Are FFL packets a scam? (TX)

[Snafoo]

I hope this is the right place for this, if not just delete and I'll post elsewhere.

I'm interested in obtaining an FFL but I'm clueless of the process. While searching for info I'm bomb barded with sites advertising packets of info to help in obtaining an FFL.

Are they any help at all?
Where can I get guidance in applying for an FFL?
Should I even try to get one now?

I already have my Texas CHL.

Oh, I'm new here also so - Howdy Ya'll!

 

[CoRoMo]

Yep, Scam-o-rific (that means they are a scam). And welcome.

Just contact the ATF through their website. You can order any and all forms you like for free.
If you have questions, you can call the nearest field office and they will be happy to help.

Should I even try to get one now?

Sure, why not. If you are looking to go into business, go.

What are your plans?

 

[Corey]

Those sites are simply charging you money for what the ATF will send you for free.
Just start here: http://www.atf.gov/firearms/how-to/become-an-ffl.html

 

[jimmyraythomason]

Those sites are simply charging you money for what the ATF will send you for free.

That pretty much is it in a nutshell.

 

[Snafoo]

Thanks guys!
I thought so but your opinon is valued highly.

My plans?
Well I'm a burned out IT guy and I'm looking for an outlet or rather something different to get into. I love guns and always have been partial to military weapons of all eras though I don't own many, yet. I want to get into gunsmithing and sales. With a little collecting as well.

Will I be able to sale from my house of will I need a commercial location to do business from?

So basicly I just fill out the apprpriate forms and submit them and wait to hear from ATF?

 

[Art Eatman]

Just follow the ATF directions.

As far as business at home, make sure you don't have a zoning conflict. ATF does want you to be in accord with that aspect of local ordinances.

You'll need the state and local sales-tax license stuff, as well; no big deal.

 

[mgkdrgn]

Snafoo,

BEFORE you apply for the FFL, check out your state/local regulations on the matter. Zoning, business license, sales tax collection, yadda yadda yadda. Until you have that dealt with, the answer from the Feds for the FFL will be -no-. And remember, we are not only talking about the one time permits, but the likely -monthly- paperwork (sales tax) and reporting that goes along with them. Missing a couple of reporting deadlines can get real expensive, real quick.

And then there is your filing/storing all your 4473 for -at least- 20 years ...

 

[rocky branch]

Good advice to do a LOT of checking.

20 Years ago a great many guys held FFLs for home use.
Cheap, few frills.

The antis got involved and made having a FFL so costly, involved, and difficult that 90%(my guestimate) dropped theirs.

That was the plan and they won.

 

[Bubbles]

I wrote this up based on my experience getting an FFL 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.

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.

 

[Snafoo]

Thanks for the information!
You guys are a great help.

Looks like too much for me to handle right now.
I'll go ahead and get my 03 FFL though.

Thanks again!