A Federal Firearms License (FFL) is necessary for anyone handling firearms transactions and can be a valuable tool for maintaining compliance with federal and state regulations. Different types of FFLs will require different costs, evaluations, and accompanying licenses. With proper preparation, a potential licensee can get through the process successfully and set themselves up for success as an FFL holder.
What is an FFL?
An FFL is issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and allows individuals or businesses to sell, import, and manufacture firearms and ammunition. As of 2023, there were 132,383 active FFLs across the United States.
What Type of FFL Do You Need?
The first step in the FFL application process is deciding which type of FFL to apply for. There are nine different options with different capabilities, depending on what you want to use your FFL for.
- Type 01: Dealer: Sell firearms at wholesale or retail, repair firearms or make or fit special barrels, stocks, or trigger mechanisms to firearms, occasionally import firearms
- Type 02: Pawnbroker: Take or receive, by way of pledge or pawn, firearms as security for the payment or repayment of money
- Type 03: Collector of Curios and Relics: acquires, holds or disposes of firearms as curios or relics
- Type 06: Manufacturer of Ammunition: Manufacture ammunition for firearms other than destructive devices or armor piercing ammunition.
- Type 07: Manufacturer of Firearms: Manufacture firearms or ammunition
- Type 08: Importer: Import firearms other than destructive devices and ammunition other than for destructive devices, and non-armor piercing ammunition & sell the same type of firearms and ammunition authorized to be imported at wholesale or retail.
- Type 09: Dealer in Destructive Devices: Sell firearms, including destructive devices, at wholesale or retail.
- Type 10: Manufacturer of Destructive Devices: Manufacture firearms, including destructive devices, manufacture ammunition for firearms, including destructive devices, as well as armor piercing ammunition, sell firearms, including destructive devices, ammunition for destructive devices, and armor piercing ammunition.
- Type 11: Importer of Destructive Devices: Import firearms other than destructive devices and ammunition other than for destructive devices, and non-armor piercing ammunition & sell the same type of firearms and ammunition authorized to be imported at wholesale or retail.
Completing an FFL Application
All FFL applicants must complete ATF Form 7, which can be used for all FFL types. The form requires demographic, business, and personal information.
FFL Information & Requirements
The application will ask for a range of information about the purchaser, including:
- Licensee Name (Owner/Sole Proprietor, Partnership, or Corporation/LLC Name)
- Trade or Business Name
- Business/Activity Address
- Employer Identification Number (EIN)/Federal Tax Identification Number
- Business Activity
- Individual Owner (Sole Proprietor)
- Partnership
- Corporation
- LLC
- Collector
- Other
- Name of County in which Business/Activity is Located
- Mailing Address
- Contact Information
- Method of Payment
- Hours of Operation and/or Availability of Business/Activity
- Name of Chief Law Enforcement Officer (CLEO) of the locality in which the premises sought to be licensed is located
- Copies of Business Documents Including:
- Lease Agreement(s), if any
- Business Entity Formation
- Business License(s)
- Responsible Person Information:
- Completed ATF Form 7 – Part B (for each Responsible Person)
- Place of Birth
- Last 5 Years Residency Address(es) and Dates of Residency
- 2” x 2” Passport Style Photo Taken within the Last 6 Months
- Completed FD-258 Fingerprint Card
Federal FFL Requirements
The basic requirements under federal law are:
- Be at least 21 years of age and a US Citizen or legal permanent resident
- Be legally permitted to possess firearms and ammunition (no felony convictions, controlled substance abuse, or disqualifying mental health issues)
- Have a predetermined physical location for conducting your FFL activities
- No violations of the Gun Control Act or other firearms-based regulations
- Fully and honestly fill out your ATF Form and submit it appropriately to the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
- Pay any associated application fees/tax stamps, which varies by FFL type
State FFL Requirements
Most states require the Federal Firearms Licensee to register their business with the state government, obtain a state firearms license after receiving the federal license, and secure zoning permissions for their business location.
If you’re applying for a home-based FFL, you must ensure your activities won’t generate significant foot traffic to comply with local zoning rules. Retail locations must follow all relevant zoning regulations.
SOTs & FEL
Some additional licenses that allow for similar functions can be requested and used along with an FFL. While these are not required for an FFL, they might be needed to make full use of the licenses’ capacity depending on the type of FFL.
Special Occupational Taxholder (SOT)
Once the FFL is complete, the Special Occupational Taxpayer registration form can be completed. After the tax that applies to the business is paid, the SOT will be sent in the mail within a few weeks. There are three types of SOTs- Class 01, Class 02, and Class 03.
Class 01 SOT
A Class 01 SOT is required to import items regulated by the National Firearms Act. This SOT class, which costs $500 per year in registration (or up to $1000 depending on yearly revenue), is used with a Type 08 or Type 11 FFL.
Class 02 SOT
A Class 02 SOT allows Type 07 and Type 10 FFLs to manufacture NFA-regulated items, including destructive devices. The license costs between $500 and $1000, depending on the size of the business.
Class 03 SOT
A Class 03 SOT allows licensees to deal in firearms regulated under the National Firearms Act. This SOT class, which costs $500, is meant specifically for FFLs with a Type 01, 02, or 09 license.
Federal Explosive License
A Federal Explosive License (FEL) allows you to deal with, as the name implies, explosives. This is an additional license and accompanying fee of $100/year. Getting an FEL is more similar to the process of getting your FFL than a SOT. Once an ATF Form 5400.13/5400.16 is completed, the Federal Explosive License Center will then coordinate with the ATF to conduct its own set of background checks, interviews, and inspections.
Responsible Persons
Potential licensees are required to list at least one “responsible person” on an FFL application. A responsible person has the authority to direct firearm compliance decisions and operations for an FFL, and they are legally accountable for making sure that the company follows ATF regulations. A responsible person can include the business owner, manager, corporate officers, or anyone who has authority over the business’s firearm-related activities.
While only one is required in many cases, applicants can add additional responsible persons by completing a responsible person questionnaire.
Background Checks & Interviews
Most licenses are issued around 60 days from when the FFLC first received the application. During that 60–day period, the applicant must undergo multiple evaluations to determine they are fit and prepared to become an FFL.
FFLC Background Check
After completing and mailing an accurate application, the FFLC records the application, reviews the form’s information, and conducts a background check on the listed responsible persons.
Local ATF Field Office Interview
After the local ATF field office receives the new license application, an Industry Operations Investigator (IOI) will conduct an in-person interview. The IOI will review your Federal Firearms License (FFL) application, assess your business operations and compliance with federal and state legal requirements, and make a recommendation to approve or deny your license.
Final Area Supervisor & FFLC Review
The IOI will submit its recommendation to the FFLC, who will then make the final decision about whether or not to issue the FFL. If all background checks were passed and the business is in compliance with state and local law, the FFLC typically issues the license.
How FFLGuard Protects You as an FFL
Since 2008, FFLGuard has been committed to providing expert guidance on ATF compliance and legal protection to FFLs through our top-notch cooperative legal and compliance program. Directed by The Chiafullo Group, LLC, FFLGuard works with firearms-specific counsel, subject matter experts, and professionals across the country to defend FFLs. By educating FFLs on legal nuances behind firearms policy, we help them preserve their licenses and ensure the integrity of an ATF inquiry.
Reach out to FFLGuard on our Contact Us page and learn more about how you can Join Us.