A popular belief is that it is not possible to get the FFL (Federal Firearms License) without a business. Lately, many people intend to get FFL without a business and wonder if they can get one or not.
Contrary to this belief, it is possible for you to get FFL without any business, and that is perfectly legal, easy, and opted by many.
ATF (The Bureau of Alcohol, Tobacco, Firearms and Explosives) requires you to have business intent before issuing you an FFL license. This is necessary for home-based FFL.
Here, we will tell you the difference between actual business and business intent and requirements for FFL without business. Before moving on to an explanation, understand what FFL is.
FFL is a license that allows individuals or organizations to import or interstate the sale of weapons and ammo. The Gun Law Act makes it mandatory for every user or organization involved in firearms sales to have FFL.
And when people ask if they can have FFL without any business, they actually mean to obtain FFL without owning an existing armory. Mostly, they do not intend to become full-fledged FFL dealers and want some easy side income.
Getting this license can help you make money from your home. You just need to order firearms at FFL dealer pricing and then sell them for profit. You can also get some profit simply from FFL transfers.
For getting FFL, you don’t need actual business but must have business intent.
Business intent means that you do not have a sole storefront for selling firearms. Instead, you want to run a home-based FFL. It will not stop you from using the firearm for personal use, but you must profit while running a firearm business from home. You can charge by firearms transfers or selling them.
You will do all these things as a sole proprietor without business with brick-and-mortar stores.
Another exception to getting FFL without business is for the collectors.
Usually, FFL’s are for commercial use, and you must be actively involved in the firearms business. However, FFL for collections doesn’t require active engagement and is not for commercial purposes. It is known as Curios and Relics FFL or C&R.
This type is 03 FFL and allows you to collect 50 years old or older guns or some newer guns.
As an individual, you don’t need a storefront to get one from ATF. However, it is possible only when you must set your application the right way and follow the given steps:
Before applying, ensure that you fulfill all requirements and are not prohibited from getting FFL from ATF. If you want to know the eligibility, you can visit their website and check it by clicking here.
Depending upon firearm activity, you can choose your FFL type. For example:
- If you intend to be a firearm dealer, you will probably get Type 1 FFL.
- Or you may get Type 2 FFL to pawn firearms.
- If you want it for sale, then you will get Type 7 FFL
- If you wish to collect Curios and Relic firearms, you will get Curio & relics FFL License (CR license) that doesn’t allow you to be a dealer, and no business intent is required.
Once you meet all requirements and set up everything perfectly, send your FFL application (ATF Form 7) and application fee to ATF.
They will conduct a background check on you and then issue you an FFL.
For years I have studied the irs regulations regarding forms and taxes. All the information in this blog is sourced from the Internal Revenue Service (Irs) of the United States government .
Salesforce Certified SALES & SERVICE Cloud Consultant in february 2020, Salesforce Certified Administrator (ADM-201) and Master degree in “Business Analytics & Big Data Strategy” with more than 13 years of experience in IT consulting.