NATIONALLY RECOGNIZED FEDERAL LAWYERS

08 Oct 25

What is dealing firearms without license

| by

Thanks for visiting Spodek Law Group – a second-generation law firm managed by Todd Spodek, with over 40 years of combined experience. You might know us from representing Anna Delvey in the Netflix series, or from the Ghislaine Maxwell juror misconduct case, or the Alec Baldwin stalking case. If you’re on this page, you’re probably worried about a federal firearms charge – or you’re trying to figure out if what you’re doing crosses the line. Dealing firearms without a license is a serious federal crime under 18 U.S.C. § 922(a)(1), and the government’s been cracking down hard in 2025.

What “Dealing in Firearms” Actually Means

The statute says it’s illegal for any person to engage in the business of dealing firearms without a Federal Firearms License. Simple enough – except what does “engage in the business” mean? That’s where people get arrested.

You don’t need to own a gun store. Federal prosecutors have charged people who sold guns exclusively at gun shows, people who sold exclusively online, people who operated out of their homes or cars. Location doesn’t matter – intent matters.

Under the old standard, you were “engaged in the business” if gun dealing was your livelihood and primary source of income. If you had a day job and sold guns on the side, prosecutors had a harder time proving you were a dealer.

That changed in April 2024 when ATF issued its final rule redefining “engaged in the business.” The new standard asks whether you’re selling guns to “predominantly earn a profit.” Not livelihood. Profit. Doesn’t matter if it’s your main income or side hustle. If you’re buying guns and reselling them primarily to make money – not to enhance your personal collection – you need a license.

There’s no minimum number of firearms that triggers the license requirement. Courts have held that even one attempted sale can qualify as dealing if prosecutors prove you intended to predominantly earn profit. The question is intent. Are you buying guns because you want to own them? Or are you buying guns specifically to resell them for profit?

The 2024 Rule and Current Legal Chaos

ATF’s April 2024 rule fundamentally shifted enforcement. Under the new definition, it doesn’t matter where you sell guns – internet, gun show, flea market, parking lot. If you’re selling guns predominantly to earn profit, you need a license, and you need to conduct background checks.

Guy who buys 20 guns a month at retail and resells them at gun shows for $100-$200 profit per gun? Needs a license. Person who operates as a gun broker for a fee? Needs a license. Someone who buys guns online and flips them locally? Needs a license.

But there’s significant legal uncertainty in 2025. Multiple federal courts have blocked enforcement. The Northern District of Texas issued a preliminary injunction. The Northern District of Alabama went further in Butler v. Bondi, invalidating the entire rule.

Enforcement is inconsistent. Some districts are aggressively prosecuting under the new standard. Others use the old standard. Federal prosecutors in different parts of the country are applying different definitions – which creates enormous confusion.

If you’re selling guns and you’re anywhere near the line, you’re gambling with a five-year felony. The uncertainty doesn’t protect you. It just means you won’t know which standard applies until after you’re indicted.

What Prosecutors Must Prove

To convict you, federal prosecutors must prove you engaged in the business of dealing in firearms, that you willfully violated the law, and that the firearms traveled in interstate or foreign commerce.

The “willfully” requirement comes from 18 U.S.C. § 924(a)(1)(D). The Supreme Court addressed this in Bryan v. United States (1998). “Willfully” doesn’t mean you need to know about the Federal Firearms License requirement specifically. It means you need to know your conduct is unlawful. If you’re selling guns with the knowledge that you’re breaking some law – even if you’re fuzzy on which law – that’s enough.

Prosecutors don’t need to prove you researched federal firearms regulations. They just need to prove you knew dealing guns without proper authorization was illegal. Evidence that you tried to hide transactions, used cash to avoid records, sold to people you suspected couldn’t pass background checks – all of that supports willfulness.

The interstate commerce element is almost always satisfied. If the gun was manufactured outside the state where you sold it, that’s interstate commerce. Nearly every gun in America has moved across state lines at some point.

Penalties and Real Sentences from 2025

The statutory maximum for dealing firearms without a license is five years in federal prison and a $250,000 fine. Actual sentences depend on the sentencing guidelines, your criminal history, the number of firearms involved, whether guns ended up used in crimes, and whether you cooperated.

Recent cases from 2025 show the range. David Joseph Mull from Indiana got four years in federal prison followed by two years of supervised release. Between 2019 and 2023, Mull sold over 1,300 firearms for more than $500,000 in cash, many of which were traced to Mexico. Four years in federal prison for large-scale unlicensed dealing.

First-time offenders selling smaller quantities get lighter sentences. Courts have imposed sentences of one year plus $10,000 fines for defendants with no prior criminal history who cooperated with investigators and didn’t traffic guns to prohibited persons. Clean record, cooperation, limited scope – that gets you closer to the bottom of the guideline range.

Federal judges consider aggravating factors. Did guns you sold turn up at crime scenes? Were you selling to prohibited persons? Did you falsify records? Aggravating factors push your sentence toward that five-year maximum or beyond if there are additional charges. Acceptance of responsibility gets you a two- or three-level reduction – that’s significant. Cooperation under a 5K1.1 motion can get you below the guideline range entirely.

Federal prison time is real time. There’s no parole in the federal system. You serve at least 85% of your sentence. Four years means you’re doing roughly 40 months minimum. And once you’re convicted of dealing firearms without a license, you’re almost certainly prohibited from ever possessing firearms again under 18 U.S.C. § 922(g).

If You’re Being Investigated

If ATF or FBI contacts you about firearms transactions, if agents show up at your home asking about gun sales, if you receive a grand jury subpoena – stop talking immediately. Federal firearms investigators are not trying to help you. They’re building a case.

ATF agents are skilled at getting people to make admissions that seem harmless but become devastating evidence at trial. “How many guns have you sold in the past year?” Your answer – “I don’t know, maybe 30 or 40” – becomes evidence you were engaged in the business. “Did you make money on those sales?” You say, “Yeah, a little bit.” Now they’ve got profit motive. Every statement you make can be used against you.

Our criminal defense attorneys have handled federal firearms cases for many, many years – including cases involving unlicensed dealing, straw purchases, trafficking, and possession by prohibited persons. We’ve defended clients in jurisdictions where courts are applying the 2024 ATF rule and jurisdictions where courts have rejected it. We know how ATF builds these investigations, what evidence prosecutors rely on, and how to challenge the government’s case at every stage.

At Spodek Law Group, we’ve handled cases that other firms said were unwinnable. We’ve represented clients in the highest-profile federal cases in the country – from Anna Delvey’s fraud case that became a Netflix series to the Ghislaine Maxwell juror misconduct matter that made national headlines. We’re not intimidated by federal prosecutors or complex firearms regulations. If you’re facing a federal firearms charge or you’re under investigation, call us. We’re available 24/7.