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Posted: 6/16/2009 10:34:30 AM EST
[Last Edit: 6/16/2009 10:39:36 AM EST by RidgeRunner01]
I have been reading up here, I have been thinking about applying for an FFL for purchasing via mail and doing transfers, possibly some gunsmithing too. Running a business out of the house is not an issue for the town. I see some people are forming an LLC and some people here say its not nessecary. Also I have checked some of the links that have been posted here, I can not seem to find a definitive answer. Is there good comprehensive primer I can read up on this, or should I just keep reading the ATF website.


Thank you,
Robert
Link Posted: 6/16/2009 10:55:32 AM EST
An LLC is a good idea because it will protect your personal assets in the event that someone tries to file a law suit against your business.

Try Legalzoom.com for forming an LLC.
Link Posted: 6/16/2009 11:22:31 AM EST
Remember too that if someone sues your business, they'll probably sue you too and you may or may not have actual liability even though you set up a LLC or other entity. So, you'll have some legal defense costs to incur.
Link Posted: 6/16/2009 12:22:20 PM EST
OK well that clears that up, I suppose liability insurence wouldnt be a bad idea either. From what I understand, I do not have to have an actual store front with inventory either? I do have to keep records ofcoarse, but actually going out and saying "ya I'm gonna be a smith and weson, HK, and browning dealer and here is my storefront and this is my display case."


Link Posted: 6/16/2009 3:19:21 PM EST
The ATF will not care whether you run your business as an LLC or as a sole proprietor; this is a question for your attorney and/or CPA. My husband and I use an LLC since we both own and run the business, and for the bit of legal protection it provides us. We had an attorney in our state draft it, as we also knew we'd be getting our SOT and the last thing we wanted was to have someone's transferrable on our books at the point when we discover that the LLC created by UseUsToIncorporateCheaply.com wasn't valid because the software forgot to dot an I or cross a T.

As an 07/02 we're not a stocking dealer, though we do plenty of transfers and gunsmithing/refinishing work, and our inventory keeps expanding...
Link Posted: 6/16/2009 4:57:56 PM EST
Originally Posted By Bubbles:
The ATF will not care whether you run your business as an LLC or as a sole proprietor; this is a question for your attorney and/or CPA. My husband and I use an LLC since we both own and run the business, and for the bit of legal protection it provides us. We had an attorney in our state draft it, as we also knew we'd be getting our SOT and the last thing we wanted was to have someone's transferrable on our books at the point when we discover that the LLC created by UseUsToIncorporateCheaply.com wasn't valid because the software forgot to dot an I or cross a T.

As an 07/02 we're not a stocking dealer, though we do plenty of transfers and gunsmithing/refinishing work, and our inventory keeps expanding...



As far as forming an LLC do you need to do this before you apply for your ffl, as you apply, or after you get it? Just curious because I don't want to spend the $ on legal fees before I know for sure I will get the FFL. Shouldn't be a problem but you know how murphy can be.

Link Posted: 6/16/2009 5:38:33 PM EST
Originally Posted By norton1090:
Originally Posted By Bubbles:
The ATF will not care whether you run your business as an LLC or as a sole proprietor; this is a question for your attorney and/or CPA. My husband and I use an LLC since we both own and run the business, and for the bit of legal protection it provides us. We had an attorney in our state draft it, as we also knew we'd be getting our SOT and the last thing we wanted was to have someone's transferrable on our books at the point when we discover that the LLC created by UseUsToIncorporateCheaply.com wasn't valid because the software forgot to dot an I or cross a T.

As an 07/02 we're not a stocking dealer, though we do plenty of transfers and gunsmithing/refinishing work, and our inventory keeps expanding...


As far as forming an LLC do you need to do this before you apply for your ffl, as you apply, or after you get it? Just curious because I don't want to spend the $ on legal fees before I know for sure I will get the FFL. Shouldn't be a problem but you know how murphy can be.


The LLC is the applicant for the FFL, so the LLC needs to be created first.

Also check with your agent for your homeowner's insurance to see what is and isn't covered if you run a business from your home, and how much the premium for additional business coverage would cost.
Link Posted: 6/16/2009 6:28:38 PM EST
I kinda figured that was the case just wanted to clarify.

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