Value in having an FFL?


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GlockStar
June 5, 2010, 09:31 PM
I don't have an FFL but I have a boat load of guns and I want to continue to buy a boat load.

Based on all the political climate, and having just read this article: http://www.mainjustice.com/2010/06/03/atf-director-given-final-say-on-federal-firearms-licensing/

...it may be get harder in the future to get an FFL.

Do you have an FFL or a strategy revolving a citizen that isn't wanting to go into business?

Thanks in advance, (just thinking)

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brboyer
June 5, 2010, 09:36 PM
To qualify for most FFL's you must intend to make it a business.

GlockStar
June 5, 2010, 09:45 PM
Then would it be worth it to create a small business? I could come up with something small scale enough to break even and be worth my time.

oneounceload
June 5, 2010, 09:50 PM
There used to be a time when the ATF didn't care much (and neither did society) about folks and guns. I had one back in those days - we were called "kitchen table FFLs" because most business was done at that location. The license cost $10/year, and most of us had them to buy our own guns at dealer cost. Then the prices of the FFL went up, stricter regulations were implemented, and you needed to "be in the business of selling guns as a business" - put a lot of us out of business (as was the intent).

The current requirements and paperwork are not worth the time and investment IF you only plan on doing this part time

Sam1911
June 5, 2010, 10:00 PM
A couple of posts from this thread: http://www.thehighroad.org/showthread.php?t=450280


First thing to look into is your local zoning/business license requirements.

Then check into what ever the state regulations are.

IF you can deal with those two, then you can start thinking about the FFL.

THE big deal with the FFL would seem to be impeccable record keeping, and your ability to follow the rules, to the letter, on every single transaction. You also need to be able to recover those records, for a specific transaction, within 24 hours .... forever (or as long as you are in business).


I had one for 10 years back in the 1980s and 1990s/ having an FFL is one of the biggest pains in the ass you can imagine. Only consider it if you are serious about going into the business of selling guns. Forget it if all you want to do is order guns for yourself.

You need the federal license (FFL). Having one opens your home up to inspection without warrant (I assume you plan to operate from home).

You need a state tax stamp and you need to collect sales tax and file quarterly reports with the state tax board. You may have to put down a deposit against future tax collections (like a couple thousand dollars in some cases).

You need a business license from the city and or county. There will be zoning laws to deal with and parking requirements and other issues. Some cities/counties collect sales taxes so you will need another layer of tax bureaucracy on your back.

Your insurance carrier may cancel your policy for running a business from home. They may refuse to pay if you file a claim. You might need special insurance.

I have no idea what OR requires or your city or your county. YOU need to investigate. Some cities prohibit any home based business and some are uneasy about allowing gun sales.

If you SERIOUSLY want to be in the gun selling business start asking what the state and local restrictions and requirements are.

And a few from this thread: http://www.thehighroad.org/showthread.php?t=462415

Well, first off, DO NOT get an FFL for a personal benefit. It is a dealers license and unless you intend to engage in the business of buying/selling firearms, an FFL is not for you. You must comply with all of the ATF's regulations and if you operate out of your home, the ATF has the right to enter your home at any time for an inspection of the guns, premises, records, etc. I'll reiterate, if you don't plan on being an actual gun dealer, DO NOT apply for your FFL license.

Federal law is VERY clear- a licensed gun dealer may ONLY conduct business at his licensed premises and at a gun show. An FFL may use another location for storage purposes only.

Etc.

YMMV, of course.

brboyer
June 5, 2010, 10:01 PM
Good luck!

Jim K
June 5, 2010, 10:13 PM
I agree. Even if you can do so, it is simply not worth the trouble to open a business just to get good prices on guns for yourself or to guard against some unknown future concerns. And, FWIW, I strongly recommend against running a gun business from your home, even if it is legal to do so. Aside from insurance problems, do you really want to be wakened at 3AM on opening day by some guy who wants his gun fixed NOW! Or worse, do you want your home invaded by druggies looking for guns?

If you want to become a dealer, and do things right, welcome; we need more dealers. If you only want to buy guns for yourself and a few buddies, and shut the door on real customers, what is the point?

A better choice might be a 03 FFL, the Curio and Relic license. You can purchase C&R items, often at dealer prices, but you don't have the hassle of being in business. Of course, you can't act like a dealer, buying and selling, but for a real collector, the C&R license is a good deal.

Jim

Geno
June 5, 2010, 10:25 PM
I used to have an FFL years ago. Some businesses give a significant discount to FFLs, as in the range of 25% to 30%. Some of these companies continue honor that discount for life, even after a person decides to not renew their FFL. I still receive a significant discount from certain companies...as in 25%!

I'm just sayin'. These companies do not publish this fact, and I cannot disclose which.

Geno

GlockStar
June 6, 2010, 09:27 PM
Good inputs. I'll research more for sure. Thanks

Sir Aardvark
June 6, 2010, 10:43 PM
A lot would depend on the State you live in.

I had my FFL-01 in California for 6 years. By the time I gave it up in 2005, I was required to have 7 separate licenses, permits, and certificates to sell a handgun!

The ATF makes it VERY clear that this license is intended for retail sales of firearms as a business - when you renew your licenses after 3 years they make you report to them exactly how many firearms you sold to yourself, so they do keep track of that.

About all I can say is that selling guns in California was a pain in the rear - it may not be so bad in Colorado.

BeerSleeper
June 6, 2010, 10:52 PM
Is there a minimum number you have to sell?

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