Mine has paid off, but not monetarily, as in large income from it.  There is not money in selling guns.  It is well worth having, for me, as I get my stuff cheaper, and I am able to help others.  I try not to undercut storefront shops, as they are vital to our continued well-being.  I do order guns for guys who would not buy it at a shop.  I do transfers.  Having it opens doors to other things, such as information.  When I am older, I may have a small shop.  For now, it is well worth having, but not profitable.  

One thing you may or may not be aware of if you get one--if you are planning to use your home as your "licensed business premises" you must sign permission for ATF to search it, at their full discretion, at any time, without a warrant, or even probable cause.  Not just the "gun shop" portion, but the whole house.  Any time, all the time, just for kicks, if they desire.  This does not tend to be a problem, but it is something to consider.  Frankly, my contact and interaction with ATF has been extremely friendly, cordial and helpful.  Apparently I have never been in touch with the JBT Division.  LOL  Stay in compliance, keep good records, become knowledgeable about what it takes to be legal, basically, keep your nose clean, and it is very worthwhile.  Contact me if I can provide more specific information.  Good luck.  I'd say do it, especially if you know lots of shooters/hunters.  

Yes, I "claim" to be a "licensed individual." I "claim" this as I have a Class I--starting my tenth year March 1, 2002.  Regarding the inspections, I could be wrong.  This is not specified in the law, at least that I could find.  I will gladly call ATF tomorrow for clarification.  Don't get your panties in a wad over once or multiple times.  I will get back to you tomorrow with my findings, and hopefully the answer will meet your standards of perfection.  [>:/]

EDIT:  I just hung up from a nice chat with ATF and found that you are partly correct.  I typed a huge, long, detailed reply, then had to hit page back to get your name, TommyBrown, then when I returned here it lost my response.  GRRRRR!  Anyway, page 21 of the "green book" contains the provision in the law, first column, item (B).  The law specifies inspections may be made as follows:
[b](B) The Secretary may inspect or examine the inventory and records of a licensed importer, licensed manufacturer, or licensed dealer without such reasonable cause or warrant--
(i) in the course of a reasonable inquiry during the course of a criminal investigation of a person or persons other than the licensee;
(ii) for ensuring compliance with the record keeping requirements of this chapter--
(I) not more than once during any 12-month period; or
(II) at any time with respect to records relating to a firearm involved in a criminal investigation that is traced to the licensee; or
(III) when such inspection or examination may be required for determining the disposition of one or more particular firearms in the course of a bona fide criminal investigation.[/b]

He said it would be highly unusual to search someone's home, unless there was serious suspicion of criminal activity.  He said if an inspector sought to do so it should be reported immediately to the supervisor.  All bets are off if crimes are suspected.  He said a warrant would be sought if problems were suspected, the above notwithstanding.  

He also said it is current policy to do inspections unannounced, during normal business hours.  This is only policy, not a legal mandate.  He said abuses by Agents are rare, but can occur.  Again, report them to the Supervisor, but the odds are greatly in our favor of no problem, so long as we do not cause problems for ourselves by being out of compliance.  

ShamusMcOI, good luck.  Lemme know what you do.  [:)]

I'm glad someone asked this question.  Some friends, one of whom already has his FFL and I were contemplating going into a side business in firearms and accessories.  The trick it would seem is to have low inventory cost, a defined niche, and be able to turn over inventory as rapidly as possible.  This leaves salesmanship, and marketing which fortunately we all have.

I won't say you are dead wrong.  I will, however, say you are so full of sh*t your eyes are brown.  You may not be, but you sound like a keyboard commando who spouts b.s. about how unconstitutional all this is (which I agree with, BTW), but then have a condescending tone and attitude as though we should all die for nothing in a silly "blaze of glory"--no pun intended to the other dumbass.  I have an FFL.  I obey the current laws.  I am on good terms with the ATF people I have dealt with.  I also am politically active to try to change things.  Are you?  I am a life member of the NRA.  Are you?  I am a life member of the Illinois State Rifle Association.  Are you (in your state)?  I call/write my elected officials.  Do you?  I even push the limits of propriety by talking to my clients while doing my job to try to change the "sheeple" mentality.  Do you proselytize daily, risking the goodwill of those you depend upon for your livlihood?  You may do some, or most, of these things.  I have no way of knowing.  I hope you do.  If you do not, you are truly lowdown to criticize those who have posted here.  I can picture you in a one-man-revolution-against-all-the-unconstitutional tyrants-who-oppress-us-daily.  No, wait, I can't either.  I doubt if you have the stones.  Talk is cheap.  Please reveal what you are [b]doing[/b] besides pissing toward others.  Good For You!

I personally would prefer to believe that they [b]"let you"[/b] run your business because they don't like the consequences of not letting you run your business. By that I mean.... if they put all the FFL's out of business then they will have to reprint all of their business cards and fancy navy blue raid jackets to say "BAT Agent" because they'll become the Bureau of Alcohol and Tobacco (soon to be just Bureau of Alcohol with all the anti-smoking campaigns going around). That and the 1/3 cut in pay OR 1/3 cut in staffing after dropping the third letter just isn't to appealing to all the "Work to Welfare" Employees (oops... I meant Welfare to Work.... or did I?) that sit at the NFA Branch in Washington D.C. The "BAT Agent" acronym may sound cool but they can't exactly fry it up and feed their family with it. I think, seeing the dwindling need for the "Tobacco Dept" and the slowly dwindling need for the "Firearms Dept" they are looking for new ways to make themselves useful and avoid the chopping block like the INS is about to get.