Posted: 5/17/2016 3:19:31 PM EDT
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I posted in the FFL forum a while back, but figured I'd look for some info from guys in the same state as well.
Planning to get my FFL, I am planning to basically only do transfers and shipping. No plans to stock anything, not financially feasible and wouldn't be able to order enough volume to make a difference. Just a home based FFL doing transfers and maybe ordering something if someone specifically asks. I saw DogTownTom had a good post on another forum about getting federal tax id, state/county business ID. I'd clear it with my home insurance and probably insure through collectors(?) for firearms insurance as well. I'd do it out of my living room, zoning isn't an issue and I'm county not city. Not looking to get rich, but would like to make a few extra dollars spending money. Due to my rotating schedule I'd have to do appointment only and have my wife listed so she can input any items that arrive while I'm working. I don't understand how the taxes work, with the above based system. Will business taxes make it not worthwhile only doing transfers? Anyone else doing the same type of system? Tips, thoughts? |
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Due to my rotating schedule I'd have to do appointment only.. Think about your customers....will your schedule be accommodating or annoying to them? I'm a teacher, I schedule 99% of my transfers 5-8 weeknights and either Saturday or Sunday afternoons. If you work afternoons 3-11pm....what hours do your customers work? If they are 8-5 guys they may get a little pissed when they can't pick up their gun on their way home from work. Many of your customers will track their shipment and call/email/text you the minute it gets delivered and want to know "can I come over and get it RIGHT NOW?". I don't understand how the taxes work, with the above based system. It doesn't matter what system....you pay Texas Sales Tax on every taxable item you sell. Transfer fees are not subject to sales tax. Will business taxes make it not worthwhile only doing transfers? There are no business taxes on gun dealers in Texas. You charge TX sales tax and remit that to the State Comptroller office quarterly. If you are a sole proprietor you report your earnings on your Federal taxes. Anyone else doing the same type of system? Thousands. Tips, thoughts? |
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Due to my rotating schedule I'd have to do appointment only.. Think about your customers....will your schedule be accommodating or annoying to them? I'm a teacher, I schedule 99% of my transfers 5-8 weeknights and either Saturday or Sunday afternoons. If you work afternoons 3-11pm....what hours do your customers work? If they are 8-5 guys they may get a little pissed when they can't pick up their gun on their way home from work. Many of your customers will track their shipment and call/email/text you the minute it gets delivered and want to know "can I come over and get it RIGHT NOW?". I don't understand how the taxes work, with the above based system. It doesn't matter what system....you pay Texas Sales Tax on every taxable item you sell. Transfer fees are not subject to sales tax. Will business taxes make it not worthwhile only doing transfers? There are no business taxes on gun dealers in Texas. You charge TX sales tax and remit that to the State Comptroller office quarterly. If you are a sole proprietor you report your earnings on your Federal taxes. Anyone else doing the same type of system? Thousands. Tips, thoughts? Thanks for the reply. I really appreciate you sharing your knowledge, in this thread and others with NFA dealings. For the shift work, I'd be available 5 days a week, all day. I figure people will want their stuff now, but every FFL I've dealt with around here is by appt. and they seem to stay in business. Federal business taxes seem like a hassle, but I'll probably have a CPA explain the system to start with so I don't screw that up in the beginning. I think there is a CPA in town with an FFL, I went a while back and he actually recommended I get one for tax deduction purposes. |
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I had the same type of a business back in the 90s, living in Medina County, not in any city limits. Basically, per the current rules, and those in effect back then, you must be in compliance with all county, state and federal rules regarding your business. I also believe that you must have secure storage. At the time I had mine, the inspector suggested strongly that I separately identify personally owned firearms kept in the safe. I just used cards with strings. You will be visited by an ATF agent prior to getting your license to check your compliance. The ATF does require that you do have "regular business hours", it is asked on the application. Those can be as simple as a couple days a week, 5PM to 8PM. The ATF does have the right to do an unannounced inspection of your business during those hours. The odds of that not happening are in your favor. I was in business 4 1/2 years, never inspected.
I did have a regular 9-5 type job and my wife received my deliveries. The common carriers, UPS.FedEx will only deliver to the address on your license, since that is what the distributors have on file. I did receive a couple calls from the ATF regarding multiple pistol sales, those are specifically reported. When I divorced and moved to San Antonio I gave up the FFL. No one to receive and living in a residential neighborhood. If you give up your license you are required to turn in your "bound book". Piece of advice, study all the regs and be totally anal about your paperwork. However, all that being said, I did have fun, met cool folks, and made some money doing it. I only did transfers and special orders. Oh, and I have heard, no firsthand knowledge, that it is easier to get a gunsmithing FFL. |
| Oh, one other thing, whether or not sales tax is collected depends on who pays. If a customer orders a gun from a distributor, and he pays the distributor, you charge the transfer fee only, no sales tax. However, if the distributor will not accept payment directly from an individual, and the customer pays you for the firearm so that you then buy it from the distributor, you charge the customer sales tax since he is buying it from you. |
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You do not need a storefront. Probably zoning issues or something similar. Quoted:
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We've had 3 guys at work recently got turned down for their FFL due to not having a storefront. They were going to do it out of their homes. You do not need a storefront. Probably zoning issues or something similar. That is correct, storefront is not needed but any restriction, including HOAs, deeds, etc prohibiting a home business and it is a no go. |
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We've had 3 guys at work recently got turned down for their FFL due to not having a storefront. They were going to do it out of their homes. Nonsense. I don't have a storefront and ATF has never required a "storefront". In fact "kitchen table dealers" outnumber storefront/brick and mortar FFL's. The "3 guys at work" aren't being truthful or misunderstood the reason for denial. If you can legally operate a business from your home (under all state, county, city, HOA and zoning restrictions) you WILL be issued a license. |
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My ffl doesn't want to deal with tax. Hell, he buys his crap at a local pawn shop because he gets deals because he makes piles of money and will come off of it for a deal.
He's a member of my gun club so he does all their transfers as well. He'll transfer anything if I pay for it. |
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Nonsense. I don't have a storefront and ATF has never required a "storefront". In fact "kitchen table dealers" outnumber storefront/brick and mortar FFL's. The "3 guys at work" aren't being truthful or misunderstood the reason for denial. If you can legally operate a business from your home (under all state, county, city, HOA and zoning restrictions) you WILL be issued a license. Quoted:
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We've had 3 guys at work recently got turned down for their FFL due to not having a storefront. They were going to do it out of their homes. Nonsense. I don't have a storefront and ATF has never required a "storefront". In fact "kitchen table dealers" outnumber storefront/brick and mortar FFL's. The "3 guys at work" aren't being truthful or misunderstood the reason for denial. If you can legally operate a business from your home (under all state, county, city, HOA and zoning restrictions) you WILL be issued a license. Yep, just one reason I don't have my FFL. I can have a home based business but canno't have drive up customers.... 
Tried to get a varriance but just got tired and moved on. I need to go back and see if it's been re-zoned. A lot of things have changed in the years since. |
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Yep, just one reason I don't have my FFL. I can have a home based business but canno't have drive up customers....
Tried to get a varriance but just got tired and moved on. I need to go back and see if it's been re-zoned. A lot of things have changed in the years since. Quoted:
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We've had 3 guys at work recently got turned down for their FFL due to not having a storefront. They were going to do it out of their homes. Nonsense. I don't have a storefront and ATF has never required a "storefront". In fact "kitchen table dealers" outnumber storefront/brick and mortar FFL's. The "3 guys at work" aren't being truthful or misunderstood the reason for denial. If you can legally operate a business from your home (under all state, county, city, HOA and zoning restrictions) you WILL be issued a license. Yep, just one reason I don't have my FFL. I can have a home based business but canno't have drive up customers....
Tried to get a varriance but just got tired and moved on. I need to go back and see if it's been re-zoned. A lot of things have changed in the years since. Zoning or HOA? |