selling reloads

[silentvoice71]

Ok ive gotten the run around about this. 10 people give me 10 different awencers. What do i need if anything to sell my reloaded ammo. A few people i know wanna buy it their friends of a friend.

 

[VUPDblue]

I would never sell any of my reloads. Too much liability on my part. That said, there's no law against it.

 

[mikea46996]

VUPDblue I have to disagree.


(H4) Is a person who reloads ammunition required to be licensed as a manufacturer?
Yes, if the person engages in the business of selling or distributing reloads for the purpose of livelihood and profit. No, if the person reloads only for personal use.
[18 U.S.C. 922(a) (i) and 923(a), 27 CFR 478.41]



Straight from the ATF.
ATF Online - Firearms FAQs

 

[silentvoice71]

ok now what type of license do i need lol

 

[Joe Williams]

VUPDblue I have to disagree.


(H4) Is a person who reloads ammunition required to be licensed as a manufacturer?
Yes, if the person engages in the business of selling or distributing reloads for the purpose of livelihood and profit. No, if the person reloads only for personal use.
[18 U.S.C. 922(a) (i) and 923(a), 27 CFR 478.41]



Straight from the ATF.
ATF Online - Firearms FAQs

This doesn't appear to say, though, that I couldn't sell reloads if I wanted to. It costs me roughly $5 to make a box of 50 9mm/.38s/.357s, excluding brass. If a friend gave me some .45 brass and asked me to reload some for him, I could sell them to him for that $5 per box. I'm not selling for livelihood and profit, so I should be good to go, right?

Not that I would... as mentioned, way too much liability. About as far as I'd go is either load with my friend, or loan him my equipment.

 

[Scutter01]

ok now what type of license do i need lol

Type 6 - Licensed manufacturer of ammunition and reloading components other than Armor Piercing ammunition

 

[silentvoice71]

well im not lookin to make a profit really i dunno ill see if this is gonna be a huge pita ill tell them to go to hell.

 

[VUPDblue]

Yeah, I hear ya on that, but I take it to be the same as the law on FFLs. If you sell a couple guns here and there you are OK. Making a business of it is another matter. I don't think that selling a couple boxes of cartridges would put you into the "in the business of selling or distributing" category.

 

[Plague421]

I get reloads from one of my grandfather's friends. He will only sell reloads to me for the simple fact he trusts that in the event of a reload malfunction I will not prosecute him.

When you sell reloads, and lets say something bad happens and the gun explodes, injuring the shooter. You are liable.

On the law subject, I think that translates to you do not need a license unless you plan on making, I guess you could call it taxable income. AKA you are using the money made to pay for everyday things on a regular basis. Which would translate into running a business selling reloaded ammunition. Other than that I don't think you have to have a license, however IANAL.

 

[trophy hunter]

i read you HAD to have a 1 million dollar insurance policy to sell reloaded ammo.
no joke...

 

[slow1911s]

In terms of the law and BATFE - I really don't think they care if you load the ammo. What they do care about is getting the 11% cut in the form of FET.

It used to be that if you handed over brass, bullets, powder and primers to someone with a press and said "would you mind putting these together for me?" that wasn't a problem as you were getting your components back. If there was any consideration for that activity, well, I suppose that's between you and him. I sure as hell wouldn't advertise.

 

[mikea46996]

1,000,000 dollar of liability insurance to start out with..

I know this because a good friend of mine wanted to start a remanufacturing business for ammo about 10 years ago. He had bought all the equipment and just needed me for the lease on the building and utilities. I was going to partner up with him until I found out I would need 1,000,000 product liability insurance, I would need special business insurance because of the hazardous materials, I would have to have a special air filtration unit installed so that I did not vent lead into the air. Would have to have a different style sprinkler system installed in the building.

Now I load all my own and will load for close friends if they provide all the components. I do not make them sign anything to the order of I would not be held responsible if anything happens but these are the same guys i would trust with my life so I am not to worried.

 

[jimd46902]

Scary without insurance... it only takes one mistake and the rest of the family will come for you with greed in their eyes.

 

[silentvoice71]

lol well then they can kiss the fattest part of my irish ass lol. Looks like il only do it for myself.

 

[BIG TIM]

I think if you structured yourself as an LLC (limited liability company) you could insulate yourself from most liability. I am not an attorney but if I ever decided to make a real business out of reloading, then I would consult one. I think the powers that be, consider it a hobby until then.

 

[mason1977]

As a business owner, and strictly from a business standpoint, I would suggest forming a LLC company to shield yourself (assets) in the event that somebody wanted to sue you. Having professional liability insurance would be required as well. For reference I pay around $2500 a year for a million in liability and replacement for about 750K worth of equipment.

Is that required…no. All you would really be required to have in Indiana would be a Registered Retail Merchant account/certificate for sales tax, but the exposure you open yourself up to selling/manufacturing ammo as a sole proprietor would be HUGE. Scary HUGE.

 

[silentvoice71]

hmmm i dunno ill think about it. Im still lookin for a job welding jobs seem to be scarce in ft wayne right now......

 

[Ashkelon]

Absolutely not -- do not do it. IMO. One million in insurance is NOT enough. An economist will find the lowest wage earner at 25 y.o. to be worth well over a million for the course of a lifetime and even more if disfigured. Sure, it may not be your load that did it and a handling issue on his but when they are in front of 6 jurors breathing through a tube it won't be seen that way. Just please don't do it. I have no love lost for federal regulators but good lord this could cost you everything for which you have ever worked.

 

[silentvoice71]

noted thanks. I m not going to id rather have it all to myself and take people shooting....

 

[Old Syko]

There are 3 things I have not, and will never do.

#1 I will not shoot someone elses loads.

#2 I will not allow anyone else to shoot my loads.

#3 I will never play russian roulette.

Eventually they will all give the same result.

Slow1911s is absolutely correct about the taxes as a number 1 concern for the fed. The rest is nothing more than a legality/liability issue.