Home-based FFL's

Home-based FFL's

This is a discussion on Home-based FFL's within the FFL Dealer Discussion forums, part of the Related Topics category; Question: I know the ATF won't usually grant FFL licenses if you're only going to use it to get dealer pricing for yourself...but is there ...

Page 1 of 2 12 LastLast
Results 1 to 15 of 26
Like Tree23Likes

Thread: Home-based FFL's

  1. #1
    Member Array american23's Avatar
    Join Date
    Aug 2013
    Location
    Iowa
    Posts
    307

    Question Home-based FFL's

    Question: I know the ATF won't usually grant FFL licenses if you're only going to use it to get dealer pricing for yourself...but is there a limit to how many firearms I have to sell to other people to maintain the FFL status? What can I expect if I become a home-based FFL? Thanks guys.


  2. #2
    VIP Member
    Array SIGP250's Avatar
    Join Date
    Jan 2009
    Location
    MO - Rock Ranch
    Posts
    2,344
    As I remember, The ATF's position is that you must sell at least (2) two firearms within a two year period else ATF has grounds not to renew your license. Additionally, and probably more important with home based businesses is that you maintain regular business hours. This does not mean 8-6 6 days a week. It should be at least 24 hours a week. For example, your hours could be 8 hours Thurs. Fri. and Sat.
    american23 and CLASS3NH like this.
    If you understand, things are just as they are... If you do not understand, things are just as they are....
    - Zen Saying

  3. #3
    Member Array american23's Avatar
    Join Date
    Aug 2013
    Location
    Iowa
    Posts
    307
    Quote Originally Posted by SIGP250 View Post
    As I remember, The ATF's position is that you must sell at least (2) two firearms within a two year period else ATF has grounds not to renew your license. Additionally, and probably more important with home based businesses is that you maintain regular business hours. This does not mean 8-6 6 days a week. It should be at least 24 hours a week. For example, your hours could be 8 hours Thurs. Fri. and Sat.
    Oh ok, so I could sell 2 to myself @ the dealer pricing and still be ok? Also, around how long does it usually take to get your FFL license? Thanks for the quick response.

  4. #4
    VIP Member
    Array SIGP250's Avatar
    Join Date
    Jan 2009
    Location
    MO - Rock Ranch
    Posts
    2,344
    Quote Originally Posted by american23 View Post
    Oh ok, so I could sell 2 to myself @ the dealer pricing and still be ok? Also, around how long does it usually take to get your FFL license? Thanks for the quick response.
    Once you have formed a business with your state, obtained a business license with your city or county, you can request ATF send you necessary forms and fingerprint cards. Fill out all the forms, obtain wet fingerprints from CLEO. Mail forms to ATF. If you are a US citizen, you should expect a call from an ATF agent to arrange an interview and inspection of your premises in 90 to 120 days.

    Once you have obtained an FFL, you will need to establish accounts with distributors in order to purchase firearms at wholesale prices. Once established, you may be able to buy direct from manufactures. For this, you will need to fill out more forms and will probably need a business bank account and sometimes a bank line of credit. Some distributors may sell to you, others will only sell to brick and mortar shops.
    HotGuns, CLASS3NH and american23 like this.
    If you understand, things are just as they are... If you do not understand, things are just as they are....
    - Zen Saying

  5. #5
    VIP Member Array Adam42's Avatar
    Join Date
    Sep 2010
    Location
    Tennessee
    Posts
    2,463
    Keep in mind that the ATF will have the right to come inspect your books/records 24-7, 365 unannounced. If you are working out of your home I believe they can search your complete home at will also.

  6. #6
    Distinguished Member Array dangerranger's Avatar
    Join Date
    Sep 2012
    Location
    Exact center of CA
    Posts
    1,742
    If you only receive a few guns for the buyers, and handle their transfers you will qualify just fine. In a well populated area just doing transfers can net you a decent income. Even in a remote area a couple of transfers a year are pretty easy! DR
    american23 likes this.

  7. #7
    Senior Moderator
    Array HotGuns's Avatar
    Join Date
    Dec 2004
    Location
    Arkansas
    Posts
    14,922
    Keep in mind that the ATF will have the right to come inspect your books/records 24-7, 365 unannounced. If you are working out of your home I believe they can search your complete home at will also.
    Negative. They can only do that if they have a warrant.

    I had an NFA Audit and they let me know about a week in advance. It went smoothly, no issues at all.

    The ATF wants you to be in the buisness of selling guns. They dont want you to do it for yourself to get cheap deals on guns. If they even think that, you wont get approved.
    SIGP250, american23 and CLASS3NH like this.
    I would rather stand against the cannons of the wicked than against the prayers of the righteous.


    AR. CHL Instr. 07/02 FFL
    Like custom guns and stuff? Check this out...
    http://bobbailey1959.wordpress.com/

  8. #8
    Member Array american23's Avatar
    Join Date
    Aug 2013
    Location
    Iowa
    Posts
    307
    Thanks all, very informative. What would I be look at in terms of pricing to get everything set up?

  9. #9
    Senior Moderator
    Array HotGuns's Avatar
    Join Date
    Dec 2004
    Location
    Arkansas
    Posts
    14,922
    That depends on where you are at. Here in Arkansas, I have a lawyer that does Trusts for 150.

    Then you have the cost of the suppressor, plus 200 for the tax stamp.

    Then you wait and wait and wait and wait and wait some more. About the time you start thinking that the whole ordeal is a scam to take your money, it'll come in and you can go get your toy and you'll feel like a kid in a candy shop.
    american23 likes this.
    I would rather stand against the cannons of the wicked than against the prayers of the righteous.


    AR. CHL Instr. 07/02 FFL
    Like custom guns and stuff? Check this out...
    http://bobbailey1959.wordpress.com/

  10. #10
    Member Array american23's Avatar
    Join Date
    Aug 2013
    Location
    Iowa
    Posts
    307
    Quote Originally Posted by HotGuns View Post
    That depends on where you are at. Here in Arkansas, I have a lawyer that does Trusts for 150.

    Then you have the cost of the suppressor, plus 200 for the tax stamp.

    Then you wait and wait and wait and wait and wait some more. About the time you start thinking that the whole ordeal is a scam to take your money, it'll come in and you can go get your toy and you'll feel like a kid in a candy shop.
    Ok, haha, realistically then, what's the price difference between a firearm at supplier pricing vs dealer pricing? I always figured they (retail) only made about $50 for every new handgun sold because they have to deal with a middle man (the supplier, which also has to buy them directly from the manufacturer). I mean...would it end up saving me and my friends a ton of money (IE will the license pay for itself)? Sorry for all the questions. I'm seriously debating doing it right now because I don't like any of the LGS's here in my city.

  11. #11
    Moderator
    Array Rock and Glock's Avatar
    Join Date
    Nov 2005
    Location
    Colorado at 14,650'
    Posts
    12,552
    My LGS sells new guns at 10% over cost. That is a thin markup. They also are allocated, so it's not like they have a deep inventory. The world of on-line has thinned out margins and leveled the field. I think obtaining an FFL to get "dealers pricing" is a dubious idea at best.

  12. #12
    Senior Moderator
    Array HotGuns's Avatar
    Join Date
    Dec 2004
    Location
    Arkansas
    Posts
    14,922
    Ok, haha, realistically then, what's the price difference between a firearm at supplier pricing vs dealer pricing? I always figured they (retail) only made about $50 for every new handgun sold because they have to deal with a middle man (the supplier, which also has to buy them directly from the manufacturer). I mean...would it end up saving me and my friends a ton of money (IE will the license pay for itself)? Sorry for all the questions. I'm seriously debating doing it right now because I don't like any of the LGS's here in my city.

    That just depends. The margin isn't that great. The real deals come from flyers, occasional dealer sales and buying in quantity. As for the suppressors, you need a SOT (special occupation tax) which costs 500 a year. I debated doing the SOT things myself, wondering if I could recoup the 500 tax. When I did it, the next time I had to pay the tax, it was no more than a minor inconvenience, the SOT more than paid for itself. I've known of a few other SOTS that dropped it after a year or two because they just didn't sell enough to justify the cost and I've known several FFL's that didn't renew after the 3 year period because it just wasn't what they thought it would be.

    Just remember this...it takes money to make money. Your success wont just automatically happen, you have to make it happen and a lot of that depends on the market in which you are in.
    I would rather stand against the cannons of the wicked than against the prayers of the righteous.


    AR. CHL Instr. 07/02 FFL
    Like custom guns and stuff? Check this out...
    http://bobbailey1959.wordpress.com/

  13. #13
    VIP Member
    Array SIGP250's Avatar
    Join Date
    Jan 2009
    Location
    MO - Rock Ranch
    Posts
    2,344
    Quote Originally Posted by american23 View Post
    Thanks all, very informative. What would I be look at in terms of pricing to get everything set up?
    If your intentions are only to obtain an FFL for purposes of buying yourself guns at wholesale, your idea will be a loosing proposition. Your costs for license fees alone will cost more than paying full retail, anywhere. If you place a value on your time, expect to be working for free for many hours, even weeks.

    FFL's need to be committed to conducting business. Among other things, as an FFL Dealer you agree and are bound by law to conduct business in accordance with all Federal, State and local laws and regulations. There are many. Conduct of business includes record keeping. Records for every gun you sell must be properly recorded. Transaction records must be kept for a minimum of 20 years.

    Business startups on a shoestring budget are sometimes possible but usually destined to fail without a real desire and commitment to succeed. As an FFL, your business is considered retail or a service if you are a gunsmith.

    Retail is and always has been a very tough way to make a buck. Dealing in firearms is no different.

    Starting with bare essentials, your initial capitol outlay might only be a few thousand dollars. Depending on where you go from there is up to you.
    american23 and CLASS3NH like this.
    If you understand, things are just as they are... If you do not understand, things are just as they are....
    - Zen Saying

  14. #14
    VIP Member Array Tubby45's Avatar
    Join Date
    May 2005
    Location
    Making ammo.
    Posts
    3,051
    This is the worst time to become an FFL.
    07/02 FFL/SOT since 2006

  15. #15
    VIP Member Array Tubby45's Avatar
    Join Date
    May 2005
    Location
    Making ammo.
    Posts
    3,051
    Quote Originally Posted by SIGP250 View Post
    As I remember, The ATF's position is that you must sell at least (2) two firearms within a two year period else ATF has grounds not to renew your license. Additionally, and probably more important with home based businesses is that you maintain regular business hours. This does not mean 8-6 6 days a week. It should be at least 24 hours a week. For example, your hours could be 8 hours Thurs. Fri. and Sat.
    There is no quota for sales to maintain an FFL. Business hours are hours the ATF can come by for inspection purposes.
    CLASS3NH likes this.
    07/02 FFL/SOT since 2006

Page 1 of 2 12 LastLast

Links

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Search tags for this page

ffl interview what to expect

,

home based ffl dealer

Click on a term to search for related topics.

» Log in

User Name:

Password:

Not a member yet?
Register Now!

» DefensiveCarry Sponsors