Learn About Class 3 Firearms License Requirements

Understanding Class 3 Firearms Licenses: Basic Overview

A Class 3 firearms license refers to a federal firearms license (FFL) issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The term "Class 3" comes from the three categories of federal firearms licenses established under federal law. Each class serves a different purpose in the firearms industry. Class 3 licenses specifically authorize dealers to engage in the business of importing, manufacturing, or dealing in firearms and ammunition. This guide provides information about what Class 3 licenses are, what they involve, and how the licensing process works.

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Federal firearms licenses are required for anyone who wants to conduct business involving firearms in the United States. Without an FFL, it is illegal to manufacture firearms for sale, import firearms, or deal in firearms as a business. The ATF oversees all FFLs and ensures that license holders follow federal firearms regulations. Class 3 licenses are distinct from other license types because they specifically permit the holder to deal in certain categories of firearms, including National Firearms Act (NFA) weapons.

Understanding the difference between Class 3 licenses and other license types matters because each type comes with different responsibilities and regulations. A Class 1 license, for example, permits dealers to buy and sell firearms and ammunition but does not allow manufacturing. A Class 2 license permits manufacturers and gunsmiths to make firearms. Class 3 licenses allow for dealing in NFA weapons specifically, which are heavily regulated by federal law.

The regulations around Class 3 licenses stem from the National Firearms Act of 1934 and the Gun Control Act of 1968. These federal laws established a framework for controlling certain weapons and requiring those who deal in them to be licensed. The ATF enforces these regulations and maintains records of all FFLs. According to ATF data, there are approximately 55,000 active FFLs in the United States across all three classes.

Takeaway: Class 3 licenses are federal licenses that permit businesses to deal in certain categories of firearms, particularly NFA weapons. Knowing the basics of what these licenses are and how they differ from other license types is the first step in understanding the licensing requirements.

Who Needs a Class 3 Firearms License

Not everyone who owns firearms needs a Class 3 license. Private gun ownership does not require any federal firearms license. However, if someone intends to engage in the business of dealing in firearms—meaning buying and selling firearms with the intent to make a profit—a license becomes necessary. The ATF defines "engaged in the business" as part of a regular course of trade or business that has the principal objective of livelihood and profit. This is an important distinction because it means that occasional sales of personal firearms do not require a license, but regular firearms dealing does.

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Class 3 licenses are specifically needed for those who want to deal in National Firearms Act weapons. These weapons include machine guns, short-barreled rifles, short-barreled shotguns, suppressors, destructive devices, and "any other weapons" as defined by federal law. If a business owner wants to buy and sell these specific types of weapons, they must have a Class 3 license. Without one, dealing in NFA weapons is illegal under federal law.

Armorers and gunsmiths who work on NFA weapons may also need Class 3 licenses, depending on the specific nature of their work. If they are merely repairing weapons owned by customers, they may not need a license. However, if they are manufacturing or converting firearms into NFA weapons, they will need appropriate federal licensing. This is a nuanced area where the specific activities matter greatly.

Licensed security companies and law enforcement agencies do not typically need Class 3 licenses for the weapons they use. However, if they want to buy, sell, or trade NFA weapons as part of their business operations, they would need to obtain an FFL. This applies even if they are government entities or law enforcement agencies.

Distributors and wholesalers who handle NFA weapons also need Class 3 licenses. If a business is importing firearms or ammunition from overseas or distributing them to other dealers, they must have the appropriate FFL. The scope of the license—whether it is for dealing, manufacturing, or importing—depends on the specific business operations.

Takeaway: Class 3 licenses are required for anyone conducting business in NFA weapons, including dealers, importers, and certain manufacturers. Understanding whether your specific business activities require a Class 3 license is crucial before proceeding with the licensing process.

The Class 3 License Application Process and Requirements

The process of obtaining a Class 3 firearms license involves several steps and requirements that must be completed through the ATF. The first requirement is that the applicant must be at least 21 years old. Sole proprietors must meet this age requirement personally. For partnerships, corporations, and other business entities, the person responsible for overseeing the firearms business activities must be at least 21 years old. This is a federal requirement that cannot be waived.

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Applicants must be United States citizens or permanent resident aliens (green card holders). Non-citizens cannot obtain federal firearms licenses. The applicant must also have a premises where the firearms business will be conducted. This premises must be clearly identified and must be a location where the applicant can legally conduct business according to state and local law. Many jurisdictions have restrictions on where firearms businesses can operate, such as zoning requirements or distance requirements from schools.

One of the most important requirements involves the applicant's background. Certain convictions, mental health adjudications, and other factors can disqualify someone from obtaining a Class 3 license. Felony convictions in any jurisdiction generally disqualify applicants. Additionally, anyone who is subject to a domestic violence protective order cannot obtain a license. These requirements are based on federal law and apply uniformly across all states.

Applicants must submit ATF Form 7, which is the application form for a federal firearms license. This form requires detailed information about the applicant, the business structure, the premises location, and the types of firearms the business will deal in. The form must be signed and notarized. The applicant must also include a photograph and fingerprints, which are used to conduct a background investigation. The ATF uses this background investigation to verify that the applicant meets all requirements and is not disqualified from obtaining a license.

The licensing fee varies depending on the state and the type of license. As of recent information, the federal licensing fee is approximately $200 for three years, though this can vary. Additionally, some states charge their own state-level fees for firearms licenses or approval. Applicants should research both federal and state costs.

Local approval may be required in some jurisdictions. Many states and counties require that local law enforcement or other local authorities be notified of the firearms license application. Some jurisdictions require written approval from local officials. This requirement varies by location and applicants must research their specific local jurisdiction's rules before submitting a federal application.

Takeaway: Obtaining a Class 3 license requires submitting detailed application materials to the ATF, meeting age and citizenship requirements, passing a background investigation, and in some cases obtaining local approval. Understanding each of these requirements before beginning the process helps ensure a smoother application experience.

Background Checks and Disqualifying Factors

The ATF conducts a thorough background investigation on all Class 3 license applicants. This investigation checks federal, state, and local criminal records; mental health records; and other relevant databases. The goal of the background investigation is to ensure that the applicant is not disqualified under federal law from holding a firearms license. Federal law prohibits the issuance of firearms licenses to certain categories of individuals, and the background investigation is designed to identify whether an applicant falls into any of these categories.

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Felony convictions are a primary disqualifying factor. Under federal law, anyone convicted of a felony in any court—federal, state, or local—is prohibited from holding a federal firearms license. The specific crime does not have to be firearm-related; any felony conviction disqualifies a person. This means that applicants with felony records for crimes unrelated to firearms, such as drug offenses or property crimes, will not be issued a license. The conviction must be finalized; pending charges or indictments do not necessarily disqualify someone, though they may delay the application process.

Mental health adjudications are another disqualifying factor. Federal law prohibits issuing licenses to anyone who has been adjudicated as mentally defective or has been committed