Michigan licensees at a glance
ATF’s August 2026 listing includes 2,436 active federal firearms licenses in Michigan, eighth among the states.
| License type | Michigan |
|---|---|
| 01 Dealer | 1,646 |
| 07 Manufacturer | 592 |
| 02 Pawnbroker | 65 |
| 06 Ammunition manufacturer | 59 |
| 08 Importer | 47 |
| 09, 10, 11 Destructive devices | 27 |
Two things are visible in the data. Dealers make up about two-thirds of Michigan’s list, a higher share than the national figure of 58%. And the licenses are unusually spread out: the city with the most, Grand Rapids, has only 36. Muskegon, Troy, Clinton Township, Livonia, Battle Creek and Jackson follow with 24 to 32 each. Much of Michigan’s firearms business happens in townships and small towns, not big cities.
The federal side
Nothing about the ATF application changes in Michigan. You file Form 5310.12, get fingerprints and photos for each responsible person, send the CLEO copy and sit for the qualification interview. See the application guide. ATF’s Detroit Field Division covers the state.
Your CLEO depends on where your premises are. In a city with its own police department that is the police chief. In many townships it is the county sheriff, although some townships have their own departments. If you aren’t sure, call the sheriff’s office and ask who provides police services at your address.
Zoning in a state of townships
Michigan has more than 1,200 townships, and many of them write their own zoning ordinances. Neighboring townships can treat the same home business completely differently.
Michigan law (MCL 123.1102) prevents counties, cities, villages and townships from regulating how firearms are purchased, sold, transferred or possessed. It doesn’t exempt a firearms business from the ordinary zoning rules that apply to any business. In practice:
- Find out whether your township, city or village administers its own zoning, or whether the county does.
- Look for a “home occupation” section in the ordinance and read its limits on customer visits, employees and signage.
- If manufacturing is part of your plan, ask about it directly. Assembly in a garage can fall under different rules than an office.
- Ask for written confirmation. ATF investigators may contact the zoning office themselves.
Pistol sales
Michigan tracks pistol sales in a way many states don’t. A buyer generally needs a license to purchase, issued by local police or the county sheriff, unless they are exempt. Most Michigan concealed pistol license holders are exempt, and so are other federal licensees and qualifying police officers.
Either way, a pistol sale produces a state record. With a purchase license, the seller and buyer both sign it and the seller returns the licensing authority’s copy within 10 days, in person or by first-class or certified mail. When the buyer is exempt, the seller completes a pistol sales record instead, and it has the same 10-day return deadline. These records are kept in the state’s confidential firearm records.
A purchase license is only valid for 30 days, so check the date when a customer brings one in. Before your first pistol sale, get the current forms from the licensing authority in your area rather than relying on how a friend’s shop did it years ago.
The 2024 laws
A package of Michigan firearms laws took effect in February 2024. Several affect dealers and their customers:
- Background checks for all firearm purchases. The license-to-purchase system that used to cover only pistols now applies to all firearms. For rifles and shotguns there is a dealer route: a buyer whose background check was run by a federal licensee within the previous five days doesn’t need a purchase license. In practice, more private sellers and buyers now come to a dealer to handle the transfer.
- Safe storage. An unattended firearm on premises where a minor is or is likely to be present must be kept in a locked box or container, or unloaded with a locking device engaged. Penalties go up if a minor gets the firearm and uses or displays it.
- Extreme risk protection orders. A court can order someone’s firearms surrendered and bar them from buying or possessing firearms, with no criminal conviction required. If you offer storage for firearms surrendered under an order, set up a clear intake process and keep good records.
With the growth in private-party transfers, a Michigan transfer dealer who is set up to handle them quickly has a real advantage.
State tax and business registration
A Michigan firearms business typically registers:
- With the Michigan Department of Treasury for sales tax. Michigan’s sales tax rate is 6%, with no local sales taxes on top.
- With the Department of Licensing and Regulatory Affairs (LARA) if you form an LLC or corporation, including the annual statement or report that keeps it in good standing.
- With your city or township for any local business license or registration it requires.
A Michigan checklist
- Identify who handles zoning for your address and confirm the use in writing.
- Form your LLC or corporation with LARA, if using one.
- Register for sales tax with Treasury.
- File ATF Form 5310.12 and send the CLEO copy to the correct agency.
- Complete the ATF qualification interview.
- After licensing, get current purchase license and pistol sales record forms, and set up a way to track the 10-day return deadline.
- Set up procedures for private-party transfers, storage and any surrendered-firearm intake.