DO I NEED A LICENSE TO BUY AND SELL FIREARMS?
Guidance to help you understand when a Federal
Firearms License is required under federal law.
1
Introduction
The Federal Gun Control Act (GCA), codified at 18 U.S.C. §§ 922(a)(1)(A)
and 923(c), requires that any person engaged in the business of dealing
in firearms must be licensed by the Bureau of Alcohol, Tobacco, Firearms
and Explosives (ATF). Federal rearms licensees (FFL) are critical partners in
promoting public safety because—among other things—they help keep rearms
out of the hands of prohibited persons by running background checks on
potential rearms purchasers, ensure that guns used in crimes can be traced back
to their rst retail purchaser by keeping records of transactions, and facilitate
safe storage of rearms by providing child safety locks with every transferred
handgun and having secure gun storage or safety locks available any place where
they sell rearms. A person who willfully engages in the business of dealing in
rearms without the required license is subject to criminal prosecution, and can
be sentenced to up to ve years in prison, ned up to $250,000, or both. See 18
U.S.C. § 922(a)(1)(A).
Determining whether your rearm-related activities require a license is a fact-
specic inquiry. This guidance is intended to help you determine whether you
need to be licensed under federal law.
Note that some states have more stringent laws with respect to when a
state-issued license is required for selling a firearm. Please consult the laws
of the applicable state to ensure compliance.
There are other laws and regulations that govern the transfer of rearms—both
between unlicensed individuals and from licensed dealers (e.g., unlicensed sellers
may only lawfully sell to persons within their own state, and it is unlawful for
either licensed or unlicensed sellers to sell rearms to persons they know or have
reasonable cause to believe cannot lawfully possess them). All persons who
transfer firearms, regardless of whether they are engaged in the business of
dealing in firearms, must ensure that any transfers are in compliance with
federal, state, tribal, and local laws.
*This publication has been updated to reflect amendments made to the definition of “engaged in the
business” by the Bipartisan Safer Communities Act, Public Law 117-159 (June 25, 2022). On September 8,
2023, ATF published a Notice of Proposed Rulemaking that would further clarify, among other things, what it
means for a person to be engaged in the business of dealing in firearms. This publication may be updated in
the future to reflect the outcome of that rulemaking.