Rifle building

I have what I would consider a decent amount of knowledge pertaining to savage actions/builds. I have built several rifles for myself and friends with good results.

My question is what certificate/license do you need for selling guns you "piece together" as in action/match barrel/stock etc. My local ffl would sell them there if I chose but mostly it would be for those people who see what I've built and ask if I can build something similar for them. (My ffl owns a gun shop)

I enjoy building guns as a hobby and have no current intention of making a career out of it. But I also think my time would be worth something.

Also what do you do as far as liability is concerned? Establish "company name" and make it a LLC?

Like I said this would be for a hobby and just building guns like I've built already. No gunsmithing other guns etc.

The actions would most likely be bought off here or from Jim at NSS and transferred to the actual buyer of the gun via my ffl.

Thank you hafejd30, live in Michigan if that makes a difference

In the research I've done I've seen that I would need an ffl and no further certified experience but I'm not sure if this is correct. If so I could do transfers through myself.

Yes, you need a class 7 FFL. Got mine last year and wasn't that hard to get. According to the Atf just about anything you do to change a firearm is considered manufacturing. They did come out to my shop to see where I was planning to work, they want people use them to make money not just to have them to order personal guns

Ok thank you

One more question.

Do you carry liability insurance for manufacturing? Or is there something that covers manufacturers from lawsuits.

As stated I'm building as a hobby (must be low cost) and paying for insurance etc may be more cost than I'm able to swallow

Thank You

Technically you would want liability insurance. Whether it's required or not would depend on your local/state laws. If someone is injured or killed while using one of the rifles you built and if there's even the slightest hint that the incident could have been caused by poor workmanship I.e. unsafe trigger adjustment) you'll very much need it for the pending civil lawsuit the family will likely file against you. On the other hand, having a large liability policy also gives every Tom, Dick and Harry a reason to try and sue you - a big payoff, and most attorneys know that insurance companies will happily pay a settlement rather than having it go to court.

Personally I really don't see where this venture would be worth the time, energy or hassle. To make any money doing it you'd have to do a good volume of guns a year to get a reasonable discount on parts, and in doing so you will then have to pay the excise tax on each and every gun you build which is 11 or 12%. If you build 49 or fewer guns a year you don't have to pay the excise tax, but you won't be doing the volume needed to get the discounts to make it profitable. Factor in the liability issues and it's more risk than it's worth.

I've seen many guys who have started up businesses doing just what you want to do over the last 10-12 years and none of them have lasted very long as there's very little demand for it.

Thank you J.Baker. I'm getting the same outlook on that as I do more research