Posted: 2/7/2011 1:33:48 PM EDT
| My dad has retired and was interested(with my help) getting involved with selling firearms, ammo etc... I just wanted to hear the pros and cons from my fellow hometown members. Is there a potential in this or am I wasting my time? Thanks... |
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Quoted:
Is it worth it to get the FFL? Besides being able to get and sell guns ata lower price and cheaper ammo, any other benefits i should know about? It's not all it's cracked up to be. You actually have to do business and you cannot use the license to enhance your personal collection. if you have a lot if incoming and little outgoing over time, red flags go up. CA permits are necessary as well and those are hoops you likely won't be able to jump through. |
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Homeinvader is right. You cannot get an FFL or the so-called "class 3 lisense" to enhance your collection. That is not a California thing, that is a federal thing. If you do decide to go into a legitimate business it would not be hard. There are plenty of FFLs here in California who have the green light from CA to handle high capacity magazines, assault weapons and NFA.
The cons of doing all of this is that it is going to cost a lot of money and time devoted to dealing with the government. Once you have your paperwork all set up you will have to comply with ATF bs like inspections, IRS bs for tax purposes, BOF bs like possible harassment depending on what your business is and to whom you sell, as well as local regs such as distances from .gov buildings, schools, churches, etc as well as the security of your business location. |
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If you're looking to start a business it can be done.
I am currently a homebased business and do business regularly (part time) over the internet and gun shows. I am in the process of geting my approval to move into a commercial location to expand my business. You'll need to do some research on if your local (city) planning will allow for a firearms business to operate within the city limits. In CA you'll need to get a business license, regulatory permit, municiple license, Certificate of Eligibility (COE) from the DOJ, a CFLC listing through the DOJ, and your ATF license to do business. If you plan to sell handguns, you'll need to become a Handgun Safety Card (HSC) instructor. Depending on where you live you may also have to get approval from the fire department and police via inspections and sign-offs before you can get your business license. Some city zoning laws may require some pretty strignent complaince for fire (sprinkler system) and security (no sheds, metal/tin buildings, need to have appropriate safe) As far as Class III, it can be done, but DOJ requirements as I understand it are pretty strict and you will need to go through most, if not all, of the items I listed above first and have a secure location to operate your Class III. There are several class III dealers and manufactures in CA, but most of them deal with LEO and Military sales. If you're looking to do this for fun, it might be more work than its worth, if you're looking to do it as a business, I believe its worth it. |
| If you get an FFL dealer license, you can pay for the Class 3 SOT in order to deal in NFA items. This is a "shall issue" item iwth ATF. You send in your yearly $500 tax payment and you are an SOT. But that just covers federal, you still have to comply with CA laws. And CA regulates MGs, SBR, SBS, and .60+" DDs. In order to deal in any of them, you will need a CADOJ Dangerous Weapons permit, virtually unobtainium. But, there are a couple NFA items that CA does not regulate, such as AOWs and <.60" DDs. YOu can sell those to the public without needing the DW permit. Just get the Form 4 approved (NFA trusts work for this) and deliver to the customer. In addition, with your FFL + SOT, you can possess silencers for sale to .LE/.mil agencies. |
