carnaby
Member
ACBMWM3, what part of Seattle are you in? I'm in Wedgwood, so hopefully you're close by.
carnaby: How does one start the FFL process? I'm running a side business as a AR-15 upper assembler/retailer, and I'm looking at providing lowers and complete rifles as well. I'd also like to do a minor amount of 1911 trigger work, and I don't know if I need a gunsmith FFL, a retail FFL, or other.
(H6) May a person engage in gunsmithing under a dealer’s license (type 01), or do gunsmiths need to be licensed as “manufacturers” of firearms? [Back]
Generally, a person engaged in gunsmithing requires only a dealer’s license (type 01). There are circumstances in which a gunsmith might require a manufacturing license. Generally, a person should obtain a license as a manufacturer of firearms if the person is: 1. performing operations which create firearms or alter firearms (in the case of alterations, the work is not being performed at the request of customers, rather the person who is altering the firearms is purchasing them, making the changes, and then reselling them), 2. is performing the operations as a regular course of business or trade, and 3. is performing the operations for the purpose of sale or distribution of the firearms. (see attached).
Fixed it for ya. Also if he is 18-20 but buying ammo for a handgun that is illegal.(selling handgun ammo to minors is illegal period)
ok dont mean to hijack but what is so hard about a transfer here we have people that dont do them charge 50,40.and 20
doesnt it take like 10 mins including the time it takes for the paper work?
ok dont mean to hijack but what is so hard about a transfer here we have people that dont do them charge 50,40.and 20
I work from home so I thought why not?
Question: How do you distinguish between a business and a hobby?
Answer: Hobby expenses:
Are deductible only to the extent of hobby income.
Distinguished hobby expenses from expenses incurred in an activity engaged in for profit.
In making this distinction, all facts and circumstances with respect to the activity are taken into account and no one factor alone is decisive. Among the factors which should normally be taken into account are the following:
Whether you carry on the activity in a businesslike manner.
Whether the time and effort you put into the activity indicate you intend to make it profitable.
Whether you depend on income from the activity for your livelihood.
Whether your losses are due to circumstances beyond your control (or are normal in the startup phase of your type of business).
Whether you change your methods of operation in an attempt to improve profitability.
Whether you, or your advisors, have the knowledge needed to carry on the activity as a successful business.
Whether you were successful in making a profit in similar activities in the past.
Whether the activity makes a profit in some years, and how much profit it makes.
Whether you can expect to make a future profit from the appreciation of the assets used in the activity.
Additional information on this topic is available in section 1.183-2 (b) of the federal tax regulations.
I am surprised that no one mentioned becoming incorporated (maybe I missed it?).
Without incorporating, you are putting your home, possessions and future income at risk in the event of a lawsuit. By incorporating, you put a level of protection against that affecting your personal property.
Next is insurance. Some insurance companies will not insure a home business (MIC comes to mind), so make sure your insurance company is informed and ok with it.
I had a FFL for several years without any problems from customers or BATF, with one exception: the last visit I got from an ATF agent, he complained because I limited sales to people I knew. His position (technically correct) was that a business is supposed to be open to the general public. When I asked if he would be happy that I sold a gun to his mentally unstable neighbor, he agreed that he appreciated what/why I did business my way, but he was obligated to point out what BATF defined as "business".
Not trying to hi-jack this thread, but I have a question. I looked into an FFL about 6 months ago and gave up because I live in the county and not in town limits. The prob is the county does NOT require a business license which is fine but the licensing agency requires either a business license or a letter stating that a business license is not required and my county will not give me such letter.
Any ideas??
Hairball
Hairballusmaximus: ...The prob is the county does NOT require a business license which is fine but the licensing agency requires either a business license or a letter stating that a business license is not required and my county will not give me such letter.
Any ideas??
Hairball
rscalzo: ...Having the primises which would be my home checked at by the ATF.
rscalzo: Having strangers come into my home to purchase or inspect firearms.
scalzo: Is the possibility of being involved in a lawsuit over a sale of a firearm used in an improper manner covered? homeowners will not cover that type of liability that arrives out of a business dealing. The fact that the suit might not be successful does not mean that a business will not be named causing legal fees.
mgkdrgn: Ya, hows about get a business license anyway, even if you are -not required- to have one.
Not trying to hi-jack this thread, but I have a question. I looked into an FFL about 6 months ago and gave up because I live in the county and not in town limits. The prob is the county does NOT require a business license which is fine but the licensing agency requires either a business license or a letter stating that a business license is not required and my county will not give me such letter.
Any ideas??
Hairball
ok dont mean to hijack but what is so hard about a transfer here we have people that dont do them charge 50,40.and 20
doesnt it take like 10 mins including the time it takes for the paper work?