Not the Home FFL Holder

[Vincent1966]

Hi,

My partner and I have a home ffl. He (not me) lives at the home where the ffl is registered by the ATFE. Since we've been in business, its seems this venture has been very one sided. He has a "regular" job (8-5, M-F), I am self-employed and have no set hours. I basically work 24/7. His home is out of the way from where I work and spend most of my time so I have to go there for transfers and sales, while he is at work. When a gun is sold out of state, I am the one that packages it and sends it to the local FFL of the buyer. This all happens during "business" hours while he is at work.

I recently purchased a number of firearms from a local auction. While it was nice to use my FFL, I fronted my own cash for the items. I now I am faced with the task of making sure the guns fire correctly, sending them to the mfgr (if needed), making sure they fire correctly, cleaning them, and shipping them off to the buyer's ffl. I've agreed to put the profits from the sales back into the company. Going to an auction seems ideal, but for me it was a bad idea. I've learned from this and vowed never to go to an auction for firearms on behalf of the FFL.

There is a lot more to this story but I did not sign up to THR just to complain. I would like to hear from others who have a home ffl and have a situation similar to mine.

 

[mnrivrat]

The issue is one of a business partnership without proper guidlines being established. Getting together with a friend to run a business is the easiest way to end the friendship, and that is what your facing.

I think you and your partner need to sit down and have a discussion on how your going to handle the issues you present. Then you can decide whether to continue the thing at all, and if so, there should be a written agreement regarding the devision of responsibilties and profits.

The answer is to be in agreement ,and to then put it in writing. Your time and money used to buy and market product, and a 50 - 50 split of profits is not a good formula. You know that - he should understand that.

 

[rule303]

Having an FFL has a lot less to do with guns than it does with running a business. Hate to say it, but you really should have sat down and came up with a business plan before going into business, especially with another person. Welcome to the industry, where not only are the profit margins extremely thin, you have a lot more record keeping and paperwork than your average business.

 

[dogtown tom]

meatcreeper Hi,

My partner and I have a home ffl. He (not me) lives at the home where the ffl is registered by the ATFE. Since we've been in business, its seems this venture has been very one sided. He has a "regular" job (8-5, M-F), I am self-employed and have no set hours. I basically work 24/7. His home is out of the way from where I work and spend most of my time so I have to go there for transfers and sales, while he is at work. When a gun is sold out of state, I am the one that packages it and sends it to the local FFL of the buyer. This all happens during "business" hours while he is at work.

I recently purchased a number of firearms from a local auction. While it was nice to use my FFL, I fronted my own cash for the items. I now I am faced with the task of making sure the guns fire correctly, sending them to the mfgr (if needed), making sure they fire correctly, cleaning them, and shipping them off to the buyer's ffl. I've agreed to put the profits from the sales back into the company. Going to an auction seems ideal, but for me it was a bad idea. I've learned from this and vowed never to go to an auction for firearms on behalf of the FFL.

Being a "home FFL" has nothing to do with it. A partnership with a retail storefront would have exactly the same issues.

I take it that your partnership is a handshake deal and has no written agreement?

If it's so one sided........get your own FFL.

 

[Onward Allusion]

This is not about a "Home FFL"...etc...etc... You need a legal agreement between you and your partner, whether it is a partnership agreement, incorporation, LLC...etc...etc. Also, I personally would never go into business with my wife.

Free advice from the Internet - Business and personal ALONE is difficult enough to manage. Mix the two together and many times one or both will fail.

 

[Vincent1966]

Hello Everyone,

I appreciate the comments. Pretty much "on the money". While there are some variations, there are some constants here. (1) A partnership is what it states it is--an agreement to operate a business. (2) Have a plan, don't just start a business (or agree to become part of a business as is my case). (3) Treat the business like a business. I've been running a small business for a number of years. A partnership is a whole 'nother animal.

Update: Since this post, I did email my partner and stated in writing a proposal of what should be done with the auction items acquired, pending their agreement. This was a learning experience on both our parts and to be honest I made some HUGE mistakes as far as the partnership goes (although completely in compliance with the ATFE if they are "listening")

I did see where the partner responded but I have not read it yet. Will probably do so after this post.

Someone mentioned getting my own ffl. After having read the comments posted here, I don't think that would be necessary once the plans and agreements are in place. Also, my personal interest in firearms does not necessitate the need for a separate ffl.

Again, thanks to everyone that took the time to comment. Looking forward to participating on THR on other subjects.

MC

 

[larryflew]

As one who went into a business partnership with my best friend I recommend getting out of it and on your own. We used golf together, gambe together even vacation together without our wives. We eventually broke the business into 2 and no longer speak to each other other than what is necessay for business. We would have taken a bullet for each other but now...........

 

[blaisenguns]

You should have created a partnership agreement before you started the venture, explicitly stating what each of you bring to the table and are liable for, etc. Now you are in an unlimited partnership, which means you are completely responsible for his bad business decisions (or vice versa). I would have started a C corporation and split up the stock between you, that way you each limit your own liability, and you have to create a corporate charter and name yourselves as officers of the corporation and put each of your responsibilities to the business down on paper.

 

[Brockak47]

sounds to me like you guys need to talk to your friend / business partner. You guys need to work out and divvy up the work load evenly.

That's one of the many joys of owning your own business =D

 

[Vincent1966]

sounds to me like you guys need to talk to your friend / business partner. You guys need to work out and divvy up the work load evenly.

That's one of the many joys of owning your own business =D

Thanks. We talked, things are getting better. Just got to work past a few things.

You should have created a partnership agreement before you started the venture...

Yes, you are right. We did the LLC thing instead. My partner did some of this, like setting up the LLC. I did some parts of it, like setting up the DBA(s). I'll be honest, if I had to do more than that, I probably would not have signed on.

As one who went into a business partnership with my best friend I recommend getting out of it and on your own.

You are absolutely correct. In my case though, if I got out, I would not start my own. There are other way to satisfy my needs "firearms-wise". But your point rings out so true. In my other life, my main business, there was talk about me and a friend/colleague teaming up to do something together. That would have been a HUGE mistake.

Once again, great responses. Greatly appreciated.

MC

 

[Certaindeaf]

If you are doing 100% of the work (not that I know, didn't really read) you should get 100% of the reward, save were "it" bankrolled 100% by them (there are of course various potential permutations/iterations).. then, they would be justified of receiving perhaps 7-10% annualized return for the use of their money.