As the man said- for an 01 DEALERS FFL, you must be able to show you intend to ENGAGE IN THE BUSINESS of buying and selling (or repairing) guns as a business. NOT for "personal" use. Yes, ATF will require that you meet all local laws before issuing- buiness license, zoning, sales tax, etc etc.
There is also an 03 FFL- a COLLECTOR'S license. Not for being "in the business", but to aid in collecting. Covers guns 50 yrs old or older. $30 for 3 yrs. Found a Mauser or M1 you like? Send dealer payment and a copy of your license, he puts gun in the US mail to you. See cruffler.com for more info on this.
What we have here is... failure- to communicate.