The Firing Line Forums - View Single Post

hockeysew · August 21, 2008, 03:06 PM

I am 14 months away from retiring a state entity and I am planning on working in a sub-contractor type role for a friend.
I am currently working for his retail firearms business on a part-time (weekend) basis in sales and doing some minor repairs. He would like to expand his business over the next couple of years and has asked me if I have any interest in pursuing the gunsmithing end of things. I have agreed that I would have an interest and have been taking some classes and have purchased a lathe. I am also converting my garage into a shop and starting to get the ball rolling.

I technically have to have my own FFL for the following reasons:
1- To do work in anyplace other than the retail shop, I legally must have a FFL.
2- If I posess a customers weapon for more than 1 business day I must do what is known as "A&D' the weapon. Log it in a "Permanently Bound- Aquisition and Disposal" book. Only a FFL can do that.
3- If I charge for my services legally I am a "For Profit" business and must have a FFL.

I do not want my name on my buddies FFL for the following reasons:
1- It is HIS business and liveliehood.
2- Very hard to be "Partners" with friends. The friendship always suffers and I won't do that.
3- I want to retain control of my end of the business.
4- I have absolutly no desire to be in the retail end of this business. Too risky and not enough profit for the aggrevation.
5- I would hate to possibly do anything to compromise his situation as I would hate for him to compromise mine.

I am ok with my City and a home based business. The gal that I spoke to with the City knows of 2 other "Smiths and so it is not a problem. She kind of gave me the impression all the City is worried about is it's $15.00 annual Business License fee and annual Tax statement (Not too much to worry about as far as business tax- I will charge for Labor only and no tax on labor in CO. If parts are needed the customer will purchase them through the shop).

A little background on me. Beside being a Student Assistant in Metal Shop in Highschool I went to school for the machine craft(Basically Lathe and Mill at the local Community College) back in 79 or 80. Worked as a machine operator on and off for 7 years. I also spent about 4 years as a heavy fabricator and gained my welding certification. Then I went to work for the State Highway Department and have only monkeyed with a machine occasionaly, mostly building Harley parts and such. Anyway I am 14 months from retiring from them and for my retirement plan I will be doing some gunsmithing and working at a buddies gun shop.
I have always worked on firearms for as long as I can recall and built a few custom smokepoles right out of highschool.
Taking some classes in the gunsmithing and decided to look for a lathe.

Any way sorry for the long winded post but I did want to give you experts a bit of backgroud on me and what my plan is.
I am open to all advice.
Due to the nature of product we are dealing with (firearms) I will have to obtain my own FFL license to legally perform work for customers at my home shop. His retail shop will be the point of customer contact and I will bring the work home with me. I will be responsible for my own trade/business name and appropriate license/tax etc.
We are not looking at a partnership type arraingment as he is already established and I want nothing to do with the retail end of this business other than working at the shop as a member of the sales crew.
They want to look at me as a sub-contractor to them and their shop. I dont really have a problem with this as it still allows me some freedom as far as my own business. I figure I will have to do some other machine/fabrication work on the side to make ends meet.
My question is (A couple)
What do you guys see as pitfalls in this type of arraingement?
What protections do I neeed to put into place?
I have never run my own business before and dont have a ton of experience with it. The Mrs. will be the accounting end (she was an office manager for 10 years in retail) and I will be the hands on mule (which I am happy doing).
I am looking for any advice that you guys can pass to me. I really want this to work and dont want to see it fall on it's face.
I figure you guys run your own shops and have seen plenty fail.
I want to be one of the ones that might not get rich, but gets a decent slice of the pie!

August 21, 2008, 03:06 PM	#1
hockeysew Member Join Date: August 21, 2008 Posts: 91	'Smithing as a business I am 14 months away from retiring a state entity and I am planning on working in a sub-contractor type role for a friend. I am currently working for his retail firearms business on a part-time (weekend) basis in sales and doing some minor repairs. He would like to expand his business over the next couple of years and has asked me if I have any interest in pursuing the gunsmithing end of things. I have agreed that I would have an interest and have been taking some classes and have purchased a lathe. I am also converting my garage into a shop and starting to get the ball rolling. I technically have to have my own FFL for the following reasons: 1- To do work in anyplace other than the retail shop, I legally must have a FFL. 2- If I posess a customers weapon for more than 1 business day I must do what is known as "A&D' the weapon. Log it in a "Permanently Bound- Aquisition and Disposal" book. Only a FFL can do that. 3- If I charge for my services legally I am a "For Profit" business and must have a FFL. I do not want my name on my buddies FFL for the following reasons: 1- It is HIS business and liveliehood. 2- Very hard to be "Partners" with friends. The friendship always suffers and I won't do that. 3- I want to retain control of my end of the business. 4- I have absolutly no desire to be in the retail end of this business. Too risky and not enough profit for the aggrevation. 5- I would hate to possibly do anything to compromise his situation as I would hate for him to compromise mine. I am ok with my City and a home based business. The gal that I spoke to with the City knows of 2 other "Smiths and so it is not a problem. She kind of gave me the impression all the City is worried about is it's $15.00 annual Business License fee and annual Tax statement (Not too much to worry about as far as business tax- I will charge for Labor only and no tax on labor in CO. If parts are needed the customer will purchase them through the shop). A little background on me. Beside being a Student Assistant in Metal Shop in Highschool I went to school for the machine craft(Basically Lathe and Mill at the local Community College) back in 79 or 80. Worked as a machine operator on and off for 7 years. I also spent about 4 years as a heavy fabricator and gained my welding certification. Then I went to work for the State Highway Department and have only monkeyed with a machine occasionaly, mostly building Harley parts and such. Anyway I am 14 months from retiring from them and for my retirement plan I will be doing some gunsmithing and working at a buddies gun shop. I have always worked on firearms for as long as I can recall and built a few custom smokepoles right out of highschool. Taking some classes in the gunsmithing and decided to look for a lathe. Any way sorry for the long winded post but I did want to give you experts a bit of backgroud on me and what my plan is. I am open to all advice. Due to the nature of product we are dealing with (firearms) I will have to obtain my own FFL license to legally perform work for customers at my home shop. His retail shop will be the point of customer contact and I will bring the work home with me. I will be responsible for my own trade/business name and appropriate license/tax etc. We are not looking at a partnership type arraingment as he is already established and I want nothing to do with the retail end of this business other than working at the shop as a member of the sales crew. They want to look at me as a sub-contractor to them and their shop. I dont really have a problem with this as it still allows me some freedom as far as my own business. I figure I will have to do some other machine/fabrication work on the side to make ends meet. My question is (A couple) What do you guys see as pitfalls in this type of arraingement? What protections do I neeed to put into place? I have never run my own business before and dont have a ton of experience with it. The Mrs. will be the accounting end (she was an office manager for 10 years in retail) and I will be the hands on mule (which I am happy doing). I am looking for any advice that you guys can pass to me. I really want this to work and dont want to see it fall on it's face. I figure you guys run your own shops and have seen plenty fail. I want to be one of the ones that might not get rich, but gets a decent slice of the pie!