Thinking about getting an 01 FFL.....thoughts

Discussion in 'NFA/Class 3 & FFL Discussion' started by Rustynuts, May 29, 2011.

  1. Rustynuts

    Rustynuts New Member

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    Thinking more lately about finally getting an FFL. Been wanting to for probably 25 years and now that I have my oun business and my son is starting to run things more, I will be having more free time and it almost seems natural since I have a love for guns :D

    I already have a large building that has 2 entrance doors, one to our current kitchen cabinet showroom and one to what was an office that is about 12 x 20 and was thinking about having a small shop and start out by special ordering and carrying ammo in quantities which nobody around me carries at a half way decent price. So basically I have the space, getting more time and have checked into cost of getting the FFL so I wouldnt have much overhead other than insurance which I haven't looked into yet.

    I am going to keep my personal firearms separate at home, so would having an FFL open my personal stuff to batf? Zoning shouldnt be any problem bing in a commercial location and the State Police office is right next to me.

    So does this sound like a no brainer? Or just a waste of my time. I just get sick of the high prices locally that people are paying. I had a friend that looked up a gun on Davidsons and got a quote online, went to the shop that they showed online and the dealer refused to let him have it sent to him because he had the same gun in the display case......for $100 more than the quote AND he would not come down on his price for the in stock one! :eek:

    Thanks for your time...

    Brian
     
  2. JonM

    JonM Moderator

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    long as your place of business isnt your home (they inspect your business) your personal items at your residence are exempt. most peeps that get their personal stuff inspected list their residence as their ffl business location.

    most of the price of gunshops is overhead and payroll if your overhea as described is low to nothing your waaaay ahead of the game.
     

  3. BlindOldMan

    BlindOldMan New Member

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    It's just about impossible for your local gun shop to compete on price with the Internet wholesalers. The LGS has to pay a staff, electricity, rent. They let you examine the guns, provide expertise, etc.. $100 more than the wholesaler is not too bad considering all that they provide. I buy at both, but like to buy at my LGS whenever I can.
     
  4. diggsbakes

    diggsbakes New Member

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    I'm kinda the same way, even with ammo. As I'm in the shop I factor in my head the cost of shipping, tax and having the package sitting outside my home for 1/2 a day or so. . . Then if the the guys at the shop are your friends/acquaintances it gives even more reason to just pay the extra $buck$.
     
  5. TEXPAT

    TEXPAT New Member

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    Ffl internet business only

    Can an FFL be used for internet transaction business and local gun shows? It would be operated from the home. This is in Texas. Of course there would be security system, cameras and safe.
     
  6. c3shooter

    c3shooter Administrator Staff Member

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    Tex, for an 01, you must have "licensed premises"- please verify with the ATF- premises CAN be at home IF that meets zoning and business laws- but do not think that gun shows alone will meet ATF requirements of "engaging in the business" of buying and selling guns.
     
  7. Ron-O

    Ron-O New Member

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    I just received my FFL. From my understanding gun shows cannot be your only means of selling. I had to get a business license for my home, including a city license. I'm not going to have any walkup traffic but will do transfers. As long as your are trying to make money at a business venture ATF seems happy.
     
  8. suarezcm

    suarezcm New Member

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    Help

    Having the same problem in San Antonio
    Have to see a lawyer
    I'm disabled and would love to do my bussiness from home
    Gunsmith jobs for now
    Anyone else in San Antonio have similar Problem
     
  9. Straight_Shooter

    Straight_Shooter New Member

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    Fixing or modifying guns for other people is gunsmithing and requires an 01 FFL. Doing so without a license is considered a violation and any violation can get you banned for up to life without a day in court. They do their own hearings in house if you dispute what they say is true. If you have a stickler ATF agent, there is no obligation to a warning even for a long time dealer. They come in, note a violation and take your license with them. Luckily most of them are gun lovers and will give the honest guy a schooling and time to get into compliance but a flat out defiance of keeping the rules and it's over. We used to have at least 50 FFL's in our town and I think we are down to around 10.

    There is no such thing as an internet based drop ship gun sales business. When you buy firearm from a wholesaler they can only send to your licensed premise. You must receive the firearms and log them into your AD book. You can then sell it directly from your registered location (if the city allows retail sales at your place) or through internet ads and then you send to the recieving persons FFL. There is so little markup in gun sales especially selling on the internet I would be surprised if you could make even $10 per gun and still sell them. You can't be competitive with the double freight over a local FFL.

    On the net you are up against the buying power of Buds Gunshop. They can almost sell anything delivered for what you can buy it for.

    To the OP. What you propose sounds good. All you need is your current business retail sales license and you can buy everything except firearms. Even optics. No FFL needed. Trouble with ammo is it's so heavy and again the small margin compared to the buying power of the big box stores. The deals start at a rail car full of ammo. Better to go to gunsmith school if you are wanting a new profession.

    I gave up on gunsales.
     
    Last edited: Oct 3, 2011
  10. olegeezer

    olegeezer New Member

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    FFL license?

    RON_O Just a quick question? I too am thinking about getting my FFL and need to know if how you are thinking about making any money by just doing transfers? Maybe I did not get all of the information you were talking about. I am disabled and am also a gun and ammo nut . Thinking I might be able to sell a gun or two and maybe some ammo locally and make a dollar or two. I am sure not going to do this with the intent of getting rich, but anything to do with guns and ammo will be a side pleasure. Any thoughts or advice would be appreciated.
     
  11. BenLuby

    BenLuby New Member

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    Don't forget that you also have to ensure that your building meets the ATF requirements, and it's stiffer than your local convenience store. You also have to have a good security system, and I'd be surprised if the insurance isn't significantly more.
     
  12. hiwall

    hiwall Well-Known Member

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    Very hard for a small shop to make money on new guns. Used guns are much more profitable. I did the gunsmithing for a fairly large shop a while back. The owner had his retired dad out hunting constantly for used guns. His dad would buy out estates, buy at local auctions, shop other dealers when on vacation in other states(prices vary around the country), check out flea markets, anywhere they thought they might get a good deal on used guns. It was not uncommon for them to buy a hundred or more at a time. You could also pawn guns there (they said thats where they made the most money). They sold new guns at just over their cost in the hopes of making money on trade-ins.