Form an LLC First, Then Apply for Your Federal Firearms License

We are noticing a new business trend that many clients are taking advantage of. First, they form an LLC and THEN they apply for their FFL (Federal Firearms License) with the ATF. This generally allows you to operate a home business or store in the business of servicing, manufacturing, importing, and selling of firearms.  This business idea is becoming more and more popular, and here are some tips from our clients.

If you are planning on applying for a federal firearms license with the ATF, an LLC may be the way to go because the ATF is typically more inclined to approve your application if you apply as a business and not as an individual. A FFL can allow you to purchase, sell, and even manufacture handguns for a profit, among other things depending on your specific license.  They want to know that this is your business and not just a hobby.  The ATF typically will not approve this license for a person just looking to buy firearms for his personal collection.  They are looking for you to run this as a business for the purpose of making a profit.

Your LLC will have many other benefits as well when it comes to your FFL License.  Many wholesalers would rather do business with another company than an individual.  Creating a good relationship with wholesalers can be a great start in getting your business off of the ground.  On top of that, your LLC’s expenses, as well as the other costs involved in getting your FFL License can be deducted.  Speak with your tax professional on the specifics of exactly how your LLC can be a tax benefit for your FFL as a business

Another reason to form an LLC is for liability purposes.  Clients form LLCs everyday in order to separate their business activities from their personal assets. This is an important consideration, especially with the dangerous nature of the products you are selling and receiving.

We recommend that when filing an LLC do not use your personal name in the company name.  For example, John Smith LLC, tells everyone that John Smith is most likely the owner of John Smith, LLC.  This just takes away some of the privacy and security that your LLC can provide.

For more information and help in forming your LLC contact Harvard Business Services, Inc.  We have representatives that form companies everyday all day, and are happy to answer your questions. We can form an LLC for you in any state you choose, and can also give you the advantages of one state over another.

For more assistance in applying for a FFL, I have found FFL123.com to be a great resource.  I found the owner to be happy to assist you as well as quick to respond to your questions.  They provide a service that walks you step by step through the application process, as well as support on how to contact wholesalers, and stay in compliance with all Federal regulations.

If you’re thinking of getting a Federal Firearms License visit them at www.FFL123.com