Obtaining your federal firearms license in the state of California is a relatively simple procedure, though jumping through the rest of the hoops (licenses, permits, etc.) that will allow you to make use of your FFL may be a bit more difficult. Requirements for applying for the FFL do not vary from state to state, as the licenses are governed by a federal organization, but regulations for using your FFL will vary greatly.
Application for License
Contact your local Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to obtain Form 7 -- Application for License. Send completed application with check, credit card, or money order to pay the application fee, to the address listed on the application form.
Review
Once you have applied, the ATF's Federal Firearms Licensing Center will review your application and documents and conduct a background check on each responsible person that you listed on your application. After initial review, your application will be sent to the ATF office in your area for an in-person interview. You will learn and verify state and local requirements, and ensure that the information on your application is current.
Recommendation
After your interview, the investigator and field office supervisor will take into account all information and submit a recommendation to the FFLC. With a favorable recommendation and after all other information is verified, your license will be issued -- usually about 60 days from the submission of a correct application.
Possible Reasons for Denial
Your application for an FFL may be denied because you are not in compliance with state or local law (i.e. zoning requirements), you have falsified (intentionally or unintentionally) the application, or the ATF gains evidence of "previous willful violations" of the Gun Control Act.
Operating Your Dealership
Requirements for operating your firearms dealership will vary from county to county and city to city in California. Contact your local government's agencies (such as the county's business office or department of commerce) in order to find out exact regulations for businesses dealing with firearms in your area. For example, in LA county you may operate a business out of your home, but you may not have visitors, rendering your business basically useless.