Hello . Last summer I retired from my 20 year hob do to a work related accident that almost killed me .

It has long been my dream to open up a small Gunsmithing and Gun Shop. Last August my wife and I purchased our retirement house we paid cash for the home so we own it and do not have to worry about any issues with landlords or HOAs.

Before I sent my packet in I went to the state and obtained my business license and my reseller certificate I also went to my town hall register my business with the town and had the gentleman who is in charge of codes and variances write a letter to the ATF stating that my house was in a mixed Zone and that I could have my business at my house and that the city had no problem with me having an FFL for firearms business use .

It was my original intention to apply for both my FFL and my class 3 dealer however according to the folks that I spoke with at ATF I was told that I would first have to get my FFL and then after I'm approved for my FFL I could then apply for my class 3.

Here's question number one I do not have an employee identification number I was told by the people at ATF helpline that I did not need one for just my regular FFL is that true?

I was looking at the special tax registration and return form and it clearly states on their employer identification number so if I do want to get my Class 3 after I obtain my FFL is it necessary indeed to get an EIN? And if I do need to get it what is the best easiest way to do that please keep in mind that I'm a one-person shop and I will have no employees working for me.

So how long is it taking right now to get your inspection? As I said I just sent the forms in on Thursday I overnighted them express mail and they received him Friday and they were signed for so I know they have my packet in hand.

Once I get my FFL how much harder is it going to be for me to get my Class 3?

Now for the hard part I would like to be able to build custom AR-15 and 1911 pistols that would be manufactured and put together to the customer specification if I do that what exactly type of Manufacturers license what I need to get and if I do want to do this what I need to pay the itar fee?

Lastly can someone out there tell me what wholesalers are currently friendly to home base gunsmiths ffls s like me?

Thanks for any and all help and advise !!!

It takes about 6 weeks to have your inspection scheduled and then another couple weeks to get your FFL. Did you apply for your FFL in your name or your business name? This makes all the difference for EIN/tax purposes. Your SOT won’t be difficult as long as you set up your FFL the right way in the first place. I do offer courses on this if you need help. :)

Correct. An EIN is only needed for your SOT.

An EIN is needed to get an SOT. The easiest way is to apply online it takes 30 seconds.

How hard is it for you to fill out a form and send it in? That is all it is.

Type 07 MFG and yes that is ITAR.

Thanks for the reply .

I registered my business name with the state of Maine as a DBA, I filled out the ffl paper work with my name , but doing business as my DBA.

So to be honest with you I'm not sure whether or not the FFL would come in my name or my DBA I did include in my packet both my tax ID and reseller certificate from the state of Maine as well as my license that I registered my business with the city that I live in I also got a letter from my code enforcement officer stating that I could have an FFL in my home and I would not be violating any city ordinances.

So when they come to do my inspection and interview at that time could I fill out the paperwork and have the check over to get my Class 3 license?

Honestly I'm kind of a little bit worried as I said I registered my business with the state under a DBA and when I filled out the FFL paperwork I put both my name and my business name down . Wonder how that changes things ?

Just curious once I get approved for my FFL how long will it take to get my sot class 3?

As a class 3 dealer will I be able to obtain post 86 dealer samples for demonstration?

Thanks for the help guys!

The best thing for you to do is going to be study, study, study: FFL Reference Guide

The answers you seek are within, and it won't hurt you whatsoever to be as prepared for your interview as possible.

Even guys with years of experience still consult the guides from time to time.

Regarding NFA, the ATF also has a handy reference for that : NFA Handbook

I'd encourage you to download both as a PDF, as searching for the info you have questions about is much easier.

Distributors that are OK with home-based dealers:
Lipsey's
Davidson's
Sports South
Zanders
MGE Wholesale
Chattanooga Shooting
LM Burney
Shooting Sports Wholesale
DSG Arms
Williams Shooters Supply

Thanks for the Intel!!

Stop saying class 3 license. No such thing. You will be paying the Special Occupational Tax SOT so you can build NFA items and transfer NFA items tax free between other dealers.   The SOT does not confer any rights to buy or carry MGs, SBRs etc other than the above.

Pay the $500 every year if you want to keep it.  Btw.  It starts July 1 so I find you pay the $500 now your license will be from then until June 30th unless you wait and specify it's for the next tax year.

You should have your EIN before anything as it takes about 15 minutes to get.

Since he only just sent in the application he likely won't have his FFL in-hand until it would be time to pay for the 2018-2019 tax year anyway.

Only other advice I can offer is to get lots of insurance since you're running as a sole proprietor manufacturer and you have personal assets.  One KB that puts some guy in the hospital in a rifle you built, even if he did something stupid like drop the hammer on a round behind a squib round stuck in the barrel, may mean instead of a cushy retirement it's cat food for you in your old age.

I’d think about running it as an llc honestly. More protection especially since you are home based. It’s just too easy these days to establish one.  In Arizona it’s a joke to establish one. But don’t know about your state.

Sole prop isn’t technically bad but I personally think llc is the route to go. I’ve never had a sole prop business setup.

Since you sent out the packet I suppose after you get your license you could set it up to transfer over etc.

I think if everything goes smooth you should have your ffl in time to apply for the sot. If I remember correctly I was under 60 days for mine.

Nope it's a brand new license because it's a different legal entity.

My husband and I are both on our LLC so that if one of us is incapacitated or passes away the other can continue to operate the business and/or shut it down cleanly.

I guess I should clarify and say that once he does get his license he can think about apply as an llc. Since he already submitted it. I don’t know how much hassle it would be to stop it and change it. Better to wait I guess.

I don’t do anything without an llc or an inc. too many sue happy people these days.

If you can get a letter on a departments letterhead asking you to demo for them....

Gentleman , thanks you for all the advice and help !!

Just checked,  and ATF cashed  my check today !

Yes for now I will be doing business as a sole proprietor,  however just spent over an hour on the phone with the insurance company and for starters am looking at 50k for theft coverage  ( I have two  40 gun safes  ) and a million in liability .

Guys , I would like to shop around the insurance,  can you give me any leads on insurance company's that are firearms friendly?

As soon as I get my interview done I want to apply for the SOT  , will ask about that after I get approved .

Will be sure to keep you gents informed as things progress!

Thanks !?

Mea culpa  bro , I would like to also apply for my SOT as well as my FFL !

Gentleman,

One more question please . I retired last June,  my home was paid for in cash.  My cars are both paid in full . I  basically have zero bills other then utility and every day food , fuel ect  .

All my assets , everything the house , cars , cash , cars are in my wife's name . We have one joint checking account , but we keep that balance to a minimum.  I just set up my business checking account and that is in my DBA name .

The question is if somebody came after me in court , and for some reason my business insurance did not cover it would the fact that with the exception of my one joint account all assets are in my wife's name would said interests , money , cars and real estate be safe from the sue happy types ???

And before you ask , no I won't post pics of the wife , and YES I do trust her that much !

I think that Involves the laws of community property in your state. States are all diff.

But I would really look into a trust. Even tho insurance might cover you. There’s that slight chance it might go over. You never know. Insurance will obviously defend you in court but if it goes over they won’t cover it

I had a friend who owns a car dealer like me and someone went on a test drive(insurance allows unoccupied) and the dude crashed into a building and killed one person and hurt like 3 more. Yeah that didn’t work out to good for my friend. But since it was all under his inc. he was able to let insurance handle the claim and he dissolved the inc shortly after because the victims were seeking more than the insurance.

Not trying to scare you. Just you never damn know these days.

Sir thank you for your valuable advice , am great full for any and all help !

Since I already filled my packet I am going with the DBA  , I will do a trust or llc later but for now I need to get my FFL and start with it.

In the mean time I will compensate the DBA , by getting more coverage for liability .

Thanks guys !!

As bill Handel says. “get lots and lots of insurance “

Years and years ago I had an account with Sports South.
When I moved, I thought I'd re-open an account with them.
They wanted pictures of the store exterior signage, which to me is NOT a home-based  FFL - friendly policy
Davidsons...I sent in an application, and they wanted me to buy a bunch of inventory that I wouldn't receive; they'd hang onto it and sell it "for me" or some such spiel they gave me.
I declined. Sounded pretty hinky to me . Why should I pay for inventory I can't touch....