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Thread: FFL to save money?

  1. #1
    Join Date
    Dec 2010
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    UP Michigan
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    Default FFL to save money?

    So I'm making my plans to go back to the states and go on a gun buying spree. Want to get the most bang for my buck (HaHaHa) and wondering if getting my FFL would be worth it. That way I could be my own dealer and get the dealer discounts. I know we have a few FFL's here on the board- what do you think?

    Would the time and application fees to get my FFL be worth it if I plan on spending between 5,000 -10,000 on guns over the next few years?

    Thanks

  2. #2
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    Central Texas
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    One of the questions on the application is something like this "are you making this application for the main purpose of enhancing your personal collection? (if yes do not send application)"
    Another is "Do you intend to make a profit? (if no do not send application)"

    "They" will not give you an FFL for what you want to do.

  3. #3
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    Jun 2009
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    Southern California
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    My hats off to you good Sir, for I do not have $5,000.00-$10,000.00 to spend on guns. However, at $30.00 a pop for transfer fees with my local FFL, ( I like to support those who support my habit, LOL ) I think the fee is fare and don't think I would really save enough to make it worth my wild. Plus it would highlight you as an FFL holder. Just my 2 cents.

  4. #4
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    Remember is your answers to the questions that, JDH asked, yes you may get an FFL. There is other benefits to an FFL in that if you truly desire to open a legitimate business then everything in that business is a write off on your taxes. That's everything associated to your business. If you want to do it for the long term I highly recommend it. I did it for about 10 years until I had to change due to my other job. You can get into trouble if you mix personal and business weapons so, keep them separate. The one thing that I will say that is the best to keep you out of trouble is have very good records. If and when you get your license be proactive, contact ATF compliance and ask them what they want you to do to make their job easier when an audit is conducted? If it is easier on them it is less stressful to you. That said you have another Federal agency to deal with and that is IRS. Contact a good accountant and get good advice when you set up the business and follow their instructions. If you do this life will be good. Start slow and find your niche, go to gun shows and advertise. You will meet some great people.

  5. #5
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    Sounds like I'm stuck being a "consumer". I have a full time job (actually takes more than full time) and it would be tough to start another one (gun dealer).

    Are the dealer discounts that significant? I have a friend in the car stereo business and wholesale prices are A LOT lower than retail prices. Does the gun business work the same way or are the margins less significant?

    And paramilusmc (semper fi- I have a brother in the corp- appreciate all you do)- I donít have 5000 right now (well I do but it is earmarked for a down payment on a house) but sacrifices will be made to make sure the gun budget is well protected. I've been overseas for 5 years and unable to buy anything more than an air rifle. I'm ready to get my hands on something that can go BOOM!

  6. #6
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    Northern Calif
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    I worked full time and had gun business on the side. As to the discounts it all depends upon how much you buy. You might find that the tax benefits are better than the discounts that you may receive. However it came down to doing both and not seeing, or possibly having a family. It was fine when I did not have kids. Things change and so do priorities when you become a father........

  7. #7
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    Jul 2011
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    USA
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    Quote Originally Posted by Militant_Medic View Post
    So I'm making my plans to go back to the states and go on a gun buying spree. Want to get the most bang for my buck (HaHaHa) and wondering if getting my FFL would be worth it. That way I could be my own dealer and get the dealer discounts. I know we have a few FFL's here on the board- what do you think?

    Would the time and application fees to get my FFL be worth it if I plan on spending between 5,000 -10,000 on guns over the next few years?

    Thanks
    Well if you want to get your FFL to buy guns for cheap here's some things you should know:

    First... guns WILL be cheap. Example... expect anywhere from $100 to $400 off retail price.

    But in order to get your FFL you will have to go through a very lengthy process including interviews from ATF field officers. They will come and expect to meet with you in your soon-to-be gun shop. Yes, it is possible to get an FFL from home but as the ATF officer that recently interviewed me, the ATF has been revoking FFL's left and right from people who operate out of their homes. You must prove that you have regular business hours. If you are trying to just get guns for you and your buddies for cheap, expect to be turned down.
    Also, in order to get an account with most firearms distributors you must send them a photo of the front of your shop and the inside as well. If it is your front door of your home, many will turn you down.

    Basically if you plan to get an FFL, do it to be in the business of firearms and let cheap weapons for yourself come second.

    Also, a guy I know just recently had his FFL taken away. An ATF officer asked the guy if he wanted to go have a beer. The guy said yes. He didn't realize the ATF agent asked to go have a beer during what was his regular hours of business. The guy showed up, the ATF officer said "who is attending your shop?" he said "Nobody" they took his FFL as he was obviously not worried about conducting business. The guy also did not have any weapons on display in his home which the ATF was furious about. And he stored his "Guns for sale" in his safe with his personal weapons which is a big, big no-no. Never, ever store your for sale guns with personal guns. If I bring a personal weapon into the shop I make sure it is tucked away somewhere and nowhere near guns for sale. The ATF will have a friggin' fit about that.

    Sources: I'm an FFL holder.
    If you value your Second Amendment rights, join the NRA today. www.nra.org

  8. #8
    Join Date
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    Most states require that the license holder has reqular business hours where anybody can walk in, withour appointments. Then there are the storage container requirements, such as safes and such that both the states and ATFE require.
    For personal collecting look into the Curio and Colelctor license, this is for what you are considering, you just have to look at the list on the ATFE web site or the sellers will list them as curio/collectable as well.
    The license allows you to have these (usually older) firearms shipped directly to you without the middle man, just the same level of record keeping.
    Bureaucrats are like rabid pitbulls with blinders...Its always better if you don't draw attention to yourself.

  9. #9
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    If you do want to start a gun store... I just recently started mine... and let me tell you...

    Have AT LEAST $75,000 handy. That is the BARE BONES MINIMUM to start your store. And it will be sparse.

    I got about $150,000 into it and it's decently stocked.... far from what I want though.

    Friggin guns and ammo are expensive!
    If you value your Second Amendment rights, join the NRA today. www.nra.org

  10. #10
    Join Date
    Mar 2007
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    Fort White , Fl
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    I keep printed copies of this for the people who drag shotgun news into my shop but it applies.

    Want to buy guns cheap here is what you do.

    1. Fill out forms to obtain a $100.00 occupational License that the BATF will accept.
    2. Fill out a sales tax ID request wait 30 days for the approval.
    3. Buy or rent a commercially zoned piece of property that meets the requirements of the BATF.
    4. Obtain the proper forms from BATF. .
    5. Fill out the BATF send a $300.00 nonrefundable application fee and wait 60 to 90 days for the approval.
    6 Sing a lease pay rent on the commercial property until you receive your License.
    7. Have your bank setup a letters of credit with a guarantee of $5000.00 which is the usual amount the distributors require for dealer pricing.
    8. Spend $50,000 in speculation money on inventory to open your doors.
    9. Hire help and pay their salary plus, workman's comp plus 7 1/2% social security and other benefits.
    10 Pay phone, electric, advertising and insurance bills.
    11. Then You can listen to some horses ass tell you what he can buy it for in the Shotgun news , on the internet , in a dealer flyer what a friend told you or what it cost last week at a gun show .
    Be asked to do transfers for $10.00.Be responsible for the record keeping for life. Be told how much you should charge for services by someone who has no idea what is involved in being a Licensed Firearms Dealer

    Itís simple if you donít like the deals go somewhere else.

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