Are You a Private Dealer?

Posted by Rick on 2/7/2017 to Articles

Are you a private dealer?

This is a question we hear all the time and the answer is no and in fact, this question doesn’t make sense… let us explain.

In doing a firearm transaction, one of the parties is either a PRIVATE SELLER or a DEALER.

A dealer is a business that has a Federal Firearms License (FFL). In states with a sales tax, a dealer will add sales tax to the price. A dealer will also need to do a *NICS background check on the buyer along with the required paperwork. A dealer will most likely accept credit cards as payment.

A private seller is an unlicensed individual selling his own collection. They may sell a firearm to another individual residing in the SAME state provided that he has no reason to believe the buyer is prohibited by law from possessing firearms. Nothing else is required for this type of transaction. We highly suggest the seller and buyer create a sales receipt of the transfer for each to keep for their personal records.

A private seller may also sell a firearm to an individual residing in another state, but in this type of transaction the seller is required to coordinate the sale with the buyer’s local FFL dealer who will transfer the firearm from seller to buyer following proper procedures.

In general, people who make the occasional sale, exchange, or gifting of a firearm are not required to have a Federal Firearms License (FFL). Any person who is in the business of buying and selling firearms is required to have a FFL and if they do not they are conducting business illegally.

There are many things to consider with private sales, and the first is if it is legal in your state. Not all states allow private sales, and some have certain restrictions. Be sure to find out what laws your state has for firearms purchases.

*Persons who have a valid concealed carry weapons (CCW) permit bypass the NICS background check (In Arizona) at the time of purchase. Paperwork is still required.

So the next time you are wondering about the sale of a firearm and what is required, the right question to ask is "Are you a private seller or a dealer?"