starting a homebased gun business

[topline89]

Does any one have any helpful informaion on what you have to do to sell guns and accesories from home based office, internet and guns shows, interested in obtaining an FFL to do so, as well as finding distributors that will work with home businesses for accesories and gun companies ie rugar, s&w, springfield, kimber ect...any helpful comments would be greatly appreciated.

[Scratch]

Does any one have any helpful informaion on what you have to do to sell guns and accesories from home based office, internet and guns shows, interested in obtaining an FFL to do so, as well as finding distributors that will work with home businesses for accesories and gun companies ie rugar, s&w, springfield, kimber ect...any helpful comments would be greatly appreciated.

I just recently started mine. After you get your FFL, sign up at FFLonly.com. Lots of good info there. If you have any questions feel free to ask.

[george]

Here is a starting link, 1st the application process.

http://www.atf.gov/firearms/how-to/become-an-ffl.html

I had my ATF agent interview last week, jest waiting now to see.
I had one flag, less than 1000 Ft from the High School.
Zoning also came up, if not commercial you may want a approval
letter from the mayor or council.
Good Luck

[rockcreek]

Zoning will be the biggest hurdle. You must have a business premises, so you will either have to be zoned commercial/retail, or get a conditional use permit from your city that expressly allows you to run a firearms business. Most cities are going to have a number of conditions such as alarms, insurance, etc. Don't apply for the FFL until your zoning is in order, they will not approve you. Also, you have to prove that this is a business, not for your personal collection, so make sure you have a sales tax id, and file any business incorporation/assumed name documents.
Lots of distributors will deal with a home based dealer, some will not. Also some manufacturers only sell dealer direct, and will want a large buy in ($10-20K) for the privilege of selling their product. Unless you are doing a lot of volume, you will probably be disappointed in the prices you pay from the wholesalers. In many cases you can buy guns from gunbroker or the big online retailers like Buds cheaper than you can get them wholesale. Also, fast selling items are allocated, so if you aren't spending a lot at one particular distributor, you aren't going to be able to get them.
It can be done, but if you really want to be successful at it it will take a significant financial and time investment. Getting the FFL is the easy, coming up with a business plan that will make you money is not.

[bulletproof]

Having an FFL at your residential address might not be a great decision. The ATF can inspect a licensees premises, so your entire house can be subject to a warrant less "administrative search".

[photogpat]

Having an FFL at your residential address might not be a great decision. The ATF can inspect a licensees premises, so your entire house can be subject to a warrant less "administrative search".

If you designate a portion of your home to be the premises of the business for tax purposes, they can "technically" only inspect that portion...true or false?

[topline89]

Thanks for all the great input, if any one else has any other info I would greatly appreciate it. sounds like a total hassle, once again the government going out of their way to help the small business man...

[rockcreek]

Only the portion of your home designated as the "business" may be inspected once per year during your hours of operation without a warrant, or during the course of any criminal investigation. You also need to maintain your inventory separately from your personal firearms, and your personal guns need to be identified as not for sale. As long as your inventory matches your log book, and all of the paperwork is filled out correctly, the inspection is not a big deal.

[photogpat]

Thanks for all the great input, if any one else has any other info I would greatly appreciate it. sounds like a total hassle, once again the government going out of their way to help the small business man...

The current line of thought running around the Intarwebs on that is the ATF wanted to push the so-called "kitchen table" FFL's out of business. One option in the currently depressed commercial real estate market...rent a small studio space with a physical mailing address...incorporate at that address. I'm looking at no frills photo studio spaces now that are renting in the $100-200/month range...glom on with a few other people who need a physical address, and your monthly outlay can be minimal.

[Scratch]

I got my home based FFL an February 6th. I had my interview about 3 weeks earlier. I had no problem with getting it home based. The agent didn't care at all about that. Yes you'll want to make sure it ok with zoning before you apply with the ATF.
As far as them searching my home during an inspection.... I don't care. I have nothing to hide. I've called the ATF many times for questions and they've all been extremely helpful, not at all condesending or anything and have always answered my question, although one one occasion,I got two different answers from two different agents.

I've heard a lot about "this has to be a business, not for personal use, and they'll grill you about it!". That subject came up one time, he asked me, I said yes, and it never came up again. I was very worried about the interview but it was cake.

There is a lot of paperwork so be prepared for that. I'd be willing to share wholesalers once you get your license, I have less than 20 right now but that list is growing. It's surprisingly hard to get a lot of guns right now. For some reason, they're all out of stock. Also, I have found some places that give a pretty good discount on things besides firearms, so that's nice.

Again... Once you get your FFL, sign up at FFLonly.com. Lots of good info there.

[onebohemian]

I got my home based FFL an February 6th. . . .

Scratch, without disclosing your address, would you provide a little more general information about your residential area? I think it's great you got your FFL at your home address, but it just amazes me that any local governmental entity in this day and age with guns being such a controversial subject would grant a conditional use permit for this type of business in a residential area. I had checked into this years ago for my area and there wasn't going to be any way for me to get approval in my area. So again, I'm not looking for you to disclose anything particular -- I'm more interested in the type of city/town/neighborhood your home is in, what's around it by way of other business, etc. Thanks in advance.

[topline89]

Thanks again, and thanks for the offer Scratch, I will take you up on your offer, like every thing I do, I research and do my homework, guess the old man taught me something right.. Dont bother doing anything unless you do it right the first time! he always use to say. just got done briefly reading over the Federal Firearms Resource guide... geez.. no wonder the government is so screwed up... who the heck writes all this nonsense.. you have to be a rocket scientist to understand all of it.. I think they do it purposely to confuse the common man..

[bulletproof]

If you designate a portion of your home to be the premises of the business for tax purposes, they can "technically" only inspect that portion...true or false?

I would say false, but I'm not the ATF. In my discussions with them they were interested in inspecting the entire property and all connecting structures. Some folks say the inspections are a walk in the park, then you hear about the ones from hell.

[photogpat]

If you designate a portion of your home to be the premises of the business for tax purposes, they can "technically" only inspect that portion...true or false?

I would say false, but I'm not the ATF. In my discussions with them they were interested in inspecting the entire property and all connecting structures. Some folks say the inspections are a walk in the park, then you hear about the ones from hell.

Hmmm..."connecting structures". So what if your business area was seperated from your home, aka. basement mother-in-law apartment per say. Steel entry door barring access from inside the house, etc etc etc.

Like any other government agency, the interpretations from one agent may or may not be respected by another or by the agency as a whole.

[smokintone]

Contact "Thunderjohn" here on the forum. He is doing exactly what you are talking about. He is a really great guy to deal with, and I am sure he would be willing to give you some advice. He has been doing it for several years I belive.