What Is a Type 07 FFL and Who Needs One?

A Type 07 FFL is the federal license to manufacture firearms, and it is the one most gunmakers in the United States hold. What sets it apart from the other Federal Firearms License types is that it does two jobs at once. It lets you build firearms and most ammunition and sell them under a single license. If you plan to make guns and move them, this is usually the license you want.

This is general information, not legal advice. Firearms law changes, so confirm current rules and fees with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) before you apply.

What a Type 07 FFL Lets You Do

The ATF sorts licensees by activity: dealing, manufacturing, importing, or collecting. A Type 07 is the manufacturing license for firearms other than destructive devices, and a license holder can:

• Manufacture firearms, from complete pistols and rifles down to the serialized lower receiver that legally is the firearm
• Manufacture ammunition without a separate Type 06 license, except armor-piercing ammunition and ammunition for destructive devices, which require a Type 10 license.
• Deal in firearms, selling at retail and wholesale the way a Type 01 dealer does, with no separate dealer’s license

That combination is why so many companies run on a 07. A manufacturer and dealer in one, able to ship in interstate commerce to other FFLs, with no cap on how many firearms or parts you can produce. What it does not cover is destructive devices and armor piercing ammunition, which sit under the Type 10 license.

Who Needs a Type 07 FFL?

You need a Type 07 if you manufacture firearms or ammunition with the intent to sell them. In practice, that means:

• A startup building and selling its own line of rifles, pistols, or receivers
• A firearm dealer who wants to produce guns under their own brand
• A shop assembling AR-15s from parts and selling them as complete firearms
• A company doing private label or contract work for other brands

Who Qualifies, and How to Apply

The application is ATF Form 7 (5310.12), the same form used for a dealer’s license, and it currently costs $150 for three years. Before you apply, every responsible person in the business, the owners, partners, and anyone with authority to run it, has to meet the bar set by the Gun Control Act and its regulations:

• Be a United States citizen or lawful permanent resident
• Be at least 21 years old
• Have no felony conviction or disqualifying domestic violence misdemeanor, and not otherwise be a prohibited person
• Have a business premises where you will conduct the business, allowed under local law

From there, you file Form 7, send a copy to the chief law enforcement officer in your area, submit fingerprints and photographs for each responsible person, clear a background check, and sit for an in-person interview and premises inspection with an ATF Industry Operations Investigator. Zoning decides many applications, so confirm your address allows manufacturing before you file; a home in a residential neighborhood only works if local law permits it.

Making NFA Items: Class 2 vs. Class 3 SOT

A Type 07 covers standard firearms. To manufacture NFA items such as short-barreled rifles, suppressors, and machine guns, you add a Special Occupational Tax registration, and getting the class right is a common point of confusion.

A Type 07 manufacturer pairs with a Class 2 SOT, which lets you make and sell NFA items. A Class 3 SOT is for dealers, the Type 01 and 02 holders who buy and sell NFA firearms but do not make them. Put simply, manufacturers take Class 2, and dealers take Class 3.

The Class 2 special occupational tax is $1,000 a year, reduced to $500 for qualifying businesses with gross receipts under $500,000. A Type 07 FFL that wants to manufacture NFA firearms must also meet the applicable NFA requirements. As of January 1, 2026, the federal making and transfer tax is $0 for NFA firearms other than machine guns and destructive devices. Other NFA requirements, including registration, still apply. Post-May 19, 1986 machine guns are subject to additional restrictions and generally may only be manufactured for government entities, qualified dealer sales samples, or export. Destructive devices and armor-piercing ammunition require a Type 10 FFL.

What a Type 07 FFL Costs

The Type 07 FFL itself costs $150 for the three-year license period. Manufacturers may also have other federal tax obligations depending on what they produce. The federal firearms and ammunition excise tax (FAET) is generally 10% of the sale price for pistols and revolvers and 11% for other firearms, shells, and cartridges. The tax is administered by the Alcohol and Tobacco Tax and Trade Bureau (TTB)

Manufacturers also need to account for any applicable National Firearms Act (NFA) taxes when manufacturing regulated items. NFA tax requirements depend on the type of regulated item being manufactured. Verify current requirements and fees with the ATF before applying. Other NFA requirements still apply.

The rules depend on the specific firearm, related item, destination, and transaction, so Type 07 manufacturers should determine which export controls apply before shipping products outside the United States.

Managing Sales and Compliance With a Type 07 FFL

A Type 07 that sells is really running two regulated jobs at once: making firearms and moving them. Every manufactured firearm must be properly marked and recorded in the acquisition and disposition bound book, then tracked through the sale, with a Form 4473 and a NICS check on transfers to non-licensees, unless an exception applies. And every sale still has to be rung up, paid for, and often listed or shipped online. Keeping those connected, instead of spread across tools that do not talk to each other, is what saves a manufacturer time.

Gearfire is the commerce platform FFLs run their business on, and it keeps the sales and the records in one place. Gearfire offers two POS options for firearm retailers. One is a full retail management system with built-in ATF compliance features, while the other integrates with FastBound for compliance and bound book management. Gearfire Payments provides firearm-friendly processing for in-store, online, and mobile sales, which matters because many mainstream processors drop gun businesses. Gearfire eCommerce lets a manufacturer sell its own line online and transfer firearms to a counter.

Have questions about choosing the right POS or setting up your FFL business? Contact Gearfire to learn more about your options.

Frequently Asked Questions

Can a Type 07 FFL sell firearms? Yes. A Type 07 holder can sell the firearms they make and act as a dealer, with no separate Type 01 license.

Does a Type 07 need a Class 2 or Class 3 SOT? Class 2. That is the manufacturer registration for making NFA items. Class 3 is for dealers who buy and sell NFA firearms, not for manufacturers.

How much does a Type 07 FFL cost? The license is $150 for three years. Making NFA items adds the $500 or $1,000 special occupational tax, and manufacturers also owe the excise tax unless the small-manufacturer exemption applies.