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So you want to get a FFL?

ClassicCityFirearms

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I have had a few PM's asking me what is involved in getting a home based FFL so I figured I would take the time to try my best to type out the process. This is my attempt to satisfy those members curiosity.

So you think you want to get your FFL? Well it's not really as hard as people make it out to be. Below I will outline the steps needed to secure a license from the ATF to operate a licensed Gun Shop out of your house.Please be advised that the following contains my experiences and opinions. Nothing should be taken a legal advice. Chances are if you can walk into a gun store and buy a gun then you can get your FFL.

Please be advised that when I write FFL I am referring to a type 01 license to sell firearms and operate as a gunsmith. This license will NOT allow you to produce ammunition, manufacture firearms, deal with class 3 weapons, or act like a prick to customers. If you are looking to do any of those things I can not offer advice or help in the process.

Call your local zoning department and ask weather you can start a home based business out of your house. Avoiding using the word "firearms" until you have to. Once you say this word it will become much more difficult due to misconception, fear, and liability. If you plan to use your house as your shop then you will need to get what is know as a "Home Occupation Permit". The name and fee may very from county to county but the cost for me was round $5. You will have to sign some forms, describe the nature of your business, and go over what you want to do with someone. This will take some time because once you use the word "firearm" things get interesting. Different counties have different ordinances so they will let you know what you can and can not do. For example I can not sell ammo from my house, have over 3 deliveries to my house on any given day, or have any signage on my property. If you are unable to secure this permit then you will NOT be able to get your FFL. Make sure to stress the point that you will not be operating a "show room" out of your house. You will be selling firearms and other sporting goods equipment via the internet, mail order, gun shows etc. However, if a customer is local you will allow them to pick up their item from your house. This is the cheapest permit to get and the one that will be the hardest. It is the backbone of your home based business.

Figure out how you want to file your business info. Sole proprietorship, partnership, LLC, etc. This is important and will need to included on your application for an FFL. File the correct forms through your county and state records departments. Depending on what you choose as your business type fees may vary. You can set up an LLC through the secretary of the state website($100). You may also need to file DBA(Doing Business As) paperwork through your county(varies by county but mine was $150+). You will also need to publish this DBA in your local newspaper to run consecutive for at least three weeks(varies but mine was $40).

Your going to need a sales tax number. This will allow you to buy items from distributors without having to pay sales tax. This is important and required by all of them. You can get this by filling out some forms from the Georgia Department of Revenues website. Getting this is free of charge.

You will need a EIN (Employer Identification Number). You can get this through the IRS by filling out some simple forms. This is also free and will serve as a sort of Social Security Number of your business.

Go to the BATF's website and print off the required forms for applying for your FFL (http://www.atf.gov/forms/download/atf-f-5310-12-notice.html). Print extras as you will screw it up the first time you fill it out. Follow the directions exactly as indicated. It's a simple process almost like applying for your GWL. When it asks for your address pay close attention as it also wants you to indicated county which is easy to leave off. You will need to get finger printed again from the sheriffs office ($12.00) and you will need some passport photos made ($5). If you have questions call the 1-800 number on the bottom of the application. They are nice, polite, and are there to help you. Send in your application with a $200 application fee via certified mail so you know they got it ($6).

Wait 4 weeks.

Wait 4 more weeks.

You will receive a call from an "Investigator" from the BATF. They will briefly go over your application and schedule a in home visit to go over you information, view your are of business, and review guidelines.

Wait 2-4 weeks for the appointment to come.

The Investigator will show up and view your "working area". You will then sit down and go over the paperwork. You will go over your application to confirm all the info is still correct. You will still have the ability to change some information if needed but most of the stuff should be the same. They will then go over all the paperwork, regulation, laws, and other information you will need to conduct business in compliance. This will take a while. It took me roughly 4.5 hours but I had a lot of questions. This process is much smoother then you would think because they already know if you qualify before they show up. Take notes, pay attentions, and ask questions. This is your one free pass at not knowing what you are doing. After this you risk serious problems, loss of license, and potentially prison time.

Wait 2-4 weeks for your actual license to come in the mail. Until you have this piece of paper you can not conduct business.

Hooray!! Your FFL came in the mail. Now you can start selling guns. WRONG. You still need a permit to sell handguns in the State of Georgia.

Contact the Georgia State Patrol Office and request the paperwork needed to sell handguns in the State of Georgia. They will mail you the application and you will fill it out and include a copy of your FFL and a Business Check or money order for $ 28.00. Don't screw up like I did and send them a personal check as they will just send it back. (As of 2014 this is no longer required)

Take your FFL, Home Occupation Permit, DBA filing paperwork, LLC documentation, and every other important piece of paper down to the county finance office and get a business license. This is a fairly smooth process unless you say the word "firearm" in which case a manager will need to verify all your information to insure compliance. Pay the clerk the county fee(varies but was $52.00 here)and get a temporary license. The real license will come in the mail in about a week. Once you have a business license then you are a real deal legitimate business.

Wait 2 weeks for your permit to sell handguns to come in.

Now you are officially able to sell long guns and handguns in the state of Georgia! You still need to get your work area in compliance, gather needed supplies, order an A&D book, find wholesalers willing to do business with a home based FFL (about 50% are not), and figure out where your going to get the money to buy merchandise.

Again, this should not be used as any kind of legal advise. This is just an article on my experience getting my home based FFL since I have had people ask me what the process was. I will update this post as I remember additional information. I will also try to keep an eye on it and answer specific questions if I can. If you have a legal questions please contact your attorney, the BATF, or someone who is not me.

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Been thinking about it thanks for sharing.

Let me know if you have any questions. It's much easier then people think. I read a lot of junk about how you can't do it if you want to be home based and that info is just false. There are more hoops to jump through and certain things you can't do that a brick and mortar establishment can but it doesn't change the fact that you can get the license. Hell, you can get your FFL in less time then a suppressor. :confused:
 
This is literally the best thread ever made on the ODT IMO. It really should be a sticky. Home based FFLs are few and far in between mostly because of so many myths surrounding the home FFL exist. Maybe this will encourage people to tackle getting their FFL as a side business or even as a new career. Thanks for taking the time to explain it all.
 
Can you make a living doing it? How do you compete with FFL's that have more purchasing power? How do you compete with already established (in your area specifically) 20+ year old gun dealers with store fronts and solid reputations? Is it more of a make enough money to support your hobby kinda thing?
 
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Can you make a living doing it? How do you compete with FFL's that have more purchasing power? How do you compete with already established (in your area specifically) 20+ year old gun dealers with store fronts and solid reputations? Is it more of a make enough money to support your hobby kinda thing?

He can complete with them by charging less for FFL fees than the B&M stores. Customers will get the guns faster and probably pay less. As far as purchasing power is concerned, most B&M stores have to up there prices to cover their overhead costs which is something we don't have do. You can typically buy a gun from a private FFL for less than one from a brick and mortar store UNLESS they have some promo or sale going on. There's always money to be made when you're a gun dealer.
 
One of the more difficult things is getting distributors to sell to a home based FFL. I suggest going to Sports South, Davidsons, RSR Group, Lipseys, and Chattanooga Shooting Supply. I have accounts with all of them and have purchased with no problems. I've heard some of the distributors I just mentioned are now saying you need a store front. They go back and forth on this. I would wait a couple weeks, call and speak to a different acct manager to get your account open. I'm okay b/c I was grandfathered in. And you can always order through another dealer with an account.
 
Can you make a living doing it? No, at least not in my opinion. It is more of a stepping stone to bigger and better things. If you want to go all in from the start then maybe you can succeed but I like play things safe and get a good foundation to build on.

How do you compete with FFL's that have more purchasing power? Purchasing power is nice to an extent but it really boils down to final cost and markup. Just because a larger dealer can get a good deal on items by buying them in bulk does not mean they are going to pass that savings on to the end customer. For example, I have lots of various items that I sell that I only make $0.50 on. To some people that's not worth the hassle. To me I'd rather make some money then no money.

How do you compete with already established (in your area specifically) 20+ year old gun dealers with store fronts and solid reputations? I may not have a nice store or years of knowledge but what I do have is customer service skills. This is the one thing I find lacking in most gun stores. In all honesty I don't care what you want to buy. I'm here to make sales, not try to convince you that what you want to buy is crap or treat you like an idiot Treat your customers right and they will come back. I also have very low overhead and thus I do not need to price inflate to cover operating expenses. I can aggressively price my items giving me a competitive edge over my competition. What I loose in per item markup I gain in repeat customers, word of mouth advertising, and volume of sales.

Is it more of a make enough money to support your hobby kinda thing? First things first. The word "hobby" should not be used. It is a "business". Using the word "Hobby" can get you in trouble with both the BATF and the IRS. For me it is a learning experience. My end goal is to open a indoor range that also sells Firearms and other shooting supplies. In order for me to secure a generous loan through the SBA or any local financial institution I need to be able to prove I know what I am doing and have experience in the field. There is a lot more to the business then "buy guns, sell guns".
 
This is literally the best thread ever made on the ODT IMO. It really should be a sticky. Home based FFLs are few and far in between mostly because of so many myths surrounding the home FFL exist. Maybe this will encourage people to tackle getting their FFL as a side business or even as a new career. Thanks for taking the time to explain it all.

What have you done with the real aimless?

Very well done Classic City.
 
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