Be an FFL dealer from home?

vallopez2000

I am wondering on how you bcome an FFL dealer? I have such an interest in firearms I would like to be in the business and maybe open a range further on down the time line on some of my land. I live in southern Colorado. I have seen ads in Shotgun News that claim it is possible to become licensed locally and federally from your residence. Is this true, or must you have a business address (zoned for business) to get a local business license to sell firearms? I have even called the guy from the ad and he swears that it is possible, "if you present yourself correctly". This throws up a red flag. Is this guy legit?

nmyers

The requirements for getting an FFL can be read in the Federal Firearms Regulations Reference Guide (ATF P5300.4), as well as on the BATF's website at www.atf.treas.gov. In addition, most states and counties have additional requirements for business owners, such as the need for a tax number, traders license, premise license, etc. Zoning restrictions may also apply, but these are usually only a problem if you have a home-based business in which customers are coming to your house.

All of the above information is readily available from the federal government & local agencies in your area. There is no need for you to pay someone else to send you forms and brochures that you can get yourself for the asking. If you find the forms and regulations too confusing to handle yourself, take that as a sign that you are not suited to go into business for yourself; it only gets worse.

Personally, I think that anyone who goes into the gun business today is crazy. Volume is low and profit margins are narrow. Expenses can be out of sight --- rent, equipment, insurance, safes, alarm systems are necessary. Even a small shop will tie up $200,000-$500,000 in inventory. And, you find that some of the more popular guns are being sold at the big box stores for less than you pay your distributor for the same guns!

Neal

Nighthawk

I can tell you of my friends experience when he tried to obtain his FFL.He spent a month trying to get the appropriate paper work to fill out.He recieved it and carefully filled it out,and sent it back.They never replied,so he called them,and to make a half a year short.They finaly ask him if he was going to open a business and he told them no.He was going to sale to people out of his home at 10% above cost.In so many words they told him he would have to get a business licence and reapply.He ask them about the people that do sell from home and they told him most people had a business and shut down and maintained their licence.

Best Wishes!!

Rugster

Edited by - rugster on 07/05/2002 11:29:45

ineedabrowninggold

Well, I got my FFL recently and I sell from home. The catch here is I live in a rural area, in a southern state, so guns are not a "taboo" like in more populated areas. We went the usual channels with the BATF, but I did have to call them to find out what was going on, they were kinda slow. They came out, did a sight visit, talked with us and that was pretty much it, other than the paper work. We did get our business license for our county and I also got a tax ID. I do agree though that there is no living to be made selling guns from your home. The "get-it-all-marts" sell way to cheap, and then there's folks who buy in bulk and can sell cheaper than I can buy. Mainly, we sell to friends and friends of friends, at a minimal profit. The personal use of the FFL is probably the biggest benefit, but it is really what you make of it. Best of Luck.

almaguns

From my observations it is very hard to get an FFL for home use. The guys that still have them were grandfathered in about 4 or 5 years ago when the price changed.I believe you have to show regular bussiness hrs and an inventory with a bussiness liscense. Also most dist won,t sell to you unless you can offer 3 industry referances and prove that you have a store front. If you want to sign up to a life of poverty and ridicule I'll sell you my place

bullelk

nmyers has it right. There is no money in the gun business anymore unless you have the knowledge to deal in the highly collectable field of firearms. That takes a lot of money and knowhow. Also, like one of the guys said, you have the discount stores to contend with, they can sell a lot of stuff cheaper than you can buy it. If you're fairly new at this game, be prepared to pay your tuition in the school of experience.
I gave up my licence in 1996,(had it for 20 years) just before NIC came into effect. The paper work and the record keeping was a pain in the * then, it must be a real pain now with the NIC system.
The main thing is if you do get an FFL, be prepared to lose some of your privacy with your personal guns, especially if you're doing business in your home. You better check around before you take the plunge.

"If All Else Fails, Read The Directions"



Edited by - bullelk on 07/05/2002 18:27:00

interstatepawnllc

I got my license in 99. Everything that has been said is very accurate. If I had to do it again I would not bother. Pawn shops and firearms go together like PB & jelly or is that Ky and belly??