FFL License Types: 01 Through 11, Explained

FFL License Types at a Glance

The Bureau of Alcohol, Tobacco, Firearms and Explosives issues 10 types of federal firearms licenses, each authorizing specific commercial activities. The license type determines what you can sell, manufacture, import, and repair — and the compliance obligations that come with it.

For most retail firearms businesses — gun stores, sporting goods retailers, and firearms sections within larger stores — a Type 01 license is the standard. Pawn shops that deal in firearms typically need a Type 02. The remaining types cover manufacturers, importers, collectors, and dealers in destructive devices or ammunition.

Application fees range from $30 for a Type 03 Collector license to $3,000 for Type 10 and 11 manufacturer/importer licenses for destructive devices. Standard dealer and pawnbroker licenses (Types 01 and 02) cost $200 for the initial three-year period and $90 for each three-year renewal.

Type 01: Dealer in Firearms (Most Common)

The Type 01 FFL is the bread-and-butter license for retail firearms businesses. It authorizes you to engage in the business of dealing in firearms — buying and selling handguns, rifles, shotguns, frames, receivers, and firearm accessories at a fixed business premises.

Type 01 holders can also conduct interstate transfers (receiving firearms from other FFLs for sale or transfer to customers), process private-party transfers, sell firearms at gun shows within your state, and perform basic gunsmithing and repair work incidental to your dealing business.

What a Type 01 does not authorize: manufacturing firearms for sale, importing firearms, or engaging in pawn transactions. If you want to take firearms as collateral for loans, you need a Type 02.

Type 02: Pawnbroker in Firearms

The Type 02 license authorizes everything a Type 01 covers, plus the ability to accept firearms as collateral for pawn loans. This is the required license for any pawn shop that handles firearms — which, in most states, means virtually every pawn shop.

The compliance burden for Type 02 licensees is higher than Type 01 because pawn transactions create additional recordkeeping requirements. Every firearm taken as collateral must be logged in your A&D book as an acquisition. When the customer redeems the loan, the firearm is logged as a disposition. If the loan is forfeited, the firearm remains in your inventory until sold — at which point a 4473 is required for the new buyer.

For pawn shops handling firearms, the interplay between pawn regulations (which vary by state) and ATF regulations creates a complex compliance environment. Our bound book guide for pawn shops covers this in detail.

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Type 03: Collector of Curio & Relic Firearms

The Type 03 is a personal collector's license, not a commercial license. It allows individuals to acquire curio and relic firearms — generally firearms at least 50 years old or of special interest — through interstate commerce without going through a dealer. Type 03 holders cannot engage in the business of buying and selling firearms for profit.

As a retail dealer, you'll occasionally encounter Type 03 holders. They can receive qualifying C&R firearms directly from other FFLs via interstate shipment. However, if they want to purchase a modern firearm from your store, the standard 4473 and background check process applies — their C&R license provides no exemption.

Types 06 & 07: Manufacturers

Type 06 authorizes the manufacture of ammunition for sale. Type 07 authorizes the manufacture of firearms and ammunition for sale. If your business builds custom firearms, assembles rifles or pistols from components, or modifies firearms in a way that constitutes manufacturing (such as re-barreling or re-chambering), you likely need a Type 07.

The line between gunsmithing (covered under Types 01 and 02) and manufacturing (requiring Type 07) is not always obvious. The ATF's general guidance is that if you are creating a new firearm or substantially altering an existing one to create a different product, that's manufacturing. If you're repairing or maintaining an existing firearm, that's gunsmithing. When in doubt, the safe course is to apply for a Type 07.

Type 07 holders are also subject to the federal excise tax on manufactured firearms under the Pittman-Robertson Act, which adds 10-11% to the cost of every firearm they produce. This is a significant business consideration that Type 01 and 02 holders do not face.

Types 08, 09, 10, 11: Importers & Destructive Devices

Types 08 and 11 cover importers of firearms and destructive devices, respectively. Types 09 and 10 cover dealers in destructive devices (including certain large-caliber weapons and explosive devices). These license types come with significantly higher fees, stricter scrutiny, and additional federal requirements including compliance with the International Traffic in Arms Regulations (ITAR) for importers.

Most retail firearms businesses will never need these license types. They are relevant primarily for importers bringing foreign-manufactured firearms into the U.S. market, dealers specializing in NFA items, and businesses in the defense or security sector.

How to Choose the Right License for Your Business

For most new firearms retailers, the decision is straightforward: if you're opening a gun store, apply for a Type 01. If you're opening or operating a pawn shop that will handle firearms, apply for a Type 02. If you plan to manufacture firearms or custom-build guns, apply for a Type 07.

You can hold multiple FFL types simultaneously if your business activities require it. A pawn shop that also manufactures custom firearms would need both a Type 02 and a Type 07. Each license has its own compliance obligations, and the ATF will inspect each separately.

The application process is the same for all types: submit ATF Form 7 (Application for Federal Firearms License), pay the applicable fee, pass a background investigation, demonstrate compliance with state and local regulations, and pass an in-person interview with an IOI at your proposed business premises.

Compliance Obligations by License Type

All FFL holders share a baseline set of compliance requirements: maintaining an A&D bound book, completing Form 4473 for retail transfers, running NICS background checks (or state equivalent), retaining records for the required periods, cooperating with ATF inspections, and reporting multiple handgun sales.

Beyond the baseline, each license type adds specific obligations. Type 02 holders have pawn-specific recordkeeping requirements. Type 07 holders must pay excise taxes and maintain manufacturing records. Importers must comply with ITAR and maintain import documentation. SOT (Special Occupational Tax) holders who deal in NFA items have an entirely separate compliance framework.

Regardless of your license type, the single most effective compliance strategy is the same: use integrated digital systems that automate your recordkeeping, validate your forms in real-time, and make every record instantly retrievable. That's exactly what Bravo's platform is built to do.