Expert: Robert P. Firriolo - 1/30/2008

Question
I am Ex-Military and wished to purchase parts to build a AR15/M16/M4 and its says a FFL is required. Ive read some of the stuff on a FFL however i do not wish to open a dealership or at least at the moment. Is there something else i need to do. Or can i apply for the FFL and not open a buisness.

Answer
In order to purchase a lower receiver for an AR15 across state lines you would need to be a Type 1 or Dealer FFL. A dealer must maintain regular business hours and will be open to inspections from the BATFE. There is nothing that requires you to be a profitable business, but the dealer's license is issued only for business purposes and you must follow the dealer's rules and pay the license fees, which may make it uneconomic for you if you only want to buy a gun or two for personal use.

Note that if you wanted to purchase an M16 or M4 lower receiver, that is a more complex matter because those are considered machine guns. You would need to comply with Title II regulations and pay a federal transfer fee.

What you can do to transfer an AR15 lower without having your own FFL dealer's license is to find a local FFL dealer who will do the transfer for you. Some dealers operate small businesses from home or a gun club and will do transfers for a nominal cost or for a small percentage of the purchase price. As I recall, Shotgun News maintains a list of dealers willing to do such transfers listed by locale, which you can search on their website.

Note also that there is a Type 3 or Curios & Relics FFL for collectors, which is easy to get and relatively inexpensive. With it you can have firearms older than 50 years, and others deemed collectible by ATF, shipped directly to your home, with no need to operate any business. You can also use this to get discounts from gun parts suppliers like Brownell's. However, it will not help you order the AR15 lower.