Ready to turn your passion for firearms into a business? Getting a Federal Firearms License (FFL) might be easier than you think. As a firearms attorney with years of experience helping people navigate the FFL process, I’m here to guide you through each step.
In this guide, we’ll walk through the entire process of obtaining your FFL, from meeting the basic requirements to acing your ATF interview. Whether you’re looking to start a gun shop, become a gunsmith, or manufacture firearms, this guide has you covered.
However, if you want more guidance and videos showing you how to do it as you look over my shoulder, then be sure to check the Rocket FFL Course. For just $50, you can save yourself from major headaches and potential application delays or denials.
*Please note that while I am a firearms attorney and have years in the industry as an expert FFLs attainment, what I write here is not to be taken as legal advise.
In this article, you will learn:
A Federal Firearm License, or “FFL,” is a license from the federal government to engage in the business of making, importing, buying, and/or selling firearms.
Under federal law, it is perfectly legal for a law-abiding citizen to make their own firearm or even decide to sell a firearm. However, if that same person makes a firearm or buys a firearm with the intent to sell it, then a Federal Firearms License is needed.
There are two categories of requirements for getting your FFL: personal and business.We dive deeper into each of these topics in our article FFL license Requirements
Here’s a quick summary of what the ATF will require of you (this is explored more in FFL license Requirements):
But let me reiterate that it is perfectly fine to have a home-based FFL (in fact, most FFLs in this country are home based).
Now that you know the basic requirements for getting a federal firearms license, let’s cover the fours steps to getting your FFL…
IMPORTANT: The FFL application process can be complex, and mistakes can be costly. If your application is rejected due to errors, you’ll lose your application fee (between $250-300) and have to start over. To avoid this, consider taking the How to Get Your FFL Course. It guides you through each step of the process, helping you save time, money, and frustration.
Before you can apply for a Federal Firearms License, you need to know what type of Federal Firearms License you are going to apply for. There are 9 types of FFLs – each allows a different type of business activity related to firearms.
The types of FFLs are:
Much more about each license type and the pros and cons of each are discussed in my Get Your FFL Course.
For now, if you’re not sure which Federal Firearms License is right for you, you are probably going to want to get either a Type 01 FFL as a firearm dealer and/or gunsmith or a Type 07 FFL as a manufacturer as these are the two most popular types of FFLs. The Type 1 Dealer FFL costs $200 for the first 3 years but $90 for each three year renewal. The Type 7 Manufacturer FFL costs only $150 for the first three years and $150 every three year period thereafter. This means that it is less expensive to get a license to make firearms than to sell them (for the fist three years at least).
For more on fees and pricing, check out FFL License Cost
You may have also heard about something called an “SOT” or “class 3 dealer.” Becoming a Special Occupational Taxpayer (SOT) is required if you are going to make a special class of firearms like machine guns, silencers, short barreled rifles, and more. And, if you’re going to deal in these firearms, becoming an SOT allows you to pay a federal tax ($500 in most cases) instead of a transfer tax per item ($200 in most cases).
Because having a business intent is required to get a Federal Firearms License, even if it is just a side-business with occasional sales, you need to set up your business. Now, even though I recommend starting an LLC in my course, you can be a sole proprietor and avoid setting up a distinct business entity if you wish.
Whichever method you choose, you’ll need to make the decision now on what type/level of business you’re going to establish and get it started now as the business (if you make one) is going to be the applicant for the Federal Firearms License.
How you form a business will vary by state – make sure you look up your local rules and speak to an accountant in your state for financial considerations. If you’d like some guidance on what to do here, you really should take at least the introductory course, How to Get Your FFL.
Now that you’re sure that you meet the requirements for a Federal Firearms License and you’ve decided on a business strategy, it’s time to actually apply for a Federal Firearms License.
Of course, there’s really a lot more to consider (like location, business equipment and records, etc.) but the next major step is to apply for your Federal Firearms License. If you haven’t solved any zoning issues by now, you really should before you apply. The sample letter I share in my course really helps confused zoning officials (especially with a manufacturing license from your home).
At a bare minimum, applying for your Federal Firearms License involves filling out an ATF Form 7 and submitting the required extras like fingerprint cards and any affidavits.
Please be very careful here: making the wrong elections/decisions on your application might cause problems later.
Congrats! You’ve now applied for your Federal Firearms License! If there are not any mistakes in your application, business, zoning, etc, you should expect to have your license in about 2 months.
6 weeks after sending in your application, an ATF Industry Operations Investigator will call to schedule an initial inspection to meet with you to review your application, your understanding of ATF compliance (rules and regs), and ensure that you are ready to be successful as an FFL.
This step is called “Prepare” for a reason – you should be actively preparing for this first inspection by studying ATF rules and regs.
If you’d like to do this research on your own, you can find almost everything you need either on ATF’s website or by reading the actual laws and regulations. The relevant laws are found in the Gun Control Act, codified in 18 USC Chapter 44 (§§ 921-931), the National Firearms Act, codified in 26 USC Chapter 53 (§§ 5801-5872), ATF Regulations in the Code of Federal Regulations (CFR) Chapter 27 parts 1-799, and read through the myriad ATF rulings and open letters.
Or, if you’d rather just have me explain the parts that matter and what to do, I’ll see you in my course.
If all goes well (it will – don’t worry), you should expect your Federal Firearms License within a couple weeks after the interview/inspection with the ATF.
As you can see, there are really only 4 steps you have to take in order to start the process. However, when you prepare for your ATF inspection, there are a LOT of things you’ll need to focus on.
It’s for that reason why I offer a video course showing you step-by-step what you need to do in order to get your FFL.
By taking this course, you will:
Mistake #1 – Zoning Issues. When applying for a Federal Firearms License, you must ensure that local zoning rules will allow your business. Often times, your local zoning office doesn’t quite understand FFLs nor the ATF and might say “no” when it is actually allowed to have a Federal Firearms License in your area. There are a few tips and tricks in my course to help get past the zoning hurdle with your FFL.
Mistake #2 – Wrong Business Structure. The second Federal Firearms License application mistake I see, and one that can cause a lot of troubles later, is using the wrong business form or failing to set things up and apply properly. The ATF can come down pretty hard on FFLs (I’ve had them as my clients before) that don’t clearly list company members or controlling interests.
Mistake #3 – Wrong FFL Type. This one is fairly self explanatory – don’t get a Type 07 FFL is you want to manufacture firearms AND ammunition for sale. Also, a Type 7 manufacturer license may be all you need to make and sell firearms if you do it right.
Mistake #4 – Not Being Educated / Not Paying Attention to Compliance. If you don’t take the time to educate yourself AND work to follow the rules, you can wind up in serious trouble. I’m not trying to scare you here – it really isn’t that bad or that hard…. as long as you know what you’re doing.
Mistake #5 – Landlord Issues. If you have a landlord, clear it with them BEFORE applying. They will need to be included on your application and the ATF will contact them – don’t let them be surprised by the ATF.
It takes about 2 months to get an FFL from the time you send in your application.
Do I need to take a course to get an FFL?No, you do not need to take a course to get an FFL. I’m obviously biased because I think we offer the best course for getting an FFL, but even I will tell you that it isn’t necessary – the course is simply there to help those that want to make sure they’re doing the right way and stay out of trouble with the ATF.
Can I get an FFL from my home?Yes, you can have an FFL from your home – in fact, most current FFLs are home-based.
How much does it cost to get an FFL?The cost for an FFL depends on which FFL type you choose – the cost of an FFL ranges from $30-$200 for 3 years.
If I get an FFL, does that give the ATF the right to enter my home whenever they want?No, the ATF may not enter your home whenever they want. The ATF may not conduct a compliance inspection more than once a year and the inspection may only cover records, areas, and items directly related to the FFL.
Am I allowed to get an FFL?If you are legally allowed to possess firearms, you are allowed to get an FFL. Of course, you also need to satisfy the business requirements.
What can I do with an FFL?With an FFL, you can make and sell firearms as a business. If you also become an SOT, you can work with NFA Firearms like silencers, machine guns, and more.
Do I need to get a Class 3 License?There’s technically no such thing as a “Class 3 License” but you can become a Class 3 SOT if you’d like to buy and sell NFA firearms.
How many guns do I need to make or sell to keep an FFL?There is no minimum to the number of guns you need to make or sell to keep an FFL. However, if you haven’t sold even one gun all year, it might be difficult to convince the ATF that you have a business intent.
Do I have to start a separate business to get an FFL?No, you do not need to start a separate business to get an FFL – you may operate under your name as a sole proprietor. There are pros and cons to each option.
If I move, can my FFL come with me?Yes, when you move, you can file for a change of address for your FFL (it’s a special process).
Can I have my FFL from home if I’m renting my house or apartment?Yes, if you’re renting you can still have an FFL but you must get approval from your landlord first.
Is getting an FFL a way to avoid gun control/gun laws?An FFL can be a method of avoiding gun control but it’s not a guaranteed method. For example, in Connecticut they effectively banned AR-15 style rifles for everyone except manufacturer FFLs.
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