Llc or business license

[n2877]

I'm not sure which one to do. I want to get my ffl license to start my own side business just as a hobby. But not sure if an llc or business license would be better. Any thoughts woyld be helpful. Not even sure if I need a registered business name for an ffl license. Is there anything else I need to now about/look into or research such as zoning.

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[ColoradoTJ]

http://info.legalzoom.com/need-llc-b...ense-3261.html

[spqrzilla]

The requirement of a business license is a county or city licensing requirement established by ordinance.

An "llc" is a business entity. Whether it would make sense to create a business entity has nothing to do with whether or not you need a business license.

And that legal zoom article is so full of nonsense that is utterly useless.

[Brian]

Start with what do you want to do... what's your business model going to be, and why do you want to get your FFL? Do you just want to get your license for mostly personal benefit? Hoping to make some money on transfers? Gunsmithing only? Planning to stock inventory and compete online or local? Full-time, part-time, etc. If something goes wrong (you sell/transfer a gun, and someone gets hurt/killed and someone sues you), what is your level of exposure if they sue you personally and try to take your house? That will tell you a lot about what business type you need to look into. Regardless of business type (corp, LLC, SP, etc.) you will need state and city licenses. To get your FFL, ATF will be looking for approval from city zoning, HOA, etc. You will need to figure out insurance - if you're planning to go home-based, be careful, as your primary home owner's insurance may cancel you if they find out you are running a "gun" business out of your home.

I would recommend talking to a lawyer, or at least your accountant before diving in. Don't believe everything you read online about getting your FFL either. ATF's online info is actually pretty good on getting your FFL license, but won't tell you about what your business model or business type should be.

Good luck!

[n2877]

Thanks for the help. I was planning on making money doing transfers for people. And mabey one day start a small store. Maybe even do some guns smiting on the side as well. I will definitely get in contact with a lawyer. Thanks again. If anyone knows a good lawyer that info would be helpful.

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[BPTactical]

Maybe's won't get you far. You need a definitive business plan and direction. You take the shotgun scatter approach and you will fail. That is why I focused strictly on Gunsmithing. No retail/transfers. It keeps the focus in one direction and trust me, that one direction is more than enough to keep me at a minimum very busy and typically borderline overwhelmed.
One thing the BATFE is big on as far as issuing a license- you must comply/conform to all local laws as far as being in business first and foremost- zoning laws, local business license, state tax ID, Federal Tax ID etc.
Have them all in place BEFORE you apply for your FFL.
It gives them a warm fuzzy that you are on the up and up plus substantially less to deny you on.

One thing- with JugEars new edicts on defining "engaged in business" and FFL's I think one would be wise to give it a little time and see what it boils down to. It may become very difficult in the future to delineate a "hobby" and a "business" and in all honesty if you are not doing it as a business the "hobby" aspect will not be worth the hassle.

[def90]

Thanks for the help. I was planning on making money doing transfers for people. And mabey one day start a small store. Maybe even do some guns smiting on the side as well. I will definitely get in contact with a lawyer. Thanks again. If anyone knows a good lawyer that info would be helpful.

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You need a business plan and any required local business licenses for the ATF to take your application seriously. The ATF doesn't just give out licenses to anyone anymore, last I heard they require a place of business as well, they will not likely give out a license to a guy working out of his house transferring guns on occasion. Most cities won't give you a business license if you work out of your house if you have a large number of customers coming and going. If you live outside of city limits you stand a better chance.

[bryjcom]

First step.. LLC

Second step.... Business license

third step.... FFL license.

LLC and business license is not an "either or" . You need both.

And listen to BPtactical. You need to know what you want and have a plan. Do your research and you'll figure it out. Don't forget your federal tax ID.



Just curious, do you have to have a store front for an FFL?

[spqrzilla]

Just curious, do you have to have a store front for an FFL?

If you read the FFL application, the answer is yes. But that's where the confusion with Obama's most recent executive order comes in.

[Circuits]

First step.. LLC

Second step.... Business license

third step.... FFL license.

LLC and business license is not an "either or" . You need both.

Depends on location - for instance, a business license is not required for an FFL or gun shop in Colorado Springs. Some confuse a sales tax license (city and state sales tax licenses required for any retail seller in COS) with a business license, but they are separate things.

A storefront is not required, nor is an LLC, depending on how the proprietor chooses to structure their business affairs.