How to get an FFL & Questions

[ruger1944]

I apologize if this has been covered 4 million times but having a hard time finding a current one on this topic.

I live on the border of 2 states and I go to quite a few auctions in the other state that I live in and I stay away from so many of the lower priced items because the cost of the transfer is such a large percentage of the value of the gun. I also see a lot of modern pistols that I don't mess with because the shipping on them is so expensive.

I would like to be able to but the guns that I'm not currently buying because there is a good amount of profit to be made especially if I could be picking up say 5 $100 shotguns without having to pay $100-125 in fees alone.

I might go to 5 auctions in a week sometimes but can also go months without going to ones with guns.

Do I have to have a registered business? I would be doing this out of my house but I don't really want to be doing transfers at my house. My business is selling online from what I'm buying local.

Thoughts? Ideas?

I've looked at the application but it's so vague that it's hard to determine as I don't want to get caught up in red tape.

I want to make money but I'm also not going to be a brick & mortar store.

 

[hso]

If you're doing this to make money you have to have an FFL and to get an FFL you have to have a business of some sort to sell firearms.

The BATFE has pretty clear instructions on how to apply https://www.atf.gov/firearms/how-to/become-an-ffl.html

Informally you can find a lot of "advice" on how to do this on the net, but the BATFE call the shots.

 

[mrvco]

You may want to check out ffl123.com and some of the reviews of their "guide". They may not answer the questions unless you pay the $40, but just knowing what the questions are seems helpful.

 

[mgkdrgn]

I apologize if this has been covered 4 million times but having a hard time finding a current one on this topic.

I live on the border of 2 states and I go to quite a few auctions in the other state that I live in and I stay away from so many of the lower priced items because the cost of the transfer is such a large percentage of the value of the gun. I also see a lot of modern pistols that I don't mess with because the shipping on them is so expensive.

I would like to be able to but the guns that I'm not currently buying because there is a good amount of profit to be made especially if I could be picking up say 5 $100 shotguns without having to pay $100-125 in fees alone.

I might go to 5 auctions in a week sometimes but can also go months without going to ones with guns.

Do I have to have a registered business? I would be doing this out of my house but I don't really want to be doing transfers at my house. My business is selling online from what I'm buying local.

Thoughts? Ideas?

I've looked at the application but it's so vague that it's hard to determine as I don't want to get caught up in red tape.

I want to make money but I'm also not going to be a brick & mortar store.

FYI ... if you can't handle the application, there is no way on this gods green earth you will be able to handle the daily paperwork required to be an FFL.

 

[mrvco]

Oh and you could apply for a Curios and Relics License just to test the waters. I did a couple weeks ago and it took half an hour or so to fill out the form and get it in the the mail.

 

[dogtown tom]

mrvco Oh and you could apply for a Curios and Relics License just to test the waters. I did a couple weeks ago and it took half an hour or so to fill out the form and get it in the the mail.

Test what waters?
Using an 03FFL C&R to engage in the business of dealing in firearms is a felony.

 

[newfalguy101]

Actually, I fund the application surprisingly straightforward and easy to understand ( as far as Gov paperwork is concerned) and in reality, the "daily paperwork" isn't terribly difficult, in fact, I would go so far as to say the accounting paperwork is far more daunting.

In a nutshell, to hold an 01 FFL, which I believe you would want , you must operate as a business entity, contrary to popular belief, this does NOT mean you have to have a storefront. There is no such thing as an FFL for "Only buying and selling online" an 01 is an 01 is an 01, and your licensed premises will be your business address. Whether or not you do transfers or order guns in for customers, is entirely up to you.

 

[newfalguy101]

Oh and by the way, unless its some local thing, there shouldn't be any extra fees involved with buying longguns in another state. Its perfectly legal for an individual to buy longguns across the counter in any state in the union, provided the transfer would be legal in BOTH jurisdictions.

 

[dsink]

By using your home as your busines address for your FFL's. This will give the ATF the right to come in your home once a year and do an audit.

I know you said you do not want to do transfers out of your home. But the only 2 places you can do them is out of the addres on your FFL's or at a gun show. You will not be able to meet someone in a parking lot somewhere and do it.

Personally, as an 01 FFL holder for gunsmithing. I would say its not worth the headache. If you are going to be selling the firearms over the internet and shipping them. One lost/stolen firearm you ship will probably kill your profit for a several months plus it will take you several months to recoup any money if your able to from the shipper. Trust me, they do get stolen during shipping. And just becouse you had it insured for x amout of money does not mean thats the amount there going to pay you.

If you decide to try an get them. The first thing your going to need to do is check with your local planning board and make sure you are able to run a business out of your home and theres no zoning restrictions. Then call the ATF and request an FFL pack. DO NOT waste money going through one of the places that claims to help you get them.

 

[rule303]

Getting the FFL is the easy part. It is everything you need to do prior to applying for the FFL that takes work. You must meet all local, state, and federal requirements for your application to be considered. Zoning is the most important, in most cases you would need a commercial zoned location, have your current property rezoned, or apply for a variance or conditional use permit. Then you will want to form some sort of business entity-could be a corporation, LLC, sole proprietorship, partnership, etc. Sales and use tax permit, FEIN, insurance, storage, alarm system. Some states, counties, and municipalities will have further requirements.

 

[Frank Ettin]

I would like to be able to but the guns that I'm not currently buying because there is a good amount of profit to be made ...

...

Do I have to have a registered business? I would be doing this out of my house but I don't really want to be doing transfers at my house. My business is selling online from what I'm buying local...

1. As you describe it, you would be engaging in the business of being a dealer in firearms. And for that you would need to be licensed by the federal government as an 01 FFL. See this discussion.
   
   
2. As an FFL you would need to comply with ATF requirements, including record keeping. You will also need a "place of business." Your place of business will be the only place besides gun shows at which you could do transfers. Your place of business will also be where the ATF will conduct any audits of your operations. As far as the ATF is concerned, your place of business could be your home, if permissible under state or local law.
   
   
3. Your business will also have to comply with applicable state and local laws, You will need a business license. Your place of business will need to comply with local zoning laws.
   
   
4. As a business you will also need to comply with local, state and federal tax laws, so you will want to be diligent about tracking and accounting for expenses and income for your business separately from other household expenses and income.

...unless its some local thing, there shouldn't be any extra fees involved with buying longguns in another state. Its perfectly legal for an individual to buy longguns across the counter in any state in the union, provided the transfer would be legal in BOTH jurisdictions.

But it's still not legal to engage in the business of a dealer in firearms without an 01 FFL, and that's what the OP says he wants to do.