What Is an FFL? A Guide to Applying for a Federal Firearms License

If you’re interested in entering the firearms business, you’ll need an FFL. A federal firearms license is required to sell, manufacture, or import firearms.

The ATF (Bureau of Alcohol, Tobacco, Firearms, and Explosives) issues nine different types of licenses, ranging from simple collector’s licenses to more expensive licenses that allow the importation of firearms and destructive devices. The initial license application for each type is much the same, but there are additional fees and post-application steps to consider.

In this guide, we’ll help you determine the best license type for your business and walk you through the steps on how to get an FFL.

What Is a Federal Firearms License (FFL)?

A federal firearms license establishes what type of firearms business you are legally allowed to operate, from firearm manufacturing to an FFL transfer to facilitate the trade of a gun between two parties.

FFLs are issued and controlled by the ATF. An FFL has to be renewed every few years, and a business that possesses an FFL will need to maintain certain safety and documentation standards. Otherwise, the FFL could be revoked.  

What Are the FFL License Types?

There are nine types of federal firearms licenses ranging from Type 1 to Type 11. Understand what each type covers to choose the right license for your business. 

How Much Does an FFL Cost?

The cost to obtain an FFL license depends on the type you acquire. The below section outlines the initial application fee and three-year renewal fee:

FFL Type	Application Cost	Renewal Fee
Type 01	$200	$90
Type 02	$200	$90
Type 03	$30	$30
Type 06	$30	$30
Type 07	$150	$150
Type 08	$150	$150
Type 09	$3,000	$3,000
Type 10	$3,000	$3,000
Type 11	$3,000	$3,000

The FFL you obtain is good for 3 years, so the fee should be considered over a three-year period. For example, if you obtain a Type 01 FFL for $200, the yearly cost would be $67. At renewal, you’ll only pay $90 for the same license, giving you a yearly cost of $30. 

To obtain an FFL, you must supply your fingerprints with the application. However, there’s no requirement that fingerprinting must be done by law enforcement or other government professionals. That said, you can buy your own kit to take your fingerprints for the form. The cost typically ranges between $20-$50 per card. ^[3]Certifix Livescan. “How much does it cost to get my Live Scan or ink fingerprint card processed?” Accessed April 2, 2025.

The FBI does not charge a fee for NCIS checks. However, states acting as points of contact may charge a fee. The background check itself only takes about 30 seconds.

In 1999, the ATF implemented the National Firearms Examiner Academy (NFEA), which is currently the only national training program that provides a standardized curriculum in the firearm field.

There are various additional costs you may encounter when obtaining an FFL. One of which is an ITAR/DDTC registration. If you meet the State Department’s definition of a gun manufacturer and manufacture products listed in the USML, you must register with the Directorate of Defense Trade Controls (DDTC) at a cost of $2,250 every year.

Another sneaky cost is excise tax payments. Manufacturers that make more than 50 firearms in one year are charged a 10 to 11 percent tax on the firearm’s value. To make such a steep tax worth it, manufacturers tend to stop yearly production at 49 firearms or produce in excess of 50 that the tax is worth it.

The basic application process for an FFL is the same for all types of licenses. Here are the general steps you’ll need to take. 

Step 1: Determine eligibility – who is eligible for an FFL license?

The first step is to determine whether you are permitted to hold an FFL. To be eligible, you’ll have to meet these qualifications set forth in the Gun Control Act of 1968:^[4]ATF. “Gun Control Act.” Accessed April 2, 2025.  

Applicants failing to meet the above criteria may not be eligible for an FFL. However, they may be able to sell items at gun shows without a license.

Step 2: Review FFL requirements – federal & state

If you’re 21 or older and can legally purchase a firearm, you likely meet the criteria by the ATF (listed above) to be eligible for an FFL license. Still, it’s important to double-check to be sure you qualify.

Certain groups of people cannot possess firearms or ammunition. As such, they aren’t eligible for an FFL license. These are “prohibited persons” by the ATF, including anyone who is or has been:

Review your state’s FFL requirements

You’ll also want to review any state-level requirements to ensure you’re in compliance before applying for your FFL. Each state may have separate rules and regulations regarding the operation of a firearms-related business. This can include set zoning restrictions, additional license requirements, the need for specialized permits, and the proper business registration. 

Alabama	Hawaii	Massachusetts	New Mexico	South Dakota
Alaska	Idaho	Michigan	New York	Tennessee
Arizona	Illinois	Minnesota	North Carolina	Texas
Arkansas	Indiana	Mississippi	North Dakota	Utah
California	Iowa	Missouri	Ohio	Vermont
Colorado	Kansas	Montana	Oklahoma	Virginia
Connecticut	Kentucky	Nebraska	Oregon	Washington
Delaware	Louisiana	Nevada	Pennsylvania	West Virginia
Florida	Maine	New Hampshire	Rhode Island	Wisconsin
Georgia	Maryland	New Jersey	South Carolina	Wyoming

If you don’t meet your state’s requirement for owning and operating a firearm business, the state can stall your FFL application or refuse to let you open your business until you comply with their regulations. 

Step 3: Decide on the FFL type – what type of FFL do you need?

As of 2023, there were 132,383 active FFLs. ^[5]ATF “Fact Sheet – Facts and Figures for Fiscal Year 2023” Accessed April 2, 2025. The most common non-collectors license was Type 01, with 50,309 active holders. Compare that to the 147 FFLs issued for Dealers of Destructive Devices. 

While Type 01 is the most common, that doesn’t mean it’s the right one for your business. Which type of license you’ll need depends on what your main business model will be. There are four main categories of FFLs: 

1. Collectors – buy and sell for personal use
2. Dealers – sell firearms
3. Manufacturers – make firearms and ammunition
4. Importers – import firearms and ammunition 

Once you’ve narrowed down the license options to the type of firearms business you will be engaging in, you need to consider whether you want to handle NFA firearms or destructive devices.^[6]ATF “Which firearms are regulated under the NFA?” Accessed April 2, 2025. For instance, a Type 01 works for most sellers, but if you want to sell machine guns, you’ll need a Type 09 license. 

To legally participate in a firearms business, you need an FFL. To retain your FFL, you can only engage in activities covered by the type of FFL you obtained. 

If you are found to be engaging in a firearms business without the appropriate license, you could be hit with severe penalties, including the revocation of your FFL, hefty fines, and serious jail time. ^[7]Leppard Law “Can You Be Federally Charged for Selling Guns Without a License?” Accessed April 2, 2025.

You may not need an FFL for these exceptions: 

• Selling a personal firearm (i.e., selling your own gun to a dealer or another individual)
• Selling ammunition only
• Family transfers (depending on state)
• Selling certain antique firearms

Navigating the world of FFL types and license requirements can get confusing. If you need a little assistance, consider taking an online course. There are currently only a few online certified FFL courses available. When looking into choosing an FFL course, you want to make sure you are receiving:

• Advice from a licensed firearms attorney with the necessary qualifications
• Guidance from an industry professional who knows the ins and outs of the ATF and the firearms industry at large
• Software that helps you track course progress
• Automatic notifications of updates to applicable firearms laws
• Compliance training necessary for both you and your employees

For the ultimate FFL course, including a start-up course, sample forms, and step-by-step instructions, we recommend RocketFFL.

Step 4: Fill out the required ATF form and gather supporting documents

The next step is to fill out your application. You can download the 7/7CR form and fill in your information. You must include a photo and fingerprint card with your application. You must fill out applications for yourself and anyone you intend to designate as a Responsible Person under your FFL. 

If you intend to operate your business out of more than one location or storefront, you must complete separate applications for each location. 

Step 5: Apply for your FFL – submit an application with the appropriate fee

After you’ve filled out your application and gathered all supporting documents, submit your application along with the payment for your FFL type. You’ll also need to send a copy of the completed application to your local Chief Law Enforcement Officer. 

Step 6: Undergo a Federal Firearms Licensing Center (FFLC) background check

Once the Federal Firearms Licensing Center (FFLC) receives your completed application, they will review your materials and perform a background check. After completing the background check, the FFLC will send your application to your local ATF field office.

Step 7: Complete an in-person interview with an Industry Operations Investigator (IOI) 

The next step is an interview with an Industry Operations Investigator (IOI) from the ATF.^[8]ATF. “Apply for a License.” Accessed April 2, 2025. The interviewer will ask you about your business as well as your knowledge of firearm regulations. They’ll also inspect your place of operations to ensure you’re starting a legitimate business.

Essentially, you have to demonstrate to your IOI your level of commitment.

Step 8: Wait for FFLC to issue your license

The FFLC will sign off on and approve your interview and application and then issue you your new federal firearms license. 

Your FFL Application Has Been Approved — What’s Next?

Once you have your FFL, you can move on to the next steps in opening your firearms business. 

If you haven’t done so already, secure a gun-friendly merchant services provider. This way, you can begin processing payments for firearms sales with your new FFL. 

As a business involved with firearms and ammunition, you will need a high-risk merchant account. With help from a specialized payment processor, you can launch your business knowing you have a solid payment services provider knowledgeable in the highly regulated firearms industry.

The sooner you find a reputable high-risk payment processing partner, the sooner you can start turning a profit with your firearms business.

Depending on the type of firearms business you have started, you may need to register as an SOT. If you intend to import, manufacture, or sell NFAs, you’ll need to pay a special tax. Instead of paying per item, you can register as a class 1, 2, or 3 SOT and pay a set amount per year. NFA firearms can include suppressors, full-auto machine guns, and other items classified as destructive devices. 

Registration costs between $500 and $1,000, depending on the size of your business, and runs from July through June each year. Alternatively, you can opt not to register and instead pay a $200 transfer tax for each item. However, this only makes financial sense if you are transacting on NFAs on an infrequent basis. 

You may be required to register your business with certain government agencies or obtain special permits or licenses for select activities. What you will need to do depends on your business location, business type (import, sell, or manufacture), the types of firearms you’re selling, and the services you provide. 

For instance, manufacturers and many gunsmiths need to register with the Directorate of Defense Trade Controls (DDTC). And the majority of importers need to apply for an import permit from the ATF. 

Additional licenses and permits may be required on a local or state-level basis. 

Before you open your firearms business, you’ll need to get the appropriate type of insurance. As a firearms manufacturer, seller, or importer, your insurance needs will likely be higher and more expensive than the average business. 

Research insurance providers, insurance requirements, and recommended insurance amounts. In most cases, taking out the appropriate insurance policies for your business is a legal requirement. Without insurance, you won’t be able to open your business.  

The ATF can and will revoke your FFL if you fail an inspection. This is why it is so important to maintain accurate records and ensure you are in compliance with all ATF safety regulations at all times. Surprise ATF inspections are common and can occur as frequently as once a year, so it’s vital for you to stay organized and compliant from day one. 

If your FFL gets revoked, you can reapply for a new one, but your chances of getting approval again will be slim. 

Final Thoughts

The steps required in applying for and obtaining an FFL are straightforward, and you can be approved in under 60 days. However, it’s important to remember that getting your FFL is just one element in setting up your firearms business. You may also need to apply for additional permits, find a gun-friendly payment services provider, and obtain insurance.

The firearms industry is booming, and the future looks equally promising. If you’re prepared and committed, now is an excellent time to complete your FFL application and launch your business. 

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