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Posted: 11/15/2009 7:06:05 PM EDT
| What is the process to get an 06 FFL? What type of insurance and for what amount is generally needed for this type of operation? |
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Get an application from the national licensing center, fill it out, and send it in.
No insurance is REQUIRED, but if you plan to sell loaded ammunition, then it's a good idea to get some - general liability, product liability, etc. Probably better input available on those requirements from a commercial insurance agent, depending on how big you plan to make your operation, how much equipment, stock, powder, etc, you plan to keep on hand. Most small 06's I know do small-volume operations out of their homes to help offset the cost of their reloading hobby, and sell their reloads and new loads to friends and local gunstores, or have contacts through gun clubs, etc. |
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Steps to getting a home-based Federal Firearms License (FFL):
1) If you want to work out of your home, check your local zoning ordinances and Homeowner Association CCR's, if any. If either document prohibits you from obtaining a business license at your residence, go no further. The ATF will not issue you an FFL. 2) Check with your homeowner's insurance to see how much it will go up if you run a firearm business out of your home. Hopefully you have a local agent who you've personally known and worked with for many years, as the flunkie on the toll-free call center phone will probably freak at your questions. You may find the increase in premium alone makes getting an FFL unviable. 3) Another question for yourself - are you comfortable filing federal and state tax returns every quarter, and sales & use tax returns every month (if your state has sales & use taxes)? If not, add CPA services to your list of expenses. 4) If you've gotten to this point, find an attorney to help you form a S Corp, C Corp, or LLC (most folks go with an LLC). This is not the time to go with a DIY document off the internet, especially if you plan on dealing in NFA toys. Besides, being in the firearms biz, you're going to need an attorney sooner or later anyway; might as well get to know one now. 5) Once your corporate entity is formed, obtain any necessary state and local business licenses to run a business. If you don't have these, the ATF will not issue an FFL. See #1 (and yes, they go to your county or city courthouse and check). 6) Call the ATF Distribution Center (301-583-4696) and ask for an application packet. It will include several copies of the application (no carbons unfortunately), fingerprint cards, and instructions. <–– 07 FFL / 02 SOT Note: If you get a Type 06 (ammunition manufacturer), 07 (manufacturer), or 10 (DD manufacturer) FFL you will also have to pay ITAR fees to the Department of State each year. In 2008 the fee went up from $500/year to $2250/year. This fee must be paid even if you never export an item you produce. |
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Quoted:
Steps to getting a home-based Federal Firearms License (FFL): 1) If you want to work out of your home, check your local zoning ordinances and Homeowner Association CCR's, if any. If either document prohibits you from obtaining a business license at your residence, go no further. The ATF will not issue you an FFL. 2) Check with your homeowner's insurance to see how much it will go up if you run a firearm business out of your home. Hopefully you have a local agent who you've personally known and worked with for many years, as the flunkie on the toll-free call center phone will probably freak at your questions. You may find the increase in premium alone makes getting an FFL unviable. 3) Another question for yourself - are you comfortable filing federal and state tax returns every quarter, and sales & use tax returns every month (if your state has sales & use taxes)? If not, add CPA services to your list of expenses. 4) If you've gotten to this point, find an attorney to help you form a S Corp, C Corp, or LLC (most folks go with an LLC). This is not the time to go with a DIY document off the internet, especially if you plan on dealing in NFA toys. Besides, being in the firearms biz, you're going to need an attorney sooner or later anyway; might as well get to know one now. 5) Once your corporate entity is formed, obtain any necessary state and local business licenses to run a business. If you don't have these, the ATF will not issue an FFL. See #1 (and yes, they go to your county or city courthouse and check). 6) Call the ATF Distribution Center (301-583-4696) and ask for an application packet. It will include several copies of the application (no carbons unfortunately), fingerprint cards, and instructions. <–– 07 FFL / 02 SOT Note: If you get a Type 06 (ammunition manufacturer), 07 (manufacturer), or 10 (DD manufacturer) FFL you will also have to pay ITAR fees to the Department of State each year. In 2008 the fee went up from $500/year to $2250/year. This fee must be paid even if you never export an item you produce. Bubbles, Thanks for the info. I'll have to set down and run some financial projections once I look into this further. Why did the fee jump so much from $500 to over $2K? |
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Why did the fee jump so much from $500 to over $2K? http://www.pmddtc.state.gov/registration/faqs.html |
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<–– 07/02, we had to list hours. The 02 is a pawn broker correct? Do you know if you had to list hours due to the 02 or would having an 06/07 also require hours? All FFL applications use the same ATF Form 7. You are required on the Form 7 to list your "business hours". Business hours are not necessarily "store hours", "retail hours" or "open to the public hours". They are the hours that you expect to operate your business. You can change them at any time. It is entirely possible that a firearms business could be operated completely by mail, internet or telephone- never seeing a customer face to face. The time you devote is considered your business hours. Quoted:
If I was to get my 06/07 FFL would I be required to have store hours, or is that just for a 01 FFL? Internet myth. There is no ATF requirement that an FFL have a store or store hours. ATF regulations require that the FFL have a "licensed premises". That could be a commercial space, your home or an 8x8 tin shed in your backyard. An FFL may only conduct business at two locations: the licensed premises and at a gun show. |
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<–– 07/02, we had to list hours. The 02 is a pawn broker correct? Do you know if you had to list hours due to the 02 or would having an 06/07 also require hours? 07 is the FFL type (manufacturer) 02 is the SOT (Special Occupational Taxpayer, for manufacturing and dealing in NFA firearms) An 07 FFL may also manufacture ammunition, so if you have an 07 you don't need an 06. ATF is now requiring business hours on the application, though I suspect that's so they know when they can drop by for compliance inspections. |
| If I decided I wanted to go ahead and get my Class II license while I was at it what other requirements must be met? How do I go about the business of dealing in Class II weapons? I heard someone say that I would have to demo all of my products to LEO? Can anyone provide any clarity? |
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