Home Based FFLs

[costanza]

Me too, I went 10 years, from 1984 until 1994 ( gave it up after the AWB ) and never saw or talked to any ATF Agent or anyone in Law Enforcement. Everything was done through the mail, no interview or anything, but things were different then I guess.

My Experience almost exactly. I was a 01 FFL out of my home for maybe 18-20 years. All I had to do was complete the application and send in $30. While a dealer, I didn't sell much, maybe 12 to 15 guns a year, but I was able to get my supplies pretty cheap. I never had any face to face contact with an ATF agent until I had to give up my license due to the Crime Bill passed by Clinton. The authority to regulate home businesses fell to the local authorities. My local authority (Dearborn) said no home businesses of ANY kind. My business required a Federal license, so I was forced to surrender it. I never did anything that wasn't completely legal. Conversely, a local gun shop owner sold a .25 ACP to a high school student with no paperwork at all, the student was caught and ratted him out, and the dealer never had to surrender his storefront FFL. Interesting...
Regards,
Costanza

[bae125]

No local zoning laws as I'm aware, as I'm in Brighton Township. My HOA *might* have something written against home businesses, but that probably applies to a brick & mortar type operation.

The only concern was my wife's, which was have strangers coming to the home. I'd be mainly selling online and shipping to other FFLs, and doing some transfers here or there. Unannounced shipments from friends and people I know don't bother me, but being listed on large online retailers and having a lot of shipments and people coming my way might.

Thanks again for the input.

Understand that it's difficult to sell online and be competitive. The larger dealers buy in big quantities, which give them better pricing and allocation from distributors/manufacturers. Certain manufacturers don't use distributors and require a buy-in (eg Kimber, Benelli)

A good example is a dealer will by 10 of, say a S&W .22 pistol, at a price already cheaper than you can. By buying 10 on a program, they get one free. That allows them to sell 10 at near cost with the profit being made on the free one. That undercuts 90% of the dealers out there without losing money. New firearm sales are tough. I make considerably more by buying and selling older, more collectable guns that I'm pretty knowledgable of than new stuff. Heck, transfers are just as profitable as new sales most of the time. Finding a niche is a lot more difficult in today's internet-driven market without substantial capital investment and the ability to move a lot of product.

If the goal is a business/hobby venture then definitely go for it, but keep an eye on your numbers, it's astonishingly easy to lose money.

[GreaseMonkeySRT]

Understand that it's difficult to sell online and be competitive. The larger dealers buy in big quantities, which give them better pricing and allocation from distributors/manufacturers. Certain manufacturers don't use distributors and require a buy-in (eg Kimber, Benelli)

A good example is a dealer will by 10 of, say a S&W .22 pistol, at a price already cheaper than you can. By buying 10 on a program, they get one free. That allows them to sell 10 at near cost with the profit being made on the free one. That undercuts 90% of the dealers out there without losing money. New firearm sales are tough. I make considerably more by buying and selling older, more collectable guns that I'm pretty knowledgable of than new stuff. Heck, transfers are just as profitable as new sales most of the time. Finding a niche is a lot more difficult in today's internet-driven market without substantial capital investment and the ability to move a lot of product.

If the goal is a business/hobby venture then definitely go for it, but keep an eye on your numbers, it's astonishingly easy to lose money.

I'm 100% sure I'm not going to get rich off of this! Thanks for the input.

[GreaseMonkeySRT]

Get an 07 and then you don't have to worry about retail walk in business.
You can still d everything the 01 Dealer does, but you can also make guns.

Doesn't this also require ITAR registration? Something like a $2,500 annual fee or has that changed?

[bae125]

Doesn't this also require ITAR registration? Something like a $2,500 annual fee or has that changed?

Lots of discussion about this. There was some clarifying guidance issued over the summer, but it falls short of being concrete. Essentially, not all 07's need it, the need for registration depends upon your activities. There is always a risk as there hasn't been the issuing of the anticipated ruling (something the Trump administration said would be done last year)

https://blog.princelaw.com/2016/07/2...-registration/

Just from anecdotal evidence, it seems most 07's are continuing to register.

[Coctailer]

Doesn't this also require ITAR registration? Something like a $2,500 annual fee or has that changed?

Not for assembling ARs.
If you use machinery then it does. It’s changing to SOC from State Department, and they are getting rid of all the requirements that don’t have to do with International Trade (as it is intended)

[GreaseMonkeySRT]

Thanks for the input. I don't plan on assembling ARs, maybe lowers, but I could always go that route in the future and save $50 in the process.

[Coctailer]

Thanks for the input. I don't plan on assembling ARs, maybe lowers, but I could always go that route in the future and save $50 in the process.

Well, Its $50 cheaper, and solves your walk in customer issue.
There isn't any downside

[GreaseMonkeySRT]

Well, Its $50 cheaper, and solves your walk in customer issue.
There isn't any downside

If my main operation would be simply selling, and not assembling, I'm wondering it the ATF would groan about that during the interview process.

[Coctailer]

If my main operation would be simply selling, and not assembling, I'm wondering it the ATF would groan about that during the interview process.

Well, you are either a store, or a manufacturer.
You could get an 08 Importer's license also.

The ATF will want strangers to be able to come over during your hours of operation if you are an 01.

If you apply for an 07, they can change it to an 01 if you guys want at the interview.