How to Get an FFL in Colorado

Eligibility Requirements

Colorado now requires two levels of dealer licensing: the federal FFL from ATF and — as of July 1, 2025 — a state dealer permit from the Colorado Department of Revenue. You must hold both to legally operate as a firearms dealer in Colorado.

Federal Requirements (All States)

• At least 21 years old
• U.S. citizen or legal permanent resident
• Not under indictment or convicted of a crime punishable by imprisonment exceeding one year
• Not a fugitive from justice
• Not an unlawful user of or addicted to any controlled substance
• Not adjudicated as mentally defective or committed to a mental institution
• Not dishonorably discharged from the Armed Forces
• Not subject to a court order restraining you from harassing, stalking, or threatening an intimate partner or child
• Not convicted of a misdemeanor crime of domestic violence
• Have premises for conducting business
• Not prohibited from possessing firearms under federal, state, or local law

Colorado-Specific Eligibility Notes

• State dealer permit required — As of July 1, 2025, all FFLs must obtain a state permit from the Colorado Department of Revenue, Firearms Dealer Division. Operating without a permit is an unclassified felony punishable by a fine of up to $250,000.
• No adverse licensing actions — You must not have had a federal, state, or local firearms license revoked, suspended, or denied within the prior 3 years
• No firearms law violations — No state or federal firearms law violations in the 3 years before applying
• Employee background checks — All employees who handle firearms or process transfers must undergo fingerprint-based background checks through CBI before employment and annually thereafter
• Business registration — Register with the Colorado Secretary of State and the Colorado Department of Revenue
• Local zoning compliance — Colorado has 64 counties. Since 2021, there is no statewide firearm preemption — local governments can enact firearms ordinances more restrictive than state law. Denver and Boulder have additional local restrictions.

FFL Types & Cost Breakdown

The type of FFL you apply for depends on your intended business activities. Most Colorado gun stores apply for a Type 01 license. Note the new state dealer permit fee effective July 2025.

Step-by-Step Application Process

Timeline & Process Flowchart

Colorado-Specific Requirements

Colorado's firearms regulatory environment has shifted significantly toward stricter regulation since 2021. The combination of repealed preemption, universal background checks, a 3-day waiting period, a 21+ purchase age, the new state dealer permit, and upcoming semi-automatic rifle restrictions creates a compliance environment that is rapidly approaching states like Washington and California in complexity.

Key State Laws Affecting FFLs

• CBI InstaCheck — State POC system — Colorado is a full state point-of-contact. All background checks go through the CBI InstaCheck Unit, which checks both state and federal (NICS) databases. Fee: $15 per check (effective March 1, 2025).
• Must wait for CBI "proceed" — Under HB21-1298 (effective June 19, 2021), Colorado dealers must wait for a CBI "proceed" response before transferring any firearm. The federal 3-business-day default does not apply in Colorado. If CBI delays the check, you wait until CBI approves — no automatic transfers after 3 days.
• 3-day waiting period — Under HB23-1219 (effective October 1, 2023), it is unlawful to transfer a firearm to a purchaser until 3 days after the dealer initiates the background check. This applies to all firearms. You still need CBI approval — the 3-day wait is a minimum, not a maximum.
• Age 21 for all purchases — Under SB23-169 (effective November 27, 2024, following 10th Circuit ruling), the minimum age to purchase any firearm — including rifles and shotguns — is 21 years old.
• Universal background checks — All firearms transfers, including private sales, must go through an FFL with a CBI InstaCheck. Dealers may charge up to $10 for facilitating private transfers.
• 15-round magazine limit — Magazines holding more than 15 rounds are prohibited. Magazines owned before July 1, 2013 are grandfathered.
• No constitutional carry — Colorado is a shall-issue state. Concealed carry requires a Concealed Handgun Permit (CHP) from your county sheriff. As of July 1, 2025, new applicants must complete 8 hours of in-person training with live-fire instruction.
• Open carry legal (mostly) — Open carry is permitted in most of Colorado without a permit. Denver bans open carry. Other municipalities may restrict it. Federal buildings, K-12 schools, and courthouses are prohibited.
• Red flag law (ERPO) — Colorado's Extreme Risk Protection Order law allows police, family members, household members, health care providers, educators, and district attorneys to petition for temporary firearm removal from individuals deemed an extreme risk.
• Ghost gun ban — Effective January 1, 2024, it is illegal to possess, transport, sell, or buy unserialized firearms or frames/receivers.
• No statewide preemption (since 2021) — Local governments can enact firearms ordinances more restrictive than state law. CHP holders are generally exempt from local carry restrictions, but dealers must be aware of local ordinances affecting their business operations.
• Lost/stolen reporting for dealers — Dealers must report stolen firearms within 48 hours of discovery.

State Dealer Permit — HB24-1353

HB24-1353, effective July 1, 2025, created Colorado's first mandatory state firearms dealer permit. This is a major change — prior to this law, Colorado did not require any state-level dealer license beyond the federal FFL.

Permit Requirements

• Application — Apply through the Colorado Department of Revenue, Firearms Dealer Division
• Fee — $400 (valid for 3 years). DOR may increase the fee by up to $25 per year.
• Prerequisites — Must hold a valid FFL; no adverse licensing actions in prior 3 years; no firearms law violations in prior 3 years
• Penalty for non-compliance — Operating without a state permit is an unclassified felony punishable by a fine of up to $250,000
• DOR inspections — The DOR has inspection authority over permitted dealers

Employee Requirements (Also HB24-1353)

• Background checks — All employees who handle firearms or process transfers must undergo fingerprint-based background checks through CBI before beginning work and annually thereafter. Fee: $39.50 per check (includes $11.25 FBI fee).
• Training — Employees must complete required training on federal and state laws
• Age requirement — Employees handling firearms must be at least 21 years old
• Firearms must be secured — Firearms on premises must be secured to prevent unsupervised access

Home-Based FFLs in Colorado

Colorado is generally more accommodating for home-based FFLs than highly restrictive states like New York, Illinois, or California — but the landscape is changing.

• State dealer permit applies — Home-based FFLs must obtain the $400 state dealer permit just like retail locations.
• Zoning varies significantly — Rural counties and smaller municipalities are typically more permissive. Denver, Boulder, and other Front Range cities may have zoning restrictions that affect home-based firearms businesses. Since 2021, local governments have the authority to enact their own firearms ordinances.
• Firearms security — HB24-1353 requires firearms to be secured to prevent unsupervised access. Home-based dealers should invest in quality commercial safes or vault storage.
• Employee background checks — Even if you're a sole operator, the annual background check requirement applies to anyone who handles firearms in the course of their duties.
• Insurance — Standard homeowner's insurance will not cover commercial firearms inventory. A dedicated commercial firearms dealer policy is recommended.
• CBI InstaCheck account — Required regardless of location or volume.

Official Resources & Links

Frequently Asked Questions