M100C
Member
All,
Sorry for such a long post, but the quality of the information I provide will affect the quality of your answers, so here goes:
I have recently had the opportunity to buy/sell some guns. I really enjoy breaking them down, cleaning them, reassembling, and taking them to the range to see how well they work (or, what I need to fix). In the end, I've made a few hundred bucks here and there, but I enjoy this hobby enough to warrant doing it more frequently. Most of the sellers and buyers have been relatives and friends, and with everyone I know armed …
… I am looking at opportunities to sell online (e.g. GunBroker). To become an FFL or not to become; that is the question!
First, some background: I live in Michigan. This is strictly a hobby; the principal objective is not livelihood and profit – I have a full-time, professional career. And, I am only interested in buying and selling long guns (mostly rifles). Just assume I go wild in this endeavor, and end up buying and selling ten per weekend (enough that someone could question this activity). Can I do so as an “unlicensed person” or must I become a “licensed dealer”? Here's what I've found in the law (I've underlined sections that are particularly relevant to the questions that follow):
From: http://www.atf.gov/firearms/faq/unlicensed-persons.html#private-record-keeping
Q: What record-keeping procedures should be followed when two private individuals want to engage in a firearms transaction?
When a transaction takes place between private (unlicensed) persons who reside in the same State, the Gun Control Act (GCA) does not require any record keeping. A private person may sell a firearm to another private individual in his or her State of residence and, similarly, a private individual may buy a firearm from another private person who resides in the same State. It is not necessary under Federal law for a Federal firearms licensee (FFL) to assist in the sale or transfer when the buyer and seller are “same-State” residents. Of course, the transferor/seller may not knowingly transfer a firearm to someone who falls within any of the categories of prohibited persons contained in the GCA. See 18 U.S.C. §§ 922(g) and (n). However, as stated above, there are no GCA-required records to be completed by either party to the transfer.
There may be State or local laws or regulations that govern this type of transaction. Contact State Police units or the office of your State Attorney General for information on any such requirements.
Please note that if a private person wants to obtain a firearm from a private person who resides in another State, the firearm will have to be shipped to an FFL in the buyer’s State. The FFL will be responsible for record keeping.
Here's the relevant MI state law:
750.223 Selling firearms and ammunition; violations; penalties; “licensed dealer” defined.
(1) A person who knowingly sells a pistol without complying with section 2 of Act No. 372 of the Public Acts of 1927, as amended, being section 28.422 of the Michigan Compiled Laws, is guilty of a misdemeanor, punishable by imprisonment for not more than 90 days, or a fine of not more than $100.00, or both.
(2) A person who knowingly sells a firearm more than 30 inches in length to a person under 18 years of age is guilty of a misdemeanor, punishable by imprisonment for not more than 90 days, or a fine of not more than $500.00, or both. A second or subsequent violation of this subsection is a felony punishable by imprisonment for not more than 4 years, or a fine of not more than $2,000.00, or both. It is an affirmative defense to a prosecution under this subsection that the person who sold the firearm asked to see and was shown a driver’s license or identification card issued by a state that identified the purchaser as being 18 years of age or older.
(3) A seller shall not sell a firearm or ammunition to a person if the seller knows that either of the following circumstances exists:
(a) The person is under indictment for a felony. As used in this subdivision, “felony” means a violation of a law of this state, or of another state, or of the United States that is punishable by imprisonment for 4 years or more.
(b) The person is prohibited under section 224f from possessing, using, transporting, selling, purchasing, carrying, shipping, receiving, or distributing a firearm.
(4) A person who violates subsection (3) is guilty of a felony, punishable by imprisonment for not more than 10 years, or by a fine of not more than $5,000.00, or both.
(5) As used in this section, “licensed dealer” means a person licensed under section 923 of chapter 44 of title 18 of the United States Code who regularly buys and sells firearms as a commercial activity with the principal objective of livelihood and profit.
So, here is my “business plan”:
1) I will limit my purchases from MI state residents; otherwise, I'll have my FFL do the transfer to me.
2) I will limit my sales to MI state residents; otherwise, I'll require the buyer to have an FFL to do the transfer.
3) For state residents, I'll check their state-issued ID, and have them attest to the questions on the ATF transfer form. Clearly, I will not knowingly sell a gun to a felon. I will not file any of this paperwork, but will keep it for my records.
4) Sales will be made face-to-face; I will not ship a gun, period, unless it is to an FFL.
Do you foresee any legal issues, or practical limitations to conducting my hobby in this way?
Thanks so much for your feedback in advance,
Chris
Sorry for such a long post, but the quality of the information I provide will affect the quality of your answers, so here goes:
I have recently had the opportunity to buy/sell some guns. I really enjoy breaking them down, cleaning them, reassembling, and taking them to the range to see how well they work (or, what I need to fix). In the end, I've made a few hundred bucks here and there, but I enjoy this hobby enough to warrant doing it more frequently. Most of the sellers and buyers have been relatives and friends, and with everyone I know armed …
First, some background: I live in Michigan. This is strictly a hobby; the principal objective is not livelihood and profit – I have a full-time, professional career. And, I am only interested in buying and selling long guns (mostly rifles). Just assume I go wild in this endeavor, and end up buying and selling ten per weekend (enough that someone could question this activity). Can I do so as an “unlicensed person” or must I become a “licensed dealer”? Here's what I've found in the law (I've underlined sections that are particularly relevant to the questions that follow):
From: http://www.atf.gov/firearms/faq/unlicensed-persons.html#private-record-keeping
Q: What record-keeping procedures should be followed when two private individuals want to engage in a firearms transaction?
When a transaction takes place between private (unlicensed) persons who reside in the same State, the Gun Control Act (GCA) does not require any record keeping. A private person may sell a firearm to another private individual in his or her State of residence and, similarly, a private individual may buy a firearm from another private person who resides in the same State. It is not necessary under Federal law for a Federal firearms licensee (FFL) to assist in the sale or transfer when the buyer and seller are “same-State” residents. Of course, the transferor/seller may not knowingly transfer a firearm to someone who falls within any of the categories of prohibited persons contained in the GCA. See 18 U.S.C. §§ 922(g) and (n). However, as stated above, there are no GCA-required records to be completed by either party to the transfer.
There may be State or local laws or regulations that govern this type of transaction. Contact State Police units or the office of your State Attorney General for information on any such requirements.
Please note that if a private person wants to obtain a firearm from a private person who resides in another State, the firearm will have to be shipped to an FFL in the buyer’s State. The FFL will be responsible for record keeping.
Here's the relevant MI state law:
750.223 Selling firearms and ammunition; violations; penalties; “licensed dealer” defined.
(1) A person who knowingly sells a pistol without complying with section 2 of Act No. 372 of the Public Acts of 1927, as amended, being section 28.422 of the Michigan Compiled Laws, is guilty of a misdemeanor, punishable by imprisonment for not more than 90 days, or a fine of not more than $100.00, or both.
(2) A person who knowingly sells a firearm more than 30 inches in length to a person under 18 years of age is guilty of a misdemeanor, punishable by imprisonment for not more than 90 days, or a fine of not more than $500.00, or both. A second or subsequent violation of this subsection is a felony punishable by imprisonment for not more than 4 years, or a fine of not more than $2,000.00, or both. It is an affirmative defense to a prosecution under this subsection that the person who sold the firearm asked to see and was shown a driver’s license or identification card issued by a state that identified the purchaser as being 18 years of age or older.
(3) A seller shall not sell a firearm or ammunition to a person if the seller knows that either of the following circumstances exists:
(a) The person is under indictment for a felony. As used in this subdivision, “felony” means a violation of a law of this state, or of another state, or of the United States that is punishable by imprisonment for 4 years or more.
(b) The person is prohibited under section 224f from possessing, using, transporting, selling, purchasing, carrying, shipping, receiving, or distributing a firearm.
(4) A person who violates subsection (3) is guilty of a felony, punishable by imprisonment for not more than 10 years, or by a fine of not more than $5,000.00, or both.
(5) As used in this section, “licensed dealer” means a person licensed under section 923 of chapter 44 of title 18 of the United States Code who regularly buys and sells firearms as a commercial activity with the principal objective of livelihood and profit.
So, here is my “business plan”:
1) I will limit my purchases from MI state residents; otherwise, I'll have my FFL do the transfer to me.
2) I will limit my sales to MI state residents; otherwise, I'll require the buyer to have an FFL to do the transfer.
3) For state residents, I'll check their state-issued ID, and have them attest to the questions on the ATF transfer form. Clearly, I will not knowingly sell a gun to a felon. I will not file any of this paperwork, but will keep it for my records.
4) Sales will be made face-to-face; I will not ship a gun, period, unless it is to an FFL.
Do you foresee any legal issues, or practical limitations to conducting my hobby in this way?
Thanks so much for your feedback in advance,
Chris