitive purchase and resale of firearms, but such term shall not include a person who makes occasional sales, exchanges, or purchases of firearms for the enhancement of a personal collection or for a hobby, or who sells all or part of his personal collection of firearms;

(D) as applied to a dealer in firearms, as defined in section 921(a)(11)(B), a person who devotes time, attention, and labor to engaging in such activity as a regular course of trade or business with the principal objective of livelihood and profit, but such term shall not include a person who makes occasional repairs of firearms, or who occasionally fits special barrels, stocks, or trigger mechanisms to firearms;

(snip)

(22) The term "with the principal objective of livelihood and profit" means that the intent underlying the sale or disposition of firearms is predominantly one of obtaining livelihood and pecuniary gain, as opposed to other intents, such as improving or liquidating a personal firearms collection. Seems to me that if you are making regular ongoing sales you are a dealer.
Even if BATFE doesn't come after you...there are still the State and local tax goons that are gonna want their share...

eastwood44mag
July 11, 2006, 01:22 PM
If you're doing repairs, get a type 07: Manufacturer of Firearms, since it's essentially gunsmithing. May be harder to get, but it will cover your butt better than a 01.

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