I just mailed off my FFL paperwork 07 and then will be adding an SOT ASAP.  I will be working out of my house but I will be doing mainly online sales I hope as well as ordering for my friends and friends of friends as I get more business. I will be trying to demo some guns with LE and hopefully get some sales out of that as well.

I am new to this, I know I can't do anything as far as starting accounts and such with anyone until I have my FFL in hand. Any pitfalls I need to beware of? Any general advice?

What distributors can you guys recommend?

Good questions. I'm in the same boat and have similar aspirations. (07 and SOT 02 I may wait until July to apply and pay the fee once in 2020 vs twice.) Any day now I  expect my local ATF office to call for my interview.

The best thing I believe will be a great move is to pay the $100 fee to join the NSSF. As a dealer they will help guide you and help prevent making costly mistakes with your home based business. The other thing I'm anxiously awaiting is the best bank to open my FFL business account with.

Did you use ffl123 to help you with the process of applying for your FFL?

No, I just figured out what I could, called the ATF a few times and asked an FFL I do business with some questions.

I have considered joining the nssf myself. I'm not sure what it benefits me though.

While the NSSF does some heavy lifting, they don't really give a rats ass about small or home based dealers.
Instead of wasting your $$$ on ffl123 and the like, spend some time reading this forum and the archives. You'll learn more from RenegadeX than ffl123 or the NSSF.
I would caution you to go slowly, jumping into the NFA without having a few months of experience in 4473's, multiple sales reports, bound book entries, NICS is a recipe for failure.

Things you should read BEFORE the ATF IOI shows up for your interview:
1. Write a business plan. The archives have several threads where the aspiring FFL could have spent an hour sketching out a business plan, instead he ran with "FFL means $$$$!!!!".

Think you'll beat Bud's, Palmetto or other online dealers on pricing? Then you haven't done a minute of research. Think LE will beat a path to your door to buy from you? Then you haven't done a minute of research.
Do you know your competition? How many FFL's within a twenty minute drive? How much do they charge for a transfer? Do you have a range? Do you have deep pockets, because investing in inventory in the current climate means you'll go belly up before your FFL is due for renewal.
07FFL "Manufacturer"?.......ITAR awaits to the tune of $2,250 for you EVERY YEAR.

Recommended distributors?...........yeah, those that are still in business. In case you are unaware, the gun industry hasn't been all that healthy since Obama's first term ended. All the massive sales and massive profits ended in 2014, followed by layoffs at many manufacturers. When Palmetto State Armory can sell a stripped lower for $39.........how will you profit?

2. Read/Research/Read again
Read every thread in the ARFcom FFL subforum including the archives.
Read everthing at atf.gov specifically:
CFR 478 Commerce in Firearms
479 NFA Firearms
Open Letters....yes, all of them.
Rulings
FAQ's........yes, all of them and note the citations to the actual law the FAQ answer is referring to.
Firearm Forms........all of them and the instructions printed on each one. It's embarrassing when a dealer doesn't know how to record a stripped lower in his bound book or on the Form 4473.....and ATF tells you right there on the form.

3. Write a business plan from your competitions viewpoint.

4. Ask questions now.
Waiting until you've opened a gun store in Marfa, Texas and have lost your shirt is too late.

Everything Tom said and on #2 he forgot to add D/L all the FFL Newsletters dating back to at least 2000.

The Business plan is critical. You must know your market and your competition. Everyone likes to move guns, but things like engraving and cerakoting are in high demand in my area. Also be ready to adapt to changing business climate.

I will be working out of my home. I don't plan on getting into engraving or coating unless I contract those things out. I will be a parts changing for sights and such.

Sounds like more of a hobby than a serious business plan. That is up to you, either way the advice on knowing laws, etc still applies.

Hobby to make some money, same as when I did ccdw instruction. If I can turn it into more than just making a couple hundred bucks a month I am going to do all I can do to make it happen.
Regular transfers
Installing and selling sights and scopes
NFA transfers(when I get my SOT)
Special orders and find me this gun
Buying estates and reselling

Nothing wrong there. I will say this, it is shocking how much you can me make doing basic parts swaps for a Glock at a Gun show.

Lol , years ago at the gun range a guy came in with a Kroger bag of gun parts and asked if they could put it back together.  Owner took one look and said nope. It was a completely stripped 92f Beretta. Everything had been taken apart. Dude said his son did it. I told him I'd put it back together and test fire it for 20 bucks. I did, took about 15 minutes, the guy gave me 40 and thanked me.

Good luck, you're going to need it. Kitchen table FFL's are dying in droves since the election and I am one of them. When I started out I had the same ideas as you as far as swapping out parts for people etc. The reality of it is there is no money to be made in that. I went so far as to offer no fee 90-day layaway's AND free trigger-jobs etc and even at an almost break even cost, guns were just not selling.

Bud's, Palmetto and Grabagun have changed the way people buy guns online. Fortunately being an FFL was not my full-time job, so I just let it lapse.

There is some money to be made in transfers, but you will have to undercut the local B&M store significantly to get any traffic headed your way. Advertise heavily in local media, throw business cards out like candy and maybe the word will get out.

Talk to your local B&M store and see whether or not they have an SOT. If they don't, you may be able to work out an arrangement with them to where they send you there customers looking for class 3 stuff and you can send customers their way for regular transfers. I did that when I had my SOT and it worked out good, but still it was tough to make money.

I am hoping NFA transfers will drum up some business once I get my SOT.
As it stands now, I feel confident that I can make a decent go at it.

I don't plan on keeping much stock on hand. A few glocks, a few other guns.

Once you have your license join FFLSOnly.com.  Only licensees in the business (no C&R) may join.  There is a lot more to running a firearm business than following the laws.  You need to figure out policies for scenarios like:
- Gun comes in for transfer, buyer never shows up.
- Gun comes in for transfer, buyer fails BGC.
- A firearm other than a long gun comes in for transfer, buyer can't take possession because he's under 21.

You'll need to draft a consignment agreement based on your own state's contract law, layaway plan if you're planning on direct sales, find a decent merchant processor, get set up to collect and remit sales taxes, etc.

Nothing you listed requires an 07 FFL.

Thank you for adding nothing to the thread.

Don't be a dick.....he's correct.

I plan on moving into sbr and sbs production as well as silencers. At this point, I don't see any real benefit to making machineguns.

Just had my interview today. My application didn't need any amendments. I should have my FFL in a week or two!

Welcome to the insanity.  Once you get it I'd suggest signing up at FFLSOnly.com.

I'm excited to learn what appears to be endless regulations on guns. It's crazy.

Thanks for the advice. I just registered for fflsonly.

I received my 07 ffl in the mail today. I am excited to start doing business!

Congrats!

I currently own two machine shops ( long Story )both separate businesses,  I have been thinking about getting a 07 SOT to do transfers and to experiment with designs of guns and suppressors. Should I use a existing LLC or create a new one for the FFL?

New llc

Is it a issue using machines owned by one business to produce NFA items for the other? I could always lease them out to the other business.

No it is just a good business idea imo.

What did you do regarding zoning or business license issues ?

Did you set up an LLC ? or DBA ?

I had my 07/02 many years ago, but at a retail storefront.

I'd like to get back in the game, but dont need the overhead of a seperate location... so I'd like to do it from home this time.

Just not sure what difficulty I will face here in GA.

No zoning issues, I'm also on 9 acres in the county. I  did an llc.