If you are thinking about getting any type of FFL license just to score better gear prices, forget it. It does not work like that. A Federal Firearms License is not a shortcut for discounts.
But if you love guns and entrepreneurship is calling your name, that is a whole different story. You will need some type of Federal Firearms License to run a real firearm business. That includes buying and selling, gunsmithing, importing, making your own ammo for selling, or even building your own add-ons.
Here at 45 Blast we make high-end compensators, and we know the process well. We will help you understand what a federal firearms license is, how each FFL type works, and what to expect when you apply.
Here you will learn what each type of FFL license lets you do, who each one is for, and a few tips to help you get approved on your first try.
What’s an FFL
FFL stands for Federal Firearms License. In simple terms, it is the legal permit from the Federal Government that allows you to operate a firearm business. That includes retail, wholesale, gunsmithing, manufacturing, importing, and exporting.
All FFLs are issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) under the authority of the Gun Control Act of 1968. Each state may add its own paperwork or zoning requirements, so what you need can vary depending on where you plan to run your business.
So when do you need a firearms dealer license? If you are buying and selling guns with the intent to make a profit, the ATF considers that engaging in the business. That includes running a shop, selling online, or doing regular transactions on sites like GunBroker or Guns.com.
When do you not need an FFL? If you are selling personal gear from your own collection on a one time basis. For example, you bought a new carry pistol and want to sell your old one. That is an occasional sale, not a firearm business.
Is it worth getting an FFL license? Yes, but that depends on your goals. You must be clear about your purpose before you apply. The ATF will ask for detailed information about the business you plan to run. If your plan is vague, your chances of approval drop fast. If your purpose is clear and legitimate, you have a much better shot.
For anyone looking to make money in the firearms world, an FFL is a must. And depending on what type of business you want to run, you will need a specific FFL type.
Quick Overview: All 9 FFL Types at a Glance
There are nine types of Federal Firearms Licenses you can apply for through the ATF. With the exception of type 03, none of them are for personal use. Each license is tied to a specific activity in the firearms industry.
-
Type 01: Dealer in Firearms Other than Destructive Devices. Works for most gun stores and firearm dealers.
-
Type 02: Pawnbroker in Firearms. Similar to Type 01 but also covers pawn transactions.
-
Type 03: Collector of Curios and Relics.
-
Type 06: Manufacturer of Ammunition.
-
Type 07: Manufacturer of Firearms Other than Destructive Devices.
-
Type 08: Importer of Firearms or Ammunition.
-
Type 09: Dealer in Destructive Devices.
-
Type 10: Manufacturer of Destructive Devices.
-
Type 11: Importer of Destructive Devices.
In short, firearm and ammo businesses fall under Types 01 to 08. Types 09, 10, and 11 cover destructive devices such as grenades, rockets, and large caliber weapons over .50.
Perhaps you noticed there is no Type 04 or Type 05, and that is correct. Those categories were dropped years ago because their activities are already covered by the nine license types that exist today. The ATF kept the original numbering to avoid confusion.
Breakdown: Types of Federal Firearms License (FFL)
Type 01 – Dealer in Firearms (Other than Destructive Devices)
This is the FFL license you need to open a gun shop, whether it is online or a physical storefront. A Type 01 lets you buy and sell firearms, access wholesale pricing, and offer basic repair or gunsmithing services. It is the most common license for small firearm businesses and for people who want to get started in the industry.
What about GunBroker and Guns.com? Anyone can create an account to browse and buy. But selling is a different story. These platforms require sellers to be a federally licensed firearms dealer. That is part of why these sites are trusted and popular. Many people think it is easy money, but the reality is different.
How much can you make selling guns? The average markup is about 10% to 15%. So no, buying a gun for a few hundred dollars and flipping it for thousands is not how the business works. Most dealers make their real money through accessories, services, and repeat customers.
Do you need an FFL license to run a gun shop on social media? Yes, you do. Even without a storefront, the ATF considers you to be engaging in the business. If you take possession of a firearm for repair, modification, or refinishing, you must hold a valid FFL.
Type 02 – Pawnbroker in Firearms
FFL Type 02 is very similar to a Type 01. You can buy and sell firearms, offer repairs, and operate like a regular dealer. The key difference is that a Type 02 also allows you to take firearms in pawn and return them once the loan is paid.
If you have an eye for lending, short term loans, or running a pawn style business, with this license you can open another stream of revenue. Just take into account that same as with the other FFL types, all paperwork, logging, and compliance rules apply
Type 03 – Collector of Curios and Relics (C&R)
This license is for collectors, not business owners. A Type 03 FFL lets you buy, trade, and collect firearms that the ATF classifies as curios or relics. These are typically firearms that are 50 years old or older, or guns with historical or special interest value.
With a type 03 FFL you cannot run a “relic gun shop”. If you want to buy and sell collector guns as a business, you still need a Type 01 dealer license.
So what can you do with a Type 03?
-
Buy C&R eligible firearms across state lines
-
Purchase collector pieces directly from wholesalers or auction houses
-
Trade or transfer C&R firearms with other collectors
-
Grow your personal collection without needing a dealer to run every transfer
Type 06 – Manufacturer of Ammunition
A Type 06 FFL is strictly for manufacturing ammunition that you plan to sell or distribute. It does not allow you to manufacture or deal firearms.
Do shooters who just enjoy making their own ammo need a FFL type 06? No. If you are reloading for personal use, you do not need an FFL. But things get tricky when you start giving ammo to friends, family, or anyone outside your household. Even if it feels harmless, the ATF can consider that distribution.
Type 07 – Manufacturer of Firearms (Other than Destructive Devices)
A Type 07 FFL is for anyone who wants to build and sell firearms. It covers original designs, custom builds, replicas, and specialty projects. If you are making a gun and plan to sell it, you need this license.
This FFL fits gunsmiths who treat their work like an art form. It is also for creators using modern tech, CNC machines, or advanced engineering to launch their own firearm brand.
What about 3D printed firearms? A Type 07 does allow you to manufacture and sell them, but this license alone is not enough. You also must meet all federal design, marking, and compliance rules.
Do you need a Type 07 to make firearm parts and accessories? It depends on what you want to build. Frames and receivers are legally considered firearms, so you need a Type 07 if you want to manufacture and sell them.
Other accessories don’t require this license, like custom sights, suppressors, and extended magazines. For instance, at 45 Blast we manufacture high precision compensators that fit Canik pistols with perfect alignment and balance. That said, our comps are engineered with exact tolerances that hold to the highest quality standards.
Type 08 – Importer of Firearms or Ammunition
A Type 08 FFL is for importing firearms or ammunition into the United States. You need this license if you plan to bring guns or ammo from other countries and sell them here.
Is it a shortcut for personal discounts overseas? Not at all.
Most Type 08 holders already operate a gun shop under a Type 01 or Type 07. The importer license expands what they can offer.
Type 09 – Dealer in Destructive Devices
A Type 09 FFL covers destructive devices, including items like grenades, explosives, certain military hardware, and weapons over .50 caliber. So this is not the usual license for regular gun shops.
What can’t you do with a Type 09? You cannot buy or sell standard firearms. For that, you still need a Type 01 dealer license.
Type 10 – Manufacturer of Destructive Devices
A Type 10 allows you to build destructive devices, explosives, and military grade hardware. It is an industrial license, not something the average gun business will ever need.
Because of the risks involved, Type 10 holders face strict ATF oversight, storage requirements, and heavier compliance rules.
Type 11 – Importer of Destructive Devices
A Type 11 FFL is for importing destructive devices into the United States. Same as on the precious, this includes grenades, rockets, explosives, and other classified military equipment.
It is one of the most specialized FFLs and is mainly used by defense contractors and companies that work directly with government agencies.
Steps to Apply for an FFL License
Before you apply, check the paperwork required in your state. Be sure to check everything related to local zoning, business permits, and registration rules.
We tell you from experience: Your paperwork must be perfect. Nothing missing. Nothing incomplete. No mistakes.
You will need photos, fingerprints, and all federal forms filled out correctly. Once you submit the application, the ATF will schedule an in person inspection.
Here is how the process works:
-
Register with the ATF
-
Complete ATF Form 7 here
-
Submit the form including fingerprints, photo, and payment
-
Mail your application
-
Prepare for the ATF inspection
-
Wait for your approval
What Happens During the ATF Audit?
If you filled your paperwork correctly, the ATF will visit your home or business address. This visit can take a while, so be ready for a long conversation.
The ATF interview is not a test, but it is an evaluation to learn if you are serious about your business or not. Their goal is to make sure you understand what it means to engage in the firearms business. They want to confirm that you have a real business purpose and understand compliance. That includes recordkeeping, background checks, secure storage, and proper transfer rules.
How can you prepare for the ATF interview? Write down your questions before the visit, so you can ask the Industry Operations Investigator. That person is there to guide you, and help you avoid mistakes that could cost you fines or even your license.
If the inspection goes well, you can expect your FFL in the mail in about two weeks. From start to finish, the entire process usually takes a little over a month, sometimes closer to two.
Why Compliance Matters
These are the responsibilities every FFL holder must take seriously:
-
Keep accurate acquisition and disposition records for every firearm.
-
Run NICS background checks before transferring a firearm to a non licensee.
-
Store firearms securely and follow ATF storage requirements.
-
Follow all federal, state, and local firearm laws.
-
Report multiple handgun sales, and any lost or stolen firearms, to the ATF and local law enforcement.
-
If you manufacture or import, follow all marking requirements. Every firearm must have proper serial numbers and identification.
-
Renew your FFL every three years and pay the required fees.
Cooperate with ATF inspections and audits when they happen.
Need Accessories for Your FFL-Based Firearm Business?
If you are ready to turn your love for firearms into a real business, go for it. A clear plan and the right FFL can take you further than you think.
And when you need high quality accessories for your customers or builds, take a look at our 45 Blast compensators and holsters. To say the truth: Building something of your own in this industry feels worth it. Every step of the way.
