Legality of selling handloads

[longdayjake]

Every now and then I see someone selling their handloads. I was just wondering how legal it is and if anyone here does it or has done it. Lets say I want to buy the dillon super press at around $1600. Would it be legal to sell some of the reloads to help pay for the press?

 

[Afy]

This was discussed at lenght in the Reloading section a few weeks ago.
Assuming you were in the US, I believe a special permit from the ATF is required amongst other things.

Would dig around in the reloading section.

 

[FieroCDSP]

Two things that would go against you here:

First, if you're making any profit off of it, you need the proper FFL for manufacturing ammunition. If you're reloading at cost, it's technicly not making a profit, but might be considered manufacturing. Loading for friends would probably not be viewed as such. [18 U.S.C. 922(a) (i) and 923(a), 27 CFR 478.41]

Second, Liability. What if you overcharge a case and someone loses a hand or an eye. Can you afford the lawsuit that follows? Can you continue to look yourself in the mirror afterwards?

Unless you're willing to go large scale, and have the money to devote to a place of business, proper storage of components, and insurance, reloading for fun and profit is not a good idea.

 

[Drgong]

The paperwork should not be a problem.

the liablity would be what would make me sweat. Would recommend setting up some corp. structure that owns all the dies and other material so if something happpens, you don't loose your house and such.

 

[ochmude]

The liability definitely would be my concern as well. I won't even reload for friends. I'm more than happy to walk them through the steps so they can reload for themselves. I just really don't feel like having my potential mistake cause someone else harm.

 

[Technosavant]

Ditto the liability.

I have no worries about what I load, but the moment I even give those away, they're out of my control. They might chamber the round in the wrong gun. They might assault or murder somebody with it. Even a frivolous lawsuit filed against you would usually mean financial ruin.

I reload for my own self. If somebody wants the same loads, I'm happy to point them to a place where they can get the same components, equipment, and manuals I use. But I'm not going to sell or give out what I make.

 

[brighamr]

1) you need a manufacturing ffl. the ffl is dependant on zoning, covenants, etc. If you don't live out in the sticks, you'll most likely need a commercial address.
2) you need high liability insurance (1 million minimum)
3) you need a bona-fide business (including tax id number, license, permits, etc). This has to be able to fly in your county, city, state.
4) Good idea to have a lawyer draw everything up and keep on retainer
5) Pending where you live, some places have ordinances/restrictions against x amount of powder storage (aka you might need to build a specific powder shelter, which is a good idea anyway if you're loading on a large scale)
6) Shipping cost $$$ due to hazmat requirements (this is for components as well as finished product)

If you're willing to invest a lot of time and money, it's worth it. If you just want to buy a press and sell some on the side, I highly recommend against that idea, as you could lose everything from someone else's negligence.

 

[bigjohnson]

One thing you can bet on: If one of your customers has a ka-boom, he's going to blame it on your ammo. Regardless of whose ammo he's shooting, he's going to blame the person that he thinks he's going to get the most money from with the least amount of legal action. All of the big ammo manufacturers has lawyers on staff, and have insurance company sharks that will do anything necessary to protect their clients. A small-time operation is going to be like blood in the water for some personal injury lawyer who will sue your butt off.

 

[Eric F]

3 words LLC in addition to everything else.

 

[Drgong]

3 words LLC in addition to everything else.

+1 to this post

 

[Wedge]

Most places that I know of that used to sell reloads don't anymore. I have to assume due to liability concerns.

 

[Blackbeard]

Ditto on the liability issue. If you have all the necessary licenses, insurance and attorneys involved, you won't be selling cheaper than new factory ammunition. If you don't, you're risking losing everything you own, including your handsome new press, with every round you send out.

Just buy the press and reload enough for yourself to make it worthwhile.

 

[FieroCDSP]

If you want the Dillon Super-press, then just give yourself a decent reason to buy it "It's Cinco de Mayo", "The cat ate my other press", "Bob down the street got a Dillon 550, and I had to 1-up him."

Unless you're willing to go whole hog into the business, you're never going to make your money back. Trust the loaders, we know.

 

[ilbob]

Most places that I know of that used to sell reloads don't anymore. I have to assume due to liability concerns.

There are a lot of places that still sell reloads, and a lot of commercial reloaders out there.

For a while the cost of new ammo was so cheap in a lot of common calibers that carrying reloads was not worth the effort for many stores. When you could buy factory 9mm for $5 a box, what incentive is there to buy reloads for $4 a box?

 

[rr2241tx]

Reloading is a nice hobby. Don't ruin it by trying to make it an occupation.

 

[longdayjake]

Reloading is a nice hobby. Don't ruin it by trying to make it an occupation.

Of all the posts I think this one has influenced me the most. Looks like I will be getting the xl 650. Thanks guys!

 

[FM12]

It would be more of a "job" after a while.

I used to enjoy photography. Then, I became a freelance photographer, as a side job.

Ain't nearly as much fun now.