Firearms Law & Compliance

Understanding Firearms Law for Sellers: A Comprehensive Overview

Federal gun law provides the baseline, but state law adds layers of regulation that can vary dramatically depending on where you live. Selling a firearm legally requires understanding both. The guides in this category are compiled from official state legislature websites, ATF memoranda, and attorney general publications, and they're written specifically with sellers in mind.

Federal Law: The Foundation

The Gun Control Act of 1968 is the primary federal statute governing firearms sales. It requires anyone "engaged in the business" of dealing firearms to hold a Federal Firearms License. It prohibits sales to certain categories of people (felons, domestic violence offenders, drug users, fugitives, and others), and it requires all interstate firearms transfers to go through an FFL dealer. The Brady Handgun Violence Prevention Act added the requirement for NICS background checks on all sales through licensed dealers. Importantly, federal law does not require background checks for private, intrastate transfers between unlicensed individuals, but many states have added their own requirements on top.

State Laws: Where Complexity Lives

California requires universal background checks, a 10-day waiting period, mandatory FFL involvement for all transfers, DROS fees, and maintains a roster of approved handguns for retail sale. The new AB 1127 adds a ban on "machinegun-convertible" pistols. New York requires FFL background checks for nearly all transfers and has strict permitting requirements. Oregon and Washington mandate that all private sales go through an FFL with a background check. Colorado requires universal background checks and restricts high-capacity magazines. Michigan recently expanded its background check requirements to cover rifles and shotguns in addition to handguns, and enacted red flag and safe storage laws. Meanwhile, states like Texas, Arizona, and Georgia allow private long gun sales with minimal restrictions, though federal prohibitions still apply.

Background Checks: Universal vs. Limited vs. None

States generally fall into three categories. Universal background check states require an FFL-facilitated check for all firearms transfers, including private sales. Limited check states require checks for certain transaction types (typically handguns or sales at gun shows) but not all private transfers. Minimal-restriction states defer to federal law, which does not require checks for private intrastate sales. The trend since 2013 has been toward more states adopting universal check requirements, and the legislative landscape continues to evolve. Our state guides are updated to reflect the latest changes.

Red Flag Laws and Safe Storage Mandates

An increasing number of states have enacted Extreme Risk Protection Order laws (commonly called "red flag" laws) that allow courts to temporarily remove firearms from individuals deemed a threat to themselves or others. California, Colorado, New York, Michigan, Oregon, Washington, and others have these laws in place, and they can affect a buyer's eligibility during the transfer process. Several states have also introduced mandatory safe storage requirements, particularly to prevent minor access. These regulations don't directly affect the act of selling, but they're part of the regulatory environment that sellers should understand.

Why Selling Through a Licensed FFL Is the Safest Path

When you sell to a licensed FFL dealer, you transfer the compliance burden to a business that is legally authorized, professionally trained, and regularly audited by the ATF to handle firearms transactions. The dealer verifies serial numbers, checks for stolen or defaced firearms, ensures the transaction is documented properly, and maintains records as required by law. You don't need to determine whether your buyer is a prohibited person, whether your state requires a background check for this specific type of sale, or whether local ordinances add additional requirements. CashMyGuns.com handles all of this, in all 50 states, at no cost to you. That's the value of selling to a licensed dealer.