FFL License Types Explained: Which One Do You Need?
The ATF issues several types of Federal Firearms Licenses, each authorizing different activities. Choosing the right license is the first step to legally entering the firearms business.
By Dwight Ringdahl — GunExpos.com
Standard FFL Types
Type 01 — Dealer in Firearms / Gunsmith
Cost: $200 for 3 years ($90 renewal)
Buy and sell firearms, perform gunsmithing, accept transfers, sell at gun shows. The most common FFL type.
Best for: Gun shops, online dealers, transfer services, gunsmiths, home-based FFLs.
Type 02 — Pawnbroker in Firearms
Cost: $200 for 3 years ($90 renewal)
Everything a Type 01 can do, plus pawn transactions involving firearms.
Best for: Pawn shops that accept firearms.
Type 03 — Collector of Curios and Relics
Cost: $30 for 3 years
Receive C&R-eligible firearms directly by mail from FFLs and out-of-state sellers. Not a business license — for personal collecting only. See our C&R guide.
Best for: Collectors of military surplus and historic firearms.
Type 06 — Manufacturer of Ammunition
Cost: $30 for 3 years
Manufacture ammunition for sale. No license needed for personal-use ammunition.
Best for: Commercial ammunition manufacturers, reloading businesses.
Type 07 — Manufacturer of Firearms
Cost: $150 for 3 years ($150 renewal)
Everything a Type 01 can do, plus manufacture firearms and ammunition. Required if you build complete firearms for sale — even from parts kits.
Best for: Custom gun builders, AR-15 builders, boutique manufacturers.
Type 08 — Importer of Firearms
Cost: $150 for 3 years ($150 renewal)
Import firearms and ammunition for commercial sale. Requires ATF Form 6 for each import.
Best for: Importers of foreign-made firearms and ammunition.
Type 09 — Dealer in Destructive Devices
Cost: $3,000 for 3 years ($3,000 renewal)
Deal in destructive devices (grenades, rockets, large-bore firearms over .50 cal). Rarely needed outside military/government supply.
Type 10 — Manufacturer of Destructive Devices
Cost: $3,000 for 3 years
Manufacture destructive devices. Extremely specialized.
Type 11 — Importer of Destructive Devices
Cost: $3,000 for 3 years
Import destructive devices. Extremely specialized.
Special Occupational Tax (SOT) Classes
An SOT is an additional tax paid on top of your FFL that allows dealing in NFA items (suppressors, machine guns, short-barreled rifles/shotguns):
Class 3 SOT (Dealer in NFA Items)
Requires: Type 01 or Type 02 FFL Annual tax: $500 (small businesses under $500K revenue)
Allows buying and selling NFA items (suppressors, SBRs, SBSs, AOWs, and pre-1986 machine guns) to qualified buyers.
Class 2 SOT (Manufacturer of NFA Items)
Requires: Type 07 FFL Annual tax: $500 (small businesses under $500K revenue)
Allows manufacturing NFA items, including post-1986 machine guns for law enforcement/military sales and dealer samples.
Class 1 SOT (Importer of NFA Items)
Requires: Type 08 or Type 11 FFL Annual tax: $500 (small businesses under $500K revenue)
Which License Do You Need?
| Goal | License Needed |
|---|---|
| Run a gun shop | Type 01 |
| Do FFL transfers from home | Type 01 |
| Gunsmithing for hire | Type 01 |
| Sell at gun shows | Type 01 |
| Build and sell custom guns | Type 07 |
| Sell suppressors and SBRs | Type 01 + Class 3 SOT |
| Manufacture suppressors | Type 07 + Class 2 SOT |
| Collect military surplus | Type 03 |
| Operate a pawn shop | Type 02 |
| Sell reloaded ammunition | Type 06 |
| Import foreign firearms | Type 08 |
How to Apply
- Complete ATF Form 7 (or Form 7CR for Type 03)
- Submit with appropriate fee
- Pass ATF background check
- ATF conducts in-person interview and premises inspection (not for Type 03)
- Receive your FFL (typically 60–90 days)
Learn more about running an FFL business in our FFL guide series, and find gun shows to sell at in our show directory.