How to become an FFL (gun dealer) in California

[Librarian]

This is for those who contemplate opening a business to sell guns.

BATFE says
There are NO business requirements for a Curio & Relic FFL (C&R, 03 FFL).

Start reading here:

California Department of Justice Becoming A Firearm Dealer And/Or Ammunition Vendor In California

E-How - http://www.ehow.com/how_6400359_beco...alifornia.html
(Note they have the order of operations wrong - their step "5" should be step "2")

BATFE - http://www.atf.gov/firearms/how-to/become-an-ffl.html

CA-DOJ FAQ for FFLs - http://ag.ca.gov/firearms/dlrfaqs.php

Having read those for an overview, the first thing you must DO is contact your local business license agency.

An FFL applicant must have a business license that says, "Valid for the retail sale of firearms"
before they do anything else.

The CA DOJ will not issue you a valid CFD (centralized firearms dealer) number unless you have all of these items.

1. Local Business license stating "Valid for the retail sale of firearms".
2. Certificate of Eligibility (COE) (get it from CA DOJ)
3. Retail Sales Permit (BOE, Board of Equalization, sales tax permit)
4. Federal Firearms License

If you will accept guns 'on consignment' (and, why would you not?) you also need a "Secondhand Dealer license, issued by [your] local Chief of Police or Sheriff in accordance with Business and Professional Code Section 21641."

The secondhand dealer license/permit is a local thing, so it would be where you live,

but then you need to signup for the FDAS, which is on the CA DOJ webpage, but you need to know the special words

"Firearms Dealer Acquisition System" or "FDAS" :-).

http://oag.ca.gov/firearms/fdasoverview

FDAS info h/t kemasa, 7/31/2012

FDAS has been merged into DES; you still must submit "DROS ENTRY SYSTEM (DES) CONSIGNMENT AND/OR PAWN ACCESS APPLICATION", https://des.doj.ca.gov/forms/BOF_937...pplication.pdf

California DOJ had a page of forms useful for dealers at http://oag.ca.gov/firearms/forms

The Nov 1, 2012 list includes

* Application for Centralized List of Firearms Dealers (BOF 4080), pdf
* Application for Centralized List of Firearms Dealers Locally Inspected Dealership (BOF 4081), pdf
* Application for Centralized List of Exempted Federal Firearms Licensees (CLEFFL) and Exemption Declaration (BOF 10-07), pdf
* Certificate of Eligibility Application (BOF 4008), pdf
* California Firearms Licensee Check (CFLC) Enrollment Application (BOF 08-301), pdf
* California Firearms Licensee Check (CFLC) Firearms Shipment Modification/Cancellation (BOF 08-319), pdf
* Large-Capacity Magazine Permit Application (BOF 050), pdf
* Dangerous Weapons Licensee/Permitee Forms
* Employee Certificate of Eligibility Termination of Employment Notice (BOF 118), pdf

Using Contra Costa County as an example, their web site says

Check with County Zoning / Planning Department to make sure you locate your business at an address where it is allowed and that it does not heavily impact the neighborhood or require special parking consideration.

There is a Business License Application and an FAQ about Business licenses.

The full description of how to get a business license probably varies with every city and county and cannot possibly be included here.

There is some helpful business-related information (you were planning to run your new FFL location as business, remember?):

California Small Business Guide
CA Secretary of State Business Programs
Franchise Tax Board Tax Service Center
UC Merced's Small Business Development Center: Checklist for starting a business
and there are some handy city and county-based references: Orange, Sacramento, Claremont, Livermore

In ADDITION to Permits and Politics ...

The State has requirements for storage of firearms and ammunition, and local governments may add to these:
Penal Code 29141 describes a 'secure facility'; that's in with manufacturers (Division 7, Chapter 2), but also mentioned in
Penal Code 26890 regarding storage of inventory firearms by ordinary FFLs (Division 6, Chapter 2); 'secure facility' is not defined in that chapter, but instead in 'Definitions' at 17110 (Thanks to RedPandaGear, 7-18-21)

Some parts happily copied/stolen from posts lower in the thread - thanks!

=== 2022 Update ===

SB 1327 imposes comprehensive video surveillance requirements on FFLs as of 1 Jan 2024: PC26806

It also imposes an insurance requirement as of Jul 1 2023: PC 26811

[simanovkalashnikov]

Thanks librarian. That's what I was looking for. Does anyone have any comments or stories on how difficult it was to attain FFL in California? I just thought it would be as difficult as getting a Concealed Handgun Permit. Hopefully it isn't.

[tenpercentfirearms]

Librarian, edit your thread and tell them to start with the local business license agency. They must have a business license that says, "Valid for the retail sale of firearms" before they do anything else. The ATF will cash their check and issue an FFL that won't do them any good with the state if they do not have that business license first.

[kemasa]

I agree with Wes. If you can not get a local business license, which is the only one which might not be possible to get, then rest does not matter.

Also, they need to get a seller's permit (sales tax).

[dachan]

I've been asked this many times, and my standard response is that it usually comes down to the CLEO in your jurisdiction. A typical dealer in CA has the following licenses:

• FFL
• CFD / Centralized List
• COE
• Resale Cert
• Business License
• Local law enforcement

Getting a FFL is easy, to maintain it, you must be "in the business". In CA that means maintaining your status on the Centralized List. To maintain your status on the Centralized List you must have a Business License. To have a Business License, you must have approval of you local law enforcement. This requirement is actually codified in the PC and listed on your Centralized List confirmation as "Local Firearms License". In some jurisdictions, the Business License and Local Firearm License is combined.

A sidelight, before CFLC came into being, having just a FFL was still advantageous for buying firearms wholesale as it takes a while for the ATF to realize you're not in the business. Now with CFLC, the number of suppliers is greatly limited if you are not on the Centralized List, and just having a FFL is not much use as no in-or-out-of-state FFL's will be able to ship to you.

[dachan]

Why do you need a CFD / Centralized List for out of state shipping

Dave

Federal law requires the recipient of an interstate firearms shipment to be a license holder (there are a few exceptions, like a personal firearm being returned to the owner). Federal law does not require the shipper to be a license holder.

CA state law now requires any firearm shipped by a license holder to have CFLC authorization. CFLC authorization is only granted if the recipient is current on the Centralized List.

Therefore, if you are not on the Centralized List, you will not be able to receive any firearm shipments from any license holder. And since all manufacturers, distributors, wholesalers and retailers of firearms are license holders, you will be severely limited on who can ship you a firearm, meaning pretty much only individuals.

inside or

[Gunsmithing]

The (CFD / Centralized List) is only for FFL's in CA
How would a FFL out side of CA use the list

Dave

FYI
I do have this CFD for Gunsmiths only
I do not sell firearm only repair

Federal law requires the recipient of an interstate firearms shipment to be a license holder (there are a few exceptions, like a personal firearm being returned to the owner). Federal law does not require the shipper to be a license holder.

CA state law now requires any firearm shipped by a license holder to have CFLC authorization. CFLC authorization is only granted if the recipient is current on the Centralized List.

Therefore, if you are not on the Centralized List, you will not be able to receive any firearm shipments from any license holder. And since all manufacturers, distributors, wholesalers and retailers of firearms are license holders, you will be severely limited on who can ship you a firearm, meaning pretty much only individuals.

inside or

[dachan]

The (CFD / Centralized List) is only for FFL's in CA
How would a FFL out side of CA use the list

Dave

FYI
I do have this CFD for Gunsmiths only
I do not sell firearm only repair

Any FFL can create an account on CFLC, thereby gaining access to the Centralized List. That is the whole idea of the CFLC system, forcing out of state license holders to check that the receiving CA FFL is actually a licensed dealer and not just someone with a FFL.

As a gunsmith, you may have a CFD but may not be on the Centralized List. There are additional requirements and fees to be on the Centralized List.

[Gunsmithing]

The fee for gunsmith's in CA is $125.00 a year
Even with this I can not sell firearms in CA
At this time I have not use CFLC

Dave

Any FFL can create an account on CFLC, thereby gaining access to the Centralized List. That is the whole idea of the CFLC system, forcing out of state license holders to check that the receiving CA FFL is actually a licensed dealer and not just someone with a FFL.

As a gunsmith, you may have a CFD but may not be on the Centralized List. There are additional requirements and fees to be on the Centralized List.

[996pilot]

I talked to the license office locally and they said I cannot get a business license without getting the ffl first? So do they know what they are talking about

[EBR Works]

I experienced that as well. I was told to bring in the FFL when issued and they would complete the business license with the magic wording to satisfy DOJ since I already got clearance from the city planning department.

[Santa Cruz Armory]

I'm interested in getting my 07 as well. I like to build/ modify firearms. I'm just wondering if I could work an 07 into a 01 down the line. Does anyone know if an 07 easier to get zoning wise as opposed to a 01? Are the annual fees less for an 07?

[tenpercentfirearms]

So should I get the ffl then wait for the city to issue the license?

Negative unless you get it in writing from the city that they will issue you a business license that says "Valid for the Retail Safe of Firearms" when you present a valid 01/07 FFL or they will pay you $10000 for void of this contract.

The ATF will give you a license. They do not care as long as you are not a prohibited person. They will cash your $200 check and they don't care if you have a license you can't use.

If your city won't approve you a business license with "Valid for the Retail Safe of Firearms" printed on it, the CA DOJ will not issue you a CFD and you will not sell guns in this state.

So I would not go through the trouble and effort of spending time and money for a license if I did not know that the city had or was guaranteed to give me a business license.

Good luck!

[tenpercentfirearms]

I am somewhat confused on the exact order of the city/county requirement. If you take the steps to go through the city for your license, resale permit, etc., does atf require that you have an actual physical correctly zoned business already leased or owned before anything else can happen? I guess my confusion is say I get approval from my CLEO, apply for my business license, resale permit, etc. Is having a license that states "valid for the retail sales of firearms" sufficient? My concern is do I have to out and lease a property that is correctly zoned before anything else occurs?

The ATF will issue an FFL to just about anyone as long as they are not a prohibited person and as long as they intend on holding the license for business. They don't care about your address, they don't care about your licenses with the CA DOJ, BOE, or local business license issuing authority.

In short if you send the ATF $200, they are going to send you back a valid FFL.

However, in order to legally sell firearms in the State of California, the CA DOJ certainly cares about everything else.

The CA DOJ will not issue you a valid CFD (centralized firearms dealer) number unless you have all of these items.

1. Local Business license stating "Valid for the retail sale of firearms".
2. Certificate of Eligibility (COE) (get it from CA DOJ)
3. Retail Sales Permit (BOE, Board of Equalization, sales tax permit)
4. Federal Firearms License

If you do not have all four of those items, don't even bother sending anything in to the state. They will send your whole application back and tell you no.

Now, what is usually the hardest item to get?

1. Local Business License: YES! This is the hardest item because some jurisdictions won't allow residential firearms businesses. Some just don't like gun shops. So if I were doing this, I would not do anything else until I had this license or concrete assurances I would get one.

2. Anyone can get a COE. ANYONE! It basically says you are not a prohibited person. Of course prohibited persons can''t get one.

3. Anyone can get a retail sales permit.

4. Anyone can get a FFL.

In theory you could do all of this without having an actual business. You could fill all of this out using an address and not until it is time to actually come inspect the business will you need to have something at that address. Even then you still don't have to have any of that in place as the ATF inspection is more of an explanation of the rules.

[We The People Firearms]

I have a coe through my 03 license, and I have a resale permit. My city is very reasonable with ffl's, and if not, there is a city nearby that is practically a lock as far as the CLEO is concerned. So my steps then would be to ...

1. Apply for my local business license with the correct wording.

2. If I get approved for the license, then apply for my FFL.

3. If everything goes through with that, then I could send the information to the State for my CFLC?

4. If I get all of the above handled, then I could expect a meeting with BATFE for the explanation?

My only remaining question is how does the CLEO relate to the business license? Are they hand in hand? Do the persons who approve the license need approval from the CLEO because of the nature of the business?

Also, do you apply for an 07 at the same time? The gun shop I worked at for a year did not have our 07 until about 6 months after I worked there. Then we got it and began manufacturing AR's.

Thank you for your in-depth response. Very helpful.

The ATF will issue an FFL to just about anyone as long as they are not a prohibited person and as long as they intend on holding the license for business. They don't care about your address, they don't care about your licenses with the CA DOJ, BOE, or local business license issuing authority.

In short if you send the ATF $200, they are going to send you back a valid FFL.

However, in order to legally sell firearms in the State of California, the CA DOJ certainly cares about everything else.

The CA DOJ will not issue you a valid CFD (centralized firearms dealer) number unless you have all of these items.

1. Local Business license stating "Valid for the retail sale of firearms".
2. Certificate of Eligibility (COE) (get it from CA DOJ)
3. Retail Sales Permit (BOE, Board of Equalization, sales tax permit)
4. Federal Firearms License

If you do not have all four of those items, don't even bother sending anything in to the state. They will send your whole application back and tell you no.

Now, what is usually the hardest item to get?

1. Local Business License: YES! This is the hardest item because some jurisdictions won't allow residential firearms businesses. Some just don't like gun shops. So if I were doing this, I would not do anything else until I had this license or concrete assurances I would get one.

2. Anyone can get a COE. ANYONE! It basically says you are not a prohibited person. Of course prohibited persons can''t get one.

3. Anyone can get a retail sales permit.

4. Anyone can get a FFL.

In theory you could do all of this without having an actual business. You could fill all of this out using an address and not until it is time to actually come inspect the business will you need to have something at that address. Even then you still don't have to have any of that in place as the ATF inspection is more of an explanation of the rules.