FFL01 for self-enhancement

[CheapBloke]

Do people get these? Or I mean do people get FFL01 for self-enhancement than conducting businesses? What is the legalities of it? Do FFL01s have to conduct or fulfill their responsibilities as a FFL?

Just wondering, as I search through

https://opengovus.com/firearms-license/

I am finding lots of FFL01 holders near me that I have never heard of. Most of them are kitchen FFLs, but unheard of anywhere across forums or reddit, like they want to stay hidden. A few has the most basic website offering only 4 items like https://pragma-dynamics.com/ in OC.

So what's the deal on it? Should we be trying for FFL01s instead of FFL03s?

Here's another that says they don't have a business yet, but have FFL01 lic. https://m.facebook.com/ZealousFirearms/

They are looking for people to invest with them to make a indoor range in OC., but what are they doing with FFL01 until they do have business?

Or how about Matco Tools in Lake Forest, holder of FFL01 lic, but sells auto hardware tools. Do they have to conduct in firearm transactions?

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[ASD1]

to get a FFL01 / you need a business lic that is for retail sales at your location. This causes a problem with zoning. There are a lot of FFL's that have 01 or 07 and are not open to the public.

[Quiet]

In order to legally operate as a firearms dealer in CA, they must meet all the requirements in PC 26700.

If they do not meet all the requirements, then they can not legally operate as a firearms dealer, even though they may have a valid 01-FFL.



Penal Code 26700
As used in this division, and in any other provision listed in Section 16580, “dealer,” “licensee,” or “person licensed pursuant to Sections 26700 to 26915, inclusive” means a person who satisfies all of the following requirements:
(a) Has a valid federal firearms license.
(b) Has any regulatory or business license, or licenses, required by local government.
(c) Has a valid seller’s permit issued by the State Board of Equalization.
(d) Has a certificate of eligibility issued by the Department of Justice pursuant to Section 26710.
(e) Has a license issued in the format prescribed by subdivision (c) of Section 26705.
(f) Is among those recorded in the centralized list specified in Section 26715.

Penal Code 26705
(a) The duly constituted licensing authority of a city, county, or a city and county shall accept applications for, and may grant licenses permitting, licensees to sell firearms at retail within the city, county, or city and county. The duly constituted licensing authority shall inform applicants who are denied licenses of the reasons for the denial in writing.
(b) No license shall be granted to any applicant who fails to provide a copy of the applicant’s valid federal firearms license, valid seller’s permit issued by the State Board of Equalization, and the certificate of eligibility described in Section 26710.
(c) A license granted by the duly constituted licensing authority of any city, county, or city and county, shall be valid for not more than one year from the date of issuance and shall be in one of the following forms:
(1) In the form prescribed by the Attorney General.
(2) A regulatory or business license that states on its face “Valid for Retail Sales of Firearms” and is endorsed by the signature of the issuing authority.
(3) A letter from the duly constituted licensing authority having primary jurisdiction for the applicant’s intended business location stating that the jurisdiction does not require any form of regulatory or business license or does not otherwise restrict or regulate the sale of firearms.
(d) Local licensing authorities may assess fees to recover their full costs of processing applications for licenses.

Penal Code 26710
(a) A person may request a certificate of eligibility from the Department of Justice.
(b) The Department of Justice shall examine its records and records available to the department in the National Instant Criminal Background Check System in order to determine if the applicant is prohibited by state or federal law from possessing, receiving, owning, or purchasing a firearm.
(c) The department shall issue a certificate to an applicant if the department’s records indicate that the applicant is not a person who is prohibited by state or federal law from possessing firearms.
(d) The department shall adopt regulations to administer the certificate of eligibility program and shall recover the full costs of administering the program by imposing fees assessed to applicants who apply for those certificates.

Penal Code 26715
(a) Except as otherwise provided in paragraphs (1) and (3) of subdivision (b), the Department of Justice shall keep a centralized list of all persons licensed pursuant to subdivisions (a) to (e), inclusive, of Section 26700.
(b)(1) The department may remove from this list any person who knowingly or with gross negligence violates a provision listed in Section 16575.
(2) The department shall remove from the centralized list any person whose federal firearms license has expired or has been revoked.
(3) Upon removal of a dealer from this list, notification shall be provided to local law enforcement and licensing authorities in the jurisdiction where the dealer’s business is located.
(c) Information compiled from the list shall be made available, upon request, for the following purposes only:
(1) For law enforcement purposes.
(2) When the information is requested by a person licensed pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code for determining the validity of the license for firearm shipments.
(3) When information is requested by a person promoting, sponsoring, operating, or otherwise organizing a show or event as defined in Section 478.100 of Title 27 of the Code of Federal Regulations, or its successor, who possesses a valid certificate of eligibility issued pursuant to Article 1 (commencing with Section 27200) of Chapter 3, if that information is requested by the person to determine the eligibility of a prospective participant in a gun show or event to conduct transactions as a firearms dealer pursuant to subdivision (b) of Section 26805.
(d) Information provided pursuant to subdivision (c) shall be limited to information necessary to corroborate an individual’s current license status as being one of the following:
(1) A person licensed pursuant to subdivisions (a) to (e), inclusive, of Section 26700.
(2) A person who is licensed pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code, and who is not subject to the requirement of being licensed pursuant to subdivisions (a) to (e), inclusive, of Section 26700.

[Nardo1895]

There may be a number of things happening.

The first step in becoming an 01 is to get the FFL from ATF. They will issue that without any other licenses or permits. However, they will revoke it if you do not obtain your State CFD permit and your local business license. At least that is how it worked in my county. Neither the County nor the State would issue their licenses/permits until I had a valid FFL. This may be why you find some 01s without the other permits and licensees, they may be in the process.

ATF made it clear in my interview that I had to be in the business. It could not be using it simply as a cover for collecting. They did not define what "in the business meant", other than to say that I have to have a business license for "Retail Sale of Firearms". I have inprepreted "in the business" to also include "I better be selling more guns than I'm buying for myself, and I better make money at it". Otherwise its eventually going to be considered a hobby; if not by ATF, then by IRS.

Zoning is a huge issue. Most home-based businesses are allowed "by right", but not FFLs. It took a lot of doing to get the county to issue me a firearms business license without going through the Conditional Use Permit process which is time consuming and can be expensive. If I lived within one of the incorporated cites I would have never been able to get a home based firearms retail license. That isn't to say its impossible everywhere, but certainly not common.

I don't advertise or have a website. I can't have random people showing up at my house. I work primarily on word of mouth although I am listed on gunbroker as a transfer dealer and I occasionally get a call from someone there.

Its pretty expensive to operate as a 01FFL. I don't recall exactly but I bet it cost me about $1500 in permits, licenses, and fees to get set up and there was no guarantee I'd be successful in getting all of the necessary permits. Annual insurance alone is about $1400 per year. If we have to go to 24/7 video surveillance that is going to be another significant cost. Annual permits, licenses, ... I suppose these costs might not be daunting for a serious collector, but coupled with ATF and DOJ's insistence that you be "in the business" doesn't make it practical to get an 01 for personal fulfillment.

I ship a lot of firearms to other dealers. I have shipped to FFLs held by feed stores, paint stores, hardware stores, mechanic shops, ginning and milling companies - you name it. There is a FFL in my home town that works out of an antique mall. Lots of businesses hold an FFL as a side to their main business.

[ronlglock]

[CheapBloke]

So a youtuber or insta-w/es, etc., can get this exempt FFL?

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[ASD1]

So a youtuber or insta-w/es, etc., can get this exempt FFL?

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I think it would only pass the giggle test if you had manufactures sending you products to review and wright about / make vid's. Rember you need to be making money doing it. So if Smith and Wesson is not sending you the newest neatest firearm to check out and post about and or paying you / you get the idea

[ronlglock]

FFL01 for self-enhancement

I think it would only pass the giggle test if you had manufactures sending you products to review and wright about / make vid's. Rember you need to be making money doing it. So if Smith and Wesson is not sending you the newest neatest firearm to check out and post about and or paying you / you get the idea

Exactly. As I said, you need to prove you are making a living through using firearms before DOJ will issue a CFD. You may get asked for previous years returns, business registration or written business plan.