What Is an FFL? Federal Firearms License Types, Costs, and How to Get One

FFL stands for Federal Firearms License — the license issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) that individuals and businesses need to legally deal in, manufacture, or import firearms and ammunition in the United States. If you plan to sell guns, take firearms as pawn collateral, manufacture ammo, or import firearms, you need the right FFL type before your first transaction.

This guide covers what an FFL is, all nine FFL license types, what each license costs, how to apply through the ATF, and what it takes to stay compliant — and get paid — once you’re licensed.

What Does FFL Stand For?

FFL stands for Federal Firearms License. Created under the Gun Control Act of 1968 (GCA), the FFL system is administered by the ATF and is what makes it legal to “engage in the business” of firearms. When someone says “ship it to your FFL,” they mean a licensed dealer who can legally receive a firearm and run the required background check before transferring it to the buyer.

What Is an FFL License and Who Needs One?

An FFL authorizes specific commercial firearms activities, including:

• Selling firearms commercially — retail stores, online sales, and gun shows
• Manufacturing firearms and ammunition for sale or distribution
• Importing firearms, ammunition, and destructive devices

You need an FFL if you repeatedly buy and sell firearms to earn a profit. You do not need one to purchase a gun for personal use — though out-of-state purchases must transfer through a local FFL dealer. Hobbyists who collect antique or historical firearms can hold a Type 03 Curios and Relics (C&R) license, which permits interstate collecting without running a business.

FFLs exist to keep lawful commerce moving while satisfying the Gun Control Act (GCA) and the National Firearms Act (NFA), the two federal laws that govern the firearms industry.

The 9 FFL License Types

There are nine FFL license types, each tied to a specific business activity. Use this quick reference to match the license to your business intent:

• Type 01 — Dealer in firearms (gun stores, gun show dealers, gunsmiths)
• Type 02 — Pawnbroker dealing in firearms
• Type 03 — Collector of Curios and Relics (C&R) — collecting only, not business
• Type 06 — Manufacturer of ammunition (excluding armor-piercing)
• Type 07 — Manufacturer of firearms and ammunition
• Type 08 — Importer of firearms and ammunition
• Type 09 — Dealer in destructive devices
• Type 10 — Manufacturer of destructive devices and armor-piercing ammunition
• Type 11 — Importer of destructive devices and armor-piercing ammunition

Here’s a closer look at what each license type covers:

Type 01: Dealer in Firearms

• The most common FFL — for retail gun dealers, including gun stores, gun show sellers, and gunsmiths.
• Does not cover dealing in NFA items such as machine guns or short-barreled rifles unless paired with the proper SOT (see classes below).

Type 02: Pawnbroker

• Specifically for pawnbrokers who take firearms as pawn collateral or otherwise deal in firearms.

Type 03: Collector of Curios and Relics (C&R)

• For firearm enthusiasts focusing on antique firearms or historical pieces.
• Not a business license — it allows collectors to purchase and trade C&R-eligible firearms across state lines.

Type 06: Manufacturer of Ammunition

• For businesses manufacturing ammunition (excluding armor-piercing ammunition).
• Aimed at companies producing standard ammunition for civilian use.

Type 07: Manufacturer of Firearms

• The most flexible license — licensed manufacturers can also deal firearms, which is why many businesses that build or assemble firearms choose it.
• Covers both GCA firearms and, with the proper tax stamps, certain NFA firearms like short-barreled rifles.

Type 08: Importer of Firearms

• For entities importing firearms, ammunition, and related items.
• Often used for bringing in firearms from overseas markets.

Type 09: Dealer in Destructive Devices

• Allows the sale of destructive devices such as grenades or rocket launchers, as well as ammunition for these devices.
• Requires strict adherence to federal and local laws.

Type 10: Manufacturer of Destructive Devices

• For manufacturing destructive devices, armor-piercing ammunition, and related items.
• Carries some of the heaviest regulatory compliance and oversight in the industry.

Type 11: Importer of Destructive Devices

• Specifically for importing destructive devices or armor-piercing ammunition.

FFL License Cost: Fees by Type

For the most common license — the Type 01 dealer — an FFL costs $200 for the first three years, then $90 for each three-year renewal. A C&R collector license costs just $30, while destructive device licenses run $3,000. Here is the full ATF fee schedule by type (first 3 years / 3-year renewal):

• Type 01 — Dealer: $200 / $90
• Type 02 — Pawnbroker: $200 / $90
• Type 03 — Collector (C&R): $30 / $30
• Type 06 — Ammunition Manufacturer: $30 / $30
• Type 07 — Firearms Manufacturer: $150 / $150
• Type 08 — Importer: $150 / $150
• Type 09 — Destructive Device Dealer: $3,000 / $3,000
• Type 10 — Destructive Device Manufacturer: $3,000 / $3,000
• Type 11 — Destructive Device Importer: $3,000 / $3,000

Budget beyond the ATF fee: state and local business licensing, zoning approvals, secure storage, compliance software, and — if you handle NFA items — annual Special Occupational Taxpayer (SOT) fees. Confirm the current fee schedule at atf.gov before you apply.

How to Get an FFL: The ATF Application Process

Securing an FFL involves five main steps:

• Step 1 — Choose your license type. Match the FFL type to your business intent: dealing, manufacturing, importing, or collecting.
• Step 2 — Complete ATF Form 7 (or Form 7CR for collectors) and submit it to the Federal Firearms Licensing Center (FFLC) with fingerprints, photographs, and the application fee.
• Step 3 — Pass the ATF review. The FFLC runs background checks on the applicant and all responsible persons.
• Step 4 — Complete the in-person interview. An Industry Operations Investigator (IOI) interviews you, inspects your premises, and verifies you understand federal, state, and local requirements.
• Step 5 — Receive your license. If approved, the ATF typically issues the FFL within about 60 days of a complete application.

Here’s how to navigate the process step by step:

1. Determine Your Business Intent
   • Decide the type of firearms business you want to operate. Whether you aim to sell guns, manufacture firearms, or specialize in gunsmithing services, choose the appropriate FFL type.
2. Complete ATF Form 7
   • Submit ATF Form 7 (or Form 7CR for collectors) to the Federal Firearms Licensing Center (FFLC).
   • Include personal and business details, fingerprints, and photos.
3. Pay the FFL Cost
   • Costs vary by FFL type. For instance, Type 01 licenses cost around $200 for the initial three years, while manufacturing or importing licenses may cost more.
4. Pass the ATF Inspection
   • An Industry Operations Investigator (IOI) will review your application, inspect your premises, and ensure compliance with regulations.
5. Receive Your License
   • If approved, you’ll receive your FFL within 60 days. You’re now authorized to conduct business in your specified category.

The ATF and Your FFL

The Bureau of Alcohol, Tobacco, Firearms and Explosives issues every FFL, and the relationship doesn’t end at approval. The ATF conducts periodic compliance inspections, reviews your acquisition and disposition (A&D) records, and enforces the GCA and NFA. Willful violations — missing transaction logs, selling to prohibited persons — can mean fines, license revocation, or criminal charges. Treat your IOI as a compliance resource and keep clean books, and inspections become routine.

FFL Types vs. FFL Classes (SOT): What’s the Difference?

You’ll often hear the phrase “Class 3 dealer,” but classes and types are not the same thing. FFL types (01–11) are the licenses described above. Classes refer to Special Occupational Taxpayer status — an annual tax paid on top of an FFL to handle NFA items like suppressors and short-barreled rifles:

• Class 1 SOT — importers of NFA firearms (Type 08 or 11)
• Class 2 SOT — manufacturers of NFA firearms (Type 07 or 10)
• Class 3 SOT — dealers in NFA firearms (Type 01, 02, or 09)

So a “Class 3 dealer” is really a Type 01 FFL holder who pays the Class 3 SOT.

FFL Requirements: Who Can Get One?

To qualify for a federal firearms license, you must:

• Be at least 21 years old
• Be legally eligible to possess firearms and ammunition (not a prohibited person under the GCA)
• Have a premises for conducting business — home-based FFLs are allowed where zoning permits
• Not have willfully violated the GCA or its regulations
• Certify compliance with state and local law

FFL Holder Responsibilities

Once licensed, FFL holders must adhere to strict regulations to maintain compliance:

• Keep records: Maintain acquisition and disposition (A&D) logs in a bound book or ATF-compliant software
• Run background checks: Process NICS checks for every firearm sale
• Allow inspections: Cooperate with periodic ATF compliance reviews
• Pay SOT taxes if dealing in NFA items
• Secure inventory to prevent theft or loss

Exploring the Firearms Business Landscape

NFA Firearms and Destructive Devices

Operating in the NFA market requires additional compliance. Businesses dealing in machine guns, suppressors, or destructive device ammunition must navigate stricter regulations under the NFA and GCA — plus the SOT classes described above.

Gun Dealers and Gun Shops

Whether you’re opening a gun store or attending gun shows, understanding state and federal laws is crucial. Compliance ensures a seamless customer experience and safeguards your business against legal issues.

Importing and Exporting Firearms

For importing firearms or destructive devices, partnering with an experienced customs broker familiar with ATF regulations is essential.

Collector Licenses

A collector (C&R) FFL offers firearm enthusiasts unique opportunities to own historical pieces without engaging in commercial activity.

Getting Paid as an FFL Holder

Getting your FFL is step one — getting paid is step two. Many mainstream payment providers restrict or prohibit firearms transactions entirely, which is why gun stores, online dealers, and ammo manufacturers rely on a specialized firearms merchant account built for the industry. PayKings supports FFL holders across high-risk payment processing industries with compliant credit card processing for retail and online sales.

Get started with PayKings and make sure your firearms business can accept payments as soon as your license arrives.