GLP Standard
New member
I know very vague details on what is involved in becoming a dealer of NFA items. I want some advice from any dealers of NFA items on here on what is involved in getting started.
Just to clear things up right off the bat to prevent any confusion on my intentions, I want to go through this to start a legitimate, albeit small business on the side. I DO NOT want to obtain this license to avoid the tax stamp when purchasing NFA items, and I DO NOT want to get this license because I think it will allow me unlimited access to post '86 full auto. I am well aware that any post '86 firearms require a demo letter from a LE agency, and this is certainly not my intention.
That being said, I want to obtain information on:
a. What is involved in getting started? How much money would I be looking at?
b. How do you obtain inventory?
c. When obtaining inventory, do dealers get a discounted price?
d. How much money can potentially be made a year from such a business, considering the fact that it would be run at my home (if zoning allows) and it will be part time?
e. How many sales would I need to make a month to cover the yearly fees + a profit?
Most of those questions are self explanatory, but to elaborate on b and c...full auto is very expensive. I know this. At approximately $15,000+ for a preban full auto weapon, Im confused on how someone would get started when doing this out of their home? You almost have to take out a loan for a car just to make 1 sale. Say someone just got their dealer license, and is just starting out, has no NFA items, and wants to start making sales. How does this work? Do dealers get cheap weapons only to sell for full price and make a huge profit? How much of a profit can be made from one sale?
Please take these questions seriously. I know this has been asked before, but I want to run a LEGITIMATE business. My main motivation for doing this is because its the American dream to own your own business, and be your own boss. This would be a very small side gig, but nontheless, it would be MY OWN business, and thats what makes it worth it to me. If its impossible to make a profit, even if its only a few grand a year, I wouldnt bother. I have no interest in commiting tax evasion and thats not why Im asking this.
Any info would be great. My main concern is how you get started with inventory. I feel thats information I could only find from asking someone personally who has done it. My FFL dealer when I bought my AR had his Class III, and he worked solely out of his home, just him, so I know it can be done, and if he takes the time to do it, I know a profit can be made.
Things I know about getting a Class III license:
a. You first need an FFL
b. You need to own a legitimate business
c. You avoid paying tax stamps for transfers
d. Post '86 items are unobtainable unless a demo letter is obtained
e. The license costs $500.00 a year to maintain
f. You can expect yearly visits from the ATF to inspect your business
g. Record keeping is very tedious and has to be done a very precise way
Just to clear things up right off the bat to prevent any confusion on my intentions, I want to go through this to start a legitimate, albeit small business on the side. I DO NOT want to obtain this license to avoid the tax stamp when purchasing NFA items, and I DO NOT want to get this license because I think it will allow me unlimited access to post '86 full auto. I am well aware that any post '86 firearms require a demo letter from a LE agency, and this is certainly not my intention.
That being said, I want to obtain information on:
a. What is involved in getting started? How much money would I be looking at?
b. How do you obtain inventory?
c. When obtaining inventory, do dealers get a discounted price?
d. How much money can potentially be made a year from such a business, considering the fact that it would be run at my home (if zoning allows) and it will be part time?
e. How many sales would I need to make a month to cover the yearly fees + a profit?
Most of those questions are self explanatory, but to elaborate on b and c...full auto is very expensive. I know this. At approximately $15,000+ for a preban full auto weapon, Im confused on how someone would get started when doing this out of their home? You almost have to take out a loan for a car just to make 1 sale. Say someone just got their dealer license, and is just starting out, has no NFA items, and wants to start making sales. How does this work? Do dealers get cheap weapons only to sell for full price and make a huge profit? How much of a profit can be made from one sale?
Please take these questions seriously. I know this has been asked before, but I want to run a LEGITIMATE business. My main motivation for doing this is because its the American dream to own your own business, and be your own boss. This would be a very small side gig, but nontheless, it would be MY OWN business, and thats what makes it worth it to me. If its impossible to make a profit, even if its only a few grand a year, I wouldnt bother. I have no interest in commiting tax evasion and thats not why Im asking this.
Any info would be great. My main concern is how you get started with inventory. I feel thats information I could only find from asking someone personally who has done it. My FFL dealer when I bought my AR had his Class III, and he worked solely out of his home, just him, so I know it can be done, and if he takes the time to do it, I know a profit can be made.
Things I know about getting a Class III license:
a. You first need an FFL
b. You need to own a legitimate business
c. You avoid paying tax stamps for transfers
d. Post '86 items are unobtainable unless a demo letter is obtained
e. The license costs $500.00 a year to maintain
f. You can expect yearly visits from the ATF to inspect your business
g. Record keeping is very tedious and has to be done a very precise way