FFL Questions-Any hidden costs, etc?
I am looking like so many to start up a side business with an FFL. If I use it just for transferring guns and buying some for clients do you need any special insurances? What about other costs you do not see when starting the process? Meaning I want to do it out of my home. What all would be needed? I'm sure a fax/copy machine, log books. Anything else? Do you need one of these advertised packets that you always see in Shotgun news?
I just want to make sure I'm not missing anything and I can plan my costs and liabilities to see if it would be worth it. I'm not using this to get guns cheaper for myself-although I'm sure I may occasionally but as a business.
Thanks so much for your help. I'm sure these things have been discussed so thanks for going over it again.
Shipping Costs KILLED me...Be careful when you quote the price of a pistol or a rifle and then you order it and some distributors charge more than others to ship. Especially is you are a small dealer like I was. Business Bank account with monthly fees...Incorporating...Credit Card machine and associated fees...I made very little on new guns..the money is in the used guns. You have to do major volume to earn a lot..like BudGuns
You also need to consider whatever fee's are due your city or county for a business license.
We planned for insurance, legal fees, state and local fees and taxes, FFL fees, SOT, etc.
We did not plan for ITAR, which won't affect you as a dealer, as it's only for manufacturers. It increased from $500.00 to $2,250.00 about six months after we got our license.
Originally Posted By Bubbles:
We planned for insurance, legal fees, state and local fees and taxes, FFL fees, SOT, etc.
We did not plan for ITAR, which won't affect you as a dealer, as it's only for manufacturers. It increased from $500.00 to $2,250.00 about six months after we got our license.
What kind of insurance and FFL fees are there out there? What is needed? SOT? I don't know what that is. About how much per month does all of that cost––More or less?
Thanks.
Insurance is however much you want. You'll need to decide if you want it, and what coverages you want, and how much. The FFL fee is the license fee; for a dealer, that's $200 for the first three years. You don't need the SOT unless you'll be dealing NFA firearms; if you will, it's $500 a year.
