I’ve been thinking a lot lately about applying for my FFL license just based on the fact that there are zero stores in my area that have things at a decent price and the transfer costs seem ridiculous to me. Also, most of the men that own these stores are getting up there in age and that would probably make the closest FFL Woodward when these guys are gone. I wouldn’t be doing it to get rich, that’s for sure. But more or less do cheaper transfers for people and maybe stock a few popular handguns and rifles. Maybe even sell a little bit of ammo too. I have a building that I could probably operate in so I wouldn’t have to do it at my home. So anyways, why or why haven’t you got an FFL license? I don’t see a lot of cons other than having to have a closer relationship with the ATF.
Pro:
1. access to firearms at wholesale cost ---- when they have stock that is
2. peace of mind that you are selling to individuals that have passed a background check
Cons:
1. Paperwork-- lots of it.
2. chance of making a error, or screwing up said paperwork
3. must respond to firearm traces within a 24 hour period--
4. subject to inspection by ATF at anytime
5. must get sales tax permit, and charge sales tax on all sales--- then report/ remit monthly.
6. Did I say paperwork ?
7. you'll need to think of how you want to organize--- sole properitership, LLC, Corp, etc.
8. No screwing around with income taxes---you gotta pay the man
9. Paperwork
10. firearm availability............ you'll be the last guy on the list to get anything from you distributors-- most likely
11. Thin margins............. If you're gonna sell anything at all, you better be competitive with the Atwoods and Academy's of the world-- not to mention your local gun stores in the region........................or you'll set on inventory for years.
12. Amount of investment required........... How many guns you gonna stock? You've got to have some variety in order to pay the bills.
13. Overhead--- facilities arene't cheap.
14. Storage--- ATF requires you have a safe and secure place to store you firearms.
15.. Credit card processor-----gonna need one of these for sure........ Many people only pay with CC............ better add in the cost of these fees too.
16. Did I say paperwork ?
Now..................... you sure you wanna do this ?
1. access to firearms at wholesale cost ---- when they have stock that is
2. peace of mind that you are selling to individuals that have passed a background check
Cons:
1. Paperwork-- lots of it.
2. chance of making a error, or screwing up said paperwork
3. must respond to firearm traces within a 24 hour period--
4. subject to inspection by ATF at anytime
5. must get sales tax permit, and charge sales tax on all sales--- then report/ remit monthly.
6. Did I say paperwork ?
7. you'll need to think of how you want to organize--- sole properitership, LLC, Corp, etc.
8. No screwing around with income taxes---you gotta pay the man
9. Paperwork
10. firearm availability............ you'll be the last guy on the list to get anything from you distributors-- most likely
11. Thin margins............. If you're gonna sell anything at all, you better be competitive with the Atwoods and Academy's of the world-- not to mention your local gun stores in the region........................or you'll set on inventory for years.
12. Amount of investment required........... How many guns you gonna stock? You've got to have some variety in order to pay the bills.
13. Overhead--- facilities arene't cheap.
14. Storage--- ATF requires you have a safe and secure place to store you firearms.
15.. Credit card processor-----gonna need one of these for sure........ Many people only pay with CC............ better add in the cost of these fees too.
16. Did I say paperwork ?
Now..................... you sure you wanna do this ?
And you’ll probably need a lawyer at some point if you do it long enough
And more paperwork
My Dad was or worked in the gun business most of his life. From the Otacso days in the late 60's to having his own store up until the 2000's. It just became a bigger head ache every year with new regulations. I was a partner for 20 years. It got to where he could buy ammo cheaper at walmart than he could get it through distributors. The background checks did a number on compulsive buys. Back then it was by telephone only. But the dumb democrats around here kept voting in the same people.
I applaud anyone that remains in this crazy business.
I applaud anyone that remains in this crazy business.
Well you may have easily just talked me out of it. Lmfao.
Getting your FFL is just the first step. Sure, you’ll be able to have guns bought elsewhere transferred in, but if you plan on selling anything yourself you will need distributor relations. To get those distributor accounts you will need a business license, Oklahoma sales tax permit and possibly a federal FEI#. All of those are fairy easy to obtain, but each come with their own set of rules and paperwork requirements. Like mentioned above the profit margins are VERY slim, and all of the required bookkeeping makes it almost not worth the effort.
I had a C&R for a few years, unless you are ordering quite a few on a regular basis....not worth it. (I know the C&R isn't quite the same but still a pain)
It is easy to screw up a hobby by making it into a job. As mentioned, tons of paperwork involved, slim availability of product (guns and ammo), low profit margins, tons of paperwork. Really, for someone who just wants, maybe, inexpensive transfers, I'd say the hassles involved with getting an FFL aren't worth the gains to be had. Shop around, find the cheapest transfer price, and pay the poor SOB who went through the trouble to get his FFL for his efforts.
#4 is a huge issue. If you run the business out of your residence, they can and will visit you anytime they wish. Additionally, a few years back, they were not issuing FFLs to anyone working from a personal residence if it wasn't zoned correctly.
If you are purchasing and selling enough firearms for Pro #1 and #2 to be a serious reason, then you should. Otherwise it might seem like you're dealing without a license.
