Can't answer all of your questions, but I have had my FFL since the late 80's-early 90's (before the Clinton era) and can honestly say I have had very few problems with the ATF. When I first applied, the cost was $30 for 3 years and the process was very simple. After Clinton was elected, the renewal process became a pain in the @$$. The cost went from $30 to $90 for renewal, with the initial fee, I believe, increased to $200. I spent a few hours on the phone in interviews and had to call a couple of times (to hurry things along) just for the renewal, but since the original Clinton era renewal process, all I have had to do is send my $90 and then receive a current FFL (if you remember, Clinton was going to stomp out all of those "illegal" gun traders by reducing the number of FFL to those who had a "legitimate" business). I thought about not even dealing with the hastle of the whole process, but I decided I would not go down without a fight - they were going to have to take my license.
As for the paperwork, I do not use my business as a tax shelter (I seem to not make any money, just order for myself, family, and friends) so I do not deal with the IRS tax part. I do have a sales tax number and file yearly for all purchases, sales, etc. (want to stay legal). The A&D paperwork for the purchase and sales is nothing more than bound book recording all purchases and sales.
IMHO, for me it is worth the time and trouble spent to have the freedom to call and receive guns directly to me without having to use a middleman.
Cris
