National FFL Employee vs Partner?

[arakboss]

My understanding is that FFL dealers can have employees handle their business for them.

Does the person holding the FFL have to be present on the premises when employees are handling their FFL business?

How detached from the business can the FFL holder legally be. For example could they just come in once or twice a week and let employees handle bulk of business?

Could an FFL allow partners (rather then employees) to handle portions of the FFL business at the premises? For example John Doe holds the FFL license but has two partners who each own a third of the business. Can the two partners work under John Doe's license or would they each need their own?

Could the FFL's employees work on FFL business off the premises? For example demonstrating or testing firearms at ranges.

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[bsco]

Interesting questions. Similar to ones I had when I applied for an 07 last year.

Generally (IANAL) my understanding is the FFL holder does not need to be present so long as the employees dealing in firearms are responsible persons in the eyes of the ATF for the premise the license covers.

If the ATF showed up for an audit and the employee who answered the door was deemed a responsible person for the purposes of doing business (dealing firearms) at the location listed on the license then that's good enough for the ATF.

I know the ATF wants to know when you plan to operate your business (it's on the application) so they know when they can show up for an audit. They assume someone will be there who is a responsible person during those times.

If your partner (not a day to day employee) is also a responsible person for the given license, that should be fine too. If they are not, they should not be dealing in firearms but could technically be present doing other functions (e.g. entering non-firearm accessories into inventory).

I think said partners (the other two thirds) in your example would not need a separate license. Rather, they could be responsible persons under your license if they plan to deal in firearms at your licensed premises.

One thing I am not sure of is how the state you are operating in would view the employment situation. Or if the state has additional regulations on how employees vs partner (if they even distinguish between the two) are treated.

Hope this helps.

 

[USMC1911]

I'm sure the counter guy at Cabelas is not in possession of an ffl? Just saying

 

[KKG]

How else would placed like your LGS function?

 

[OregonArmsAmmo]

The FFL is under the business, not the person. Anyone having an ownership stake would need to be on the FFL when you apply for it or would need to be added once they had an ownership stake. Any employee holding a significant amount of responsibility or logging guns in or out "Should" be added as a responsible person on the FFL. Anytime that the store is open for business or guns are being logged in or out there needs to be at least one person on premise who is a responsible person. Typically Gunshops have all their managers, Receiving clerks and buyers on the FFL to avoid any issues, Big box stores typically only put store management or whoever would be the manager on duty on the FFL.

Technically any employee can take firearms off premise or be in possession of store firearms offsite but it's not a good business practice, most places only let their responsible persons do that. A common practice is to just do a 4473 and background check on the employee, let them take the firearm to the event then log it back onto the books when they return.

 

[arakboss]

The FFL is under the business, not the person. Anyone having an ownership stake would need to be on the FFL when you apply for it or would need to be added once they had an ownership stake. Any employee holding a significant amount of responsibility or logging guns in or out "Should" be added as a responsible person on the FFL. Anytime that the store is open for business or guns are being logged in or out there needs to be at least one person on premise who is a responsible person. Typically Gunshops have all their managers, Receiving clerks and buyers on the FFL to avoid any issues, Big box stores typically only put store management or whoever would be the manager on duty on the FFL.

Technically any employee can take firearms off premise or be in possession of store firearms offsite but it's not a good business practice, most places only let their responsible persons do that. A common practice is to just do a 4473 and background check on the employee, let them take the firearm to the event then log it back onto the books when they return.

Thank you, that was a very informative reply.

 

[CountryGent]

Ditto what @OregonArmsAmmo said. At least that is my understanding based upon what I was told during my ATF interview last summer. By coincidence, we are completing the paperwork to add my wife as a "responsible person" so that she can conduct business affairs whilst I am away, which may be more common this coming year with expansion plans. But I digress.