OK, please pardon my ignorance but just thinking about this and have no idea what I would be getting into.

I am thinking I would like to get an FFL and SOT to do transfers on a small scale of ordered guns (no stocked inventory), machine guns and suppressors as a kind of hobby job. The rub here, other than I don't know what I would be getting into, is below.

I live in a residential area and don't think zoning would allow for a home based business however I do own a vacation property that is rural and I don't think zoning would be an issue. The downside is that it's approximately an hour from my home and as mentioned is rural and is a mobile home on 60 acres. I would prefer to use it as the physical location but not store any transfers there as it is remote and no security there.

Is it reasonable to conduct business from there but store any machine guns or suppressors being transferred at my home until paperwork comes back and then do the transfer at the business location?

I would be looking at some pre 86 dealer samples at some point if I decide to do it and my understanding is that they are "keepers" even if I give up my SOT. I currently have a trust for my NFA stuff to avoid having my family have to do transfers upon my death. Is it possible to keep the samples in a trust or LLC so that upon my death they could possibly be passed to my children even if they did not have an SOT?

What other costs other than insurance and a business license could I expect to incur?

Thanks in advance

Yes, that is legal.



Dealers samples can only be passed to SOT Dealers. LLC is an option but IMO it is a bad idea as a vehicle to keep dealer samples in the family. Children should just get their own FFL at your location would be best bet IMO.

The problem is they are 2 and 6 years old right now and while hopefully I won't be dropping dead anytime soon I would like to plan for their future as well as make it as easy as possible in the event of my passing.

I wouldn't do it.  I'm home-based and a decent percentage of transfer customers are either no-shows or run late for appointments (think hours not a few minutes).  So, you'll have to calculate wasted time/trips into your transfer fee.

Another percentage are "F5'ers" or get a text notification when the package is marked as delivered, and they'll show up unannounced wanting the transfer five minutes later.  If they find themselves at a vacant trailer I don't see that ending well for your business reputation.

To throw another wrench into the works, more than a few dealers/distributors/<censored FFL's> will only ship to the premises address and in many cases they don't bother getting insurance or even signature required.  You could go out there to find a stack of guns has been sitting out for days in all kinds of weather... assuming they haven't been swiped.  We've found stripped receivers shipped in a USPS small flat-rate box for $6 stuffed into the mailbox and green long-gun boxes with "REMINGTON" in 12-inch high letters left on the front porch.

So while legally you can, this is probably a situation where you shouldn't due to the nature of the business.

I understand and it would start out small scale with doing them for friends and coworkers and go from there. Really looking at doing NFA stuff rather than run of the mill guns as I figure there's just way to much competition there and like I said, stock nothing and order only.

It might not be as hard as you think to be in compliance with local zoning. Go and find out and then go from there. You may be able to operate from your house.

I have been thinking of this route as well. My wife is very encouraging of me seeking the FFL, and there are no HOA barriers.

My primary concern / challenge would be a) standard business hours and b) having a good place to conduct business in the home.

ATF only requires you to list your business days/hours on your application. This is the days/hours that they can come to conduct a compliance inspection. It does not mean the hours you are open to the public.

If you want to see customers "by appointment only" thats perfectly fine.

Thanks, Tom.  I've been scanning the forums and appreciate all your advice and support to the larger group.

The biggest issue with using a home based dealer, is how long do you plan on being an ffl? How many transfers? And where to store all the paperwork?
In the process of switching owners at an existing shop, and 20 years of paperwork takes up a lot of space.

I am a small volume home based dealer.  The ATF requirement is to be compliant with State and Local law to work out of your house.  The only rub with the SOT is that it is $500 a year, so you better plan on moving some product to pay for it as it will make your NFA items expensive if you plan on using it for a personal collection.

Also talk to your LEO and see if they have any need for NFA services as it could be helpful if you want a "letter".

A vacation trailer in a distant location is a bad idea.

I list my hours at 6-7 pm Wed and 12-1 on Sat.

My thought would be to start with transfers and orders for friends & family (i.e. by invitation). Once I felt comfortable with process and paperwork, I would expand to unlimited transfers during business hours (very limited hours).

I'm not sure I have real justification to start with the SOT, but adding it later would not be a financial hardship even if I only sold and / or transferred a few items.

Those were the hours you listed on your app?
If so, I'm surprised you were approved.

I don't see a problem as long as NICS is open during your listed hours.  The only downside to opening only 2 days a week is the day count for multiple handgun transfers.  It is 5 days, counted only on the days you've listed.  So if you're only open 2 days/week, it will be 3 weeks.  Say a guy buys on Wed 7/8, his 5 day timer won't be done until Saturday 7/25, if he buys on that 25th or after, it is past the 5 days, and the limit is reset, any day before that, if he buys above the "limit" on multiple handgun reporting, you will need to file a report.

Two hours a week seems like a giant red "I'm not really in the business of dealing in firearms" flag.

I listed mine as seven days a week, and still do by appointment only...

 

Same here

I am only 4 hours a week on application.

It is an antiquated system to think you know your hours up to three years out. Question should be removed from app, especially in internet age.

In May I was overseas, was available 0 hours, this past week 96 hours.... Next week, who knows.

Why in particular? I am not planning on storing or shipping anything at that location. It will be stored at my home in a seperate safe until the transfer occurs at that location and will start out friends and family only until I feel comfortable doing it and then will still be very limited and made clear to everyone that nothing is stored there just in case anybody gets some dumb idea.

$500 a year isn't bad if you consider my local guy gets $100 for a supressor transfer. A few transfers and a few can sales a year covers the cost. I mean you're really talking $41 a month, hell I piss more than that away on more useless stuff

Your completed paper work must be stored there. no way around that one.

Again, that is not a problem.  Not everybody can be full time at the time they apply/get their first FFL.  As long as you are engaged in the business, it matters not one bit how many hours you dedicate to it.  I know a friend who applied and put down 2 days, 2-3 hours/day, and was approved.

That's actually not a big deal as I have a shed and large enclosed metal shed there as well so no big deal to store boxes of paperwork.

Again, forgive my ignorance but how long do they need to be stored and what about if I ever give up the FFL or SOT?

Is there a good source of all the info I need to know?

Google for the ATF handbook and you'll find all the rules/regulations you're supposed to follow.
You need to keep 4473s for 20 or 25 years (can't remember which off top of my head), or until you give up your FFL (your FFL doesn't go away if you let your SOT lapse, you just revert back to doing only Title I stuff).  When the FFL is no longer in business, all the forms go to the ATF.

Local IOI said 20 years for retention.  My current ffl has been in business for 23 years and anything older he was told he could dispose of.

Now I have lots and lots of file space when I take over in a couple weeks

Eta: his 0-20 old files are going to be turned over to ATF shortly after the switch from his store to mine.

Really? I have always just been told it was business days. When we got delayed status they never counted saturday only monday through friday/

The count for days on multiple handguns is based on what you put down on your FFL application.  The NICS 3 day countdown is counted as you said.  Different counting systems for each one.

Gotcha I was thinking of the NICS check. Still good to know. What a great example of a worthless rule.

Where does it say this?  

https://www.atf.gov/firearms/qa/licensed-dealer-must-i-advise-atf-if-i-sell-more-one-handgun-individual

Thanks!