becoming a ffl dealer

Discussion in 'NFA/Class 3 & FFL Discussion' started by hoyte, Sep 5, 2012.

  1. hoyte

    hoyte New Member

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    Hi I'm new to the forum. I'm in the process of getn my ffl. Just would like to know pols advice and experience on what to do. I have applied for fictitious name set up a website and applied for business license. Already send my app to the atf and seen they collected their $ from my account. Now just waiting for approval. Any input would be nice.
     
  2. danf_fl

    danf_fl Retired Supporter

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    Of course, you have the business license and zoning cleared.
     

  3. c3shooter

    c3shooter Administrator Staff Member

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    As Dan said- in order for the ATF to issue on 01 FFL, you MUST be in compliance with all state and local laws. That DOES mean having a business license, and meeting zoning requirements.

    For anyone starting ANY business, would look very hard at setting up a corporation. Not THAT hard to do, and not that expensive, but serves to shield your personal assets from claims of liability. One lawsuit, you are living in someone else's house, driving someone else's car.

    Do not know your background, but if you have not run a business before, get your butt down to the local community college, and get signed up for some BUSINESS classes. Knowing guns is great- knowing BUSINESS will keep you in business.
     
  4. hoyte

    hoyte New Member

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    Yes I have zoning approval. And there is a ffl dealer a few block from me. This will be house ran and mostly internet sales. But some face to face sales.
    I just applied for a sales tax license was told I need that to do sales. But I'm doing a slow proprietor and LLC. I'm getting help from family as far as the business end but taking classes wouldn't be a bad idea.
    I just worried about the atf saying no. But I see no reason as to why they would. But thanks for the input fellas.
     
  5. rhyno13

    rhyno13 New Member

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    The ATF does not like to give FFL's to home home based business's. Remember when you have a home based FFL business, your subject to full inspection by the ATF at any time.
     
  6. mountainman13

    mountainman13 New Member

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    During business hours with 24 hour notice. Make sure you give them set business hours or you are open to inspection any time.
     
  7. silverado113

    silverado113 New Member

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    B FREAKING S! I'm a home based FFL and they have no problem with it as long as you meet zoning requirements. Oh and your home is not subject to inspection just your place of business!
     
  8. hoyte

    hoyte New Member

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    I did give business hrs and 2 block from me there's a home based business. From my understanding as long as u meeting zoning and state your fine.
    My only question is if I'm not stocking them in my house, just doin a online store and maybe ordering for friends and referrals until I get a store front is it required to have a safe. If so what kind
     
  9. LibertyGunworks

    LibertyGunworks New Member

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    Someone correct me if I'm wrong but "secure storage" is just restricting access to the guns, closest/room with a lock on the door, cable ran through trigger guards and locked to something (I'm doing a wall rack with eye bolts in the wall), trigger locks etc. A safe is a good idea and I would certainly pick one up once you start making money and stocking more than a couple guns.
     
  10. silverado113

    silverado113 New Member

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    They don't care as long as they are "secured", technically a trigger lock on each would meet that requirement. Also if you think you are going to drop ship guns, forget about it. One distributor will do that for home based FFLs but it's not cost effective and you will not be able to compete. If you are selling online be prepared to have it stocked or shipped to you and then shipped to your customer's FFL.
     
  11. hoyte

    hoyte New Member

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    Ok thanks a lot the the info guys. My plan was to get a locked steel cabinet to keep any guns left with me cuz I'm doin gunsmithing too. Safe right now would be too expensive. But definitely will get once business picks up.
     
  12. TekGreg

    TekGreg Lifetime Supporting Member Lifetime Supporter

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    Listen closely to this advice. When I had my FFL, wholesalers would encourage you to advertise guns you didn't have in stock because "they always have them in.". However, the instant you order one to fill an order, they are out or on backorder. It also makes you look foolish when someone calls with a question and you don't have the firearm to examine.

    If you need inventory, talk to gun stores, people at ranges and others to see if you can sell on consignment for them. Not much profit, but it is free inventory and draws customers in!
     
  13. Old_Crow

    Old_Crow New Member

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    I had a home based FFL for over 15 years. I never had an inpection other than day one, all they wanted to see was a safe. In 96 I renewed my FFL. My renewal was denied because I didn't have a store front. No one came to inspect nor was I given warning. If they had given me 90 days to comply I could have found a store front. I went to my banker to see what options I had for financing. He said since my renewal was denied no bank in town would touch me.

    I would find a warehouse or something you can call a store front so you don't get put out of business in the blink of an eye.
     
  14. Byrdguy

    Byrdguy New Member

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    I have an existing business operating as an "S" corporation. We operate out of our warehouse in a commercial zone. The building has a security system and a safe. this should satisfy my "storefront" requirements to get an FFL, right?
     
    Last edited: Oct 5, 2012
  15. FFL01user

    FFL01user New Member

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    Unless you have a local law saying otherwise, there is no "storefront" requirement to get a FFL.
     
  16. Old_Crow

    Old_Crow New Member

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    I was reading an article about the assault weapons ban. Lots of home FFL's got shut down during that time. Apparently if you were to successful your home FFL was shut down. I could re-apply now and get an FFL. Right now things are so unstable in the firearms business I have no desire to start over. The days of getting cases of SKS's so cheap you could sell them for $50 each and make a decent profit are gone.