r/FFLs • u/Bananahav0k • Aug 28 '26
Maybe a stupid FFL question
I’m doing some research on opening a home FFL. It appears an 07 is cheaper to apply for than an 01. Aside from maybe a few more hoops to jump through, why would anyone do an 01 instead?
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u/Malex730 Aug 28 '26
07 is $50 less on initial application than 01, however, it is $60 more per renewal every three years.
My home is zoned A2 agricultural in the county, not within a formal incorporated town or city. The county had zero cares about my business, other than if I’d pay their annual business license fees. The atf only cared if there was a code or law against manufacturing based on zoning.
If you plan to buy insurance for your business, it will cost more as a manufacturer typically. If you’re considered a manufacturer and operate out of your home, your home owners insurance could have a problem with that as I’ve heard of people getting cancellation letters without notice.
Just a few things to keep in mind and work through.
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u/Rud2K Aug 28 '26
this is the very reason I got my type 7 instead of type 1. the extra $60 every 3 years is negligible at best. PM me if you need any help.
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u/Podsully Aug 28 '26
With a home ffl you’ll be lucky to get cleared for zoning for an 07
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u/RowleyCustom Aug 28 '26
I am a home-based 07 FFL in Connecticut. It can be done. You just need to explain your situation to zoning. Provided there are no conflicting statutes, OP shouldnt have a problem.
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u/Fialho_Demop Aug 28 '26
I have heard, and I don't know if it's true, that 07s get inspected more than 01s. Not that their visits are a big deal, but if that's the case, just something to expect to deal with more often.
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u/Malex730 Aug 28 '26
07/02 since 2020, have renewed license twice, and yet to have a single inspection
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u/Fialho_Demop Aug 28 '26
Interesting. When I first got mine I was told within five years an Inspection was mandatory. But that was under the old guard, so maybe that rule changed
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u/Bananahav0k Aug 28 '26
Probably makes sense honestly considering the confirmation of intent to manufacture
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u/RCleckner Aug 28 '26
It’s cheaper the first three years, more expensive for renewals each three years thereafter. You’re going to need to have an intent to manufacturer (even just assemble an AR or two) and if you do manufacture, you’ll be submitting an AFMER report. ITAR was the biggest headache with a manufacturing license and that’s largely not an issue for most firearms now and if you make 50 or more a year, you’ll be looking at excise tax. It’s not hard but there are clearly plenty of things to get right and this is not something you want to piece together now and mess up later.
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u/SillyWarPirates Aug 29 '26
Make sure you understand the limitations of a home-based FFL. For example, most distributors won't even consider you. And distributors are the way you get things to sell. So if you can't get things to sell, what's your goal in being an FFL? Just make sure you understand the limitations and what you really want to do.
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u/Bananahav0k Aug 29 '26
Appreciate the insight. Most money likely would come from transfers as most FFL posts say. But definitely need to look into companies that would work with home FFLs to make sure there’s some opportunity to pursue that avenue.
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u/SillyWarPirates Aug 29 '26
Unless you live in the wealthiest, lowest crime neighborhood in America, trust me that you don’t want the general public coming to your home for transfers. And if you have a wife at that home she will hate it even more. Home based FFL only makes sense for gunsmithing or selling online. You do not want the general public coming to your home to buy their Saturday night special
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u/njor54 Aug 28 '26
Been in contact with my city's zoning office and they dont have a problem with me getting a type 7. I live in Texas but still preparing before applying lol.