renewal for liability insurance
Remember these? Once upon a time I tried to import the design and manufacture these in the states.
The whole patent, license, goodwill, all, went surprisingly well. However, it ended with the patent holders telling me "Good luck".
Had manufacturing space from a previous project. Had machines from previous projects.
Had borrowed technology as well as a wealth of experience and process in house.
Then the fun starts.
Upgrade FFL.
BATFE wants and inspection. We were building a variation of this...
Curiously, not a problem what was a problem was the "design" was imported therefore a different license class.
Landlord finds out from somewhere that we had the BATFE on property. We get the boot.
Insurance finds out there is an FFL license involved and not only instantly dropped and balance refunded but sued for breach of contract and misrepresentation.
Within hours of being evicted the BATFE declines the paperwork on the specific model we wanted to build.
Minutes later a federal cease and desist is posted at my home address concerning FFL activities.
Epilog
BATFE backed off when I didn't renew my FFL.
Offshore partners reminded me of their last words.
Insurance company was countersued. We won.
Landlord was sued. We won.
In subsequent years I've greeted warrantless LEO at my various shops, businesses, and home, with a friendly "Have a warrant?" Only once did this degenerate into a " If you have nothing to hide , what's the problem?" . Al these visits hinted at or openly accused me of illegal manufacturing.
I no longer own anything NFA related. It just isn't worth the loss of several days in interrogation, confiscation, threatened litigation, harassment, accusations, and implications that I have to go through every time I am found in possession of an NFA item. Where I live it just isn't worth it.
Aside from the photo above I have several working designs that I can assemble for reasonable materials and manufacturing costs.
Property completely divorced from my personal living space.
Incorporate as LLC.
Find an umbrella policy that does not specifically exclude FFL related activities.
At the very least invest in dedicated manual machines, jigs, welders, assort bench tools.
Create a separate "dealer" so I don't have to babysit sold inventory for a year plus.
Be prepared to go in the hole for 3-5 years.
I can design a folded gas path, semi-reflex, partial flow through (whatever the hell that means) suppressor with top tier metallurgy (again whatever the hell that means) at or near 140Db, on manual machines with manual welding, for $400 give or take, in materials and labor.
I'd have to sell for $1000 just to break even, even if I sold as many as 1,000 in the first year because the cost of doing business never decreases with volume.
So having some small experience in how it can all go wrong I have some appreciation of what it takes to get it right.
@MachIVshooter best wishes and keep getting it right.