The Haus has been closed for at least 6 years.
Yes, I will be manufacturing machine guns (and suppressors and AOWs). The MP5 is whatever the going rate for the current market. Over $10K for an MP5 the last time I looked. The machine guns I manufacture will only be legal to transfer to LE agencies or the military, but I can make as many demo guns as I want and keep some on hand for sales, etc. One of my first projects will be a 10mm M16 commando. I will also be making a "double tap" burst kit for M16 rifles. If one has a transferable machine gun that's a registered receiver, it would be legal to put this kit in your machine gun. The selector would go SAFE-SEMI-TWO SHOT BURST.
The steps are about the same for a dealer and manufacturer, but there are small differences. The dealer FFL is $200 with a $90 renewal and the manufacturer FFL is $150 with no reduced renewal rate.
The dealer, type 01 FFL, has to pay a Class III SOT (special occupational tax) yearly of $500 to become and maintain the status as a dealer in NFA weapons.
The manufacturer, type 07 FFL, has to pay a Class II SOT yearly of $1000 (reduced rate of $500 for small manufacturers that sell under $500,000 previous year) to maintain the status of a NFA firearm manufacturer. With a type 07 FFL/ SOT2, you can make everything except for destructive devices (I think that's a type 10 FFL that runs like $3K for 3 years). Also a manufacturer (both firearm and ammunition manufacturer) has to register with the US State Department under the ITAR rules and pay a yearly fee of $1,750. It is mandatory even if you don't import or export or sell to military. If you make it, you need to be registered.
Currently I'm a type 06 FFL, ammunition manufacturer. Under the NFA tax rules, all FFL sales are to be added up to determine what tax is due for the Class II tax. Because I have an FFL already, and my sales for the last fiscal year (ending June 30) is less than $500,000 I qualify to pay the reduced SOT tax of only $500 to get my NFA manufacturer status. Pretty sweet, eh?
Zoning is another hangup. Currently in the village, there is no zoning restrictions on the firearms industry so I just have the FFL, SOT, and ITAR fees to pay. I operate out of my home. Basically if I get the proper FFL and SOT tax paid, I can make rocket launchers, artillery, and flame throwers in the back yard if I want to.
The best combination of FFL and SOT to get is the type 07 FFL with the class II SOT. With this combination I can do all of the following:
- Make any Title I firearm (handguns, long guns)
- Deal in any Title I firearm
- Perform any gunsmithing activities
- Manufacture ammunition or components
- Manufacture NFA weapons, except DDs
- Deal in NFA weapons, except DDs
- Import machine guns for R&D purposes
The fee schedule is $150/3yrs for the FFL, $500/yr for the SOT (reduced rate), and $1,750 per year for the ITAR registration. So licensing costs are $2,300 per year.