Federal Firearms License

Obtaining Your FFL

2009-05-29T21:32:00.000-07:00

Many people aren’t aware how easy the opportunity is to go from owning their own guns to opening their own firearms business.

Owning your own guns is a right that all can certainly easily enjoy, as it is a second amendment right to bare arms. However, the selling of guns is a whole other story.

In order to do this, you need to find out how to get your Federal Firearms license. At first, it may seem overwhelming; searching the web, contacting local government authorities, finding the right forms to fill out and where to mail them, discovering the costs involved, and doing it all in the correct, time-saving order. There is good news, however. You can find companies or individuals who have already been through the process from start to finish that offer step-by-step guides that will ensure you waste no time or money in obtaining your ffl.

You must understand what agencies are involved in the process and what laws there are that you must follow before becoming a dealer.

First, you must go through the Bureau of Alcohol, Tobacco, Firearms and Explosives. One of its many responsibilities is determining who is eligible to receive a federal firearms license. There are certain things that they will and will not require of you. Pay attention to the following situations that immediately put up a red flag if not corrected.

-You must be at least twenty-one years old to sell guns. There is absolutely no exception to this rule and for obvious reasons. One reason being that you cannot even own a gun until you’re at least 21.

-You must have a physical location to set up a business. It must be an actual building or store where you can sell guns and collect money from customers in a safe and secure manner. Your home will not work including the garage, spare room, etc. and you definitely cannot sell firearms online. Locate a place to run your business, establish overhead costs, and then apply for your license.

-No one can prohibit you from using firearms. If you have ever been arrested for armed robbery and are now placed on parole, you won’t be allowed to sell firearms legally anytime in the near future.

-If you have ever violated the Gun Control Act your application will not be accepted.

-Applying for your federal firearms license is a simple step-by-step process but can easily become near impossible and too complex if you lie on your application. The government has smart people who will investigate everything about you and your past and could possibly hold that against you in the future. Good luck ever trying to sell a weapon again at that point.

-Every business must comply with its state’s business laws. Depending on the type of business you open, i.e. Sole Proprietor, Limited Liability Company, etc., you will need to ensure you follow the laws, tax reporting, and registration renewals on a continual basis.

Okay, so you feel confident that you are ready to apply for the license, what you need to do now is contact the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and submit an application. An application fee will be in the price range of $30-$3000, depending on the type of non-destructive or destructive firearms you will be dealing with.
Some other variables that determine the price are if you are a manufacturer, importer, pawnbroker, dealer or just a collector. You can expect the government processing time to take 2 months on average.

Be sure not to skip any of the steps and to make sure that all your ducks are in a row when applying for the ffl. Again, the safest and fastest way to do this is to simply buy or download an ffl instructional guide that also includes software to maintain inventory and licensing active status.

Curio and Relics License

2009-05-15T21:52:00.000-07:00

What is a Curio and Relics License?

The C&R Federal Firearms License was established in 1968 under the Gun Control Act of 68. This license allows a way for a collector of military firearms that are over 50 years old to ship, transport, receive and acquire curios or relics either within the U.S. or outside to other ffl licensees. Now, just so you know, each state has the right to impact what you can and cannot do with your C&R FFL.

Purpose of the Type 3 Federal Firearms License

If you are like most gun collectors, you are interested in the Type 03: Collector of Curio and Relics. (C&R) FFL. This license type is very inexpensive compared to the 01 type. The fee to obtain a 3-year license is only $30, or $10 per year. One of the major benefits and reasons why you should get your c&r ffl is that you can collect old military surplus rifles directly from importers without having to go through individual gun dealer, which usually includes them receiving their markup spread. These guns can be shipped directly to your front door. Additionally, there is very little paperwork/records that need to be kept and they don’t have to be very detailed. Now, if you are already, or are an aspiring guns dealer, the type 3 license is a nice addition to your licenses that allows you to focus primarily on your own personal gun collection hobby.

Do you want to sell any of your c&r firearms?

As mentioned earlier, the c&r license purpose is mainly for the collecting of antique firearms. However, you may want to sell or trade part of your collection, maybe in hopes of enhancing it. The paperwork required to keep when you sell a C&R firearm is minimal. I recommend a simple Bound Book where you can enter in purchases and dispositions. These books are inexpensive. You can even download free templates and print them out. Whenever you add a firearm to your collection you need to note the manufacturer/importer, model, action type, caliber, date received, and the name/address and/or the FFL number of the seller. When you sell a firearm you have to enter in the same information about the person or business purchasing from you. No background check is required and you do not have to file Form 4473. Be sure to make a photocopy of their drivers license or FFL. Unlike the 01 FFL dealer, you do not need to file any documentation with the ATF if you decide to quit collecting or selling.

ATF Forms

2009-05-01T21:54:00.000-07:00

There are various forms that you have to file with the ATF in order to comply with the law. Here, I’ve listed a few of the most common ones and an explanation of what they are for including ATF Form 7, ATF Form 4 and ATF Form 4473.

ATF Form 7

Your very first step in becoming a ffl licensed dealer is in obtaining all of the required paperwork. In most cases, this means filling out an ATF Form 7, which is an Application for License. The individual that is applying for the federal firearms license must fill out this ATF Form.
Keep in mind that if you are attempting to open more than one sales locations dealing with firearms, you must file a new application, including the application fee for each new location. The fee is $ 200.00 for the first 3 years. Then becomes $90.00 upon renewal. The process of applying for a federal firearms license might seem overwhelming however; the process is actually quite simple. Almost anyone can handle it with just a little help. The process is not immediate. If you do everything correctly from the start, receiving your ffl usually only takes weeks, not months. You might also find that the time you spend waiting to receive your license is a great opportunity to get your business open and functioning. As long as you take the time to go over everything thoroughly and review all of the requirements before applying for the license, the application process should go very smoothly.

Form 4 ATF

This form is a per-item transfer form. It is much like a tax return where it lists all items you have purchased or sold. You will need one of these forms for each item you buy, and it will also require the specific item serial number and description. When you are ready to purchase an item it’s important that you understand that you have to have the specific weapon in mind before getting started with all the paper work. The good new is when you buy from a dealer they usually help you with all the paperwork. The Form 4 ATF is also pretty clear to understand anyway.
In most cases, if you are doing an in state transfer you can do so without a dealer.
If the weapon you want is out of state then you will need a transferring dealer.
Either way, most of the time you will have to pay for the weapon before all the paperwork even starts.
Another important fact is that Form 4 does not allow your corporation to possess NFA weapons. NFA weapons are: machine guns, sound suppressors (a.k.a. silencers), short barreled shotguns, short-barreled rifles, destructive devices, etc.

ATF Form 4473

This form is a Firearms Transaction Record, which all firearms purchasers are required to complete before buying a gun from a federal firearms licensee. Every year, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) discovers thousands of licensed gun dealers in obvious violation of federal law even for only minor problems.

The ATF conducts approximately 11,000 inspections per year. In order to eliminate many mistakes and violations, they have come up with an Internet friendly, Form 4473. Instead of filling out all the required paperwork by hand, dealers are now able to more effectively complete documentation via this electronic version. Officials consider this a fail-safe way of maintaining such records as it cuts down on illegible or incomplete answers. Such errors account for roughly 60% of the violations cited each year by the ATF.