Learn About Getting an FFL License Step by Step

What an FFL License Is and Why It Matters

An FFL (Federal Firearms License) is a federal permit that allows a person or business to legally engage in the firearms business. The license is issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), which is part of the U.S. Department of Justice. Without an FFL, it is illegal for most people to buy firearms for resale, manufacture firearms, or import firearms into the United States.

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There are nine different types of FFLs, each covering different activities in the firearms industry. Type 01 FFLs allow dealers to buy and sell firearms at retail. Type 02 FFLs are for pawnbrokers who accept firearms as collateral. Type 03 FFLs are for collectors of curio or relic firearms—these are firearms that are at least 50 years old or have historical significance. Types 04 and 05 are for manufacturers and importers of firearms. Type 06 is for manufacturers of ammunition. Type 07 is for manufacturers of firearms and ammunition. Type 08 is for importers of firearms and ammunition. Type 09 is for dealers in destructive devices.

According to ATF data from 2023, there were approximately 56,000 active FFLs in the United States. The vast majority—about 83 percent—were Type 01 retail dealers. This shows that most FFLs are held by gun shops and other retail businesses rather than manufacturers or importers. The number of FFLs has remained relatively stable over the past decade, with slight fluctuations based on economic conditions and regulatory changes.

Understanding the type of FFL you need is the first step in the process. Different types of licenses have different requirements, fees, and responsibilities. For example, a retail dealer's responsibilities differ significantly from those of a manufacturer. The type of license also determines what kinds of records you must keep and what inspections you may face from ATF agents.

Practical Takeaway: Before proceeding, research which FFL type matches your intended business activity. The ATF website lists all nine types with descriptions of what each permits and what it does not. Choosing the wrong type of license can delay the entire process.

Understanding FFL Requirements and Who Can Hold One

The ATF has set basic requirements that must be met before someone can hold an FFL. These requirements exist to ensure that firearms are handled responsibly and do not end up in the hands of prohibited persons. The requirements are written into federal law, primarily in Title 18 of the United States Code and Title 27 of the Code of Federal Regulations.

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First, you must be at least 21 years old. This applies to all FFL holders regardless of the type of license. If you are applying as a business entity rather than an individual, the person who will be responsible for the daily operations of the business must meet this age requirement.

Second, you cannot be a prohibited person under federal law. Prohibited persons include anyone who has been convicted of a felony, anyone subject to a domestic violence restraining order, anyone who is an unlawful user of controlled substances, anyone adjudicated as mentally defective, and several other categories. The ATF requires you to answer questions about your background truthfully on your application. False statements on an FFL application are themselves a federal crime that can result in fines and imprisonment.

Third, you must have a legitimate place of business. This is often misunderstood. You cannot operate an FFL out of your home in most states. You need a physical location that is separate from your residence. The location must be legally zoned for commercial business activity. You must own or have a lease for the property. The ATF will verify this during the inspection process. Some states and local jurisdictions have additional requirements about where an FFL can be located—for example, some areas require a minimum distance from schools or parks.

Fourth, you must comply with all state and local laws regarding firearms dealers. Some states require additional state-level licensing. Some states have residency requirements. Some states limit the number of locations where a single person can hold an FFL. Some states require FFLs to take firearms safety training courses. Some states require FFLs to carry liability insurance. Before you begin the federal process, you should research your state's requirements thoroughly.

Fifth, you must have a specific intent to engage in the firearms business as your principal or primary occupation or business activity. The ATF wants to see that this is not a hobby or a side project. This is assessed based on factors such as whether you have adequate inventory, proper facilities, records systems, and marketing. The ATF looks at whether you are actively engaged in buying and selling firearms, not just holding a license without conducting business.

Practical Takeaway: Create a checklist of the basic requirements and verify you meet each one before investing time and money. Contact your state's attorney general office or a local firearms attorney to confirm state-specific requirements, as these vary widely and can be complex.

Step-by-Step Process for Submitting Your FFL Application

The FFL application process involves several distinct stages. Understanding each stage helps you prepare the right documents and avoid delays. The entire process, from submission to final approval, typically takes between 60 to 90 days, though this can vary based on ATF workload and the complexity of your background.

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The application is submitted using ATF Form 7 (Application for Federal Firearms License). This form asks for detailed information about you, your business, your location, and your background. If you are applying as an individual, you provide personal information. If you are applying as a business entity such as a corporation or LLC, you provide information about the business structure and the person responsible for daily operations. The form also asks about your experience in the firearms business and your plans for operations.

You must submit the application along with several supporting documents. These include proof of ownership or a lease for your business location. You need local law enforcement certification—this is a critical step. The chief law enforcement officer (CLEO) in your jurisdiction must certify that they have no information indicating you are prohibited from possessing firearms. This is typically the chief of police in a city or the county sheriff in an unincorporated area. You also need a diagram or floor plan of your proposed business location showing where firearms will be stored and how the location is organized.

The application and supporting documents can be submitted in two ways. You can print the form, complete it by hand or typewriter, and mail it to your regional ATF office with copies of all required documents. Alternatively, you can submit the application online through the ATF's eforms system. The online system has become increasingly common and offers advantages such as the ability to track your application status and receive updates via email. The ATF has been gradually transitioning applicants toward the online system.

Once submitted, the ATF conducts a background check. This includes a check of federal criminal records, state criminal records, and federal firearms databases. The ATF also conducts an inspection of your proposed business location to verify it meets requirements and to assess whether your stated intent to engage in the firearms business is genuine. The inspector will review your records systems, inventory plans, and operational procedures. This inspection is an important step and is mandatory for all first-time applicants.

After the inspection is complete and the background check clears, the ATF issues your FFL. You will receive the license document by mail. The license is valid for three years. This is your document of authorization to conduct the firearms business activities covered by your license type. You must display this license prominently in your place of business where it can be seen by customers.

Practical Takeaway: Gather all required documents before starting the application. Contact your local law enforcement office early in the process—the CLEO certification can sometimes take several weeks to obtain. Set up your business location and have your lease or deed ready before submitting the application.

Costs, Fees, and Financial Considerations

The federal application fee for an FFL is $200, regardless of the type of license. This fee is paid when you submit your application and is non-refundable. This is the only federal fee involved in obtaining the license. However, this is not the only cost you will incur in establishing an FFL business.

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State and local fees vary dramatically depending on where you are located. Some states charge no additional state-level fee for an FFL. Other states charge fees ranging from $50 to over $500. Some cities and counties charge local business licensing fees that may apply to your firearms business. Some jurisdictions charge additional firearms-specific fees. In California,