FFL Help and questions
ok im concidering geting my ffl to try an do something on the side. with guns an scopes an stuff like that. i have a few questions and things i whould like to get right.
so form what ive read you have to have a buisness in you house if zoning allows or in a store?
im sure it does there are couple of others around town that do it from there home.
so you do not have to meet an quota or requirement of sales in a year? but any transaction need to be logged in a 4473? and a book of some sorts?
how to i obtain a list of wholesalers and getting involved with them and there items? such as scopes rifles and pistols
i see in the kits that are like 50$ or 20$ they give u a list of this stuff are the kits worth it?
my personal guns which i have bought an several were gifts how does that work out. the gifts were from my father one was bought from a store and one he bought from a buddy for me. and one was an enharitance do they need to be logged? in any type of manner or registerd or what ever
i whould like to do this stuff on the side along with my main job. and if it were to get going good open my own store or website or something
the few stores here loacly do not deal in alot of optics an such. and when they do they are very very high nor do they have many ar accesories or anything. so that whould be on concideration of mine also
but i think this is the few questsion i have for now
so form what ive read you have to have a buisness in you house if zoning allows or in a store?
im sure it does there are couple of others around town that do it from there home.
so you do not have to meet an quota or requirement of sales in a year? but any transaction need to be logged in a 4473? and a book of some sorts?
how to i obtain a list of wholesalers and getting involved with them and there items? such as scopes rifles and pistols
i see in the kits that are like 50$ or 20$ they give u a list of this stuff are the kits worth it?
my personal guns which i have bought an several were gifts how does that work out. the gifts were from my father one was bought from a store and one he bought from a buddy for me. and one was an enharitance do they need to be logged? in any type of manner or registerd or what ever
i whould like to do this stuff on the side along with my main job. and if it were to get going good open my own store or website or something
the few stores here loacly do not deal in alot of optics an such. and when they do they are very very high nor do they have many ar accesories or anything. so that whould be on concideration of mine also
but i think this is the few questsion i have for now
0
-
You can work out of your house so long as local zoning allows for it and you can get any business license which is needed in your area. Get that squared away first thing because the BATFE will be checking on that without fail.
There is no "annual quota", but you'll have to show that you are actually doing some kind of business. You don't need to make a single retail over the counter sale, they can all be dealer to dealer transactions, but you need to be transferring gun out to someone and not just buying them. Obviously at first you'll be building up an inventory but if you don't show something moving out the ATF will think that you got the license for your own use and that is specifically prohibited.
In my opinion getting the license with the idea of making money selling scopes means instant doom. The big catalog and Internet guys are buying optics by the truck load and selling them at close to what you'll be paying. When you factor in the sales tax you'll have to charge (if you live in a sales tax state) you'll never be able to compete. It is the same story with nearly all firearms accessories.
Your own guns are your own guns. Tag them as PERSONAL FIREARM, NOT FOR SALE and you'll be fine. NEVER and I mean NEVER, have your personal guns mixed in with your business inventory because an ATF inspector can't help but look at your personal guns if they are sitting in the same safe as your business inventory. What is yours is yours but the business guns are open game for the BATFE so make sure you keep everything straight.
The FFL kits are a total waste of time and money. Unless of course you want to send me twenty five bucks right now!
Once you get your license you'll need to obtain and A&D (Acquisitions and Dispositions) "Bound Book" to log in your inventory and log out your transfers. These can be obtained through commercial sources or you can make your own by just using a spiral note book. Simple, fancy, costly or dirt cheap, as long as you have the proper data in your A&D book the ATF won't care. Make sure that the pages are numbered because that is critical during inspections.
Once you get your license your mail box will fill up with flyers and catalogs from wholesales as if by magic! These guys buy the FFL dealer list directly from the BATFE and then all of us are instantly on their mailing lists unless we request we be removed. Trust me, after a while you'll want your home mail box back and gun free so get a PO box to handle the business mail!0 -
this one guy once otld me he could get scopes cheap cheap an all this an did ok selling them. but i dunno just thought it might be something extra to sell
"You don't need to make a single retail over the counter sale, they can all be dealer to dealer transactions, but you need to be transferring gun out to someone and not just buying them"
so dealer to dealer transactions so thats like me getting something from a wholesale comapny. and someone buying it on gunbroker an me transfering it to there FFL or ffl dealer correct?
also i read some kinda junk on the net that a way someone could post an auction. here on gunbroker sold it got the money orderd the gun. form retailer and then sent it out is that possible an true?
it whould probily be wise to start out small with couple rifles an pistols ? one or two
also with an FFL like buying from like a sporting goods no discounts are anything apply right?
now as far as getting a small inhome buisness license. do i need to tell them what im doing or will it matter?
an also u said something bout po box for buisness. if i recall u cant do that or did u mean for the mail and flyers for retailers0 -
this one guy once otld me he could get scopes cheap cheap an all this an did ok selling them. but i dunno just thought it might be something extra to sell
My experience has been otherwsie. You might do better.
"You don't need to make a single retail over the counter sale, they can all be dealer to dealer transactions, but you need to be transferring gun out to someone and not just buying them"
so dealer to dealer transactions so thats like me getting something from a wholesale comapny. and someone buying it on gunbroker an me transfering it to there FFL or ffl dealer correct?
Yes, those are quick and easy transfers with a minimal hassel to you.
also i read some kinda junk on the net that a way someone could post an auction. here on gunbroker sold it got the money orderd the gun. form retailer and then sent it out is that possible an true?
I took about five readings to figure that out. Listing an item on auction while not having it in your hands and then expecting the winning bidder to wait while you order it from a distributor is not going to make you many freinds. Sellers do it, do it but I feel that it is bad business.
it would probably be wise to start out small with couple rifles an pistols ? one or two
It depends on your market. If you are in a big time deer and elk area there is not much point in worrying about handguns, start with the rifles and make some sales
also with an FFL like buying from like a sporting goods no discounts are anything apply right?
Run that one by me again because I can't follow it.
now as far as getting a small inhome buisness license. do i need to tell them what im doing or will it matter?
Yes, it matters a great deal and you need to be specific because the BATFE will be checking.
an also u said something bout po box for buisness. if i recall u cant do that or did u mean for the mail and flyers for retailers
I clearly said for business mail.0 -
basicly with an FFL buying from a sporting goods store. buying a rifle or pistol having the FFL wont matter correct?
whould using a website to sell items and guns be a wise choice?
and of course local advertising cards and stuff whould be a good idea.0 -
I follow you now. In most cases large sporting goods stores won't honor an FFL, much less offer up a discount, to anyone coming in off the street. Don't imagine that your local Big 5 will be your distributor, they won't sell you a thing at under retail price.
Web sites can work if you are up to the task of setting something up, or paying someone to do it. You can always sell right here on Gun Broker, where everything is set up to make sales easy.
Local advertising is up to you but you should always have some business cards handy and don't be shy about handing them out. If you even hear the mention of the word gun or ammo, whip out a couple of business cards and hand them over. You'd be amazed at how many sales you can pick up that way. Don't put the cart before the horse. Make sure you can get that business license and your zoning is squared away before you go any further with your plans.
I've been in the guns business for 34 years, in fact I have never done anything else in my entire adult life except sell guns. I started out working in a gun shop to learn the ropes and then after getting my own FFL my friend and I opened our own shop which we ran for about 20 years. After we closed the shop, we both retired comfortabley back in 2005 but I kept the FFL and still make sales, but only here on Gun Broker.
It is bed time for me. Good luck.0 -
a shop whould be an idea an something i might want to work towards
thanks for your help so far its been great
i know my grandparents once ran a buisness out of house here a construction and remodling company.
heck i might see if any help is needed in local shops an see if i can get part time work an learn more stuff.0 -
quote:Originally posted by CD82
a shop whould be an idea an something i might want to work towards
thanks for your help so far its been great
i know my grandparents once ran a buisness out of house here a construction and remodling company.
heck i might see if any help is needed in local shops an see if i can get part time work an learn more stuff.
Mark Christian has given you stellar advice. Take this from me, a FFL holder for 20 years. If you have nothing to bring to the table other than sales or resale, and plan on doing this on the "side", it will not be for long. Mounting glass on firearms, is not as simple as it seems to do it right either. It is not as simple as screwing on the base, attaching the rings, and slaping the scope in there untill it looks good. And if some idiot stuck one of those bore spuds from a bore sighter in the end of one of my rifles, I would most likely bend the barrel around his neck for damaging my crown.
If you put a big dollar piece of glass on a big dollar gun, and screw them both up, then that is a lot of change.
I was doing my business on the side too, as I have a lot of other irons in the fire, and gave it up 2 years ago. I still do custom gunsmith work for myself, friends, and friends of friends. I still have accounts with distributors, and can get anything that don't require a license.
All of the above is just a FYI. IMHO, if you don't plan on making it a full time thing with regular hours, and offer services such as repairs, cleaning, and correct optics mounting, you are doing yourself injustice.
Best
EDIT 1
Like I was stating, unless you offer some kind of service, you will be shooting yourself in the foot. The big box stores are buying the stuff for way less, in large quantity, than you can, and are still selling it for less than you can get it for from a distributor. Unless you can offer a service, such as transfer's fromother dealers from auctions, and or cleaning/gunsmith work, you will not have as much to offer as the big stores...it will be hard to compete. On the other hand, most box stores will not do transfer's from other sales. But I wish you the best of luck!0 -
never said anything about mounting optics i dont even like someone mounting mine i do my own. i mean i can not only sell guns but sell a few new scopes. and someday i whould hope to work up to it beeing a full time thing. maybe even having a store some day 0 -
Besides the very good advice you have already been given, I will offer you two more nuggets-
First, if you are looking at having a business, then incorporate it as a business. The legalities are fairly cheap and easy to do- but when you sell me a defective rifle, I am injured by it (or CLAIM that is what happened), the incorporation makes the difference between my going after the assets of the business, or everything you own (house, car, kids college fund, your 401K, etc)
Second, get a business insurance policy for liability insurance. See an independent agent, or talk to the NRA (um- you ARE an NRA member- right?) Nice thing about insurance- if you get sued, they provide the legal defense costs. Priced a lawyer lately?0 -
Don't waste your time with the NRA. More than a few former FFL manufacturers sitting in prison for trivial mistakes and paperwork errors who thought the NRA was going to help them. 0
Please sign in to leave a comment.
Comments
10 comments