In TX, and been thinking about becoming a FFL.

Wondering how much dough one has to come up with to properly get set up.
Would do it out of garage, by appointment only.
If I miss anything, let me know:

LLC, and/or - legal fees in setting up small business. Aprox cost?
Liability Insurance - aprox cost? and suggested carriers?
Application fees - How much?  $200 application fee/tax to ATF
Fingerprints?
Unknowns, that I should know? How much?

Will clean up the list when this thread winds down.

ETA:
Small bolt down safe $600-$700
Thanks bd82001

ETA II:
• $300 for LLC filing and doing the forms yourself which is pretty easy ($308 if you pay with credit card)
• If you don't act as your own registered agent then it's another $40-150 a year.
• $200 for FFL Application fee
• $5 per card for fingerprints at the cop shop
• $1 for DIY passport photos. The State Department has a webpage to format a photo as a passport photo. (Passport photo tool)

• Texas sales tax permit (free)
• Texas Unemployment tax if you pay wages to anybody other than yourself
• Federal EIN (free)
Thanks tactical_taco

Security/Cameras UNKNOWS= cameras=$500, A&D BOOKS $20
Thanks HKILLER

Security?  (Safe, etc.) I've heard from "them" that you shouldn't mingle personal storage and business, lest the ATF get into your personal weapons while visiting.

YMMY, see dealer for details, IANAL, etc.

You shouldn't have them in the same safe/display area. But if you did you can put a tag that says "personal use firearm not for sale" etc something like that.

Personal items very secure.  Do need to add cost of a small bolt down safe for garage.  Thanks


No idea what this means.

DTT mentioned the tags in another thread. Seemed to be a good idea.
http://www.brownells.com/gunsmith-tools-supplies/shop-accessories-supplies/tags-tickets/batf-personal-firearms-tags-prod21336.aspx

Hell you don't even need those. You can make the tags with some poster paper(copy paper even) and just use string to attach or tape.
Doesn't need to be fancy or even a purchased item. But up to you obviously.

lots of foot work cost the most. Time is $$

Thanks Dad.


Anyone with experience able to help answer the 4-5 questions in op?

$200 application fee/tax to ATF plus whatever your city/county/state would charge to get you set up as a business, I know that much.

You said Busniess, garage. Home ? You may run into issues. Your city, county must approve the: operate from home thing. ATF is going to want to see proof it is allowed before they grant a license. some rural folks have gotten away with it but they are checkng more and more.

Here in MS it cost $50 to form an LLC.
Fingerprints were $10 from local sheriff.

You will need a FEIN or Federal Employer Identification Number.

Business bank account varies.

Spoke to city, and police chief when first had this idea. should be gtg there. Chief said others in town do it out of home, so will keep fingers crossed on that one

Do you guys carry liability insurance, in the event some nutjob injures or kills someone?

Thanks, will add that to the list of answers.

I'm about one year into a home based FFL.  $200/FFL; $30 for State Firearms Sales License; Paid some money to an Attorney for consultation fees for my peace of mind, and fees to a local accountant to get me started with sales tax and similar matters.

FYI ATF made me get a written letter from Local Municipality that there was no zoning prohibiting home based business.

I contacted a few Insurance agencies regarding liability insurance. Struck out 3 times from being told -"No" or "Hell No".

Ended up checking with the NRA's Business Alliance: https://www.nraba.org/insurance.aspx

Quote I ended up getting was in the $700-800/year range for my needs. YMMV

Thanks bud. Good info.
If I need a letter, I am pretty confident I could get that done.

Ouch on the insurance cost. Thats alot of transfers, just to cover the cost/break even.
Got to have it I suppose. But darn.

LLC =$325
FFL=$150
INS= TBA
FINGERPRINTS=free at local pd
Photos=12.50 cvs
UNKNOWS= cameras=$500, safe$1000, A&D BOOKS $20
Doesnt apply to you COO $225
Knowing your approved= PRICELESS
Im in texas too, check to see if your city/county has a zoning map and in rural areas county engineers can help.

I started the process in TX about a month ago. This is my experience so far...

• $300 for LLC filing and doing the forms yourself which is pretty easy ($308 if you pay with credit card)
• If you don't act as your own registered agent then it's another $40-150 a year.
• $200 for FFL Application fee
• $5 per card for fingerprints at the cop shop
• $1 for DIY passport photos. The State Department has a webpage to format a photo as a passport photo. (Passport photo tool)

• Texas sales tax permit (free)
• Texas Unemployment tax if you pay wages to anybody other than yourself
• Federal EIN (free)

You'll need to bring your EIN with you and a resolution to open a bank account if you open an account for the LLC

The IOI (at least mine did) will want to see your LLC certificate from the state as well as your LLC Operating Agreement.

Insurance depends on your situation as does zoning and city/county permits.

$20 for an A&D book unless you make your own in Excel or use software which can get pretty expensive.
Safe obviously depends on how big/fancy you go. You can just as easily go with a cheap $100 from Academy and satisfy the requirements of the ATF.

Little things here and there such as office supplies you may want/need, where you're going to store your completed 4473s, multiple handgun/rifle sales forms etc.

If you're going to take credit cards you need to decide on who to use for processing. You can't use PayPal or Square as it's against their terms. You can get a full blown processing machine which will be about $20+ a month plus the terminal if they approve you. If you want something like PayPal or Square you can use EMS+ (plusbyems.com) as they allow FFLs. They'll send you a swiper to plug into your phone and they have an app to process the transactions as well as a web based virtual terminal.

If I think of anything I missed I'll be sure to post it.

Thanks guys. Good info. Will add some of that to the OP!
Good tip on the camera. Didnt think about that... But have kicked around the idea of in home security cameras in the past.

On the safe, wouldnt mind spending a bit more to get a smaller version of mine. No matter how the FFL experience turns out, I'd always have another safe

The insurance thing is still eating at me. Do I just go into it with the understanding that the first few years will be run at a loss?
My fear is, theres no way a start-up will have enough traffic/customers, to cover that outlay.
ETA:
Is there any competition out there, to the NRA linked insurance carrier?  

I use Frontpoint security. Kind of a do it yourself system. I have 4 windows with bars welded to the container and one entry/exit with a steel bar security door. The system I got lets you use your phone to access your system and look through the camera which is tied into wifi.  Of course I have my little shop in a 40' shipping container redone as an office and shop area to make kydex holsters. I also have an actual POS system and credit card processor. My POS is NCR Silver using an iPad with cash drawer and receipt printer and my processor is Payline.

You'll more than likely want to get an actual fax machine or an all in one printer and virtual fax (I use nextiva) to send faxes to distributors and the ATF (multiple handgun transfers) and various other places.

Thanks Vermilion, more good info!

OK. Here is another question for those preceding me into this venture.

Have thought up a catchy, ez to remember business name. Which step is next, and in what order?
Federal Employer Identification Number?
Form an LLC?
State sales tax number?

Guessing LLC comes first? Be gentle, lifelong construction worker here... This kind of stuff is not my strong suit.

I believe I did LLC first then EIN and state tax. I unfortunately came up with a very long name and now regret it but I'm in it pretty deep now so oh well. My shop is Custom Gunworks & Concealment. Not terribly bad but having to write it out by hand a dozen times sucks.

i used blank business cards and printed them out they say " Personal FIrearm Not For Sale" then just punched a hole in them with a hole punch a small zip tie and slid over barrel

For the TX guys...

Form 205?
http://www.sos.state.tx.us/corp/forms_boc.shtml

If you file online with the Texas SOS you fill out text boxes that completes the form. You only really need the PDF version if you want to look through it or file by mail.

As for order first you need the LLC and then comes sales and use tax and the EIN. The order of the last two doesn't matter, you just need the EIN before you can open a bank account.