FFL License Setup
Deciding to set up your FFL is definitely a process that involves a little bit of thought. Some people choose to obtain their federal firearms license strictly as an individual and other people choose a LLC or another more formal corporate structure alternative. You also have the alternative of adding a trade name to your FFL license (like Buddy’s Guns, etc.), or as a legal entity there are several trade names you can choose. Don’t let the huge amount of alternatives puzzle or defeat you; you can also decide on sticking with a far more easy way. Nevertheless if you have great plans in mind regarding starting off into your FFL, you could always set up your license a proper way that best suits your needs. As an example, we can pretend you wish to sell your own line of AR-15 rifles that you custom assembled and/or produced. You can start a limited liability corporation; that we can call John Doe Enterprises, LLC, only for the sake of the argument. Something you should know is that Bob Brown Enterprises, LLC can then have two different trade names - one related to rifle assembly and the second for selling them. For example: you can call one Bob’s Custom AR, the one dealing with assemble of rifles. And you could call the other one, the one related to sales, under the trade name Rifles ‘N More. This is just an example case – but it’s a good example that one could find beneficial to you in your endeavor. It is quite important to comprehend all the alternatives available before you begin, because in most cases, changes mean starting from the top. There are a few specifications related to the different trade names. The licensing database of the ATF can only store fifty characters in the trade name field. It’s important to keep this in mind when you try to choose your trade names. Also, you’ll need to pat attention of where and what kind your activities with the FFL license are going to be. In the situation we’ve used as an example, it is mandatory that the assembly and the sale of the custom firearms would occur in the same location. If the two actions would happen in two different locations, two separate FFL licenses would be mandatory. Also, you should pay attention of what the license you opt for actually permits you to do. If what you want to do is import firearms and produce or assemble firearms, you will also require two different licenses - a type 08 for the imports and a type 07 to produce and/or assemble firearms. Join FFLTrust.com
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