Taking Firearm Parts and Accessories Interest From Hobby To Business.

[arakboss]

I have bought and sold (mostly bought) a lot of firearm related parts and accessories. I am thinking about setting up a business structure (probably LLC) and focus on creating a profit opportunity. That would allow me to write off cost that are incurred as well. Has anybody here turned their (non FFL related) firearm parts/accessories hobby into a business? Would you do it again?

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[Stomper]

FYI- the DOJ is looking to make UBC's mandatory for firearm parts, which of course will lead to an FFL requirement…..

 

[arakboss]

FYI- the DOJ is looking to make UBC's mandatory for firearm parts, which of course will lead to an FFL requirement…..

Link? UBC? Universal background check for parts. Come on man!

 

[Stomper]

Link? UBC?

I don't have a link, I just remember reading a headline somewhere recently that Biden's DOJ was looking to make UBC's mandatory for gun parts.

Search: "Biden wants background checks for gun parts"


Here's one of the results:

Biden targets 'ghost guns' and 'red flag' laws in new gun control measures

The president wants to curb the spread of homemade firearms that lack traceable serial numbers.

www.nbcnews.com

 

[arakboss]

FYI- the DOJ is looking to make UBC's mandatory for firearm parts, which of course will lead to an FFL requirement…..

It would be ironic that a federal law like UBC's for gun parts would reduce my profits and therefore increase the losses that I might have to claim against my W2 income. Our government almost seems useless at this point in time. AOC was right except that it's the goverment not capitalism that is irredeemable.

 

[Stomper]

It would be ironic that a federal law like UBC's for gun parts would reduce my profits and therefore increase the losses that I might have to claim against my W2 income. Our government almost seems useless at this point in time. AOC was right except that it's the goverment not capitalism that is irredeemable.

It's like……. the game is rigged.

 

[arakboss]

It's like……. the game is rigged.

I don't want to say it won't happen but I have it on good authority that DOJ/BATF is our friend and I can't imagine a friend doing something like requiring UBCs on unserialized gun parts.

I understand that IP18 would also prohibit many parts from being sold in this State but I have it on good authority that the crooked pastor won't get that passed either.

As for the business idea, maybe I gotta get while the gettin is good.

 

[arakboss]

I don't have a link, I just remember reading a headline somewhere recently that Biden's DOJ was looking to make UBC's mandatory for gun parts.

Search: "Biden wants background checks for gun parts"


Here's one of the results:

Biden targets 'ghost guns' and 'red flag' laws in new gun control measures

The president wants to curb the spread of homemade firearms that lack traceable serial numbers.

www.nbcnews.com

This came up in my search. These rules will begin in June.

This section right here may result in AR upper receivers being taken off my list of items I could sell without FFL.

Under the proposed rule, a "frame or receiver" is any externally visible housing or holding structure for one or more fire control components. A "fire control component" is one necessary for the firearm to initiate, complete, or continue the firing sequence, including, but not limited to, any of the following: hammer, bolt, bolt carrier, breechblock, cylinder, trigger mechanism, firing pin, striker, or slide rails.

Any firearm part falling within the new definition that is identified with a serial number must be presumed, absent an official determination by ATF or other reliable evidence to the contrary, to be a frame or receiver.

Summary of Final Rule 2021R-05F | Bureau of Alcohol, Tobacco, Firearms and Explosives

Definition of “Frame or Receiver” and Identification of Firearms On April 11, 2022, the Attorney General signed ATF final rule, Definition of “Frame or Receiver” and Identification of Firearms, amending ATF’s regulations by removing and replacing the regulatory definitions of “firearm frame or...

www.atf.gov

I am thinking if the upper doesn't have a serial number then they are free to be transferred without BC? If the BATF was going to start requiring newly manufactured upper receivers to be serialized beginning in June, it would probably be a good item to stock up on.

 

[P7M13]

Look up the story on the guy who founded HKParts. (Someone help here -- I think it was HK Parts, but may have been another name.)
Anyway, dude made millions selling HK Parts, but also expanded into other, illegal activity that the DOJ took an interest in.

 

[arakboss]

Look up the story on the guy who founded HKParts. (Someone help here -- I think it was HK Parts, but may have been another name.)
Anyway, dude made millions selling HK Parts, but also expanded into other, illegal activity that the DOJ took an interest in.

HK Parts (HK Parts Net) Owner Adam Webber Convicted

The owner of HK Parts (HK Parts Net) was prosecuted by the ATF for a Class III firearm violation and dealing in firearms without a license.

www.google.com

 

[P7M13]

Uh huh. And did you see the obscene money he was making dealing in parts alone?
Keep your nose clean, and when you have your 4,000 acre ranch in southern Oregon, you can have a *serious* NWFA powwow.

 

[solv3nt]

I wouldn't go brick and mortar, but an LLC is only $100.

 

[arakboss]

Uh huh. And did you see the obscene money he was making dealing in parts alone?
Keep your nose clean, and when you have your 4,000 acre ranch in southern Oregon, you can have a *serious* NWFA powwow.

I was thinking a little more low key

 

[solv3nt]

Most businesses fail, not just restaurants. Restaurants are easy to spot and notice due to their nature of business.

I am a also business owner, I have an engineering firm on the side. It's more of a hobby company, but it makes money. I would not quit my day job for a guns parts company. Start small with as little invested as possible, but keep your day job. A website and web hosting is cheap. You could even start just with something like eBay or GunBroker. There was a guy selling a company making star buffers or something earlier. If it hasn't already sold, that would be a fantastic staying point.

I use QuickBooks and Google to host my email. Business insurance, if you feel like you are at risk for a lawsuit, should be pretty cheap. I pay $2k per year for engineering insurance.

Good luck, and let us know how things go.

 

[Hueco]

When we get settled down, I'm toying with the idea of setting up an FFL for reasons…I don't see the money in parts with big players already acting like the Walmart of parts. Unless you yourself are building something or increasing the value somehow…

 

[arakboss]

Most businesses fail, not just restaurants. Restaurants are easy to spot and notice due to their nature of business.

I am a also business owner, I have an engineering firm on the side. It's more of a hobby company, but it makes money. I would not quit my day job for a guns parts company. Start small with as little invested as possible, but keep your day job. A website and web hosting is cheap. You could even start just with something like eBay or GunBroker. There was a guy selling a company making star buffers or something earlier. If it hasn't already sold, that would be a fantastic staying point.

I use QuickBooks and Google to host my email. Business insurance, if you feel like you are at risk for a lawsuit, should be pretty cheap. I pay $2k per year for engineering insurance.

Good luck, and let us know how things go.

I was pondering whether it could be a side gig to supplement my W2 income. Here is the IRS's view on what they will look at when deciding whether it's a hobby or business. I want business status so I can enjoy some write offs.

Earning side income: Is it a hobby or a business? | Internal Revenue Service

Tax Tip 2020-108, August 25, 2020 — Whether it's something they've been doing for years or something they just started to make extra money, taxpayers must report income earned from hobbies in 2020 on next year's tax return.

www.irs.gov

 

[CamoDeafie]

Y'all they're trying to bring back some parts of the NFA 1938 that got repealed under GCA 1968

"The term "firearm" means any weapon, by whatever name known, which is designed to expel a projectile or projectiles by the action of an explosion, and firearm muffler, firearm silencer part or parts[/b ] of any such weapon"

 

[solv3nt]

I was pondering whether it could be a side gig to supplement my W2 income. Here is the IRS's view on what they will look at when deciding whether it's a hobby or business. I want business status so I can enjoy some write offs.

Earning side income: Is it a hobby or a business? | Internal Revenue Service

Tax Tip 2020-108, August 25, 2020 — Whether it's something they've been doing for years or something they just started to make extra money, taxpayers must report income earned from hobbies in 2020 on next year's tax return.

www.irs.gov

Keep your money separate. Keep your records, and post a profit; you'll be left alone.

 

[Flopsweat]

I use QuickBooks and Google to host my email.

Just a quick note. Google is not your friend. There are plenty of private email services out there that charge $50/year, don't snoop, don't turn your private communications over to the government and don't sell your data to advertisers. When you have customers, you have an obligation (moral at the very least) to keep their private information private.

 

[solv3nt]

Just a quick note. Google is not your friend. There are plenty of private email services out there that charge $50/year, don't snoop, don't turn your private communications over to the government and don't sell your data to advertisers. When you have customers, you have an obligation (moral at the very least) to keep their private information private.

Sigh. Yeah, just haven't gotten around to it. Unfortunately, between them and Amazon, they own like everything.