Starting a NJ based FFL from Home

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jcerillo70

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Mar 31, 2011
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New Jersey
Hey guys,

In the next 2 months(While acquiring income) Im going to file to become an FFL here in NJ.

For those of you who have been through this i may need a little help

1.I applied for the FFL Packet from the BATF
2.Filed out the NJ app for retail firearms license
3.have the EIN page up from the irs
4. Have the nj tax/employer registration page up
5.and have to fill out the NJ State business Registration
Am i missing anything?

Also i'm stuck on the decision to be a Sole proprietor or a LLC. Obviously an LLC would be a better choice but because your assets are safer, But it is going to be just me and maybe my father as an employee. I'd like to go with the less expensive startup of the 2.

Thanks guys
 
Also i'm stuck on the decision to be a Sole proprietor or a LLC. Obviously an LLC would be a better choice but because your assets are safer, But it is going to be just me and maybe my father as an employee. I'd like to go with the less expensive startup of the 2.

It's only less expensive until you are sued. I can't offer any assistance with the FFL process, but in terms of your business structure, I cannot emphasize enough the importance of shielding your personal assets. Sole proprietorships jeopardize everything you own- house, car, savings acct. Forming an LLC is not a very arduous or costly process and is well worth the protection it affords.
 
I am a home based FFL. Form an LLC, it is the only way to go. The cost is minimal in the long run. And you have overlooked one very important thing: your local zoning. This is one of the first things the ATF will check. Your application will be denied if your business premise isn't either zoned to allow retail sales, or covered by a conditional use permit specifically allowing a firearms business in a residential area. Really, dealing with the ATF is a breeze. Your biggest hurdle is getting the proper zoning from your city/township/county. Many times they will require large insurance policies as a condition of your permit, so investigate all the requirements before you spend your money on the LLC, and FFL application. Good luck if you decide to go through with it. Feel free to PM me if you need any more info.
 
I completely forgot about the zoning. I would assume i can grab that info off my towns website. Let me see if i can find it.

Good old business 101 memories are coming back to me now lol
 
You need a business plan, insurance, and, I would imagine, some form of secure storage to hold customer's guns. Check your local zoning laws for running a business from your home
 
I just emailed the zoning board so ill see what they say. IF not then i always have my Fathers house to use as a front.

So ill have to see before i even start applying for anything and writing address's on apps

THANKS GUYS!
 
Try to remember this. The ATF has the right to show up, unannounced, at any time of the day or night and ransack your place of business. If that happens to be your home, plan on your privacy being pretty well wiped out. The can grab your kid's computer on the shallowest of pretenses. Your life is an open book when they get done with you. I would NEVER open an FFL business in my home. YMMV
 
Buck Snort Try to remember this. The ATF has the right to show up, unannounced, at any time of the day or night and ransack your place of business....

Myth.:scrutiny:

There is a difference between a compliance inspection, needing information for a firearm trace or customer information pursuant to a criminal investigation and biggest difference of all........the dealer is under criminal investigation and a search warrant for his premises has been issued by a judge.

An ATF IOI cannot just walk in anytime he feels like it and demand to see your books because he wants to.........there must be a legal and valid reason.

By law, ATF is limited to one unannounced compliance inspection per year. This inspection is limited to the dealers "bound book" (record of aquisitions & dispositions), Form 4473's, multiple sale of handgun forms and the dealers inventory. This compliance inspection is only held during the "business hours" you submitted to ATF.

ATF can, at any time request information for a firearm trace or criminal investigation. The dealer is required to accomodate this request and accepted this when he applied for his FFL. ATF will not kick in your door.....they call you.

ATF cannot seize the dealers records or remove them from the premises unless the dealer himself is the subject of a criminal investigation and they are executing a search warrant.

If ATF has convinced a judge that probable cause exists (that the dealer has committed a crime).......they have to get a warrant.
 
Try to remember this. The ATF has the right to show up, unannounced, at any time of the day or night and ransack your place of business. If that happens to be your home, plan on your privacy being pretty well wiped out. The can grab your kid's computer on the shallowest of pretenses. Your life is an open book when they get done with you. I would NEVER open an FFL business in my home.

This is 100% WRONG. When the ATF grants someone a FFL license, they are required to undergo a mandatory compliance inspection once a year. This inspection will be scheduled ahead of time. It is also limited to the part of your home which you've designated as your business. That means no searching your wife's underwear drawer, no rooting through your kid's toybox - just the safe, guns, bound book, etc.

Having an FFL in no way opens you up to unlimited, warrantless searches at the whim of the gov't. Anybody telling you so is a fool, and ignorant of the relevant rules and regulations. If you don't believe me, we have more than a few members here who are FFL's, who operate both brick-and-mortar and kitchen table operations and I'm sure they'll be happy to back me up.
 
This is 100% WRONG. When the ATF grants someone a FFL license, they are required to undergo a mandatory compliance inspection once a year. This inspection will be scheduled ahead of time. It is also limited to the part of your home which you've designated as your business. That means no searching your wife's underwear drawer, no rooting through your kid's toybox - just the safe, guns, bound book, etc.

Having an FFL in no way opens you up to unlimited, warrantless searches at the whim of the gov't. Anybody telling you so is a fool, and ignorant of the relevant rules and regulations. If you don't believe me, we have more than a few members here who are FFL's, who operate both brick-and-mortar and kitchen table operations and I'm sure they'll be happy to back me up.
Well ... not exactly.

1) I'm about to start my 3rd year as a home based FFL, and I've never had an inspection. (In fact, I think they -should- do one, say 3 - 6 months in, just so you can know you are doing stuff right. I'd hated to get several YEARS down the road and have them come in and say "you've been doing this wrong from day 1")

2) There is no "mandatory one year inspection". See above.

3) And yes they -can- come anytime during your listed business hours, un-announced. They normally =don't= ... but they can.

Yes, I am an FFL, and actually a former resident of Howard Co, Merry Land! (5 years ago)
 
mgkdrgn ....In fact, I think they -should- do one, say 3 - 6 months in, just so you can know you are doing stuff right....
+1
After my first year, I asked my IOI if he would do an inspection....nope.

He said ATF doesn't have enough IOI's to even do one inspection every three years.

They prioritize who gets inspections based on volume of sales. I believe ATF has a presentation from the last SHOT Show that explains all that.
 
This is 100% WRONG. When the ATF grants someone a FFL license, they are required to undergo a mandatory compliance inspection once a year. This inspection will be scheduled ahead of time. It is also limited to the part of your home which you've designated as your business. That means no searching your wife's underwear drawer, no rooting through your kid's toybox - just the safe, guns, bound book, etc.

Having an FFL in no way opens you up to unlimited, warrantless searches at the whim of the gov't. Anybody telling you so is a fool, and ignorant of the relevant rules and regulations. If you don't believe me, we have more than a few members here who are FFL's, who operate both brick-and-mortar and kitchen table operations and I'm sure they'll be happy to back me up.
I stand corrected.
 
bushmaster1313 I thought BATFE was not giving new licenses for kitchen table FFL's anymore

ATF doesn't give a rats hiney whether the applicant has a 10,000 sqft store in downtown or operates from a card table in his spare bedroom. (and they never have).

As long as the applicant can legally operate a business from the proposed "licensed premises" ATF will issue the FFL.

If your city, county, HOA or zoning do not permit a home based business you are out of luck.
 
As long as the applicant can legally operate a business from the proposed "licensed premises" ATF will issue the FFL.

If your city, county, HOA or zoning do not permit a home based business you are out of luck.

That's good to know.
Why do so many, including me, think that BATFE no longer issues to kitchen table FFL's?
 
bushmaster1313 .....Why do so many, including me, think that BATFE no longer issues to kitchen table FFL's?

Because ten years ago some guy posted on a gun forum about his buddy who has a cousin who's best friend's neighbor once tried to get an FFL and was denied. It doesn't matter why he was denied....it's just easier to say ATF doesn't allow home based dealers.:D

Seriously, during the Clinton administration ATF began to enforce it's own regulations. Many "kitchen table" dealers either weren't actually engaged in the business (using their FFL for personal use only) or were not operating legally (meaning they were in violation of city or county codes or were not zoned for business) and many did not possess the required business license or sales tax permits or were unwilling to obtain them.

Given the option to "get legal" or lose their license many chose to not renew.
 
Seriously, during the Clinton administration ATF began to enforce it's own regulations. Many "kitchen table" dealers either weren't actually engaged in the business (using their FFL for personal use only) or were not operating legally (meaning they were in violation of city or county codes or were not zoned for business) and many did not possess the required business license or sales tax permits or were unwilling to obtain them.

Sounds like a good answer
 
I just emailed the zoning board so ill see what they say.
IMO, this is something that would be better handled in person. If a conditional use permit is required, it will likely go before the Board of Commissioners; I would also request a meeting with your commissioner.

Good Luck.
 
Most of your problems are going to be from the State of NJ not ATF. Ask anyone who currently had a FFL.
 
The zoning board sent me a crazy email

The Township’s Ordinance pertaining to Home Office Use does not permit the sale of Fire Arms or any other direct sale of items from the residential properties within the Township. This type of use would require a use variance and site plan approval. An application would have to be submitted to the Howell Township Zoning Board of Adjustment seeking the use variance and upon obtaining the necessary relief from the Board to conduct sales from your residence in addition to obtaining the Federal Fire Arms License. It will also require that the Howell Township Police Department complete their investigation prior to obtaining the license and conducting the sales from your residence. I would suggest that if you have any questions concerning this procedure that you speak with one of the Detectives within the Howell Township Police Department which may be something that you may want to do prior to submitting an application to the Zoning Board of Adjustment. The Board may not want to act upon granting such an approval without first knowing that the P.D. has completed their investigation and you are able to obtain a license. I recall that the N.J. State Police are involved with approving such a license. In any case the use is not a permitted use without obtaining a use variance from the Zoning Board of Adjustment to conduct sales of fire arms from your residential property.
I trust that you will find this information helpful.

So i have to have a sitdown with the chief
 
The zoning board sent me a crazy email

Not really crazy it tells you some of the things you have to do.

The Township’s Ordinance pertaining to Home Office Use does not permit the sale of Fire Arms or any other direct sale of items from the residential properties within the Township.

Not discriminating against guns. You can't sell widgets directly from your house without the variance.

This type of use would require a use variance and site plan approval. An application would have to be submitted to the Howell Township Zoning Board of Adjustment seeking the use variance and upon obtaining the necessary relief from the Board to conduct sales from your residence in addition to obtaining the Federal Fire Arms License. It will also require that the Howell Township Police Department complete their investigation prior to obtaining the license and conducting the sales from your residence.

There are rules concerning the security of a gun dealer in NJ. Safes to lock up the guns, alarm systems, etc. This is where it can be expensive for you. They can require you have the safes and alarm systems installed before you apply (site plan approval). This means you have to lay out the cash for all this before you submit the application which still may be not be approved. When applying for such a variance letters usually go out to neighbors asking if they have any objection to your proposed application. They will be told you will be conducting a retail firearms business which may not sit too well with them. You can't blame people for objecting to any type of business from a residence. They want the neighborhood to be residential and not have strangers coming and going. These letters usually go out and instruct the neighbors to appear at the next board meeting or submit their objections in writing. Either way you won't know who objected and why until the meeting they will decide if the variance is granted or not. People objecting just because they don't want a business in their neighborhood is enough to kill your idea.

People spend big money in Howell for their houses and a business can affect their real estate value whether it be guns or buggy whips.

Just trying to make you aware of some of the realities of all this and it can cost you a lot of money to get disapproved.
 
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