FFL License Personal Use
One of the biggest perks of having your own FFL License is being able to order firearms for personal use at much reduced prices. However, once you become a FFL dealer, it’s important that you keep track of your personal collection in the proper fashion.
Starting with before you actually get your FFL license, go through your collection and decide if there is anything you’d like to sell. You’ll need to enter anything you might want to sell into your Acquisitions & Dispositions (A&D) book once you get one. Obviously, this is not required to move personal inventory to your FFL books, but a good best practice before you sell a “personal” firearm after getting an FFL.
After you get your FFL license, and you decide to purchase a gun for your personal collection, you’ll need to enter it into your A&D book upon its arrival to your FFL licensed location. Then you can mark the gun out of your records as a disposition to yourself and no 4473 is required. You’ll want to be sure to keep your personal collection separate from your inventory either by storing them separately from your inventory or by labeling your personal collection as “not for sale” with a tag.
If after a couple of months you decide you don’t like the new gun you transferred to yourself and want to resell it, you’ll need to put it back into your A&D book and sell it through your FFL. Any gun you’ve had in your personal collection less than a year will need to be sold through your license if you choose to sell it. For guns that have been in your collection for over a year, you may sell in a private sale as long as you keep a record of the date of that sale in a bound record and make note of the make, model, serial number, and caliber of the weapon. You’ll also need to record the name, address, and date of birth of the purchaser; and the purchaser will also need to be identified in any manner in which you’d identify a purchaser through a commercial sale (e.g., a driver’s license). If the private sale is to another licensee, the name and address of the licensee will need to be recorded. However, most FFL holders choose to sell everything through their FFL and perform a background check to ensure that the purchaser is legally able to own a firearm. It’s about as much paperwork to do it one way as to do it the other, so many FFL dealers hold the opinion that they may as well run the background check while they’re at it.
A note should be made that this procedure is applicable to sole proprietor FFL licensees only, meaning FFL holders who applied as an individual and not a LLC, corporation, partnership, etc. Different rules apply to the situations of LLCs and partnerships.