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Stating the obvious, it is critical to make sure no bullets or shot cross the property line.

I say continue doing what you do and don't worry about it until he cites you or tries to press some kind of charges. Then you have something to fight over. Also may want to put a lock on your gate if you have one.

The neighbor may be friends with the fire marshal and is getting him to pressure you or he has convinced him you are running a business. I would also press him to provide you with details of what makes him suspect you are running a business.

Or, you could contact a good lawyer and let him/her check into it.