Hello everyone - new to the forums, thank you for having me here.

I am based in Michigan and have been doing some preliminary research on a home-based FFL. Specifically, I am looking at Class 7 SOT 02 so I can handle NFA items, which appear to be missing near my area. I'm an engineer in business development by trade and have devised a business plan, strategy in how to market, etc...but am looking for feedback regarding local ordinances and how the ATF may interpret it. In speaking with the city they just refer me to the code here - City Code - specifically the part about explosive or combustible material. There are other FFLs within the city, but all appear to be in commercial areas with home-based FFLs residing outside of the city.

My primary job is fully remote (even pre-COVID) so I'm able to be at home for transfers and remain flexible, and my wife is fully on board and wants to assist. Depending on how well the business performs, I may move operations to a storefront.

Thank you and appreciate the feedback.

Huh?
Any licensee can "handle NFA items"....including gunsmithing without paying SOT. SOT just means you pay a yearly flat rate instead of $200 a pop.
An 07FFL is for manufacturing firearms. "02" is the tax class for Special Occupational Taxpayers who are 07FFL's.
An 01FFL Dealer can engage in NFA transfers/sales by paying 03 SOT.




Do you plan on storing explosives or combustible materials?
That has nothing to do with an FFL.

You start with zoning research and then engage the local planning and development department explaining your intent.

For example, some ordinances or codes may dictate no manufacture of ammunition or explosives but may permit gunsmithing. Others may say no retail sales unless zoned XYZ.

Confirm the confines you can work in, define your business plan and once approved, start your submission to ATF.

Quick answer, if you aren't zoned or city ordinances will not allow you to have a home based business, ATF will not issue you an FFL.  Everything should start with zoning, business startup etc and go from there.

I see a few potential issues.

(10)a and (10)c - thanks to COVID and/or customers with limited mobility, we do the 4473's for some transfers in the driveway.

(10)e - while we're appointment-only sometimes we get customers who just drop by.  This was the worst after Sandy Hook.  One of our neighbors asked if we were throwing a party, the parking situation was so bad.

(10)i - This limits how many guns you can purchase/trade for resale, and for taking consignments.

(10)k - As a Type 07 you will also be permitted by the feds to make ammunition for sale, but that means storing powder and primers for commercial purposes.

What does your acreage and zoning ( if anything ), allow?
When I moved to my current location post divorce, as an FFL of 20 years at that point, I had a pretty loyal customer base who didn't want to see me go out of business.
I took a shed that was on the new property, trenched power and alarm to it, had customers who came over and we finished off the interior and installed security elements, etc.
I had to get a variance from the village to operate, and I cant have commercial signage, but I neither want nor need that.
The set-up passes muster with the ATF.
Its the best of both worlds; its "home-based" ( sorta ) without BEING "home based"
Its separate from the house so that avoids a whole lot of issues.
The down ...and up ...side has also been that I am always available when those people who want to come by at any time of the day or night want to do so.
That wasn't really an issue until this past year when Covid became a thing and word got around that I was the only FFL with a reliable amount of ammo on the shelves.
Some of the stuff that's been going on in that regard has me thinking hard about pulling the plug sooner rather than later. Too many people are losing their minds over the various panics, and its resulting in the whole thing being less and less fun.
Someone called me this morning at 2 AM, and its not the first time.
None of my older long term customers would have done that......

ATF will not approve an application for a license if the business operation is in violation of local zoning ordinances.  You may even in some cases need to get a letter from the zoning commission, mayor's office, or other local governing authority stating that your proposed operation is in compliance with local zoning codes and ordinances.

Yep, I've heard that the first thing they do on a FFL application is calling the zoning authority for the to-be premise address and ask if a firearms business can be located there.  Zoning/local reg is probably the first thing they use to try to deny issuing a FFL.

Zoning and HOA restrictions are the top reasons why most applicants who are denied are denied.  As long as those aren't an issue and you're not a criminal, an FFL is pretty much a shall issue license.