proper licensing for dealing firearms at a gun show
- Thread starter pitime
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BSA1
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Since you plan on buying and selling firearms as a living (i.e. I assume you mean as your primary source of income) the first thing I would do is talk to a lawyer that specializes in small businesses.
You should set your business up as a corporation to protect your personal assets such as your home, vehicles, savings from being lost in a lawsuit or bankruptcy.
You will need a sales tax license from the State.
You probably will need a business license. Is your business going to be strictly at gunshows or also out of your home? If you are selling out of your home you need to check into zoning restrictions.
You need liability insurance. Lots of it. Remember anybody can sue anybody. Suppose you sell a gun and the buyer goes kills someone else (example estranged wife) that night or shoots up a school. The cost of defending against the lawsuit can easily wipe out or business.
You will need a accountant. Could be yourself, your wife or a friend but you will have to collect and pay sales tax and taxes on your income. You need to think about a retirement plan since this is your primary business.
Cash and credit accounts. I have a C&R and have several accounts set up with dealers although I mostly buy accessories and ammo rather than guns. It is convenient for me to make a phone call and get the items set out in a day or so.
I'm just touching the surface. I'm sure small businessmen here on THR will have additional comments.
You should set your business up as a corporation to protect your personal assets such as your home, vehicles, savings from being lost in a lawsuit or bankruptcy.
You will need a sales tax license from the State.
You probably will need a business license. Is your business going to be strictly at gunshows or also out of your home? If you are selling out of your home you need to check into zoning restrictions.
You need liability insurance. Lots of it. Remember anybody can sue anybody. Suppose you sell a gun and the buyer goes kills someone else (example estranged wife) that night or shoots up a school. The cost of defending against the lawsuit can easily wipe out or business.
You will need a accountant. Could be yourself, your wife or a friend but you will have to collect and pay sales tax and taxes on your income. You need to think about a retirement plan since this is your primary business.
Cash and credit accounts. I have a C&R and have several accounts set up with dealers although I mostly buy accessories and ammo rather than guns. It is convenient for me to make a phone call and get the items set out in a day or so.
I'm just touching the surface. I'm sure small businessmen here on THR will have additional comments.
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MtnCreek
Member
You're going to have to have a place of business and I don't believe a booth at a gun show is going to cut it.
dogtown tom
Member
01FFL (Dealer), 02FFL (Pawnbroker) and 07FFL (Manufacturer) can engage in the business of firearms.
No.
03 Collectors, 06 Ammunition Manufacturers cannot deal in firearms.
AlexanderA
Member
There is no kind of license that would allow you to sell guns only at gun shows. You have to have a fixed place of business, and that place of business must comply with all applicable zoning laws, etc. Otherwise the ATF won't issue the license. Once you are set up in your fixed place of business, you can make sales at gun shows as a secondary activity.
medalguy
Member
And whether or not you can make a living at it is another topic entirely, with the internet garnering more and more business so it's harder to make money at shows. ("I can get that --- cheaper online.")
dogtown tom
Member
While there IS a requirement to be able to operate at your licensed premises, there is no requirement that you actually conduct business primarily at that location. ATF regs clearly allow a licensee to operate from two locations: the licensed premises AND a gun show or other special event. One is not necessarily secondary to the other.
A licensee could have his home as the licensed premises and only conduct sales at gun shows........and never do a sale or transfer from his premises.
This.
Unless you have patience and deep pockets, this is the worst time in history to go into the gun business as a dealer or manufacturer.
Dealers, distributors and manufacturers are racing to see who can sell a gun for less $$........even taking a loss to free up cash.
For example, Palmetto State Armory sold S&W M&P15-22's at retail for $140 LESS than what my dealer cost is at RSR/Lipseys/Sport South. Two years ago they were getting MSRP for that same gun.
1. Do you have a business plan?
2. Do you have a full time job that could support your weekend gun business?
3. Do you live in an area that has a large & affluent population?
If the answer is "no" to any of these questions you darn well better rethink how you plan to make a profit.
I know of four "brick & mortar" gun shops within twenty miles of me that could have answered YES to all three of those questions. All are now closed.
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