There are nine Federal Firearms License (FFL) types, each authorizing different firearm-related business activities. The right FFL for your business depends on what you plan to sell, manufacture, or import. Each type comes with different operational realities and software needs.
This guide covers each FFL type with what it allows, costs, and what running it requires operationally. For the FFL application process, see our complete guide on how to get an FFL.
Note: ATF announced a New Era of Reform package with proposed and final updates to several firearms, NFA, import, recordkeeping, and ATF Form 4473 rules. FFL applicants should confirm current ATF guidance before applying.
The Nine FFL Types at a Glance
The Bureau of Alcohol, Tobacco, Firearms and Explosives issues nine FFL license types covering firearms dealers, manufacturers, importers, and collectors in the United States. Type 01 is the standard dealer license and the most common. Types 09, 10, and 11 (destructive device licenses) are the rarest and most expensive.
| Type | Category | Application Fee | Renewal (3 Years) |
|---|---|---|---|
| Type 01 | Dealer in Firearms | $200 | $90 |
| Type 02 | Pawnbroker in Firearms | $200 | $90 |
| Type 03 | Collector of Curios & Relics | $30 | $30 |
| Type 06 | Manufacturer of Ammunition | $30 | $30 |
| Type 07 | Manufacturer of Firearms | $150 | $150 |
| Type 08 | Importer of Firearms | $150 | $150 |
| Type 09 | Dealer in Destructive Devices | $3,000 | $3,000 |
| Type 10 | Manufacturer of Destructive Devices | $3,000 | $3,000 |
| Type 11 | Importer of Destructive Devices | $3,000 | $3,000 |
Type 01: Dealer in Firearms
A Type 01 FFL allows the license holder to sell firearms at retail or wholesale and perform basic gunsmithing repairs. It is the most common FFL, used by gun dealers running storefronts, online firearm dealers, and home-based FFL holders. The application fee is $200 with a $90 renewal every three years.
Common business models include traditional gun stores, online firearm retailers, hybrid retail-and-range operations, and home-based dealers. A storefront handles walk-in customers at the business premises. An online-first FFL handles ecommerce, shipping, and transfers to a local FFL. A home-based FFL handles in-person transfers from a residential location with online sales as the primary channel.
The software stack for a Type 01 FFL typically includes a cloud-based POS with serialized inventory tracking, ATF compliance workflows (digital 4473 and electronic bound book), a background check submission tool, firearm-friendly credit card processing, and an ecommerce platform for online sales.
Type 02, Type 03, and Type 06: Specialty Licenses
Three FFL types cover specialty activities outside the standard dealer or manufacturer categories.
Type 02 (Pawnbroker in Firearms): Includes everything Type 01 allows, plus the ability for a pawn shop to accept firearms as collateral for loans. The application fee is $200 with $90 renewal. Type 02 holders need software combining firearm-specific compliance with loan management and collateral tracking.
Type 03 (Collector of Curios & Relics): A non-commercial license for acquiring C&R firearms. The ATF defines C&R firearms as those manufactured at least 50 years before the current date (excluding replicas), or specific firearms on the ATF’s official curio or relic list due to historical or museum-certified significance. The application fee is $30 with $30 renewal. Type 03 holders cannot engage in the business of dealing in firearms but can acquire relic firearms across state lines through interstate commerce.
Type 06 (Manufacturer of Ammunition): Authorizes an ammunition manufacturer to produce ammunition for commercial sale, but does not permit firearm manufacturing or sales. The application fee is $30 with $30 renewal. Operational software needs to focus on production batch tracking, component inventory, and sales reporting.
Type 07: Manufacturer of Firearms
A Type 07 FFL authorizes the manufacture of firearms and ammunition and allows the license holder to sell firearms as part of those licensed activities. It is the second most common FFL after Type 01, used by custom firearm builders, boutique manufacturers, and gunsmiths in the firearms industry. The application fee is $150 with $150 renewal.
Common business models include small-batch firearm manufacturers, suppressor manufacturers (paired with a Class 2 SOT), custom rifle builders, and gunsmiths who modify firearms. Some Type 07 manufacturers may need to evaluate DDTC/ITAR registration requirements if they manufacture controlled defense articles or engage in export-related activity.
The software stack for a Type 07 extends beyond a standard dealer license to include manufacturing tracking software, serialized inventory with production records, retail POS, ecommerce, firearm-friendly payment processing, and a digital bound book that handles both acquisition and manufacturing entries.
Type 08: Importer of Firearms
A Type 08 importer license authorizes the license holder to import firearms and non-armor-piercing ammunition into the United States and sell them at wholesale or retail. The application fee is $150 with $150 renewal.
Type 08 holders may need to comply with additional import, customs, marking, and export-control requirements depending on the products. International traffic in firearm products is regulated through multiple government agencies, and because ATF import rules are actively being updated under the New Era of Reform, importers should confirm current requirements before applying. Common business models include surplus firearm importers, specialty ammunition importers, and foreign manufacturer distributors
Types 09, 10, and 11: Destructive Devices
Types 09, 10, and 11 cover destructive devices, which include grenades, large-bore firearms, and explosive ordnance under federal law. These are the most expensive FFLs at $3,000 application and $3,000 renewal. They often involve enhanced security, additional storage, and, depending on the materials handled, separate explosives licensing or permitting through the ATF Explosives Division.
- Type 09: Dealer in destructive devices
- Type 10: Manufacturer of destructive devices and armor-piercing ammunition
- Type 11: Importer of destructive devices
These licenses are used by defense contractors, training facilities, law enforcement suppliers, and a small number of specialty commercial dealers. The compliance burden is significant, which is why many businesses operating under these licenses work with specialized legal and compliance support like FFLGuard.
SOT Classes for NFA Items
A Special Occupational Taxpayer (SOT) registration is required in addition to an FFL when dealing in, manufacturing, or importing NFA firearms. This includes short barreled rifles, suppressors, machine guns, and destructive devices.
There are three SOT classes, each tied to specific FFL types:
- Class 1 SOT: Importer of NFA items, paired with Type 08 or Type 11
- Class 2 SOT: Manufacturer of NFA items, paired with Type 07 or Type 10
- Class 3 SOT: Dealer of NFA items, paired with Type 01, Type 02, or Type 09
The annual cost is generally $500 for eligible reduced-rate taxpayers with less than $500,000 in gross receipts for the most recent income tax year, and $1,000 for other taxpayers. SOT regulations may also change under the ATF reforms, so consult current ATF guidance.
How to Choose Your FFL Type
The right type of FFL depends on what your firearm business does. Selling firearms at retail or online points to Type 01. Manufacturing points to Type 07. Importing requires Type 08 or Type 11. Most firearm businesses operate under Type 01 or Type 07, sometimes paired with an SOT class. Verify state and local laws before applying.
Software Built for FFL Businesses
Whatever FFL type fits your business, you need software built for the firearm industry. Generic retail POS systems and mainstream payment processors do not handle ATF compliance, serialized inventory, or firearm-friendly transactions.
Gearfire has spent 14+ years building software specifically for the firearm industry, and over 2,000 firearm retailers run their operations on the platform today. Whether you operate as a Type 01 dealer, a Type 07 manufacturer, or a home-based FFL, the right software handles compliance, inventory, payments, and online sales as one connected system.
Solutions built for FFL retail:
- Gun Store POS Software: brings serialized inventory, compliance workflows, and retail transactions into a single counter system
- Firearm-Specific Ecommerce: launch a website with streaming distributor inventory so you can list and sell firearms without holding physical stock
- FFL Software for Home-Based Business: run an FFL from your home with one connected platform for online sales and in-person firearm transfers
- Shooting Range Management Software: run lane scheduling, memberships, rentals, and waivers alongside your retail counter in one connected platform
- Firearm-Friendly Payment Processing: handle credit card transactions for FFL dealers without the account restrictions that come with mainstream processors
Once you have your FFL, contact Gearfire to get your shop set up with the POS, compliance, and ecommerce tools you need to start selling.
About GoGeafire Team
GoGearfire is your go-to source for informed perspectives in the firearms retail industry. Our team, experienced and dedicated to this unique field, provides valuable insights into integrated solutions, compliance, and operational efficiency. With a passion for firearms and a commitment to the community, we share our expertise to help businesses thrive. Explore our blogs for a deeper understanding of the industry, and trust GoGearfire as your partner in navigating its challenges and opportunities.