Engaging in Gun sales business without being an FFL?

[AirPower]

I recently talked to a guy who said he's selling guns on the internet and he's not required to be FFL. Most of his business is selling hunting supplies and gun accessories but he also buys guns and then sells them. I asked about legality of doing this without being an FFL holder and he says he only sells about 3 per month, and it's okay with the ATF. He just ships all his guns through his FFL dealer, who then ships to the receiving FFL.

I talked to my dealer about this guy and he said that's illegal since non-FFL isn't suppose to engage in firearms sales business, period. But he's not sure what constitutes "egaging in firearm business" as ATF defines it. Please let me know who's right, thanks.

 

[DRC]

Hello AirPower,

There may be some other restriction elsewhere I don't know for sure but people buy and sell guns this way all the time on things like Guns America and gun trader sites.

Hope this helps,

DRC

 

[Hkmp5sd]

This is a real grey area. If he is buying guns and reselling them for a profit, he is acting as a dealer, even if only a couple of guns. If he buys a gun, uses it a while and then sells it, that's not dealing. It's his personal weapon.

It sounds as though he is using his local FFL's license by proxy. By making his sales through the FFL, he isn't selling firearms directly to unlicensed persons.

 

[jsalcedo]

I'm not sure but I've been told the rule of thumb for the ATF is 12 guns a year if profiting and no limit if collecting and not doing it as a business.

 

[AirPower]

Thanks, so it's really difficult to say one way or another. But I don't get the part about making his sales through the FFL. Isn't he still selling the firearm directly still? He would still be shipping to FFL holder even if he ships it himeself. But what does going through the FFL as a shipper benefit him? that's what I don't get.

 

[Hkmp5sd]

To be honest, I have no idea if this is illegal or not. I've never heard of anyone doing it and don't really see why anyone would want to. He buys a gun and finds someone to buy it. That person pays for the gun, the two FFLs, taxes and shipping. I don't see how he can sell it at a low enough price to make the buyer want it, given the overhead, and still make money off of the sale. Strange one.

He must have an amazingly cheap source of firearms.

 

[cpileri]

from agent S-

Just a quick reminder to please include a photograph of any illegal activity you engage in. Homeland Security thanks you for your good citizenship.
Sincerely,
Agent Schmuckatelli
http://www.thehighroad.org/showthre...rpage=25&highlight=schmuckatelli&pagenumber=1

 

[rperry03]

I do not know what state you are in, but every state is different.
I would not ship a firearm to anyone I did not know.
I VA you can sell to friends and family with no paperwork, but in PRNJ you need a handgun purchase permit that needs to be filled out by an FFL. I am not sure about long guns.

 

[Kharn]

If you're considering quitting your day job due to the profits from the gun sales, its a good indicator you're "engaged in the business".
I'd be wary of someone that buys guns purposefully to resell them, even to a legit buyer through the local FFL; even if he's not over the line, he's one step (or one ATF-written opinion) away from a long stay in the pokey.

Kharn