Do you have to have a FFL to make and sell custom rifles?

yes.

You can request permission to build custom rifles and handguns from the ATF, your state has to be a willing participant however. Here in MD they will generally grant you the blessing needed for ATF approval.You donot need an FFL to do this.

Selling the gunis another issue. According to law you can sell (at least in MD now, I have to speak from what I know) a long gun as a private sale without an FFL. Thecatch is that you can not build or manufactureguns with the intent to sell them without the proper ATF blessing, which would include the FFL. A gray area I guess. In short with permission you can build yourself one but you can not manufacture for sale without proper ATF approval.

What is the cost of a FFL now I remember when they were $35.00

Mike- The FFL was $35 for three years before the clinton administration, but thanks to the ultra liberal gun grabber the Fee for a Type 1 Dealer License is $200.00 for the first 3 years. Renewal of your license is the $90.00 for each additional 3 years after that. In some areas you may have to wait or may not be able to obtain a license, depends on the number of dealers in your area. This is on top of any state taxes or fees, and the cost of setting up your log books and other various paperwork.

iirc you also have to have a storefront and move a certain number of firearms every year. the BATFE has nearly strangled the life out of all the garage FFL's in WV.