FFL License Setup
Setting up your FFL is a decision that requires a little bit of thought. Some decide to get their federal firearms license strictly as an individual while others choose to set up a LLC or other more formal corporate structure. You also have the option to add a trade name (like Bob’s Guns, etc.), or as a legal entity- several trade names, to your FFL license.Don’t let the vast amount of options confuse or overwhelm you; you can always choose to stick with the simple path. However, if you’re entering into your FFL license with big plans in mind, you can organize your license to fit your needs. For example, let’s say you want to sell your own line AR-15 rifles which you’ve custom assembled or manufactured. You can set up a limited liability corporation; let’s call it Bob Brown Enterprises, LLC. Bob Brown Enterprises, LLC can then have two trade names- one for assembling the rifles under and one for selling them. You can assemble your rifles under the trade name Bob’s Custom ARs and sell them under your trade name Guns ‘N More. This is just an example situation but one you may find would benefit you in your ventures. It is important to understand all the options available before you start because changes can often mean starting over.
There are a few stipulations on the multiple trade names. The ATF’s licensing database only has space for fifty characters in its trade name field. Therefore, you will need to keep that in mind when choosing your trade names. Also, you’ll need to be aware of what and where your activities with your FFL license will be. In our example situation, the assembly and sale of the custom rifles would need to take place at the same location, otherwise there would need to be two separate FFL licenses. Also, you need to be aware of what the license allows you to do. If you’d want to import guns and manufacture or assemble guns, you’d need two separate licenses- a type 08 to import and a type 07 to manufacture/assemble.
To learn more about your options and what’s right for you, Join FFL123.com today! We look forward to sharing with you our experiences and expertise!