All You Need to Know About FFL Dealership in Tennessee

Table of Contents:

• Introduction to Tennessee Firearm Laws
• How to Obtain a Federal Firearms License (FFL) in Tennessee
• Firearms in Tennessee: Permitted Vs. Restricted
• Selling Firearms Online Legally in Tennessee
• Understanding Background Checks for Firearm Sales in Tennessee
• Conclusion

Introduction to Tennessee Firearm Laws

Tennessee has a relatively permissive approach to firearm ownership and sales. It is crucial for individuals interested in starting a firearm business in Tennessee to familiarize themselves with these laws and ensure compliance to avoid legal issues.

How to Obtain a Federal Firearms License (FFL) in Tennessee

Getting a Federal Firearms License (FFL) in Tennessee involves several steps, including federal requirements and state-specific regulations. Here’s a step-by-step guide to help you go through the entire process.

Step 1: Understand the Types of FFL Licenses

Before applying, it’s essential to determine which type of FFL you need. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) issues several types of FFLs, including:

• Type 01 – Firearm Dealer/Gunsmith.
• Type 02 – Pawnbroker.
• Type 03 – Collector.
• Type 06 – Manufacture of Ammunition.
• Type 07 – Manufacturer of Firearms.
• Type 08 – Importer of Firearms.
• Type 09 – Dealer of “Destructive Devices”
• Type 10 – Manufacturer of “Destructive Devices”

Choose the type that aligns with your business goals.

Step 2: Meet Federal Requirements

Eligibility Criteria: Ensure you meet the following federal requirements:

• Be at least 21 years old.
• Be a U.S. citizen or legal resident.
• Not be prohibited from owning firearms (e.g., felons, individuals with restraining orders).

Complete ATF Form 7: Fill out ATF Form 7/7CR (Application for Federal Firearms License). This form requires:

• Personal information (name, address, etc.)
• Business information (if applicable)
• Type of FFL you are applying for
• Fingerprint cards (you will need to submit two fingerprint cards).

Submit the Application: Send the completed form and required documents to the ATF. The application fee varies based on the type of license:

• Type 01: $200 for the first three years
• Type 02: $200 for the first three years
• Type 07: $150 for the first three years
• Type 03: $30

Background Check: The ATF will conduct a background check. This process can take weeks.

Interview: An ATF Industry Operations Investigator(IOI) will contact you to schedule an interview. Be prepared to discuss your application and business practices.

Step 3: Comply with Tennessee-Specific Requirements

State Licensing Requirements

Tennessee does not require any additional state-specific firearm licenses beyond the Federal Firearms License (FFL) to operate as a firearms dealer.

Business Registration Requirements

All businesses in Tennessee must register with the State of Tennessee, even if already registered in another state.

Zoning Requirements

Local zoning regulations can pose challenges, particularly in populated areas. Ensure your business location complies with zoning laws.

Many zoning departments may mistakenly assume home-based FFLs have high retail traffic. Clarify that home-based FFLs typically have minimal customer traffic.

Firearms in Tennessee: Permitted vs. Restricted

Additional notes:

• No permit is required to purchase, possess, or carry rifles, shotguns, or handguns for adults 21 and over.
• Carrying in certain locations (schools, judicial proceedings, etc.) is generally prohibited.
• There are specific exemptions for law enforcement, military personnel, and other authorized individuals.
• Local regulations are preempted by state law.

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Selling Firearms Online Legally in Tennessee

Verification and Documentation

• Carefully verify the buyer’s eligibility by checking federal and state requirements.
• Collect the necessary information, including the buyer’s full name, address, and a valid government-issued photo ID. Obtain a copy of the ID for your records.
• Use the ATF Form 4473 to document the transaction, capturing essential details about the buyer and the firearm.

Background Check

• Conduct a background check to confirm the buyer’s eligibility.
• If the buyer successfully passes the background check, you may proceed with the sale.

Shipping and Transfer

• Ship the firearm to a licensed dealer (FFL) located in Tennessee. The buyer will then retrieve the firearm from that dealer through an FFL transfer.

• Coordinate with the receiving FFL to ensure a smooth transfer. They will handle the necessary paperwork and background checks on their end.

Record Keeping

• Maintain accurate records of the transaction, including copies of the ATF Form 4473, shipping details, and any communication with the buyer.
• Retain these records for the required period, which is usually 20 years.
• Tennessee law does not specify how long these records must be retained. However, a law enforcement agency may inspect the records of a gun dealer relating to transfers of firearms during a reasonable inquiry in a criminal investigation or under a properly authorized subpoena or search warrant.

FFL Ecommerce and Firearm Dropshipping

When engaging in FFL ecommerce, ensure compliance with all federal and state regulations regarding firearm sales. For firearm dropshipping, make sure that all firearms are shipped through a reputated firearm dropshipping suppliers to adhere to legal requirements for the transfer process.

Understanding Background Checks for Online Firearms Sales in Tennessee

Tennessee requires federally licensed firearm dealers to conduct background checks through the Tennessee Bureau of Investigation (TBI) before selling firearms. Here are the key steps and requirements:

1. Identification: The prospective purchaser must present current identification to the firearms dealer.
2. Transaction Record: The dealer must complete a firearm transaction record as mandated by federal law and obtain the purchaser’s signature.
3. Information Submission: The dealer must provide the following information to TBI for the background check:
   • Federal firearms license number of the dealer
   • Business name and place of transfer
   • Name of the person making the transfer
   • Make, model, caliber, and manufacturer’s number of the firearm
   • Purchaser’s name, gender, race, date of birth, and social security number (if assigned)
   • Type, issuer, and identification number of the presented ID
4. Approval Number: The dealer must receive a unique approval number from TBI and record it on the transaction record.
5. Identity Verification: TBI may request thumbprints to verify the purchaser’s identity if there is any doubt.
6. Denials and Conditional Proceeds:
   • TBI will deny the transfer if the purchaser is charged with a disqualifying crime without a final case disposition.
   • If no final disposition information is available, the dealer may proceed with the sale after 15 days as a “conditional proceed” if TBI cannot obtain the necessary information.
7. Special Cases:
   • If the purchaser is under a protective order or has a firearm-prohibiting mental health history, TBI must notify the relevant law enforcement agency within 24 hours.

Exceptions

• Private firearm sellers (non-federally licensed) are not required to conduct background checks.
• Tennessee law prohibits the sale of firearms to persons known to be prohibited by law or to those who are intoxicated. It also prohibits sales to individuals with mental health prohibitions and makes such actions a felony.

Conclusion

By understanding the different types of FFL licenses, meeting federal requirements, and complying with Tennessee-specific rules, you can establish your business successfully. Remember to keep accurate records, verify buyer information, and stay aware of the legal guidelines for selling firearms. With proper planning and adherence to these steps, you can operate your FFL dealership smoothly in Tennessee.

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Disclaimer: The information presented here has been compiled from multiple public sources. It serves as a general overview of firearm regulations and guidelines concerning the specific state. This content is intended for informational purposes only and should not be interpreted as legal advice or relied upon as a substitute for professional legal counsel.