FFL


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putter
February 23, 2011, 12:58 AM
I am kicking around the idea of applying for a (home)FFL. I would apreciate any info. Is there a yearly fee to keep or renew it?

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Shadow 7D
February 23, 2011, 03:11 AM
Read this
http://www.nraila.org/Issues/Articles/Read.aspx?id=318&issue=28


Then ask yourself two question
first...
WHY, as you are going to have to tell the ATF that
secondly
Do you really want to deal with the legal RESPONSIBILITIES that come with a FFL
and the fact that the ATF can, does and eventually WILL come visit you.

Bubba613
February 23, 2011, 03:21 AM
The fee for a type 01 FFL is $100 for three years, as I recall. ATF will not give an FFL if the location is not zoned for it. My gunsmith got one at his house by doing wholesale only.
You must be "in the business" of gun selling, that is, with an intent to make a profit. You also cannot do it primarily to work gun shows. All of this is explicit on their application.
The app is pretty straightforward. An agent will visit you and go through all the relevant laws. You will sign off that you read and understood them. This document will appear in court when you claim you didnt know you had to execute a 4473 for every transfer to a private person.

Bubbles
February 23, 2011, 07:54 AM
I have a home-based FFL. I wrote this up based on my experience getting it a couple of years ago.

Steps to getting a home-based Federal Firearms License (FFL):

1) Check your local zoning ordinances and HOA CCR's, if any. If either document prohibits you from obtaining a business license at your residence, go no further. The ATF will not issue you an FFL until you get a waiver from your county and/or HOA.

2) Check with your homeowner's insurance to see how much it will go up if you run a firearm business out of your home. Hopefully you have a local agent who you've personally known and worked with for many years, as the flunkie on the toll-free call center phone will probably freak at your questions. You may find the increase in premium alone makes getting an FFL unviable.

3) Another question for yourself - are you comfortable filing federal and state tax returns every quarter, and monthly sales tax returns? If not, add CPA services to your list of expenses.

4) If you've gotten to this point, find an attorney to help you form a S Corp, C Corp, or LLC (most folks go with an LLC). This is not the time to go with a DIY document off the internet, especially if you plan on dealing in NFA toys. Besides, being in the firearms biz, you're going to need an attorney sooner or later anyway; might as well get to know one now.

5) Once your corp/LLC is formed, get your EIN and obtain any necessary state and local business licenses to run a business. If you don't have these, the ATF will not issue an FFL. See #1 (and yes, they go to your county or city courthouse and check).

6) Call the ATF Distribution Center (703-455-7801) and ask for an application packet. It will include several copies of the application (no carbons unfortunately), fingerprint cards, and instructions.

Note that all manufacturers (Type 06, 07, and 10 FFL's) must register with the Department of State and pay ITAR annually. This registration fee is $2250.00.

A Type 01 (Dealer) FFL is $150 for the first 3 years, and $90 every three years afterward to renew the license afterward.

ETA: Some states, such as NY and NC, have additional licensing requirements & fees for gun dealers.

Also, avoid the "we will help you get your FFL" companies that want to charge a fee to get you your license. Everything you need is available free from the ATF.

mes227
February 23, 2011, 11:04 AM
Bubbles gives great advise! I looked into doing this (Home-based FFL) and decided against it for the exact reasons he lists. Simple things like your homeowners insurance and getting a home-based business license, the easiest things on the list, are actually huge issues.

I decided to settle on a C&R license, which avoids all of that and still gets me dealer discounts from a lot of suppliers and lets me buy directly a wide variety of firearms. And now that I better understand what's involved in a 01FFL I'm much happier to pay those guys their fees!

Bubbles
February 23, 2011, 12:11 PM
Pssst... I'm not a 'he'. :neener:

CoRoMo
February 23, 2011, 01:06 PM
A Type 01 (Dealer) FFL is $150 for the first 3 years...
When did it go down? Used to be $200.

Sam1911
February 23, 2011, 01:18 PM
Pssst... I'm not a 'he'.


Note to self... we have GOT to get with the pink and blue user names...



...

j/k :D

Bubbles
February 23, 2011, 02:18 PM
When did it go down? Used to be $200.
You're right. I had the 07 renewal fee in my mind since we just submitted it this week.

CoRoMo
February 23, 2011, 02:33 PM
The license is easy to acquire. The profit... not so much.

MtnCreek
February 23, 2011, 02:44 PM
2) Check with your homeowner's insurance to see how much it will go up if you run a firearm business out of your home. Hopefully you have a local agent who you've personally known and worked with for many years, as the flunkie on the toll-free call center phone will probably freak at your questions. You may find the increase in premium alone makes getting an FFL unviable.

You may want to get a quote from another insurance agent/provider and only contact your insurance company once you're ready to pull the trigger.

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