License and permits to sell ammunition

[elmorenicholas]

Hi, I am new to the forum and this may be on another thread I have not yet seen. My question is what licenses and permits are required to sell ammunition in California. Mostly at gun shows. As far as I know both an 03 FFL and ITAR are required. Please correct me if I'm wrong. I ask this because I am seriously inquiring on starting a very small ammunition company legitimately. I have read everything I could find on forums and on the search engines. I am just trying to figure out if this is something that is possible at the moment and if it is what would sell better. Ammunition with cast projectiles or FMJ. It's something I love and would like to turn into more than a hobby. I have read all the remarks saying not worth it and so on, but most threads seem to be from a while back. Please any information would be very appreciated.

[kcheung2]

Do you mean making your own ammo and selling it, or reselling Federal or Winchester boxed ammo?

[elmorenicholas]

Making my own. Licensed, insured, the whole shibang..

[cdtx2001]

I think you would need an FFL that allows you to manufacture and sell ammo.

[Capybara]

FFL06, not a C&R.

[Steve_In_29]

There was another thread about this exact subject not long ago but I don't remember which forum it was in.

[elmorenicholas]

So the ITAR for sure then? Also would ammo reloaded with cast projectiles be something that would sell?

[bohoki]

if you do it as a buisness then yes if you are just selling your property then i dont think you need any permits

[teg33]

I think FMJ is more in demand

[vliberatore]

if you do it as a buisness then yes if you are just selling your property then i dont think you need any permits

You can't sell your reloads as ammunition without an FFL.

[M1NM]

if you do it as a buisness then yes if you are just selling your property then i dont think you need any permits

If it's a business you'll need a business license from your city. If you are reloading then you'll need the FFL and LOTS of liability insurance. Also incoporate so they come after the company assets and not your house. It's going to be a big outlay a couple of Dillon reloaders brass primers bullets powder. Just starting out you won't have the volume or sources to take advantage of BIG quanity discounts. You won't be able to do this in a residential area and the city & fire department will make you jump through a lot of hoops since you're making a nonPC product.

[Pauliedad]

Not directly related but a perspective I like to share when I can.
If you love a hobby, turning it into a job will make it less fun.
I always enjoyed remodeling and working on my house. I would help friends and family just cuz the work was interesting and challenging.
Got licensed, insured, and am pretty successful. Get to pick my clients and jobs I take on. Work when I want and have time for the kids.
As far as the work itself, not fun like it used to be. Been reloading for a while now and I want to keep it fun.

[Steve_In_29]

If it's a business you'll need a business license from your city. If you are reloading then you'll need the FFL and LOTS of liability insurance. Also incoporate so they come after the company assets and not your house. It's going to be a big outlay a couple of Dillon reloaders brass primers bullets powder. Just starting out you won't have the volume or sources to take advantage of BIG quanity discounts. You won't be able to do this in a residential area and the city & fire department will make you jump through a lot of hoops since you're making a nonPC product.

Another issue is that I think with the quantity of powder that would be needed to run this as a business a hazmat and/or explosives license would be required as well. Along with the proper storage containers.

[Daniel_Carlsbad]

All good comment. In addition to the itar tax which is 2000 dollars a year. You'll also need to register w the franchise tax board the minimum tax due regardless of sales for a year would be around 800 dollars. Several million dollar insurance policy actually is pretty cheap at several thousand dollars a year. For any Industrial location you end up renting to manufacture you'll need to apply for a conditional use permit from the given city, that part can be alittle difficult depending on what city. San Diego is especially difficult. You can work with the local mayor and plead your case though , politicians want money in their community so there's always a chance. Renting a work space figure 1000 dollars a month. The fire department will have to inspect and insure the location is up to code. Powder storage is not too bad since you wo t have huge quantities of hundreds of pounds at a time w a small operation. Buying several dillon presses and dies. You'll need packaging materials. Also no in is going to buy from someone they don't know so you'll also have to spend some money on quality assurance such as sending your ammo to ballistic labs for testing and sending other ammo samples out to reviewers and hope their comments are good. Safety , quality and reliability are of the upmost importance. And it only takes a few people on the he's forums to sink your whole plan once they start bad mouthing you if your not performing. Also would be a good idea to go to several gun shows and talk to some vendors because at the gun shows the big manufactures have lines out the door but not too many people at the little guys table. Good luck in your endevor. Once you get your 06 ffl you can get preferred pricing from manufacturers however you'll need to make large quantity purchase in the tens of thousands. I hope it works out for you. Do your research and read as much as you can hopefully it works out. I'm also working toward that same dream.

[sl0re10]

So the ITAR for sure then? Also would ammo reloaded with cast projectiles be something that would sell?

Not for sure. Maybe for protection (otherwise; its something that can be held over your head if anyone wants to charge you with something).

You can sort of get around ITAR by submitting examples of how your ammo is not military. Like if your making 223 instead of 556. Its my understanding you can get out of the registration fees if you do this (successfully).