FFL License
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I suggest you go over to the ATF website and read. Then read again. Illegal if sole purpose is not a business I believe. Not to mention the cost and time you would have to put into it with state business regs., taxes, and other things.
I use to know about 5 guys with FFLs in my church who would do transfers for people in our area. Last I heard, only one has kept his due to the pain it became.
I use to know about 5 guys with FFLs in my church who would do transfers for people in our area. Last I heard, only one has kept his due to the pain it became.
I was unaware you were had to keep it in the "dealer" aspect.
The prices are amazing, i've seen gun stores charging $550-$600 for a new Glock, when you can pick them up for $460 brand new with shipping from Glock if you're an FFL.
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You realize from the pricing you quoted, that is only a 20 to 30% markup over cost? That really is not much considering the overhead to own a gun store.
I'm not trying to be a party pooper by any means. If you think you could do it, go for it. I just don't see much profit unless you can do a high volume of sales. One of the guys I knew who did transfers stopped because he operated it as a home based business and got tired of unknown people coming to his house. Heck, the gunshop I go to now is a gunshop/auto parts store. I have a feeling without the auto parts side he'd be out of business.
If you're looking for an FFL for personal use only, get an 03 C&R. But the Type 01 is only for dealing and gunsmithing for profit.
Now, that's not to say that if you had a home-based transfer business, you couldn't use it to buy your own guns - heck, if you're a sole proprietor, you don't even need to run the NICS - but if you're not using it for business purposes, it'll be revoked. Plenty of people list themselves on gunbroker or similar sites for cheap transfers, and there's certainly a market for those services (especially if nobody else is already doing it in your area).
And even with the expenses of keeping up a local business tax license, state or local government security/insurance mandates, sales tax accounts, quarterly estimated income taxes (federal and state), self employment tax, and of course the FFL fees, you can still make some money in it - just not enough for most people to want to put up with ATF compliance inspections.
Now, that's not to say that if you had a home-based transfer business, you couldn't use it to buy your own guns - heck, if you're a sole proprietor, you don't even need to run the NICS - but if you're not using it for business purposes, it'll be revoked. Plenty of people list themselves on gunbroker or similar sites for cheap transfers, and there's certainly a market for those services (especially if nobody else is already doing it in your area).
And even with the expenses of keeping up a local business tax license, state or local government security/insurance mandates, sales tax accounts, quarterly estimated income taxes (federal and state), self employment tax, and of course the FFL fees, you can still make some money in it - just not enough for most people to want to put up with ATF compliance inspections.
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