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Welcome and I too wish you much success!

With so much competition in the AR-market and so many of us on NWFA able to scratch-build our own ARs, how will you differentiate your products? Start with your uppers - I'd appreciate knowing what is your magic sauce?
 

EDGLLC

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Welcome and I too wish you much success!

With so much competition in the AR-market and so many of us on NWFA able to scratch-build our own ARs, how will you differentiate your products? Start with your uppers - I'd appreciate knowing what is your magic sauce?
After looking at my competitors and seeing what they offer, I do believe that the price to value on my uppers is one of the main selling points. Take BCM for example, to get a free float MLOK handguard with a BCG and ambi charging handle, you’re paying about $900 or more. With my upper you’re paying $750, you get a pinned gas block (if I stick with BA, contemplating switching to rosco and pinning the barrel myself possibly) as of right now using Aero Precision BCGs, they are HP tested but not marked, and they are MPI marked. You get the Aero Precision Breach ambi charging handle. And I will be including a buffer and buffer spring that gives you proper ejection. I am considering switching to Rosco for their barrels and BCGs as their gas block is mated perfectly to their barrel, and the barrel and BCG are properly headspaced. If I switch to rosco, I will heavily consider pinning the barrel myself. My lower will be basic, but I want to give people the option to upgrade to ambi safety’s and upgraded triggers. I will be doing a light trigger job to all of the basic lowers to smooth it out, I’m looking at a smooth 4.5# pull. Upgraded triggers will be options for the ALG ACT and the Larue MBT which I am a huge fan of! When pricing out my basic rifle package, I think I can keep it at or under $1000.
 
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Well one thing that going to help you for sure is the fact that the USA is not a member of the CIP organisation, and therefore does not require legally-binding manufacturing compliance with a set of compulsory standards.

This means that you won't need to provide at least ten of each of your various models for destructive testing - at your own cost, 'natch.
 

User 1234

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There are a few guys here locally who assemble custom AR's for people who are too busy, too wealthy, or just not mechanically inclined. It's a good side hustle for them. Since you are not serializing the receivers, you do not need FFL 7. You do need FFL 3 to buy the receivers and transfer them though.
No, a Type 3 FFL is for collectors of curios and relics. It does not authorize firearms business of any kind.
 

JRuby

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After looking at my competitors and seeing what they offer, I do believe that the price to value on my uppers is one of the main selling points. Take BCM for example, to get a free float MLOK handguard with a BCG and ambi charging handle, you’re paying about $900 or more. With my upper you’re paying $750, you get a pinned gas block (if I stick with BA, contemplating switching to rosco and pinning the barrel myself possibly) as of right now using Aero Precision BCGs, they are HP tested but not marked, and they are MPI marked. You get the Aero Precision Breach ambi charging handle. And I will be including a buffer and buffer spring that gives you proper ejection. I am considering switching to Rosco for their barrels and BCGs as their gas block is mated perfectly to their barrel, and the barrel and BCG are properly headspaced. If I switch to rosco, I will heavily consider pinning the barrel myself. My lower will be basic, but I want to give people the option to upgrade to ambi safety’s and upgraded triggers. I will be doing a light trigger job to all of the basic lowers to smooth it out, I’m looking at a smooth 4.5# pull. Upgraded triggers will be options for the ALG ACT and the Larue MBT which I am a huge fan of! When pricing out my basic rifle package, I think I can keep it at or under $1000.
What kind of warranty will you have on your rifles? How does this compare to other manhufacturers in the business?
 
There are a few guys here locally who assemble custom AR's for people who are too busy, too wealthy, or just not mechanically inclined. It's a good side hustle for them. Since you are not serializing the receivers, you do not need FFL 7. You do need FFL 3 to buy the receivers and transfer them though.
1) It's illegal to sell an unserialized, fully machined receiver.
2) The manufacturer's FFL is type 07

Types of Federal Firearms Licenses:

  • Type 01 - Dealer in Firearms Other Than Destructive Devices
  • Type 02 - Pawnbroker in Firearms Other Than Destructive Devices
  • Type 03 - Collector of Curios and Relics
  • Type 06 - Manufacturer of Ammunition for Firearms Other Than Ammunition for Destructive Devices or Armor Piercing Ammunition
  • Type 07 - Manufacturer of Firearms Other Than Destructive Devices
  • Type 08 - Importer of Firearms Other Than Destructive Devices or Ammunition for Firearms Other Than Destructive Devices, or Ammunition Other Than Armor Piercing Ammunition
  • Type 09 - Dealer in Destructive Devices
  • Type 10 - Manufacturer of Destructive Devices, Ammunition for Destructive Devices or Armor Piercing Ammunition
  • Type 11 - Importer of Destructive Devices, Ammunition for Destructive Devices or Armor Piercing Ammunition
 

Aero Denezol

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1) It's illegal to sell an unserialized, fully machined receiver.
2) The manufacturer's FFL is type 07
The OP is planning to purchase serialized lowers to assemble rifles. He wants to build uppers. Unless I have misunderstood.

@EDGLLC an underserved niche market are A2 and A1 uppers, IMO.
 
The OP is planning to purchase serialized lowers to assemble rifles. He wants to build uppers. Unless I have misunderstood.
Maybe I misunderstood what you meant.
"Since you are not serializing the receivers, you do not need FFL 7 "

If the OP ultimately wants to manufacture and sell a completed rifle, he needs a Type 07 FFL
For manufacturing and selling uppers, I don't think he needs any type of FFL

Not a lawyer, not legal advice.
 

Aero Denezol

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Maybe I misunderstood what you meant.
"Since you are not serializing the receivers, you do not need FFL 7 "

If the OP ultimately wants to manufacture and sell a completed rifle, he needs a Type 07 FFL
For manufacturing and selling uppers, I don't think he needs any type of FFL

Not a lawyer, not legal advice.
Yes, he is not serializing them, because they are already serialized. He is buying the lowers elsewhere.

Maybe the OP wants to jump in and clarify?
 
Yes, he is not serializing them, because they are already serialized. He is buying the lowers elsewhere.

Maybe the OP wants to jump in and clarify?
I was mainly wanting to clarify the license type needed to manufacture and sell a rifle.
The answer is Type 07 and that info is easy to find on the ATF website.
 

EDGLLC

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What kind of warranty will you have on your rifles? How does this compare to other manhufacturers in the business?
Full warranty. Rifle breaks or your shoot the barrel out, it will be replaced at no cost to you. If the rifle breaks due to neglect or for lack of better words, if you break it by being an idiot and using the barrel as a pry bar, that will be replaced at cost.
 

EDGLLC

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Yes, he is not serializing them, because they are already serialized. He is buying the lowers elsewhere.

Maybe the OP wants to jump in and clarify
Correct, once I get my FFL I will be buying them already serialized, then build them out into a complete rifle or lower. If I remember right to, the type 7 FFL is less money as well.
 

User 1234

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Make sure you have product liability insurance in place before you sell rifle number one. Being in business implies a lot of things, including protecting yourself from lawsuit.
Also keep in mind that anti-gun plaintiffs are trying to circumvent PLCAA shields by suing gun dealers for deceptive advertising. Make sure the insurance policy covers those types of suits too.
 

JRuby

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Full warranty. Rifle breaks or your shoot the barrel out, it will be replaced at no cost to you. If the rifle breaks due to neglect or for lack of better words, if you break it by being an idiot and using the barrel as a pry bar, that will be replaced at cost.
Shooting a barrel out in my opinion should not be covered - lots of guys do mag dumps or such. Defect or inaccuracy should be.
 
Make sure you have product liability insurance in place before you sell rifle number one. Being in business implies a lot of things, including protecting yourself from lawsuit.
This ^^^
And the OP may want to look into an LLC

LLC.png
 
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