Quoted:
Now I need to avoid selling too many guns so as to not be considered a business, right? Are there some guidelines as to how many transactions you can be involved with in a year? Let's say I buy ten Yugo SKS's in a year and I sell 8 of them. Can I be legitimately considered a collector that was scrumming around for an interesting rifle and didn't get one?
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Not to sound like ANOTHER paranoid person, but if you are PLANNING on selling lots of firearms, I'm not sure a C&R license is the one you need. Maybe I'm just overinterpreting what you wrote, but that first sentence sounded a little calculating
Apologies if I mis-read it.
The primary purpose of the C&R is purely for collecting. As someone decides to change or downsize their collection, of course they can sell firearms off. By the same token, if someone really wanted a nice Yugo, the might buy ten of them, for exactly the reason you are poiting out.
However, if the ATF DO decide to inspect your records, and they see that you regularly buy 10 of a rifle, and then turn around and sell most of them (at gunshows or to your buddies) they'd probably be quite unhappy with that. I have no doubt they've heard the "Oh, but I bought 10 of them just to find a nice one, and then sold the 9 I didn't like" argument before.
That said - even if you go crazy, and sell 20 guns a year - I find it HIGHLY unlikely that the ATF would ever even notice. So knock yourself out. Would I do it, or recommend it? Absolutely not - because that's not what the license is for.