Class 7 FFL/2 SOT licensing

[F8ality]

Hey guys I put this in another thread about getting an FFL but figured it would be best in its own thread.

If my main purpose is to do transfers/build AR's/sell & demo to Civilians, LE and Mil, I would need an 07 and an SOT, correct? Which do I apply for first what's the best way to do it and can an SOT do business out their home like an FFL can?

Also does it matter whether or not you are a private business/partner or an LLC? Is one better than the other in terms of getting an 07FFL or class 2 SOT?

[GoingQuiet]

Note: Just say 07/02. Everyone knows what it means. 07 isn't a class, its a type. 02 is the class.

You do need an 07, and SOT only comes into play when you are doing NFA builds. You'd get the FFL first and the SOT optionally after you get the FFL.

There are plenty of home SOT's but you'd have to be cleared with local zoning.

For liability reasons I would NOT do anything other than a corporate FFL and SOT. There is no reason for you to lose personal assets in a bad business deal.

[F8ality]

Hey thanks for the reply and info. So whats the difference between corporate and LLC in terms of getting the licensing and as far as paperwork goes, or is there any difference at all?

[F8ality]

Also any tips or suggestions on going corp/LLC? Do I need a lawyer to write it up or my tax guy or is it something I can do on my own and is it pretty self explanatory? I'm asking you guys because if you have already been through it you might know things to make it easier smoother for someone else.

I appreciate your input

[TheExpertish]

Also any tips or suggestions on going corp/LLC? Do I need a lawyer to write it up or my tax guy or is it something I can do on my own and is it pretty self explanatory? I'm asking you guys because if you have already been through it you might know things to make it easier smoother for someone else.

I appreciate your input

I'm sure a lawyer would be the proper way to go, but I think for starter's I'm going to try to do mine online for $149.

[rogtac]

be prepared to wait a while for CA to process your corp/llc...even if you use legalzoom.

[PolishMike]

The 07/02 is the easy part.... try to get a AW/ SBR/MG permit from the DOJ

[GoingQuiet]

Also any tips or suggestions on going corp/LLC? Do I need a lawyer to write it up or my tax guy or is it something I can do on my own and is it pretty self explanatory? I'm asking you guys because if you have already been through it you might know things to make it easier smoother for someone else.

I appreciate your input

I'd talk to a lawyer. It isn't that expensive.

[efillc]

We had an attorney do ours but we are also handling high-$$$ transferrable machine guns and have several dozen more post-samples on F2 right now. There is no way I was going to risk having to potentially lose tens of thousands of dollars because my home-made LLC didn't stand up to legal scrutiny just to save a few hundred bucks.

[TheExpertish]

The 07/02 is the easy part.... try to get a AW/ SBR/MG permit from the DOJ

Well that's on the wishlist.

[F8ality]

Hey thanks guys for the responses. I am going to start looking for business law attorneys in my area. Any suggestions for a good one in so-cal? And what's the average cost to get an LLC drawn up? Another question I have is about insurance, what exactly should I look for when purchasing insurance for my business? Im guessing that the business won't fall under homeowners ins correct, or does it?

[wildhawker]

Hey thanks guys for the responses. I am going to start looking for business law attorneys in my area. Any suggestions for a good one in so-cal? And what's the average cost to get an LLC drawn up? Another question I have is about insurance, what exactly should I look for when purchasing insurance for my business? Im guessing that the business won't fall under homeowners ins correct, or does it?

Call Jason and tell him Cal-FFL referred you. He is a longtime firearms and business attorney very familiar with the needs of FFLs.

-Brandon

Mr. Jason Davis
Davis and Associates
27281 Las Ramblas, Suite 200
Mission Viejo, CA 92691
info@calgunlawyers.com
T: 949.310.0817
F: 949.288.6894

[F8ality]

We had an attorney do ours but we are also handling high-$$$ transferrable machine guns and have several dozen more post-samples on F2 right now. There is no way I was going to risk having to potentially lose tens of thousands of dollars because my home-made LLC didn't stand up to legal scrutiny just to save a few hundred bucks.

This is exactly what I'm worried about. I will be contacting my CPA and some attorneys this next week.

[TheExpertish]

Call Jason and tell him Cal-FFL referred you. He is a longtime firearms and business attorney very familiar with the needs of FFLs.

-Brandon

Mr. Jason Davis
Davis and Associates
27281 Las Ramblas, Suite 200
Mission Viejo, CA 92691
info@calgunlawyers.com
T: 949.310.0817
F: 949.288.6894

Thanks for this suggest. I have a friend who's a business attorney, but not sure how much he knows about FFL's.

This is exactly what I'm worried about. I will be contacting my CPA and some attorneys this next week.

This is what I'm thinking now. Forget Legalzoom. Talking to my friend next week.