Unless you plan to work for free, or only on your own guns, you can't be a HOBBY gunsmith; the moment you charge, you are in business and must have an FFL, plus comply with all the local zoning, license and permit requirements.
Even as a hobby gunsmith, if you work on anyone else's gun, you will leave yourself open to lawsuits and to possible local trouble, like zoning. Insurance is necessary; just because you don't charge doesn't mean that if a gun you worked on causes an injury you won't be sued, even if your work had nothing to do with the problem.
I always tell folks to either go into business right, in full compliance with the law and all the licenses and paperwork, or forget doing work for others.
Jim
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