Obtaining an FFL 01 and 06

[CylonGlitch]

I've been manufacturing my own ammo for a while, I have no problems with doing it.  I have read recently that several of the big ammo manufacturers were sold to China.   Thus I'm thinking of starting doing it for others.  At the same time I am thinking of buying and selling used guns as an FFL to help fund the project.  I have found where I might be able to get used guns but they only sell to FFLs.

Application process looks like it isn't that daunting.  Form to fill out, background information on the owners (myself and wife), photos, and finger prints. 

Has anyone been through the process?  One thing it says is that they will verify that you're in compliance with the state and local laws, but they don't say where to find those.   I don't think there would be anything I would be in violation of.

Any tips or suggestions?   Would people be willing to buy ammo from a small time vendor if prices were comparable?

[Darrell]

One more thing to consider would be liability insurance. 

[eRay]

29 minutes ago, CylonGlitch said:

I've been manufacturing my own ammo for a while, I have no problems with doing it.  I have read recently that several of the big ammo manufacturers were sold to China.   Thus I'm thinking of starting doing it for others.  At the same time I am thinking of buying and selling used guns as an FFL to help fund the project.  I have found where I might be able to get used guns but they only sell to FFLs.

Application process looks like it isn't that daunting.  Form to fill out, background information on the owners (myself and wife), photos, and finger prints. 

Has anyone been through the process?  One thing it says is that they will verify that you're in compliance with the state and local laws, but they don't say where to find those.   I don't think there would be anything I would be in violation of.

Any tips or suggestions?   Would people be willing to buy ammo from a small time vendor if prices were comparable?

When I got an FFL 10 years ago, after I submitted the application an ATF inspector came by to interview me and inspect the premises. He went over all the rules with me to make sure I understood them. He then required me to get a letter from the city codes enforcement officer stating that I was zoned for business. I had a funeral home on one side and a motel on the other, and my building had been a real estate office when I bought it, but he still wanted documentation that I was zoned for business.

[TripleGGG]

21 minutes ago, Darrell said:

One more thing to consider would be liability insurance. 

This is priority number 1 and may make it cost prohibitive. 

[eRay]

11 minutes ago, TripleGGG said:

This is priority number 1 and may make it cost prohibitive. 

Yep. 10 years ago, I bought mine through the NRA Business Alliance. It was with Lloyds of London and was about $1,900.00 a year. It covered liability and theft.

[Pain103]

You first probably need to check your county and city zoning and business licenses ordinances. Assuming you live in Humphreys County call the planning department or better yet go to the office look what zoning your property is and what is allowed. If you are in a city do the same. Then find out what they require for a business license. Then you can worry about the insurance and the federal bs background and inspection. This is assuming you are thinking about doing our FFL from your house.

Had a buddy had an business with his FFL from home. Didn't really turn any profit and additional tax prep. Realistically you probably aren't going to make enough money to be worth the hassle unless that doesn't matter. 

[CylonGlitch]

22 hours ago, eRay said:

I had a funeral home on one side and a motel on the other, and my building had been a real estate office when I bought it, but he still wanted documentation that I was zoned for business.

I have no one near by, I should check the local area to see if I can be zoned for a home business.  Thanks for the tip. 

[CylonGlitch]

22 hours ago, TripleGGG said:

This is priority number 1 and may make it cost prohibitive. 

Thanks, this is very important.  Not too bad.  I will have my wife get on this. She is really good with dealing with insurance companies. 

21 hours ago, eRay said:

Yep. 10 years ago, I bought mine through the NRA Business Alliance. It was with Lloyds of London and was about $1,900.00 a year. It covered liability and theft.

Thank you for the lead!

18 hours ago, Pain103 said:

Had a buddy had a business with his FFL from home. Didn't really turn any profit and additional tax prep. Realistically you probably aren't going to make enough money to be worth the hassle unless that doesn't matter. 

I have to go to the Humphrey county anyway, so I guess I will check it all out.  
 

I don’t expect to really make money on it.  But much more of a hobby that pays for itself. 

[eRay]

45 minutes ago, CylonGlitch said:

46 minutes ago, CylonGlitch said:

Thanks, this is very important.  Not too bad.  I will have my wife get on this. She is really good with dealing with insurance companies. 

Thank you for the lead!

I have to go to the Humphrey county anyway, so I guess I will check it all out.  
 

I don’t expect to really make money on it.  But much more of a hobby that pays for itself. 

 

I think it was $35 per year to join the NRA Business Alliance. I got a million dollar liability policy and $50,000 theft coverage for $1,900 a year. ATF does not require this coverage to get an FFL. If I were doing it again, I would just form a corporation to protect my personal assets and forgo the insurance. They were really big at that time on zoning. You need to make sure you can get something in writing from your local zoning authority stating you can operate a business in your location.

[CylonGlitch]

Good point. Just created a LLC for another project, easy enough to throw another one together.

[JayC]

On 1/20/2024 at 4:07 PM, CylonGlitch said:

Good point. Just created a LLC for another project, easy enough to throw another one together.

See about turning the LLC you have now into a Series LLC and it will save you $600 per year for every LLC you make in TN moving forward.

[OldIronFan]

Ammo manufacturing can come with some big issues. Requirements on how much powder you can store, where you store it, how much you can have in a single location, Distance requirements from your storage location to nearby structures and roadways.

If you are getting into more commercial level volumes there are a bunch of other things to consider like static discharge prevention. Things that are not a huge concern for a home reloader become a much bigger concern when you start dealing with pallets of powder kegs and primers.