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4/23/2016 9:41:47 AM EDT
Leaning very strongly towards applying for an FFL. I'm rural and this would be a kitchen table. there are no restrictions of a home business where I am. A quick search shows only 2 FFL's in my half of the county.

Anybody have any tips or wisdom? Advice? Info or things to consider on tax deductions for the home?
4/23/2016 10:42:44 AM EDT
[#1]
Not FFL specific but there are tax deductions that can be used to for a home based business. It amount of deduction depends on your business type.

https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Home-Office-Deduction

This IRS site has some good information. The simpler method they have put together is much less complicated than the old way but IMO it does not provide for as much in deductions as good old fashioned calculations. If you do your own taxes and are familiar with reading the IRS publications I would highly suggest taking the longer road. At least if only to find out if the simple deduction will give you more or less than the regular.
4/23/2016 11:11:05 AM EDT
[#2]
Quoted:
Leaning very strongly towards applying for an FFL . . .
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Good lord, why? Seriously . . . why do you want to do that?
4/23/2016 12:34:46 PM EDT
[#3]
Cause I'm tired of driving 15 miles to do a transfer. Also, closest FFL charges $50 for handgun and $100 for rifle to ship. I figure I could provide better rates for my area. I know of only 2 within reasonable distance that are under $30, all the others charge $50 plus. I think there is a market for cheaper transfers for my area.
4/23/2016 3:50:36 PM EDT
[#4]
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Cause I'm tired of driving 15 miles to do a transfer.
How far do you think your customers will want to drive?
How many people live within a twenty minute drive?
Save yourself some grief and write up a simple business plan.



Also, closest FFL charges $50 for handgun and $100 for rifle to ship.
$50 to ship a handgun? If that includes his fee, it isn't anywhere close to being outrageous. If it's $50 + actual shipping/insurance/adult sig then yeah, you can do it cheaper.

I figure I could provide better rates for my area. I know of only 2 within reasonable distance that are under $30, all the others charge $50 plus. I think there is a market for cheaper transfers for my area.
If the price difference is that big, the $50 guys don't really want to do transfers.
If you don't have a business plan, arbitrarily picking a transfer fee is downright stupid.



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4/23/2016 4:07:10 PM EDT
[#5]
Quote History
Quoted:
Cause I'm tired of driving 15 miles to do a transfer. Also, closest FFL charges $50 for handgun and $100 for rifle to ship. I figure I could provide better rates for my area. I know of only 2 within reasonable distance that are under $30, all the others charge $50 plus. I think there is a market for cheaper transfers for my area.
View Quote


So, would you do this for your own benefit or because you want to be in the gun business?
4/23/2016 4:58:59 PM EDT
[#6]
Quote History
Quoted:


So, would you do this for your own benefit or because you want to be in the gun business?
View Quote View All Quotes
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Quoted:
Quoted:
Cause I'm tired of driving 15 miles to do a transfer. Also, closest FFL charges $50 for handgun and $100 for rifle to ship. I figure I could provide better rates for my area. I know of only 2 within reasonable distance that are under $30, all the others charge $50 plus. I think there is a market for cheaper transfers for my area.


So, would you do this for your own benefit or because you want to be in the gun business?


Not for my personal benefit. Financial benefit sure. I'd like to take a step into the gun business and see how it goes.
4/23/2016 5:04:47 PM EDT
[#7]
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Quoted:

View Quote View All Quotes
View All Quotes
Quote History
Quoted:
Quoted:
Cause I'm tired of driving 15 miles to do a transfer.
How far do you think your customers will want to drive?
How many people live within a twenty minute drive?
Save yourself some grief and write up a simple business plan.



Also, closest FFL charges $50 for handgun and $100 for rifle to ship.
$50 to ship a handgun? If that includes his fee, it isn't anywhere close to being outrageous. If it's $50 + actual shipping/insurance/adult sig then yeah, you can do it cheaper.

I figure I could provide better rates for my area. I know of only 2 within reasonable distance that are under $30, all the others charge $50 plus. I think there is a market for cheaper transfers for my area.
If the price difference is that big, the $50 guys don't really want to do transfers.
If you don't have a business plan, arbitrarily picking a transfer fee is downright stupid.






Yes, $50 plus materials for a handgun. $100 plus shipping for a rifle locally.

Majority of the brick and mortar are $50 transfer. Most kitchen table are $25-$35 locally. I wouldn't be trying to undercut the local guys, but definitely less than the storefront guys. Thanks for the business plan write up. I need to do that and go from there.

Situationally, I'm county, and at the intersection of several major roads and 3 min from a major highway. My backyard is the edge of city limit, population ~35k.
4/23/2016 5:54:28 PM EDT
[#8]
Go for it. I was in a similar situation when I started. I have changed my business model several times as circumstances warrant.
4/23/2016 6:23:56 PM EDT
[#9]
Pick a niche that is currently under-served in your area. We chose to concentrate on suppressor sales.
4/23/2016 11:23:26 PM EDT
[#10]
I was in your boat this time last year.  No regrets getting mine.  Do it and dont look back.



Also, just because you can take a home business credit consider it may not be worth the regular audit to keep those credits.  I choose to leave a lot on the table just to avoid the hassle of an audit.
4/23/2016 11:33:10 PM EDT
[#11]
How much capitol have you budgeted?
4/23/2016 11:39:05 PM EDT
[#12]
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How much capitol have you budgeted?
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I can manage the application fee. Plus the cost of upgrading my security system and adding a higher quality safe. I am planning a future cost of home modifications to make the office only accessible from an exterior door. Also prepared for a website and business cards as initial cost.

Are there other fees associated if you are not a storefront/not a stocking dealer?
4/24/2016 12:26:16 AM EDT
[#13]
You are going to want operating capitol for a variety of reasons.  There are plenty of expenses that will spring up but just to get up and running isn't too bad.
4/24/2016 3:08:02 AM EDT
[#14]
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...Plus the cost of upgrading my security system and adding a higher quality safe. Not required by ATF to even have a lock on the front door.
I am planning a future cost of home modifications to make the office only accessible from an exterior door. Not required by ATF
Also prepared for a website and business cards as initial cost.

Are there other fees associated if you are not a storefront/not a stocking dealer? In the eyes of ATF, there is zero difference between a kitchen table dealer and a brick and mortar dealer.
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Quoted:
Quoted:
How much capitol have you budgeted?


...Plus the cost of upgrading my security system and adding a higher quality safe. Not required by ATF to even have a lock on the front door.
I am planning a future cost of home modifications to make the office only accessible from an exterior door. Not required by ATF
Also prepared for a website and business cards as initial cost.

Are there other fees associated if you are not a storefront/not a stocking dealer? In the eyes of ATF, there is zero difference between a kitchen table dealer and a brick and mortar dealer.

4/25/2016 11:46:59 AM EDT
[#15]
Been doing some more reading, mainly about home owners insurance increasing.

Couple more questions, Can you do only transfers and some assembly/disassembly of rifles? Do you have to sell firearms, or is it acceptable to basically just do transfers and some minor gunsmithing?

Is it worth it to get an LLC for a simple operation like this?

I wouldn't have much interest in selling, and would probably not stock firearms. If this is a requirement then I'm not going to bother.

I'm not looking to get rich, Just make some extra money on the side to toss into savings or fund more ammo.
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