FFL stands for federal firearms license, and it is not an easy task to get an FFL without a business. Even though it is possible, in the ATF, you will find the curio, relics FFL and C&R division which is 03 FFL. And thus, that can be used to receive firearms not less than 50 years old. Another way is through the collective value, and you can get a newer gun. Henceforth, with this license, you can get a gun in your name or even a surplus old military gun that is examined C&R without business.
Need to Have a Federal Firearms License
There are some points that you need to know about federal firearm licenses. For sure most people who get FFL are not actually looking to become full-fledged FFL dealers. Even though the store-front needs a license and you need an FFL to become a firearm manufacturer. Maximum people are looking to make some side money with their passion.
By getting an FFL, you can save money on guns, even from your home and make some money. For instance, you can just order a firearm from the FFL dealer price, and by selling the gun, you can actually make money. By just FFL transferring, you can simply make money. Other benefits, particularly if you become a SOT and get access to a firearm, are that you could not legally possess or make full auto machine guns, etc.
Does a Business need an FFL?
Well, the answer is no. A business does not require an FFL license. Even from an ATF, you can get an FFL. And thus became a gun dealer or gunsmith as an individual. There is a high chance that as a sole proprietor, your state might want you to get a business license.
You need to set the plan in the right way to get a federal firearm licence from ATF without a business. But in case you wanted to become a SOT to deal with class 3 then there are some important things that you need to take care of. We have mentioned them down below.
The Requirement of FFL Business
In case you choose a business one for FFL, then you need to meet some requirements that we are going to discuss. For instance, the business you choose must be registered in your state. Then, the name of the business must be on the FFL application to the ATF. Also, the very important thing is that the business must properly be formed with all ownership disclosed to the ATF. More information related to this topic is given below.
Getting an FFL without a Business
It is quite easier to get an FFL without a business. All you need to do is to set it up in the right way and avoid the common mistakes generally people make when they do it on their own. To become an FFL holder, you can either be a sole proprietor or a company forming an actual business.
Be careful, as you might face some issues like dealing with NFA firearms. It is because you will be registered as a SOT with your individual social security number or with the EIN as a company. We have mentioned some points on how you can get an FFL without a business. Follow the instructions as discussed below.
1. Make sure You meet the Requirement
To begin with, you need to make sure that you are not prohibited by ATF from getting an FFL license. To qualify for an FFL, you can legally possess a firearm. However, this is the beginning of the requirement that you need to apply. We will discuss more further.
2. Selecting the Correct FFL Type
The type of firearm activity that you need to conduct completely depends on the license type that you choose for the FFL application. Depending on what you do, you will find different types of FFL. For instance, in order to become a firearms dealer or a gunsmith in a gun store, you need to select the type 1 FFL.
You can also become a firearm dealer if you choose type 2 FFL in case you are looking to pawn a firearm. For selling the firearm, you need the type 7 FFL from the ATF. You can directly check on the FFL license types.
For example, if you only want to collect the curio and relic firearms, then you need a curio & relics FFL license. Also, for your information, there is no business target requirement, as the current license won’t allow you to be a dealer. In case you want to work with the NFA firearms, all you need to do is to become a special occupational taxpayer.
3. Go for an Online FFL Course
By taking an online course, you will learn all the needed background information so that you can make the right decision. Many people make mistakes on their application even though they get an FFL, but down the road, they face a lot of trouble with ATF.
You will find more than one company that offers your FFL if you want. You can go check out other lists. There is a high possibility that after selecting the course, you might change your mind about getting an FFL without business. Based on your particular situation and need, you will be able to make the right choices after understanding the whole scenario.
4. Submitting the FFL Application
After setting up everything properly, even without a business, you are now ready to send the FFL application along with the application fee to the ATF. Then, they will conduct a background check and will issue you an FFL. Information like application, photo and fingerprint card must be sent to the Federal Firearms Licensing Centre (ATF) along with local law enforcement.
Home-Based FFL
To be an FFL gun dealer, you don’t really need an actual gun shop. In case it is not prohibited by the local law, you can have a home-based FFL. A survey has said that the majority of the FFLs in this country are home-based.
You can run a retail firearm sale with a home-based FFL. But, in case there is a zoning issue and you are not allowed to have retail foot traffic, then you might need to do it online.
Start a Business For FFL
Though you might not be required to get a federal firearm license from ATF, you can start your own business. If you want to start a business, then first you need to determine which business type you want to operate.
After that, you need to establish the business entity and apply for the EIN with the IRS. Finally, register the business with the state. It might sound a bit hard, but it is absolutely not like that.
Conclusion…
So this was all the necessary information that you must know to get an FFL without a business. We have given all the guidance about this topic. All you need to do is to follow the guidance.
