FFL License Types Explained: All 11 Federal Firearms Licenses
Not all FFLs are the same. There are 11 federal firearms license types — each with different privileges, restrictions, and compliance requirements. Here's what each one allows and how to choose the right license for your business.
What Is a Federal Firearms License?
A Federal Firearms License (FFL) is issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) under the Gun Control Act of 1968. It authorizes the holder to engage in a specific category of firearms-related business activity — manufacturing, dealing, importing, collecting, or some combination of these.
You cannot legally operate a firearms business without the appropriate FFL. "Business" means the repetitive purchase and resale of firearms with the principal motive of profit. Occasional private sales of firearms from a personal collection do not require a license, but the line between personal sales and unlicensed dealing is narrow — and the ATF has increased enforcement in this area.
The license type determines what you can do. A dealer license doesn't authorize manufacturing. A manufacturer license doesn't cover importing. Getting the wrong license — or operating outside the scope of your license — is a federal violation.
Every FFL type that transfers firearms to non-licensees must complete ATF Form 4473 and initiate a NICS background check for each transaction. The compliance requirements covered throughout our guides apply to all dealer, manufacturer, and importer FFLs.
Dealer Licenses (Types 01 & 02)
Type 01 — Dealer in Firearms Other Than Destructive Devices
This is the most common FFL in the United States. A Type 01 license authorizes you to buy and sell Title I firearms — handguns, rifles, shotguns, frames, and receivers — as a business. It also authorizes you to do gunsmithing as part of your dealing business.
Who needs it: gun stores, pawn shops that deal in firearms, home-based FFLs, online firearms dealers, and any business whose primary activity is buying and selling firearms at retail.
What it does NOT cover: manufacturing firearms (beyond minor gunsmithing), importing firearms, or dealing in destructive devices or NFA items (without an additional SOT).
- Application fee: $200 (first 3 years)
- Renewal fee: $90 (every 3 years)
- 4473 required: Yes, for every transfer to a non-licensee
Type 02 — Pawnbroker in Firearms Other Than Destructive Devices
Functionally identical to a Type 01 but specifically designated for pawnbrokers. A Type 02 authorizes you to deal in firearms and accept firearms as collateral for loans (pawn transactions).
Who needs it: pawn shops that accept firearms as collateral. If you're a pawn shop that only buys and sells firearms outright (no pawn loans), a Type 01 is sufficient. But if you accept firearms on pawn, you need a Type 02.
- Application fee: $200 (first 3 years)
- Renewal fee: $90 (every 3 years)
- 4473 required: Yes — including for pawn redemptions
Pawn redemptions require a new Form 4473 and NICS check every time — even though the customer is reclaiming their own firearm. And if a customer redeems two or more handguns within five business days, a Form 3310.4 is also required.
Manufacturer Licenses (Types 06 & 07)
Type 06 — Manufacturer of Ammunition
Authorizes the manufacture of ammunition for sale. Does not authorize the manufacture of firearms or destructive devices. Also does not authorize dealing in firearms — if you want to sell firearms in addition to manufacturing ammunition, you need a separate dealer license or a Type 07.
- Application fee: $30 (first 3 years)
- Renewal fee: $30 (every 3 years)
- 4473 required: No (ammunition only — no firearm transfers)
Type 07 — Manufacturer of Firearms Other Than Destructive Devices
The most versatile FFL type. A Type 07 authorizes you to manufacture firearms and ammunition for sale, and it includes all Type 01 dealer privileges. You can build, sell, and deal in Title I firearms under a single license.
Who needs it: custom gun builders, firearms manufacturers (any scale), gunsmiths who build new firearms (not just repair), 80% lower completion businesses, and anyone who wants both manufacturing and dealing authority.
Why it's popular: Many FFLs choose a Type 07 even if their primary business is dealing, because the manufacturing authority provides flexibility — and combining it with an SOT opens the door to NFA items.
- Application fee: $150 (first 3 years)
- Renewal fee: $150 (every 3 years)
- 4473 required: Yes, for every transfer to a non-licensee
Importer Licenses (Types 08 & 11)
Type 08 — Importer of Firearms Other Than Destructive Devices
Authorizes the importation of Title I firearms and ammunition into the United States for sale or distribution. Also includes all Type 01 dealer privileges — you can import and sell at retail under the same license.
Who needs it: businesses that import firearms from foreign manufacturers for domestic sale or distribution.
- Application fee: $150 (first 3 years)
- Renewal fee: $150 (every 3 years)
- 4473 required: Yes, for transfers to non-licensees
Type 11 — Importer of Firearms Listed as Destructive Devices
Authorizes importation of destructive devices (grenades, rockets, firearms with a bore over 0.50 caliber, etc.) and includes all Type 01 dealer privileges plus Type 09 (dealer in destructive devices) and Type 10 (manufacturer of destructive devices) authority for imported items.
- Application fee: $3,000 (first 3 years)
- Renewal fee: $3,000 (every 3 years)
Collector License (Type 03)
The Type 03 license — Collector of Curios and Relics (C&R) — is unique among FFL types because it is available to individuals, not just businesses. It authorizes the holder to acquire curios and relics (firearms that are at least 50 years old or certified by the ATF as having special collector interest) in interstate commerce — meaning you can buy C&R firearms from out-of-state FFLs and have them shipped directly to your home.
Who needs it: individual collectors who want to purchase C&R-eligible firearms across state lines without going through a local FFL for transfer.
What it does NOT cover: a Type 03 does not authorize you to engage in the business of dealing. You cannot use it to buy and resell firearms for profit. It's a collector license, not a business license.
- Application fee: $30 (first 3 years)
- Renewal fee: $30 (every 3 years)
- 4473 required: No (collector transactions only — no transfers to others)
Type 03 holders must maintain a bound book of acquisitions and dispositions, but they are not required to complete Form 4473 because they are not transferring firearms to others as a business. However, if a Type 03 holder later sells a C&R firearm to a non-licensee, state and local laws still apply.
Destructive Device Licenses (Types 09, 10 & 11)
Type 09 — Dealer in Destructive Devices
Authorizes dealing in destructive devices. Also includes all Type 01 (standard dealer) privileges, so you can deal in both Title I firearms and destructive devices.
- Application fee: $3,000 (first 3 years)
- Renewal fee: $3,000 (every 3 years)
Type 10 — Manufacturer of Destructive Devices
Authorizes manufacturing destructive devices, ammunition for destructive devices, and includes all Type 01 dealer privileges. Also includes authority to deal in destructive devices.
- Application fee: $3,000 (first 3 years)
- Renewal fee: $3,000 (every 3 years)
Type 11 — Importer of Destructive Devices
Covered above under importer licenses. Authorizes importation of destructive devices with full dealer and manufacturer authority for those items.
Destructive device licenses are uncommon in retail. The $3,000 fee and specialized compliance requirements limit these to a small number of specialized dealers, manufacturers, and government contractors.
Special Occupational Tax (SOT) — NFA Items
An SOT is not a separate license type — it's a tax classification that sits on top of an existing FFL and authorizes the holder to deal in, manufacture, or import National Firearms Act (NFA) items: suppressors, short-barreled rifles (SBRs), short-barreled shotguns (SBSs), machine guns, and AOWs (Any Other Weapons).
The Three SOT Classes
- Class 3 SOT — for dealers (Type 01, 02, or 09). Authorizes dealing in NFA items. This is the most common SOT for retail gun stores that want to sell suppressors and SBRs.
- Class 2 SOT — for manufacturers (Type 07 or 10). Authorizes manufacturing NFA items. A Type 07/Class 2 is the most common combination for businesses that want maximum flexibility — you can manufacture and deal in both Title I and NFA firearms.
- Class 1 SOT — for importers (Type 08 or 11). Authorizes importing NFA items.
SOT Fees
The annual SOT fee depends on your gross receipts from firearms and ammunition business:
- $500 per year — if gross receipts are $500,000 or less
- $1,000 per year — if gross receipts exceed $500,000
The SOT must be renewed annually (by July 1 for the fiscal year beginning July 1). It's a tax payment, not a license renewal — but if you don't pay, you lose NFA authority.
Type 07 FFL + Class 2 SOT is widely considered the most versatile FFL/SOT combination. It authorizes manufacturing, dealing, and NFA items under a single license and tax payment. Many gun stores that want to sell suppressors opt for this rather than a Type 01 + Class 3, because the manufacturing authority provides additional flexibility at a similar cost.
How to Choose the Right FFL Type
Retail gun store (no NFA)
Type 01. Covers buying, selling, and basic gunsmithing. The standard choice for most retail operations.
Pawn shop with firearms
Type 02. Same as Type 01 but adds pawn loan authority. Required if you accept firearms as collateral.
Retail gun store with suppressors/SBRs
Type 01 + Class 3 SOT or Type 07 + Class 2 SOT. The Type 07 route costs slightly less in license fees and gives you manufacturing authority.
Custom gun builder / manufacturer
Type 07. Covers manufacturing and includes full dealer privileges. Add a Class 2 SOT if you want to build NFA items.
Firearms importer
Type 08. Includes dealer authority. Add a Class 1 SOT for NFA imports.
Individual collector
Type 03 (C&R). The only FFL available to individuals for personal collecting.
Compliance Requirements by License Type
All FFL types that transfer firearms to non-licensees share the same core compliance requirements:
- ATF Form 4473 — required for every transfer to a non-licensee
- NICS background check — required before completing any transfer
- A&D bound book — required for all FFLs (including Type 03 collectors)
- Form 3310.4 — required when multiple handgun sale thresholds are met
- ATF compliance inspections — all FFLs are subject to inspection
- 20-year record retention — for 4473 records
SOT holders have additional requirements: NFA transfer forms (Form 3 for dealer-to-dealer, Form 4 for dealer-to-individual), ITAR registration for manufacturers, and annual SOT renewal.
How to Apply for an FFL
The application process is the same for all license types:
- Complete ATF Form 7/7CR — the federal application. Form 7 for Types 01–02 and 06–11. Form 7CR for Type 03 (collectors).
- Submit the application fee — amount varies by license type (see above).
- Pass a background check — the ATF conducts criminal history and regulatory checks on all responsible persons listed on the application.
- Complete an in-person interview — an ATF Industry Operations Inspector will visit your proposed premises, review your security, verify zoning compliance, and conduct the interview.
- Comply with state and local requirements — many states and municipalities have additional licensing, zoning, or permitting requirements beyond the federal FFL.
Processing time varies but typically runs 60 to 120 days from submission to approval.
E4473 works with every FFL type that processes Form 4473 — Type 01, 02, 07, 08, 09, 10, and 11. Digital 4473 completion, NICS integration, and cloud storage to keep your operation compliant from day one. Schedule a demo →
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