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Discussion Starter · #1 ·
Hey again,
I didn't think this was appropriate for my other thread, so I hope no one minds that I made this one.
I am want to get my 07 FFL for strictly internet sales online which basically means I only ship to other FFL's. I was reading over the form 7 and FAQ and the ATF stated that they will refer to state and local zoning and commission laws. I live in Nevada, so we are gun friendly. I looked on my county's website, and read the zoning ordinances, but all I could find form home based business is that a person may not sell tear gas. In their zoning requirements it says nothing about home based FFL's. Should I call the county zoning and planning commission? I want to form this company as an LLC, and that alone is 600$, plus another 75$ business license fee, so I want to make sure that my county allows this before I drop 700$ on forming an LLC. Any suggestions?
-Linny
 

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I just set up an LLC for under $150 bucks, Why is it 600? Just need to go online with your credit card. Once set up you can enjoy some write offs.
 

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Hey again,
I didn't think this was appropriate for my other thread, so I hope no one minds that I made this one.
I am want to get my 07 FFL for strictly internet sales online which basically means I only ship to other FFL's. I was reading over the form 7 and FAQ and the ATF stated that they will refer to state and local zoning and commission laws. I live in Nevada, so we are gun friendly. I looked on my county's website, and read the zoning ordinances, but all I could find form home based business is that a person may not sell tear gas. In their zoning requirements it says nothing about home based FFL's. Should I call the county zoning and planning commission? I want to form this company as an LLC, and that alone is 600$, plus another 75$ business license fee, so I want to make sure that my county allows this before I drop 700$ on forming an LLC. Any suggestions?
-Linny
I would just do it as a corporation, and just incorporate in Delware for maximum corporate protection. Plus it's cheaper. I got a 07 at my home, and a 07/08 SOT 2 at my business place. Pretty easy to get just as long as you meet the zoning requirements. You should also make sure you have a proper magazine if you will also be dealing with ammunition. Don't forget the annual ITAR fee of $2,250.
 

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Back in the mid 80s I tried to get a business license in my town for a home based biz as I had an FFL too. My big plan was sell the occasional handgun or rifle and maybe some ammo. Too bad back then that home made video hadn't been invented yet as the people I was dealing with were total anti nut jobs.

When I explained I might would sell ammo they wanted to know how much I might have on hand for sales. Not much perhaps 500 to 1000R says I.:blink: From the expressions on the 2 flunky bureaucrats faces one might think I'd said I was planning on selling tactical nukes or mustard gas:blink: I knew right there and then they'd never approve my application so I retrieved my paperwork and left. Grumble...

That was near 30 years ago. I hope your luck runs smoother than mine. Despite the Libtards in my area I live in a county that shows up as Red surrounded by a sea of blue along the I-5 corridor. Twenty years ago there was 12,000 Vets who lived here from WWII on, mostly out of towns.
 

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First, the FEIN is only a phone call away ... decide how you want to be taxed, as a C-, an S-, or an LLC taxed as an S-. Then call the IRS, wait on the phone, get a FEIN and you're all set.

Then file the LLC paperwork with the state .... shouldn't be anywhere near $600.00, the $100 to $150 range is more like it.

BUT .... before you do any of that: beyond the Federal need for the FFL, which is one very large hurdle, the real governance here is the state and local legal environment, in other words will they let you do that. So before you bother filing for the FFL check with the state first, if the state simply defers to the local then check with the local, then go in and talk to the local, then file papers with the local and walk them through it. Then seek the FFL to mate up with your new FEIN.

If you clear that hurdle all you need is a web site.
 

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Discussion Starter · #7 ·
Just got of the phone with the State Department DDTC. *facepalm, the guy on the phone was obviously anti-gun, when I was asking him about the ITAR fee for a type 07 FFL, he responds very tersely, "Why do you need a type 07 FFL? What are you going to be manufacturing?" I also had to explain to him what an NFA item is. Isn't this what he gets paid for? Our tax dollars at work. 2,250 is pretty steep, I hate bureaucrats. I won't be surprised if Eric Holder seizes my phone records.
 

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Check city ordinances too.

And put it this way, if you want to be in the firearms industry and a $2250 annual fee for manufacturing is going to make or break your bottom line, maybe not manufacture and figure something else out to do besides try to run an expensive hobby. I see this a lot where potential 07s freak out about a $2250 fee but want to carry $50,000 in inventory to start with. If you're going into the NFA niche, that fee is nothing more than a mosquito buzzing around you. Squash it and go on with life.
 
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A few recommendations if you are going to run an FFL out of your home.

Have a separate door for the "office" where people enter your business, not through the general home. Have a separate room for your business, no a room that is also your den or tv room, this room should be for business only. Keep business and private finances completely separated.

Those little suggestions will keep the ATF off your back.
 

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I already checked zoning and planning, my lot is zoned multi use, and only provision in prohibited business, is I can't run a brothel or strip club within 1000 feet of a kindergarden, and I can't sell tear gas. NFA, I don't know, I have a friend who is an NRA instructor, I'm not freaking out about the ITAR fee, as much as I think it's Bull. The guy on the phone with the state department didn't help either. I know I can make money doing it, it's just jumping through all the hoops first (LLC, ATF, ITAR, Business license etc)
 

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Evening. I have an FFL 07 and run an internet LLC out of my house. No issues here in Colorado. FFL 07 cost was $150 for 3 years. I think I registered LLC for about 50 or so plus Colorado Employeer tax stuff. Be warned however that there may be ITAR issues that I've been reading about abd registering for that is $2250 per year. You get nothing for it but government oversight. I haven't really been engaged in manufacturing yet and maybe I might hold off until I know more about this large goose egg.

Gary
Strunk Tactical Arms LLC.
 

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Home Based FFL Advice

So im in the process now
Nov 17 sent app
Nov 22 Charged my Credit card
Nov 16th set up interview
Nov 19th-2013 a had hour long interview went well we went over a checklist and i showed him my,LLC,EIN,TAX LICENSE,BUISNESS LICENSE he said it might take a few weeks my local ATF department is in Denver I'm in Aurora any advice and stories how long it took to get your FFL After the interview.
 

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Evening. I have an FFL 07 and run an internet LLC out of my house. No issues here in Colorado. FFL 07 cost was $150 for 3 years. I think I registered LLC for about 50 or so plus Colorado Employeer tax stuff. Be warned however that there may be ITAR issues that I've been reading about abd registering for that is $2250 per year. You get nothing for it but government oversight. I haven't really been engaged in manufacturing yet and maybe I might hold off until I know more about this large goose egg.

Gary
Strunk Tactical Arms LLC.
Doesn't matter if you are engaged in manufacturing or not. State Department says if you are required to have a manufacturing FFL, the State Dept considers you a manufacturer and you must register.

This is part of an email exchange I had with the State Department getting answers to share on a dealer only forum about the ITAR topic:
Generally, speaking if ATF requires you to have an 07 or 06 FFL, DDTC considers you a manufacturer of US Munitions List items and requires you to register with DDTC. The exception would be for the manufacture of sporting shotguns and their ammunition. Assembly of firearms, such as AR-15s, using parts from various manufacturers, is deemed to be part of the manufacturing process and requires registration with DDTC.


Stephen M. Geis
DDTC Response Team
Contractor, XL

Notice the words "generally" and "the exception", emphasis on "the" as in singular and only.
 

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No you do not need to register with DDTC if you are not manufacturing.I asked that question directly to DDTC. However you must have not previously started. For example you haven't started any ammunition production, or manufactured any firearms already.

My email exchange

You are required to be registered when actually manufacturing, but please note that the registration process for first time registrants now takes about 7 weeks to complete.

Stephen M. Geis
DDTC Response Team
Contractor, XL
NOTE: Information in this message generally discusses controls and information contained in the Arms Export Control Act and International Traffic in Arms Regulations (ITAR), both of which are authoritative on this matter. The Response Team fields basic process and status questions, and assists exporters in identifying how to get answers to more complex questions handled by the Directorate of Defense Trade Control's licensing and compliance offices. The Response Team's services are not a substitute or replacement for the advisory opinion, general correspondence, and commodity jurisdiction processes delineated in the ITAR, which should be used to obtain authoritative guidance on export control issues, and do not in any way relieve exporters from their responsibilities to comply fully with the law and regulations.
 

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The State Department's position now is that if you are licensed, you are a manufacturer and need to be registered. My email was from December 17, 2013.

The above statement about "actually" manufacturing was the determination for a few years, but since November 2012 they changed their position. Licensing alone is grounds for registration. Times have changed.
 

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Once set up you can enjoy some write offs.
None that you are not otherwise entitled if you are engaged in a legitimate business.

I would just do it as a corporation, and just incorporate in Delware for maximum corporate protection.
No, do not incorporate in Delaware. You live in Nevada which has essentially equivalent laws as Delaware anyway. Form it in NV. If you form it in DE you'll have to file in NV anyway to get NV protection. That is duplicative, expensive and silly.

Do it yourself on-line at the NV Secretary of State's. Easy. Do NOT pay anyone to do this for you.

First, the FEIN is only a phone call away ... decide how you want to be taxed, as a C-, an S-, or an LLC taxed as an S-. Then call the IRS, wait on the phone, get a FEIN and you're all set.
Do not form a corporation. If you do not form a corporation, then the "S" election is academic. Avoid all of that complexity. Just form an LLC (easiest!!!!!!!) and own 100% of it yourself and it will be "disregarded" as an entity and thus requires NO EXTRA income tax returns, thus all income and expense is reported on your individual income tax return (Schedule C). You still have all of the legal protection of a corporation or an LLC without the tax hassles.

I've done business set-ups in both states and understand the drills. Tax matters too.

Other than that, I do not know squat or boo about ITARS or FFLS and I think the State Department is full of a bunch of career bureaucrats led by idiot political appointees. Opinionated? No. Why do you ask?
 

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None that you are not otherwise entitled to if you are engaged in a legitimate business.



No, do not incorporate in Delaware. You live in Nevada which has essentially equivalent laws as Delaware anyway. Form it in NV. If you form it in DE you'll have to file in NV anyway to get NV protection. That is duplicative, expensive and silly.

Do it yourself on-line at the NV Secretary of State's. Easy. Do NOT pay anyone to do this for you.



Do not form a corporation. If you do not form a corporation, then the "S" election is academic. Avoid all of that complexity. Just form an LLC (easiest!!!!!!!) and own 100% of it yourself and it will be "disregarded" as an entity and thus requires NO EXTRA income tax returns, thus all income and expense is reported on your individual income tax return (Schedule C). You still have all of the legal protection of a corporation or an LLC without the tax hassles.

I've done business set-ups in both states and understand the drills. Tax matters too.

Other than that, I do not know squat or boo about ITARS or FFLS and I think the State Department is full of a bunch of career bureaucrats led by idiot political appointees. Opinionated? No. Why do you ask?
For an EIN the application form is available on-line: Forms & Pubs Form SS-4.

If he does form an LLC (also recommend) and forms the LLC with himself as an individual owner, IRS will treat him as a sole proprietorship and he will report income and expenses on Schedule C, Profit or Loss From Business, attached to his Form 1040 Individual Income Tax return.

Personally, I would recommend forming the LLC with at least one other member. The amount of ownership at least 1 additional member has could be whatever amount he chooses. The only difference is that he attaches form 1065 (same as a partnership) instead of Schedule C to his Form 1040.

Forming an LLC with members (at least 1 other besides himself) allows for future growth. Structuring the LLC as the sole owner may complicate or at least confuse future IRS and State tax filing should he want or need to add employees with any ownership consideration.
 
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I was smart and ran things by an accountant prior to forming my business. Seven years later he never lead me wrong.
 

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There is a local Police Sgt (Not my town) who has his FFL and uses the Police Station/Courthouse as his address. I just happened to notice that one day looking up local FFL's and the address rang a bell.
 
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