Question about FFL transactions

[jsenner]

It's official, my FFL came in the mail yesterday just 11 calendar days after my interview. Thanks to everyone here for the help and advice on the process! You were all correct, the ATF guys are super friendly and really are doing everything they can to help. My interview ran about 3 hours and I learned a lot! I've sent in the signup forms to several distributors and am waiting on that process now.

Question: I'm in the process of digging into all the accounting aspects of this business tax wise and I've got the state tax requirements figured out, are there any federal taxing authorities I need to dig into as well? It looks like there's a 10% excise tax on pistols and 11% on everything else, but the firearms section doesn't list 01 dealers so it's not clear if the tax applies? Is this just for manufacturing/importing (that's my impression)?

Anything else you experienced FFL's can warn me about?

I'll post a normal FFL dealer announcement here when I've got all my ducks in a row. Thanks again!

[OldCannon]

FEAT is for manufacturing firearms, and as an 01, you don't do that.

Remember though that the ATF will tell you that putting a lower and upper together can definitely constitute "manufacturing," so don't do that. You also can't sell an AR lower and upper to a customer at the same time and NOT call it a complete rifle (in which case you are obligated to collect FEAT).

And congrats on the license! Now go join FFLOnly.com so you can ask all these questions to other FFLs. Oh, one bit of advice over there: Don't pay attention to anything the user "kwikrnu" says or asks, he's rude and dangerous and gives legitimate FFLs a bad name. If you want proof, just check out his website, I'm sure you will be able to find one of his more serious insults right there: http://www.kwikrnuarms.com/

[ryanr1299]

Congratulations and welcome.

[WildBill]

I'll post a normal FFL dealer announcement here when I've got all my ducks in a row. Thanks again!

Welcome to the forum jsenner. Where are you located?

[pbwalker]

slight threadjack, but does the ATF still "require" (use that term loosely based on some stuff I've read) a brick and mortar store to get your FFL? I've got my 03...I'd love to get my 01.

[OldCannon]

slight threadjack, but does the ATF still "require" (use that term loosely based on some stuff I've read) a brick and mortar store to get your FFL? I've got my 03...I'd love to get my 01.

Nope. My business is home based and Im an 01. They DO, however, expect you to demonstrate that you will operate a legitimate business.

[jsenner]

I'm just west of Georgetown about 4 miles. Right about midway between Judith in Liberty Hill and Guns Plus downtown. I'll be setting up for consignments, transfers, and also keep a small stock of new for sale.

I'm primarily doing CHL classes for small groups, couples, etc., and added the FFL as most of the people coming to me were just getting into shooting and were heading off to buy after taking a couple classes with me. Training classes are superb at building the customer relationship so it just makes sense for me to round out the picture this way.

Right now I'm working on what to start with as an initial inventory. My approach is for my training company to own one-of-each to use as loaners to students so they can get hands on time with it, then have the stock on hand to finish the deal.

[OldCannon]

Right now I'm working on what to start with as an initial inventory. My approach is for my training company to own one-of-each to use as loaners to students so they can get hands on time with it, then have the stock on hand to finish the deal.

That's a great approach to take if you have the capital to do it! The ability to test-fire a gun is a great selling point. My wife says I can't let customers test fire guns in our living room, so I can't offer that kind of service

[roughneck266]

lol Kwikrnu gets around!
Careful man you might get sued! lol

[OldCannon]

lol Kwikrnu gets around!
Careful man you might get sued! lol

Yeah, no kidding. That guy is a Professional Troll, with an FFL license to boot.

[roughneck266]

lol Kwikrnu gets around!
Careful man you might get sued! lol

Yeah, no kidding. That guy is a Professional Troll, with an FFL license to boot.

Dont forget got his SOT as well. I feel your pain just havent been there long enough to make any enemies.