Home Based FFL [2024] – How to Get License

  • Updated February 4

Contrary to popular belief, getting a home based FFL is perfectly legal, easy to do, and very common.

Unfortunately, there are many myths about getting a home based FFL from the BATF.

So, why should you trust the information I’m writing for you here? I’m an actual firearms attorney and specialist in ATF compliance who’s helped thousands of people and businesses stay out of trouble with the ATF and get their FFLs.

Myth #1: The ATF doesn’t allow home-based federal firearms licenses.

You can absolutely be an FFL dealer as a home-based business.

Myth #2: It’s near impossible to become an FFL holder from home.

As long as there isn’t a zoning/HOA issue, and you know the right steps, the process to submitting your FFL application to the ATF for a home-based FFL is fairly straightforward.

Myth #3: A home-based FFL is rare.

In fact, they are so common, most FFL dealers in the country are home based FFLs. This means that the ATF approves MORE FFLs every year for home-based applicants than they do for retail locations for a gun shop.

So, what does all of this mean? It means that you can be an FFL holder from your home, as long as you know the right way to apply for your FFL license, and you meet all the requirements.

We cover all of this, and more, in our Get Your FFL course .

Home Based FFL

Are home-based ffls allowed.

  • Is a "Business" Required for a Home-based FFL?

Home Based FFL Requirements

What would keep you from getting an ffl in your home, how to get a home based ffl, common uses for an ffl at home.

We’ve seen a giant increase lately in the number of people getting their home-based FFL (even more than usual). We think that it is due to a couple of reasons:

  • American gun owners are getting more and more nervous about anti-gun legislation, and they’ve realized that FFLs are almost always exempt from new gun bans, and,
  • The increase in online gun sales, and the ease of internet sales, are encouraging Americans to start a side-business from their home to make some extra money (and save money on their own guns).

So, why are most of the FFLs in our country home-based?

Easy… Although an FFL is not a customary home-based occupation, many Americans realized they can start their own firearms business with a dealer or manufacturer’s license, but without the overhead expenses and commitment associated with opening up a brick-and-mortar location.

With a home-based FFL, you can use your license to conduct many forms of business with firearms. You can purchase firearms as a dealer to list and sell online, conduct retail sale to customers in your home as a gun dealer, or even conduct the occasional FFL transfer of a firearm with your house being the licensed premise.

For example, you could have a friend who purchased a gun, ship it to your home, where you could transfer it for a small fee (this includes something as simple as a handgun like a Glock, or any other pistol, and even an NFA firearm like a silencer, short barreled rifle, or full-auto machine guns.)

We cover this in-depth in our Get Your FFL course, where we cover the pros and cons of each option that you can do with your license. You don’t even need to start a business if you don’t want to – you can be a sole proprietor.

Want to know how to get your home-based-FFL? We’re here to walk you through the entire process!

You might be thinking, “Wait, I thought I read online that the ATF won’t give a license to home-based FFLs anymore.”

Well, bluntly, that’s what you get for believing what you read in forums and on social media. 🙂

The ATF actually approves more home-based FFLs, than licenses at commercial locations!

In fact, the majority of current FFLs in this country are home-based. Yep, that’s right – currently, most FFLs are home-based FFLs.

Now, this just means that ATF will approve the license to allow you to be a dealer or manufacturer – it isn’t a guarantee that you’ll be able to get an FFL in your home. There are a couple nuances that might affect you (we’ll discuss these more below).

These potential hurdles, including our tips and tricks on how to overcome them and get your own home based FFL, are covered in our Get Your FFL Course .

The ultimate guide to getting your Federal Firearms License

Is a “business” required for a home-based ffl.

Whether a business is required is a tough question to answer.

Simply, no you do not need a “business” (as in an LLC or Corporation) to have an FFL.

However, you must have “business intent” (which you can satisfy without an LLC or Corporation).

In order to get any type of FFL , you must have a business intent! You can get a personal firearm for yourself with your license, but you’ll need to at least have some business intent in order to get your FFL application approved.

So yes, a “business” is required for a home-based FFL according to the Gun Control Act, but not in the way you might think.

Although we recommend forming an actual business and getting a business license, you may apply for an FFL in your name as a sole-proprietor.

Either way, there must be some sort of “business” intent, even though you may not be operating an actual gun storefront or firearm manufacturing facility.

The requirements for getting a home based FFL are no different from the standard FFL requirements .

However, the zoning/location requirement becomes even more important along with what your actual business activity related to firearms is going to be.

Worry not! We walk you through this whole process in our Get Your FFL course .

Home Based FFL Requirements:

  • Be a U.S. Citizen
  • Be at least 21 years old
  • Be legally allowed to possess a firearm and ammunition
  • Have a location for conducting FFL activities (home-based FFLs are the most popular FFLs in the country)
  • Ensure that your business activity at that location meets zoning requirements
  • NOT have violated the Gun Control Act (GCA) or its regulations
  • NOT lied on your FFL application

[ 18 U.S.C. 923(d)(1) ; 27 CFR 478.47(b) ]

Of course, this is a simplified version of what is needed.

The full requirements for getting an FFL are explained here: FFL Requirements

The two biggest hurdles to getting a home-based FFL in most areas are zoning and landlords.

There are, of course, some cities that have a local law prohibiting this, but there aren’t many (NYC, for example).

Home-Based FFL Zoning

You don’t need to be in “commercial” nor “manufacturing” zoning to have a home-based FFL.

However, if you are in a residential zoned area (likely), you’ll need to work with your local zoning department to make sure that they understand that your FFL business will be a home business and that you will not be a typical storefront with regular customer traffic (if true).

The easiest home-based FFL to get is for testing, sales at gun shows only, sales online only, or even gunsmithing. This is because it is a common zoning requirement to not have public customer foot traffic.

It’s not that tricky to get zoning approval. In fact, in our FFL course , we walk you through this process and even give you a sample letter to use as you explain the issue to your local zoning office. It may also come in handy if you need to get a permit from your business office.

Home-Based FFL Landlords

If you rent your home (or apartment/condo), you’ll need to get approval from your landlord.

The landlord’s contact information will need to be listed on your FFL application, and the ATF will contact your landlord prior to issuing you your federal firearms license.

If you’ve been concerned about whether home-based FFLs are allowed, and you’ve been wondering how to get an FFL from your home, I hope that this information helped!

After you’re sure you’ve met the basic FFL requirements to get your license, you’ll need to set up your business intent and plan, and ensure that you make the right choices when completing your FFL application.

We walk you through all of this in our course.

Step 1 is to enroll in the course .

Step 2 is to follow the course and learn the right way to set everything up.

Step 3 is to enjoy making and saving money with guns shipped straight to your home!

If you’re still reading this far, perhaps you’re still wondering why anyone would get a federal firearm license out of their house.

Well, the reasons to get an FFL in general are the same: make money with guns, save money on guns, and become the go-to person in your circle of firearm loving friends.

Now, getting your FFL at home can be even an even better option if you’re looking to have guns shipped directly to you at your home instead of having to go down to the local gun shop and paying for a transfer.

Also, it’s a great side-business!

Making Money with Guns from Your House

There are many ways to make money with guns from home.

The most popular are internet sales, occasional in-person firearm sales, and conducting transfers for a fee.

Internet Gun Sales from Home

Because most zoning rules will prohibit retail customer foot traffic to your home gun business, it is very common to sell guns online.

With your FFL, you can buy guns from distributors, have them shipped straight to your home, and then you can list them online for sale. You can either have your own online store or you can list them on an online auction site like GunBroker.com

Then, when someone purchases the firearm from you online, you can ship the firearm from your home to their preferred FFL where they can have it transferred to them.

Although an FFL is not required to sell ammunition, it is popular to order ammo along with firearms from distributors. And, most distributors won’t set you up to purchase (even ammunition) without a federal firearms license.

If you’re going to do this, be organized! A spreadsheet helps keep things organized to manage your listings, when they end, where to ship things, etc.

Occasional In-Person Sales at Home With an FFL

The word “occasional” is there on purpose.

No, it’s not an ATF requirement for your license at home. However, if you live in a city or neighborhood, it is very hard to get away with a steady flow of customer traffic to your home. Therefore, it’s best for sales every once in a while.

I’ve seen this work best with “VIP” sales or friends of friends.

They key here is only to advertise this option to buy a firearm from your home to people that you’re actually willing to have come to your home.

If you teach concealed carry classes, this is a popular business add-on to sell firearms to your students.

Conducting Transfers for a Fee

Conducting transfers for people is a great way to make some extra cash with your license.

Many people shop for guns online and need an FFL to transfer the gun to them. Typically, they’d choose a local gun shop, but it can be very convenient for them to swing by your house to pick it up after the transfer paperwork and background check. It’s not uncommon to charge anywhere from $20 to $50 for this service.

Home Based FFL FAQ

Yes, home-based FFLs are allowed – in fact, they are the most common types of FFLs in the country.

No, the ATF doesn’t shut down “kitchen-table” FFLs. Years ago the ATF did make a push to limit them, however, they are currently the most popular type of FFL.

There is no federal restriction on which type of FFL you can have in your home.  Dealing, gunsmithing, and manufacturing FFLs, are federally permitted, as long as you have zoning approval to engage in the business of firearms (and manufacture, if applicable), from your local zoning department.

No, a home-based (kitchen-table) FFL is exactly the same as a regular FFL. The only difference is that the licensed location is your home, instead of a business/commercial address.

The requirements for a home-based FFL are mostly the same as for brick-and-mortar FFLs. The only difference with having your home as your business activity location, is ensuring that you’re compliant with all applicable zoning requirements, and that your business intent is feasible utilizing your home.

No – multiple types of FFL may be home-based. A Curio and Relic (C&R) License, or a type 3 FFL, is just one type of FFL. The C&R license is ONLY for collectors of a certain class of firearms (mostly antiques). So, you can have a C&R license from home, but you can also have a dealer’s license or even a manufacturer’s license too.

No, you do not need a specific business structure for an FFL – sole proprietorship is allowed. For more info on this, please check out GunUniversity’s article: How to Get an FFL Without a Business .

Ryan Cleckner

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Started from home, now has 45 FFL locations in 42 states.

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Ultimate FFL Guide 2022

Guide to FFL

A Federal Firearms License (FFL) can be a very complicated license to get. Not only are you dealing with Federal bureaucracy, but you have to pass extensive background checks as well a personal one-on-one examination with an ATF agent in order to personally satisfy them that you are familiar with gun laws, Federal, state, and local regulations, are zoned properly, and are actually going to engage in business.

Getting an FFL isn’t just as simple as filling out a form, sending a check, and waiting a few weeks. It is a very involved process fraught with difficulty and annoyances that pop up along the way. That’s why we’ve prepared this handy guide to help you understand some aspects of what FFLs are, how to get an FFL, and what it means to have an FFL, along with related issues.

Federal Firearms License (FFL)

Learn everything you need to know to be successful at FFL today.

Q: arrow What is a Federal Firearms License (FFL)?

Simply put, an FFL license is a Federal Firearms License. If you want to know what FFL means, it’s right there in the name – Federal Firearms License.

An FFL is a license that permits various manufacturing, collecting, and retail activities for guns, ammo, explosives, and NFA items like silencers and machine guns. There are a lot of different types of FFLs and not all can be used for retail operations. Check out our extensive explanation of FFL license types for more info.

An FFL is required to commercially sell firearms to the general public, as all new guns must be sold through an FFL. Many states prohibit private party gun sales, too, and FFLs have to handle background checks on those gun sales as well.

Sample FFL License

sample ffl license

Brandon Maddox,

Q: arrow how can i get my ffl.

If you want to know how to get an FFL, you need to know that it is very simple on paper, and very complex in real life. So much so, that not only did we write a more detailed page about it, but we operate a business solely dedicated to helping guide you through the process!

Broadly speaking though, to get your FFL you have to do the following:

  • Fill out the application with your name and business information.
  • Provide identifying information to the ATF.
  • Get all required state and local business licenses and permits. (You may have to wait until you actually get your FFL to get some of them.)
  • Get a suitable business location zoned for the type of business you plan to operate.
  • Successfully pass an ATF examination that demonstrates you understand relevant laws and rules, and have a suitable location to conduct your chosen business in.

Like we said, it sounds really simple. However, the entire process is quite complicated and takes many months to complete. Our online FFL license guides can help you navigate this complex application and get you the FFL you deserve!

Q: arrow How do I check an FFL License?

To check an FFL license and make sure it is valid and the correct type for the transaction you are trying to conduct, simply use the ATF’s FFL eZCheck system and follow the instructions. Note this will not validate 03 and 06 FFL’s by design. This should not be seen as a reason to refuse an 03 FFL in a situation where that FFL appropriate for use.

To check an FFL license and make sure it is valid and the correct type for the transaction you are trying to conduct, simply use the ATF’s FFL eZ Check system and follow the instructions. Note this will not validate 03 and 06 FFLs. This should not be seen as a reason to refuse an 03 FFL in a situation where that FFL type is appropriate for use.

Q: arrow What is an FFL Dealer?

An FFL dealer is anyone who holds a Federal Firearms License that permits commercial sales. Some FFLs are only for manufacturing or collecting, and do not permit retail sales. Typically, an FFL dealer has a storefront or operates part time out of their home office or other location. In addition to sales, they often facilitate the legal process of purchasing a firearm from someone or somewhere else by completing the transfer process for the new buyer.

Q: arrow How do I Locate an FFL dealer?

There are a couple ways to locate an FFL dealer. The ATF has a process that lets you download a complete list of FFLs for a given state. But, as you might expect from a list compiled by the government, it’s not very user-friendly.

You can also search online in your given area, which will get you most FFLs around you. Or you can use an interactive database like the ones from GunBroker or other retailers, which are probably the most efficient (and up-to-date) ways to locate an FFL dealer.

Q: arrow What is an FFL number?

An FFL number is a very important tool for making sure you are dealing with a legitimate FFL. Each FFL number is designed to tell you information about where the FFL was issued, what type of FFL license it is, and, of course, if it is valid.

The ATF maintains an FFL lookup tool that lets you quickly check the validity of all FFLs except for 03 Curio and Relic FFLs.

To read more read this article all about ffl number .

Q: arrow How do you purchase a gun with an FFL?

There are two ways to approach this question. All newly produced, commercially sold firearms must be transferred through an FFL. Some states require all gun sales be handled by an FFL. Craft-made firearms for personal use and not-for-resale do not require an FFL to be involved.

Newly made guns or states with so-called “universal background check laws” to buy a gun with an FFL means you are going to an FFL dealer and purchasing (or transferring) a gun.

In either case, you’ll fill out an ATF Form 4473, any required state forms, and wait for the ATF and any state background checks to clear. In most places and cases this is almost instantaneous. Some states may impose waiting periods for some or all types of guns. Private transfers usually require paying a fee to the dealer. Some states may have a fee for running their own background checks.

To sum it up: walk in, choose your gun, lay your money down, and do the paperwork.

The other scenario is if you are an FFL holder and wish to purchase a gun for your own private collection. This is even easier.

Buy the gun from a distributor, wholesaler, retailer, etc. Log it into your Bound Book, then simply mark it as transferred to you in the disposal section. That’s it. No Form 4473, no background check, no nothing. Log it in, log it out. Nice, huh?

That’s one of the most popular perks of having an FFL, which is really pretty nice considering you can get guns for yourself at wholesale prices, and maybe even access guns that are restricted or banned in your state!

Remember, though, that using any type of FFL other than an 03 for the sole purpose of adding guns to your personal collection is strictly forbidden.

Q: arrow What is the history of the FFL?

First conceived in 1938, the Federal Firearms Act required gun dealers, manufacturers, and importers to have a Federal license to conduct business. This was largely an effort to control who could sell guns, as opposed to who could buy guns.

The Gun Control Act of 1968 created the FFL as we know it today, along with the background check form 4473. This was the first real Federal attempt to not only control who could sell guns, but also who could buy guns.

The Brady Act of 1993 created the instant background check system we are familiar with today.

Today, the FFL is largely unchanged from the 1968 idea, although somewhat refined for the modern age and modern technology.

Q: arrow What are the types of FFL?

There are a number of different types of FFLs for different types of business and collecting activities. Some are pretty well known, and some are pretty obscure. Here is the list of every type of FFL.

  • 01 FFL : This FFL is a generic retail license and allows the sale of non-NFA firearms and gunsmithing activities. It does not permit manufacturing and must be paired with a Class 03 SOT to deal in NFA items.
  • 02 FFL : This FFL is a special type just for pawnbrokers, but otherwise it is functionally identical to an 01 FFL.
  • 03 FFL : This FFL is for collectors of curio and relic firearms. Broadly speaking, these are guns at least 50 years old or older and in their original condition, or newer guns classified as curios and relics by the ATF.
  • 05 FFL : This FFL is only for the manufacture of non armor piercing or NFA ammo and reloading components like powder and primer.
  • 06 FFL : This FFL only allows the manufacturing of fully loaded ammo that is not armor piercing or subject to the NFA.
  • 07 FFL : Perhaps the most versatile FFL on the list, the 07 FFL allows for manufacturing non-NFA guns and ammunition. When paired with a Class 02 SOT, it allows for the manufacturing and dealing of NFA guns and ammo as well. New FFL holders are strongly advised to consider this pairing for maximum potential revenue.
  • 08 FFL : This FFL is for importing non-NFA guns and ammo. When paired with a Class 01 SOT, this FFL type may also import NFA arms and ammo.
  • 09 FFL : This FFL is for dealing in destructive devices and explosive ammo. 09 FFL holders also need a Class 02 SOT to be in business. They may also need additional Federal explosive licenses. This is a pretty esoteric type of FFL that largely serves law enforcement and similar markets.
  • 10 FFL : Just like the 09 FFL, the type 10 FFL requires a Class 02 SOT. The type 10 FFL is for manufacturing destructive devices and may also require Federal explosive licenses.
  • 11 FFL : This FFL is for importing and dealing in various types of explosive ammo, armor piercing ammo, and similar devices. It requires a Class 01 SOT, and may also require Federal explosive licenses depending on the nature of your work.

As you can see, there is an FFL for pretty much every conceivable situation of collecting, selling, importing, or manufacturing. FFLs are referred to by “type” and that SOT’s are referred to by “class.” So you might be a Type 07 FFL with a Class 02 SOT.

Confused about what FFL or what FFL and SOT combo is right for your business plans? FFL123 is here to guide you through the entire process and make sure you get the FFL or FFL and SOT you want and deserve!

To know more read this article types of Federal Firearm licenses .

Q: arrow What are SOT classes?

An SOT, or Special Occupational Taxpayer, is an FFL who pays an additional tax for the privilege of manufacturing or importing various classes of NFA devices.

There are three SOT classes, which must be paired with an FFL. They are as follows:

  • 01 SOT : an importer of NFA devices. This must be paired with an 08 or 11 FFL. These are FFLs for importing firearms other than destructive devices, and importing destructive devices respectively.
  • 02 SOT : for manufacturing NFA devices. This must be paired with an 07 or 10 FFL. These are FFLs for manufacturing firearms other than destructive devices, and the manufacture of destructive devices.
  • 03 SOT : for retailing NFA devices. This must be paired with an 01 or 02 FFL, which is a general retailer of firearms, or a pawnbroker.

SOT licenses must be paired with the logically correct FFL as described above. That means if you are an 07 FFL, you can’t get say an 01 SOT for importing.

Many FFL holders choose to get an 02 or 03 SOT so they can participate in the lucrative market for NFA devices. What’s exciting, too, is that on 03 SOT can legally build and acquire post-May 1986 (or “post-86”) machine guns for any lawful business purpose, including testing, demonstration, and range rental purposes. For many Americans, it is the easiest and most profitable way to access a full-auto firearm.

Q: arrow What is the purpose of the Collectors of Curio and Relic (C&R) Firearms FFL?

The 03 FFL or Curio and Relics FFL (or C&R license) is a special type of FFL license for gun collectors. It lets you buy certain guns as an FFL holder without having to undergo background checks.

There are a lot of exceptions to this. For one thing, a C&R license can only be used on guns at least 50 years old or older in their original configuration. It can also be used on newer guns in original configuration if the ATF decides their primary value has to do with collector value.

Some NFA items are also considered C&R guns because of their age, but still have to go through the same NFA registration process as any other NFA item. Some states restrict NFA ownership to curio and relic devices, so it can be an important distinction.

Some states still require C&R holders to undergo local background checks before acquiring certain C&R guns.

In most cases and in most places, an 03 FFL is a great tool for building a gun collection without having to go through a background check every single time, and to readily acquire guns across state lines.

Of course, you cannot engage in commercial activity with an 03 FFL, it is only for personal collecting use!

Q: arrow What are the application fees for an FFL?

Because there’s such a range of FFL types, there’s a large range in fees as well. They can be anywhere from $30-$3,000 for an initial application fee, and $30-$3,000 for renewals.

Don’t worry though, most FFLs are $30-$200 to apply for and $30-$150 to renew! The high dollar FFL fees are for esoteric importers and manufacturers of NFA and military grade arms. Unless you plan on landing a government contract, you don’t have to worry about that!

To know more read this article FFL License Cost .

Q: arrow What is ITAR?

ITAR, or the International Traffic in Arms Regulations, is a cumbersome set of regulations that cover the import and export of arms, ammo, and weapons parts. Covering everything from warships to AR-15 firing pins, it is a constant thorn in the side of many small manufacturers who get lumped in with large international arms dealers when it comes to regulations.

There are a lot of exceptions baked into ITAR and subsequent interpretations that now protect various small gunsmiths and manufacturers who engage only in domestic trade. However, some 07 FFLs and gunsmiths may still find themselves needing to adhere to ITAR regulations or even pay regular fees.

Because ITAR is an extremely complex topic, there are entire industries that have sprang up to help with compliance and consulting. We cannot even begin to address all ITAR topics here that may impact certain classes of FFLs, but suffice it to say, if you are a small gunsmith or manufacturer, you really don’t have to worry about ITAR anymore. But like any monster, it is still looming there in the background.

If you have any sort of manufacturing FFL or want to get one, and are an FFL123 customer, our team of industry insider experts can help you understand if ITAR may or may not apply to you. However, you are always strongly advised to consult with a firearms attorney or ITAR expert if you think you might be impacted by ITAR.

Q: arrow What is the FFL eZ Check?

FFL eZCheck is a service offered by the ATF to quickly validate an FFL, but it will not verify 03 and 06 FFLs. These are Collectors of Curios and Relics and ammunition manufacturers.

The reason 03 and 06 FFLs are not checked is because 03’s do not engage in commercial trade and can only be used with certain types of guns, and 06’s cannot be used with guns at all under any circumstance. So in other words, don’t sell a modern gun to someone trying to use an 03 FFL or any gun to someone trying to use an 06 FFL!

FFL eZ Check is the quickest way to make sure that when somebody provides you with a copy of an FFL to send a gun to, that you are sending the gun to a legitimate FFL holder who is licensed to receive it. This safeguards all parties involved.

Using FFL eZ Check to check 03 and 06 FFLs will give an error message, even if they are valid. The ATF cautions that this should not be used as a reason to question the validity of an 03 FFL for transactions where an 03 is acceptable.

To know more read the article FFL eZ Check System .

Q: arrow Do I need an FFL for different locations?

A unique FFL is required for each location where you are doing business. If you have a location where you only do gunsmithing and a different location where you do retail business, you’ll need two different FFLs.

The process for getting multiple FFLs is the same as getting one. You have to apply for each location and go through all the same steps for each one. However, if you are doing more than one application at the same time, you’ll probably find both approved at the same time or very close to each other.

As long as you remember that each location you conduct business at needs an FFL, then you’ll be fine. This does not apply to doing business at gun shows, as an FFL holder is allowed to sell at gun shows without additional FFLs.

To know more read Location Specific FFL License .

Q: arrow What is the best FFL course?

FFL123 is the oldest and most successful FFL course available online. We pioneered every single aspect of the online FFL course that our competitors offer, except we do it better!

FFL123 has nearly two decades of hands-on experience helping Americans in all 50 states get their FFL and/or SOT. We employ a large team of industry insider experts who work daily to help people get their FFL, work through complex legal and regulatory hurdles, and even lobby the ATF on behalf of the NFA industry! What other online FFL programs can offer that many advantages?

In addition, FFL123 customers enjoy other unique advantages. FFL123 offers ongoing regulatory and business assistance even after you get your FFL. Plus, FFL123 members enjoy exclusive forums and access to our industry insider staff to answer their questions, no matter how long they’ve been in business.

Interested to learn more about FFL course? Check the article “ Online FFL Courses “.

Q: arrow What kind of profit can I expect with an FFL?

As with any business, it can be hard to define exactly how much profit you’ll make. However, new guns carry up to a 30% markup, transfer fees for online and state-mandated private party background checks tend to range from $20-$50 per transaction, and accessories can carry markups as high as 50%-100%. Remember, every business is different, and the costs of rent, fixtures, staff time, regulatory compliance, insurance, etc. all vary and will impact your bottom line.

Q: arrow How can I make money with an FFL?

Asking how to make money with an FFL is a very simple question with a very complex set of answers.

First, you have to remember there are lots of different kinds of FFLs. The 03 FFL for collectors can’t be used for commercial activity at all. All other FFLs can, but they range from simple retail licenses for non-NFA items, to importers and manufacturers of esoteric military grade explosives and everything in between.

Most people who want to make money with an FFL are usually interested in an 01 or 07 FFL, which allows for most common retail activity. An 07 FFL brings additional benefits with it, as it allows for manufacturing, which means you can enter the custom AR-style rifle market with great ease. Additionally, the 01 or 07 FFLs can be paired with an SOT to allow selling and making (depending on your FFL) NFA weapons.

The first step to making money with an FFL is to have a rock-solid business plan. No matter if you plan to run a small home-based 01 FFL, or manufacture custom ammo, you need to know your market.

Here are some common ways to make money with an FFL that apply to most FFL holders in most markets:

  • Online transfers: For many home-based FFLs, this is a rich source of income that requires no upfront investment in inventory.
  • Specialized accessories and ammo: While everyone has the most common guns and ammo, a shop specializing in specialty items can quickly gain a loyal and profitable following from customers who seek out the unusual or uncommon.
  • Sell or manufacture NFA items: While expensive and full of regulatory hurdles, there is an enormous appetite for NFA devices from silencers to AOW’s. If you live in an NFA friendly state, this could be a good way to build a business.
  • In person transfers: Many states now require private party sales be handled through an FFL. This is a great way to get people into your shop, and not only earn the fee for handling the background checks, but also to sell ammo, accessories or even more guns!
  • Stock a good variety of used guns: Used guns carry a good profit margin and many people come into shops looking for older, vintage guns, or just a bargain off full retail.

There are lots of other ways to make money with an FFL, too, but these are the most common and approachable ones, beyond the obvious of maintaining an inventory of popular guns.

Q: arrow What is a Federal Firearms License?

A Federal Firearms License or FFL is a license issued by the ATF to engage in various manufacturing, retail or collecting activities involving guns, ammo or military devices. You can learn more about various types of FFL’s  by clicking here . The most common Federal Firearms Licenses include the 01 FFL for general retail, the 03 FFL for Curio and Relics collectors, and the the 07 FFL for manufacturing guns.

Q: arrow What Are Federal Firearms Licensees?

A Federal Firearms Licensee is the person or company who holds a current, valid FFL. To learn more about checking the status of a current FFL Licensee, you can use FFL eZ Check.

Federal Firearms Licensees can only conduct the kinds of activities allowed by their particular FFL. Some FFLs can be combined with a Special Occupational Taxpayer or SOT status that allows the manufacture or sale of various forms of highly regulated NFA items.

Q: arrow What is the Definition of an FFL?

Quite literally, an FFL is a Federal Firearms License .

An FFL is a license to make, sell, import, export or collect various types of guns, ammo and military weapons. Anything involving all types of firearms, or weapons that use explosives are covered by various types of FFL’s. Some are very complex and have limited use, while others are extremely common.

An FFL is required to commercially sell firearms to the general public, as all new guns must be sold through an FFL. Many states prohibit private party gun sales too, and FFL’s have to handle background checks on those gun sales too.

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Hi, does your program ever touch on how to buy products directly from forges or machine shops to create your own line of firearms? Thanks,

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FFL Responsibilities and Regulations

FFL Responsibilities and Regulations

Having a Federal Firearms License (FFL) brings with it a set of responsibilities and duties. Every FFL holder gets a package of information from the Bureau of Alcohol, Tobacco, Firearms and Explosives (BATF) that explains everything in detail. The 237-page book can be downloaded here . Below are highlights from the regulations. 

EXCEPTIONS  

FFL Type 03 and Type 06 are the two major exceptions to some of the BATF rules. 

A Type 03 FFL holder does not have to do a background check on a buyer, unless required by state law. The Type 03 license holder must record and keep information on where the gun came from as well buyer information if the gun is later sold. Other requirements remain in place. The Type 03 FFL is for a collector of Curios or Relics (Cruffler). A Cruffler is not a license to run a gun business. 

A Type 06 allows the holder to make ammunition, except for armor piercing and destructive device ammo and only ammunition. Since firearms are not involved with this license, the FFL holder is only subject to federal age restrictions and applicable state laws when selling ammo. A buyer must be 18 or older to buy shotgun and rifle ammo. A buyer must be 21 or older to buy handgun ammo. 

Type 06, being a manufacturing license, comes with other requirements also attached to the Type 07 and Type 10 licenses.  This is explained below.

FFL DEALER PAPERWORK

The BATF requires FFL holders to keep paperwork. The paperwork must: 

  • Cover the sale of firearms and where appropriate, restricted items like suppressors. BATF Form 4473 is part of the paperwork. 
  • Cover the purchase of any of the above. Inventory must be logged into the FFL's holders records book. BATF does not supply these books, but does explain what they are . FFL 123 says the Acquisitions and Dispositions book, " is one of the most important record keeping tools for FFL license holders. It is the book where every single firearm acquisition by the FFL holder is recorded as well as the disposition of every firearm." 
  • Ammo records are different. Unless required by local or state law, no records are needed for the resale of commercial sporting ammunition. Imported ammo , domestically made armor piercing and some destructive device ammo do have special records requirements. 
  • Kept for at least 20 years. If the FFL holder surrenders the license, these records are turned over to BATF. Items that must be listed in the book are: 
  • Gun maker or importing company. 
  • Model. 
  • Serial number, if available. Some older firearms do not have serial numbers . 
  • Caliber or gauge. 
  • Date received and later on the date when it was sold. 
  • Dealer information and FFL where the gun came from. 
  • Information on who bought the item. For 4473 has this information. 
  • If bought used or pawned, the FFL holder should get as much information about the person as possible. Most places buying used guns or taking items on pawn get some form of identification and a picture taken in the store. Some even ask for fingerprints. Pawn shops typically provide much of this information to local law enforcement in daily or weekly reports. "The regulations do not require that a pawnbroker execute Form 4473 when a firearm is pledged for a loan. However, he must record the receipt thereof in his permanent acquisition and disposition record," says the BATF. 

BATF has a short Frequently Asked Questions section on records keeping. 

RUNNING A BUSINESS 

With the exception of a Type 03 license, BATF expects an FFL holder to run a business. During the application interview process, the BATF agent will ask about the profit motive behind the license application. BATF expects the FFL holder to buy and sell firearms and make regular attempts to do both with an eye toward making a profit. Accepting transfers from out-of-state dealers for an in-state buyer qualifies under BATF's unwritten requirements. 

This begs the question "Do I need an FFL if I buy and sell firearms?" BATF does not have a hard rule on this. The dividing line is doing it regularly and making a regular profit. BATF has two different downloads that discuss the profit requirement and the need to get an FFL. They are: 

  • Do I Need A License To Buy And Sell Firearms?  
  • Most Frequently Asked Firearms Questions and Answers  

Local communities may put additional requirements on an FFL holder such as zoning requirements, a business license and a sales tax number. 

BACKGROUND CHECK  

BATF does not do the background check. The FBI conducts background checks through the National Instant Criminal Background Check System (NICS). This is done at no charge to the FFL holder or the buyer. Some FFL holders do charge for this, especially when acting as a transferring FFL for a pre-purchased firearm. 

A background check then returns one of three decisions: 

  • OK to sell.
  • Delay. 
  • Do not sell. 

If the sale is delayed, the FBI may be looking for additional information on the buyer. This is not an automatic disqualification for buying the firearm. If the purchase is delayed, the FBI has three business days to either authorize or reject the sale. If FBI does neither, then the sale may go through at the FFL holder's discretion. 

If the report comes back with do not sell, the FFL holder must not sell the firearm to the buyer. 

In some rare cases, the FBI background check turns up information after the three business days that shows the buyer should not have the gun. If that happens, the ATF is tasked with retrieving the gun from the buyer. If this happens, the buyer, not the FFL holder, is held accountable. 

Some states have additional background check requirements. 

STORAGE 

A safe way to store firearms for sale is recommended. BATF does not have a specific list of requirements for makes a safe retail storage space, but it has some suggestions. "Physical security including alarm systems and safe business practices are also highly recommended and in some cases may be required by State or local law," the agency says in the report Working for a Safer and More Secure America through Innovation and Partnerships to Prevent Firearms Thefts . A list of ideas to make storage safe and ATF-acceptable start on Page 12. 

ATF INSPECTIONS 

Part of having an FFL is allowing BATF agents to inspect the records and guns purchased under the FFL. BATF may do an inspection once a year. In practice, inspections are far less common. "There were 134,738 FFLs in fiscal year 2017. This includes firearm licenses for dealers, manufacturers, importers and collectors. During that time, ATF conducted 11,009 firearms compliance inspections," says the BATF's Compliance Inspection fact sheet . 

SHOT BUSINESS , a magazine by the National Shooting Sports Foundation, explains what to expect in an FFL inspection . 

REFUSE TO SELL  

Provided all the BATF requirements are met, an FFL holder can refuse to sell a gun to anyone. No reason is needed. 

US News and World Report  covered this topic in the wake of a Florida FFL holder saying he would not sell a gun to a Muslim. "As private business owners, [Federal Firearms License holders] can and do use discretion in determining to whom they will or will not provide service,” said Ginger Colbrun, public affairs chief for the BATF. 

ITAR  

Manufacturing FFL holders, Type 06, 07 and 10, need to get an International Traffic in Arms Regulations (ITAR) permit even if no guns are shipped overseas. 

John Pierce is a Virginia lawyer who specializes in firearms, FFLs and restrict item transfers. He says the ITAR is a must . "The short answer is that those licensed to manufacture firearms or ammunition are covered by ITAR and are required to register and pay the registration fee," he wrote. 

It is expensive. The fee starts at $2,250. 

Mr. Pierce adds, "Are there 06, 07, or 10 type FFLs who have not registered and have not been prosecuted? Yes there are. But they could be prosecuted at any time and the penalties are severe. Is it stupid? Of course it is! But legally there is no question. If you are getting, or already have, an 06, 07, or 10 FFL then you need to consider the ITAR yearly registration fee as a cost of doing business and register."

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Creating a Business Plan

Creating a Business Plan

The decision to create a business plan is an important one, whether you are starting a new business or growing an established one. A solid business plan is fundamental to long-term business success.

It serves two main purposes:

  • It acts as a roadmap for your business.
  • It is a tool that helps you obtain outside financing.

While the phrase “creating a business plan” may conjure up feelings of trepidation and dread, it will not be as difficult if you break your business plan down into its more essential parts.

Why Do You Need a Business Plan?

Benjamin Franklin said it best: “If you fail to plan, you are planning to fail.” While a business plan will not guarantee success, failing to have one almost guarantees that you will not find the success you seek.

Remember the roadmap analogy? It is an accurate one to consider. The first thing you need to do before creating the roadmap, though, is to figure out where you are heading.

In order to do that, you should ask yourself four simple questions.

  • How do you want your business to look in one year?
  • How would you like it to look in three years?
  • Where do you want to see your business going in five years?
  • What would you like to have accomplished by your tenth year in business?

Seek the answers to those questions, keeping in mind profits, revenues, expansion, growth and other critical drivers and metrics for your business.

What Does a Business Plan Include?

In order to build the roadmap to reach your intended business destinations in a timely manner, you must include key pieces of information and analysis in your plan. The many moving parts of running your business become the fundamental building blocks of your long-term business plan. Consider each of them a pit stop along the road to business success.

Business Concept

Your business concept is a summation of your company in a few concise and simple sentences. It should clearly communicate the idea, design or value proposition behind your business so that a customer, investor or potential partner can quickly grasp what you will do and the value it will provide. Keep the concept statement to one paragraph.

Business Strategy

Your business strategy provides the detail on how you will execute the business concept. It describes your industry, explains your product or service, and the critical factors that will drive your business success. Those factors might include such things as your management team, operational plans or cost advantages. In essence, it is an executive summary that explains why your business is uniquely suited to succeed.

Specific things you should consider while creating the strategy section of your plan include:

  • Products or services offered now.
  • Products or services to offer in the future.
  • The size of the market.
  • How the market is changing.
  • Industry trends.

Market Analysis

In the market analysis section of your plan, you need to explore the ins and outs of your potential customers or markets.

  • Who are they?
  • Where are they?
  • What motivates them to buy the items or services you offer?
  • What do they want or need from you?
  • How are you going to attract new customers?
  • What do you plan to do to keep them coming back?

Most importantly, though, is to answer this one question: “How are you profitably going to meet the needs of your target customer?”

Competitive Analysis

In order to be complete, your marketplace analysis must pay attention to your competitors. This is necessary whether you are an established business looking to expand or a new business interested in taking business away from other established businesses in the area.

Questions to ask yourself here, include:

  • How is your business going to succeed in a market that is already being sufficiently served by another business in your industry?
  • Is there sufficient demand to bring another business into the market or expand your existing business?

Financial Analysis

This section of your business plan will look at the financial aspects of your business. As a new business you will need to include:

  • Break-even analysis.
  • Financial ratio calculations.
  • Internal and external funding requirements.
  • Projected revenues and profits over one, three, and five-year terms.

Don’t forget to include plans for assets the business needs to acquire and the costs of the marketing plan the business intends to follow coming out of the gate.

Existing businesses need to include cash flow statements, balance sheets, and pro-forma income statements, for example.

Keep in mind, you should provide information that will assist potential lenders (banks and credit unions) and investors in approving loans or green-lighting investments in your business.

Maintaining Your Business Plan

You should not just write a business plan and place it in a drawer. To get the most benefit from it, it should be a dynamic evolving plan. You must adjust your plan as necessary with changing markets, new product concepts, evolving technology, need for additional financing, and goal achievements, just to name a few. An old business plan may not reflect reality any longer, so be sure to revisit your business plan periodically. Having a update checklist helps you to do just that.

In the beginning, making a business plan may seem like a onerous task. It can be simpler if you break it down into its individual components. Once you have a plan in place, you will begin to see the effectiveness of how such a simple business tool can take the guesswork out of starting a business or growing one.

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I'm wanting to get my FFL to sell part time out of my home. I'm still in the process of putting together my business plan and was hoping I could tap into the wisdom I see on this forum. I live in TX and have gathered data on the following: 1. FFL requirements and fees 2. Local zoning and state requirements for the business 3. Incorporation (LLC) 4. Business liability ins 5. Security Where I'm stumped is, as I do more research I'm not seeing how anyone could make money doing this. I've researched gun prices on gunbroker and gunsamerica and compared those prices to what SEEM to be wholesale prices. It looks like dealers are getting around $10 profit on many long gun sales. I'm not under the idea that I could get rich doing this. Not by any means. My hope was to make $10k-$20k per year. Is this unreasonable?  

The margin on gun sales is extremely slim. You can't expect to make much profit per gun as you have to price compete with places like Bud's. There's a few bucks to be made doing things like FFL transfers and such...  

Troy Michalik

NGIB said: The margin on gun sales is extremely slim. You can't expect to make much profit per gun as you have to price compete with places like Bud's. There's a few bucks to be made doing things like FFL transfers and such... Click to expand...

The reason the wife & I became "slum lords", it's one of the few business ventures that has a fairly decent return on investment - if you don't pay to much for the property. We manage our properties from our home and don't need a storefront or any special licensing. It does however take a chunk of cash to get started...  

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How To Get an FFL Without a Business? [Easy Guide]

Why should you get a federal firearms license.

Obtaining a Federal Firearms License (FFL) is not just a matter of paperwork; it’s a significant step for any responsible firearms enthusiast. Here’s why you might want to consider getting an FFL:

Convenience in Firearm Transactions

Having an FFL simplifies the process of buying, selling, and transferring firearms. If you’re an avid collector or frequently engage in firearms-related activities, having an FFL can save you time and streamline transactions.

Personal Firearm Collection

FFL holders can acquire firearms that may not be available to the general public due to certain restrictions. This could include antique firearms, curios, and relics that are prized by collectors.

Customization and Gunsmithing

If you’re interested in customizing firearms or performing gunsmithing work, having an FFL can provide access to regulated parts and services, allowing you to enhance and maintain firearms legally.

If you’re interested in National Firearms Act (NFA) items like silencers, armor-piercing ammunition, short-barreled rifles, and machine guns, an FFL is essential to deal in these highly regulated items.

Is a Business Required for an FFL License?

One common misconception is that having a business is a mandatory requirement for obtaining a Federal Firearm License. The truth is, you can easily learn how to get an FFL without a business that sell firearms. Here’s a deeper look into this:

No Business Required

The ATF (Bureau of Alcohol, Tobacco, Firearms and Explosives) allows individuals to acquire FFLs for purposes other than running a firearms business. This means you can easily learn how to get an FFL without business.

I t could be for your personal firearms, collecting, or other non-commercial activities/actual business.

Business Intent

When learning how to get an FFL without a business, you need to show a “business intent.” This essentially means that you need to demonstrate that you plan to engage in firearms-related activities, even if they are not conducted as a typical/actual business like your typical firearms dealer.

This can include activities like occasional buying and selling, gunsmithing, firearm instruction, or even enhancing your personal collection.

Types of FFLs

Depending on your intended use, you can choose from various federal firearms license types. For personal collections and occasional transactions of antique guns, an FFL Type 03 (Collector of Curios and Relics) or Type 01 (Dealer in Firearms) can be suitable.

Home-Based FFL

If you choose not to have a traditional business, you can have a home-based FFL. This enables you to engage in firearms-related activities from the comfort of your home. However, you’ll need to maintain proper security measures and transaction records.

How to Get an FFL Without a Business

Now that you’ve decided to pursue an FFL without a traditional firearms-related business, let’s delve into the specific steps you need to take to make this a reality:

Step 1 – Ensure You Meet the Requirements

Before you embark on your journey to obtain an FFL without a business, it’s crucial to ensure that you meet all the necessary requirements:

Age Requirement: You must be at least 21 years old to be eligible for most types of FFLs.

Eligibility: Ensure that you are not prohibited from owning firearms. This means you should have a clean criminal record and not be subject to any disqualifications under federal or state law.

Compliance: Be willing to comply with all federal, state, and the local law and regulations regarding firearms.

Meeting these prerequisites is fundamental to a successful FFL application.

Step 2 – Choose the Correct FFL Type

Selecting the right type of FFL for your intended activities is crucial. When obtaining an FFL without a business, the following types are most relevant:

Type 03 (Collector of Curios and Relics): This FFL is designed for individuals interested in collecting rare and/or antique guns. It allows you to buy guns classified as curios or relics under federal law.

Type 01 (Dealer in Firearms): If you plan to engage in the occasional buying and selling of firearms or participate in gun shows, this type of FFL can be suitable for personal transactions.

Choosing the correct FFL type aligns your business license with your intended activities and helps ensure that you are in compliance with the law.

Step 3 – Take an Online FFL Course

To gain a deeper understanding of obtaining an FFL without a business and to navigate it successfully, consider enrolling in an online FFL course. These courses offer valuable insights and guidance, helping you avoid common pitfalls and errors in the application process.

They cover topics such as the legal aspects of firearm transactions, ATF requirements, and record-keeping.

Taking an FFL course not only educates you about the responsibilities that come with the license but also demonstrates your commitment to being a responsible FFL holder.

Step 4 – Submit the FFL Application

Once you’ve completed the necessary preparations, it’s time to submit your FFL application. This is typically done by filling out the ATF Form 7 (Application for Federal Firearms License). Here’s an overview of the application process:

Form Submission: Complete the ATF Form 7, providing all required information. You’ll need to specify the type of FFL you’re applying for and indicate that you intend to operate without a traditional business.

Fingerprinting and Background Check: You’ll be required to submit fingerprints, and the ATF will conduct background checks on you and any other responsible persons listed on your application.

Interview and Inspection: Expect an ATF interview and inspection, which is a standard part of the application process. During the interview, be prepared to discuss your business intent and how you plan to engage in firearms-related activities.

Fee Payment: Submit the appropriate fee along with your application. The fee varies based on the type of FFL you’re applying for.

Waiting Period: The ATF will review your application, conduct background checks, and assess the suitability of your proposed location. This process typically takes a few months, so patience is key.

Once your application is approved, you will receive your FFL, enabling you to legally engage in firearms activities according to your chosen FFL type.

Home Based FFL

If you’ve chosen to obtain an FFL without a traditional/actual business as a firearms dealer, you may want to consider a home-based FFL. This allows you to engage in firearms-related activities from the comfort of your residence i.e. online gun sales. Here’s what you need to know:

Secure Storage: To qualify for an FFL like this, you must have a secure storage area for your firearms and ammunition. This storage area should comply with ATF regulations and ensure that firearms are inaccessible to unauthorized individuals, especially if you have children in your household.

Record Keeping: As an FFL holder, regardless of whether you run a business, you are required to maintain detailed records of all firearms transactions. These records should include the details of the firearm, the buyer or seller’s information, and the date of the transaction. Accurate record-keeping is crucial to stay in compliance with federal regulations.

Compliance: Always adhere to federal, state, and local laws and regulations. Even though you are operating from your home, you are still subject to the same legal requirements as any other FFL holder.

ATF Inspections: The ATF may conduct inspections of your FFL (home-based) to ensure that you are maintaining proper security and record-keeping. Be prepared for these inspections and cooperate fully to demonstrate your commitment to safety and compliance.

This kind of FFL (home-based) is a practical choice for those who want to maintain an FFL for personal use, collection, or occasional transactions without the need for a separate business location.

Starting a Business for Your FFL

While you can obtain an FFL without a traditional business, starting a firearms-related business is an option for those looking to expand their opportunities. Here’s what you should consider:

Business Type: Determine the type of firearms-related business you want to establish. This can include becoming a gun dealer, gunsmith, or firearm instructor. Each type of business has its own specific requirements, so research which one aligns with your skills and interests.

Zoning and Licensing: Ensure that your proposed business location complies with local zoning regulations and obtain any necessary business licenses or permits. Compliance with zoning laws is crucial to prevent legal issues.

Business Plan: Create a comprehensive business plan that outlines your goals, financial projections, and marketing strategy. A well-structured plan can help guide your business to success.

ATF Requirements: Be aware that an FFL for a business typically involves more rigorous ATF scrutiny, including background checks on all responsible persons and additional requirements for record-keeping and security measures.

“Business Intent” vs. FFL Business

When applying for an FFL without a traditional business, it’s essential to understand the concept of “business intent.” This concept is a crucial distinction in the eyes of the ATF:

Business Intent: When applying for an FFL without a business, you must demonstrate to the ATF that you have a genuine intent to engage in firearms-related activities. This intent can be established by activities such as occasional buy/sell guns, gunsmithing, firearm instruction, or collecting.

You don’t have to operate as a typical business, but you must show a legitimate interest and commitment to these activities.

FFL Business: If you decide to start a traditional firearms-related business, the requirements are more comprehensive. You must meet all the necessary ATF regulations, business licensing, and zoning compliance specific to your business type.

This includes engaging in commercial activities such as regular buying and selling firearms or gunsmithing services.

FFL Business Requirements

When you decide to run a firearms-related business, you must meet certain FFL business requirements to comply with federal regulations and ensure the responsible and legal operation of your business:

Business Type: Determine the specific type of firearms-related business you want to operate, such as a gun store, gunsmithing shop, firearm manufacturing facility, or firearm instruction center.

Zoning Compliance: Ensure that your business location complies with local zoning regulations and obtain any necessary permits or licenses. Zoning laws may restrict where you can establish a firearms-related business.

Security Measures: Implement adequate security measures to safeguard your firearms inventory. This includes secure storage, alarm systems, and surveillance cameras, which are crucial to prevent theft and illegal access to your firearms.

ATF Inspections: Understand that as a business, you will be subject to ATF inspections to verify that you are adhering to all federal regulations. This includes scrutinizing your record-keeping, security protocols, and overall compliance with firearms laws.

Record Keeping: Maintain detailed and accurate records of all firearms transactions, which is a requirement for FFL businesses. Proper record-keeping is essential to track firearms in your inventory and to assist law enforcement in case of a crime investigation.

Responsible Persons: Ensure that all individuals involved in the business, referred to as responsible persons, meet the eligibility criteria and pass background checks.

Meeting these FFL business requirements is essential to not only operate within the boundaries of the law but also to establish a reputable and responsible firearms-related business.

Business Requirements for NFA Firearms

If your firearms business intends to deal with National Firearms Act (NFA) items, such as silencers, short-barreled rifles, armor piercing ammunition, and machine guns, you must meet additional requirements:

Special Occupational Tax (SOT): FFL businesses dealing with NFA firearms are required to pay a Special Occupational Tax. This tax is categorized into various levels (Class 1, Class 2, and Class 3), depending on the type of NFA items you intend to deal with.

Registration and Transfer: The NFA items must be registered with the ATF, and transfers must be approved. This involves extensive paperwork and background checks for both the FFL holder and the potential buyer or transferee.

Compliance with NFA Regulations: Adherence to NFA regulations is critical. This includes maintaining proper records, reporting the loss or theft of NFA items, and ensuring secure storage.

State Laws: Be aware that state laws regarding NFA items may vary, so it’s crucial to comply with both federal and state regulations.

Obtaining an FFL, whether for personal use, collecting, or running a business, is a significant responsibility. The choice between having a business or not depends on your specific goals and interests in the firearms industry.

Regardless of your path, compliance with all federal, state, and local laws and regulations is paramount.

Taking steps to maintain secure storage, rigorous record-keeping, and consistent adherence to the law will ensure a successful and responsible FFL experience.

What are the most common FFL types for businesses?

The most common FFL types for businesses are Type 01 (Dealer in Firearms), Type 02 (Pawnbroker in Firearms), and Type 07 (Manufacturer of Firearms). The specific type you need depends on the nature of your firearms-related business.

How long does the ATF inspection take for FFL businesses?

The duration of an ATF inspection for FFL businesses can vary depending on the complexity and size of your operation. It typically takes several hours to a full day, but more extensive businesses may require multiple visits.

What is the role of the ATF in FFL regulation?

The ATF (Bureau of Alcohol, Tobacco, Firearms and Explosives) is responsible for regulating and overseeing the issuance, compliance, and enforcement of Federal Firearms Licenses (FFLs). The ATF conducts background checks, inspections, and investigations to ensure that FFL holders are operating within the law.

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Tax Time Guide 2024: What to know before completing a tax return

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IR-2024-45, Feb. 21, 2024

WASHINGTON — During the busiest time of the tax filing season, the Internal Revenue Service kicked off its 2024 Tax Time Guide series to help remind taxpayers of key items they’ll need to file a 2023 tax return.

As part of its four-part, weekly Tax Time Guide series, the IRS continues to provide new and updated resources to help taxpayers file an accurate tax return. Taxpayers can count on IRS.gov for updated resources and tools along with a special free help page available around the clock. Taxpayers are also encouraged to read Publication 17, Your Federal Income Tax (For Individuals) for additional guidance.

Essentials to filing an accurate tax return

The deadline this tax season for filing Form 1040, U.S. Individual Income Tax Return , or 1040-SR, U.S. Tax Return for Seniors , is April 15, 2024. However, those who live in Maine or Massachusetts will have until April 17, 2024, to file due to official holidays observed in those states.

Taxpayers are advised to wait until they receive all their proper tax documents before filing their tax returns. Filing without all the necessary documents could lead to mistakes and potential delays.

It’s important for taxpayers to carefully review their documents for any inaccuracies or missing information. If any issues are found, taxpayers should contact the payer immediately to request a correction or confirm that the payer has their current mailing or email address on file.

Creating an IRS Online Account can provide taxpayers with secure access to information about their federal tax account, including payment history, tax records and other important information.

Having organized tax records can make the process of preparing a complete and accurate tax return easier and may also help taxpayers identify any overlooked deductions or credits .

Taxpayers who have an Individual Taxpayer Identification Number or ITIN may need to renew it if it has expired and is required for a U.S. federal tax return. If an expiring or expired ITIN is not renewed, the IRS can still accept the tax return, but it may result in processing delays or delays in credits owed.

Changes to credits and deductions for tax year 2023

Standard deduction amount increased. For 2023, the standard deduction amount has been increased for all filers. The amounts are:

  • Single or married filing separately — $13,850.
  • Head of household — $20,800.
  • Married filing jointly or qualifying surviving spouse — $27,700.

Additional child tax credit amount increased. The maximum additional child tax credit amount has increased to $1,600 for each qualifying child.

Child tax credit enhancements. Many changes to the Child tax credit (CTC) that had been implemented by the American Rescue Plan Act of 2021 have expired.

However, the IRS continues to closely monitor legislation being considered by Congress affecting the Child Tax Credit. The IRS reminds taxpayers eligible for the Child Tax Credit that they should not wait to file their 2023 tax return this filing season. If Congress changes the CTC guidelines, the IRS will automatically make adjustments for those who have already filed so no additional action will be needed by those eligible taxpayers.

Under current law, for tax year 2023, the following currently apply:

  • The enhanced credit allowed for qualifying children under age 6 and children under age 18 has expired. For 2023, the initial amount of the CTC is $2,000 for each qualifying child. The credit amount begins to phase out where AGI income exceeds $200,000 ($400,000 in the case of a joint return). The amount of the CTC that can be claimed as a refundable credit is limited as it was in 2020 except that the maximum ACTC amount for each qualifying child increased to $1,500.
  • The increased age allowance for a qualifying child has expired. A child must be under age 17 at the end of 2023 to be a qualifying child.

Changes to the Earned Income Tax Credit (EITC). The enhancements for taxpayers without a qualifying child implemented by the American Rescue Plan Act of 2021 will not apply for tax year 2023. To claim the EITC without a qualifying child in 2023, taxpayers must be at least age 25 but under age 65 at the end of 2023. If a taxpayer is married filing a joint return, one spouse must be at least age 25 but under age 65 at the end of 2023.

Taxpayers may find more information on Child tax credits in the Instructions for Schedule 8812 (Form 1040) .

New Clean Vehicle Credit. The credit for new qualified plug-in electric drive motor vehicles has changed. This credit is now known as the Clean Vehicle Credit. The maximum amount of the credit and some of the requirements to claim the credit have changed. The credit is reported on Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit , and on Form 1040, Schedule 3.

More information on these and other credit and deduction changes for tax year 2023 may be found in the Publication 17, Your Federal Income Tax (For Individuals) , taxpayer guide.

1099-K reporting requirements have not changed for tax year 2023

Following feedback from taxpayers, tax professionals and payment processors, and to reduce taxpayer confusion, the IRS recently released Notice 2023-74 announcing a delay of the new $600 reporting threshold for tax year 2023 on Form 1099-K, Payment Card and Third-Party Network Transactions . The previous reporting thresholds will remain in place for 2023.

The IRS has published a fact sheet with further information to assist taxpayers concerning changes to 1099-K reporting requirements for tax year 2023.

Form 1099-K reporting requirements

Taxpayers who take direct payment by credit, debit or gift cards for selling goods or providing services by customers or clients should get a Form 1099-K from their payment processor or payment settlement entity no matter how many payments they got or how much they were for.

If they used a payment app or online marketplace and received over $20,000 from over 200 transactions,

the payment app or online marketplace is required to send a Form 1099-K. However, they can send a Form 1099-K with lower amounts. Whether or not the taxpayer receives a Form 1099-K, they must still report any income on their tax return.

What’s taxable? It’s the profit from these activities that’s taxable income. The Form 1099-K shows the gross or total amount of payments received. Taxpayers can use it and other records to figure out the actual taxes they owe on any profits. Remember that all income, no matter the amount, is taxable unless the tax law says it isn’t – even if taxpayers don’t get a Form 1099-K.

What’s not taxable? Taxpayers shouldn’t receive a Form 1099-K for personal payments, including money received as a gift and for repayment of shared expenses. That money isn’t taxable. To prevent getting an inaccurate Form 1099-K, note those payments as “personal,” if possible.

Good recordkeeping is key. Be sure to keep good records because it helps when it’s time to file a tax return. It’s a good idea to keep business and personal transactions separate to make it easier to figure out what a taxpayer owes.

For details on what to do if a taxpayer gets a Form 1099-K in error or the information on their form is incorrect, visit IRS.gov/1099k  or find frequently asked questions at Form 1099-K FAQs .

Direct File pilot program provides a new option this year for some

The IRS launched the Direct File pilot program during the 2024 tax season. The pilot will give eligible taxpayers an option to prepare and electronically file their 2023 tax returns, for free, directly with the IRS.

The Direct File pilot program will be offered to eligible taxpayers in 12 pilot states who have relatively simple tax returns reporting only certain types of income and claiming limited credits and deductions. The 12 states currently participating in the Direct File pilot program are Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington state and Wyoming. Taxpayers can check their eligibility at directfile.irs.gov .

The Direct File pilot is currently in the internal testing phase and will be more widely available in mid-March. Taxpayers can get the latest news about the pilot at Direct File pilot news and sign up to be notified when Direct File is open to new users.

Finally, for comprehensive information on all these and other changes for tax year 2023, taxpayers and tax professionals are encouraged to read the Publication 17, Your Federal Income Tax (For Individuals) , taxpayer guide, as well as visit other topics of taxpayer interest on IRS.gov.

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Bureau of Alcohol, Tobacco, Firearms and Explosives

Search form, you are here, types of federal firearms licenses (ffls).

Types of Federal Fireams Licenses (FFLs)

Types of Federal Firearms Licensees (FFLs):

What is an FFL ?

An individual who is licensed to engage in the business of manufacturing, importing and/or dealing in firearms. Persons must be licensed by ATF to engage in the business of firearms.

Types of FFLs :

01 – Dealer in firearms other than destructive devices.

02 – Pawnbroker in firearms other than destructive devices.

09 – Dealer in destructive devices.

Manufacturers :

06 – Manufacturer of Ammunition for Firearms Other Than Ammunition for Destructive Devices or Armor Piercing Ammunition.

07 – Manufacturer of firearms other than destructive devices.

10 – Manufacturer of destructive devices, ammunition for destructive devices or armor piercing ammunition.

08 – Importer of firearms or ammunition for firearms other than destructive devices or ammunition other than armor piercing ammunition.

11 – Importer of destructive devices, ammunition for destructive devices or armor piercing ammunition

03 – Collector of curios and relics.

Follow ATF on Instagram: @ATFHQ | Twitter: @ATFHQ | Like ATF at facebook.com/HQATF .”

Published by ATF on July 19, 2016

Download PDF Version

More From Forbes

Irs targets private and corporate jet usage. are you ready for it.

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Taylor Swift’s private jet flight from her concert in Japan to the Super Bowl in Las Vegas was tracked as heavily by my 11 year old daughter and other so-called Swifties as heavily as she tracked Santa on Christmas Eve. Whether that flight is tax deductible may now be the subject of an Internal Revenue Audit. The IRS announced today plans to begin dozens of audits on business aircraft involving personal use.

PERTH, AUSTRALIA - MARCH 4: Taylor Swift departs Perth Airport on March 4 2012, in Perth, Australia. ... [+] (Photo by Faith Moran/GC Images)Flights like this will be examined under a new IRS audit campaign announced today.

Are Private Jet Flights Tax Deductible?

“Business aircraft are often used for both business and personal reasons by officers, executives, other employees, shareholders and partners. In general, the tax code passed by Congress allows a business deduction for expenses of maintaining an asset, such as a corporate jet, if that asset is utilized for a business purpose. However, the use of a company aircraft must be allocated between business use and personal use. This is a complex area of tax law, and record-keeping can be challenging,” according to an IRS press release.

Having represented several taxpayers in audits involving private and corporate jet usage, I can comfortably say that calling this a “complex area of law” where “record-keeping can be complicated” is a severe understatement. Some private aircraft are owned by a separate legal entity instead of directly by the operating business. This solves liability problems but can create tax problems, because payments between related entities can lead to federal excise taxes on air transportation. Setting aside the question of how the aircraft is owned (or partially owned), the answer to the question of whether the cost of private flights are deductible is - as with most legal questions - it depends. The American Jobs Creation Act of 2004 and its regulations put additional limitations on deducting aircraft for personal use.

In order to be tax deductible, at a minimum, the purpose of the flight must be for business. If business is typically conducted locally, the cost of private flights likely won’t be deductible. In addition, if business travel is between major cities that are regularly served by major airlines, the IRS will be loathe to allow the cost of a private flight as an ordinary and necessary business expense.

Good Recordkeeping is Key

Anyone who fears they might be selected for this type of IRS audit should start making sure that all of the relevant records for any years in which a deduction was taken now. Those records, at a minimum, should include:

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• Date of flight

• Departure airport

• Arrival airport

• Flight hours and miles

• Passenger manifest

• Purpose of flight for each passenger

• Evidence of lack of available commercial flight option (Not required but certainly good to have)

The Tax Cuts and Jobs Act created a temporary 100 percent deduction for certain business assets, allowing businesses to deduct the entire cost of assets such as private jets in the first year if the property was acquired between September 27, 2017 and before January 1, 2023. Suddenly owning a private aircraft is a lot more attractive to corporations and high net worth individuals. Couple that with the recent influx of funding the IRS received from the Inflation Reduction Act and the increased efforts to examine high-income, high net worth individuals, and the IRS set its sights up in the sky.

“The IRS continues to increase scrutiny on high-income taxpayers as we work to reverse the historic low audit rates and limited focus that the wealthiest individuals and organizations faced in the years that predated the Inflation Reduction Act,” according to IRS Commissioner Denny Werfel. “We are adding staff and technology to ensure that the taxpayers with the highest income, including partnerships, large corporations and millionaires and billionaires, pay what is legally owed under federal law. The IRS will have more announcements to make in this important area.”

As with any new IRS audit campaign announcement, those who fear they might be selected for the private jet audit campaign should call a tax attorney now. Preparing for these audits is labor intensive, and the more time to prepare for them, the better.

Guinevere Moore

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COMMENTS

  1. [How-To] Get Your FFL License: Step-By-Step Guide

    If you want to operate a business selling, manufacturing, or importing firearms, you need a Federal Firearms License or FFL. An FFL allows you to purchase firearms from distributors or manufacturers within the United States at wholesale prices, then turn around and sell them to the general public. Want to sell these bad boys? Well, buckle in.

  2. FFL Requirements

    Business Intent FFL Requirement. In order to get an FFL from the ATF, you MUST have a business intent. This may not be as big of a deal as you think but it's not minor either. You do not have to have a business plan to open up a retail gun shop. But, you must have at least some business intent.

  3. Federal Firearms Licensee Quick Reference and Best Practices Guide

    Revised December 2021 ATF Industry Operations Investigators (IOIs) assist Federal firearms licensees (FFLs) in understanding and complying with the laws and regulations for operating a firearms business.

  4. FFL License Requirements: A Step-by-Step Guide

    October 30, 2023 by McMillan If you've ever considered owning, selling, or trading firearms in the United States, you've probably heard the term "FFL." But what exactly is an FFL, and what are the requirements for obtaining one to become a Federal Firearms Licensee?

  5. Federal Firearms Licenses

    If you intend to engage in a business involving the dealing, manufacturing, or importing of firearms, or manufacturing or importing ammunition, you must apply for a federal firearms license (FFL) from ATF. A person may seek a collector of curios and relics license which applies only to transactions related to acquiring, holding, or disposing of curio and relic firearms as

  6. Home Based FFL [2024]

    Updated February 4 Contrary to popular belief, getting a home based FFL is perfectly legal, easy to do, and very common. Unfortunately, there are many myths about getting a home based FFL from the BATF. So, why should you trust the information I'm writing for you here?

  7. How to Become a Federal Firearms Licensee in 10 Easy Steps

    How To Become a Federal Firearms Licensee in 10 Easy Steps 1. Decide to become a Federal Firearms Licensee (FFL). 2. Go to www.ATF.gov and locate the required form (ATF Form 7). 3. Complete and mail in an accurate application (ATF Form 7) with the proper licensing fee to the address listed on the form. 4.

  8. FFL License Requirements

    An FFL License is a license issued by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to an individual or business for making, importing, selling, or repairing firearms as a business activity. To be clear, an FFL License is NOT required to manufacture or sell firearms under federal law. In fact, it is perfectly legal under ...

  9. FFL License Types: Which FFL Is Right For You?

    Beginner's Guide FFL License Types: Which FFL Is Right For You? FFL License Types: Which FFL Is Right For You? Buying a tank isn't as straightforward as going to your local gun shop Ready to launch your own gun business? This handy guide walks you through the different types of FFLs you need to know about. BY Megan Kriss, Published March 31, 2021

  10. Federal Firearms Licensing: An Overview

    The Federal Firearms License (FFL) allows individuals to engage in business related to the manufacture of ammunition or firearms or the interstate or intrastate sale of firearms. Holding an FFL to pursue these activities has been a legal requirement in the United States since 1968, with the passage of the Gun Control Act.

  11. FFL Dealer Resources

    The first three steps are: A business plan, business solutions, credit cards processing, finance, etc. Professional development and assistance. Knowing local, state and federal regulations. Gun stores have an added step that is just as important. Security is vital. SECURITY BATF is BIG on security.

  12. Home-Based FFL

    Table of Contents Can I Run an FFL out of My Home? Types of FFLs Home-Based FFL Requirements How to Apply for an FFL Home-Based FFL Zoning Do You Need a Business to Obtain a Home-Based FFL? Is Being an FFL Profitable? What States Are FFLs Required In? Maintaining Compliance As a Home-Based FFL License Holder

  13. Obtaining a Home-based FFL [2022]

    The ATF requires home based FFLs to do a few simple things, like maintain at least one day a week of posted business hours, comply with local laws and zoning regulations, and to be in the actual business of selling guns.

  14. Online Firearms Marketing and Your FFL Business Plan

    Business moves at the speed of online these days. An FFL business plan must include this. Blogs, video, websites and social media are all part of the mix. The top 100 gun-related Internet outlets as ranked by viewers include social media and websites. Here is a look at these outlets and what it takes to start one.

  15. Ultimate FFL Guide 2022

    An FFL is required to commercially sell firearms to the general public, as all new guns must be sold through an FFL. Many states prohibit private party gun sales, too, and FFLs have to handle background checks on those gun sales as well. Sample FFL License Brandon Maddox, CEO FFL123 Q: How can I get my FFL? Q: How do I check an FFL License?

  16. FFL Responsibilities and Regulations

    LIKES 1 FFL Responsibilities and Regulations Having a Federal Firearms License (FFL) brings with it a set of responsibilities and duties. Every FFL holder gets a package of information from the Bureau of Alcohol, Tobacco, Firearms and Explosives (BATF) that explains everything in detail. The 237-page book can be downloaded here.

  17. Creating a Business Plan

    This section of your business plan will look at the financial aspects of your business. As a new business you will need to include: Break-even analysis. Financial ratio calculations. Internal and external funding requirements. Projected revenues and profits over one, three, and five-year terms.

  18. Apply for a License

    Once you have decided to make an application for a Federal Firearms License (commonly referred to as an "FFL"), send the completed application to the ATF post office box listed on the application form, Application for License (FFL) - ATF Form 7/7CR. The application must be accompanied by the proper application fee, which you can pay by ...

  19. Business plan for new FFL

    1. FFL requirements and fees 2. Local zoning and state requirements for the business 3. Incorporation (LLC) 4. Business liability ins 5. Security Where I'm stumped is, as I do more research I'm not seeing how anyone could make money doing this.

  20. Get an FFL: Texas Federal Firearms License

    It depends on the area's specific zoning requirements and how you plan to operate your business. Zoning laws could also make establishing your home-based FFL as a business address challenging. If your community's rules say you can't operate a business from a residential neighborhood, you might need to explore retail locations or consider ...

  21. How to Obtain an FFL in New Jersey:

    The requirements for obtaining an FFL in New Jersey may vary depending on the type of firearms business you plan to operate. You can find more information about the needs of each kind of FFL on the ATF website. The Application Process. Once you've determined which type of FFL to obtain, you can begin the application process.

  22. How To Get an FFL Without a Business? [Easy Guide]

    [Easy Guide] How To Get an FFL Without a Business? [Easy Guide] November 1, 2023 by McMillan Why Should You Get a Federal Firearms License? Obtaining a Federal Firearms License (FFL) is not just a matter of paperwork; it's a significant step for any responsible firearms enthusiast. Here's why you might want to consider getting an FFL:

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  24. Tax Time Guide 2024: What to know before completing a tax return

    The credit for new qualified plug-in electric drive motor vehicles has changed. This credit is now known as the Clean Vehicle Credit. The maximum amount of the credit and some of the requirements to claim the credit have changed. The credit is reported on Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit, and on Form 1040 ...

  25. Types of Federal Firearms Licenses (FFLs)

    Persons must be licensed by ATF to engage in the business of firearms. Types of FFLs: Dealers: 01 - Dealer in firearms other than destructive devices. 02 - Pawnbroker in firearms other than destructive

  26. IRS Targets Private And Corporate Jet Usage. Are You Ready For It?

    The Tax Cuts and Jobs Act created a temporary 100 percent deduction for certain business assets, allowing businesses to deduct the entire cost of assets such as private jets in the first year if ...