808 is correct. The catch is the local zoning laws. That provision went into the FFL licensing process in '86 I believe under the Clinton attempt to do away with thousands of 'kitchen table dealers' as they called them.
If your local city/town/village zoning laws do not allow a 'business' at your address, the FFL license appl will be denied.
Some areas allow it,,some allow only with a zoning variance which you would then have to petition the locality for.
Some do not allow a business in a residential home.
An 01FFL is a business. You'll need tax licenses(if applicable), any State & Local firearms and business licenses (DBA) also.
Check with the Building Dept/Zoning & Code for your locality and see if specificly a 'firearms related' business would be allowed.
Be specific about the business. A town locally allows lawyers, coin dealers, accountants,,but not firearms related business out of private homes.
You may be required to up insurance coverage, place specific entryways for customers, parking, lighting, signage, etc.
You may be required to do none of the above.
Each locality is different.