There are nine types of Federal Firearms Licenses. Most retail businesses need only one of two: the Type 01 dealer license or, if you also make pawn loans on firearms, the Type 02 pawnbroker license. The rest cover manufacturing, importing, collecting, and destructive devices. Add a Special Occupational Tax (SOT) registration if you want to deal in NFA items like suppressors.
The ATF's numbering can look confusing from the outside, but each type answers one question: what activity are you licensed to engage in? This guide walks through all nine, what each costs, and how to pick the right one.
The 9 FFL License Types at a Glance
| Type | What it licenses | 3-year fee |
|---|---|---|
| 01 | Dealer in firearms other than destructive devices; includes gunsmithing | $200 first term, $90 renewal |
| 02 | Pawnbroker in firearms other than destructive devices | $200 first term, $90 renewal |
| 03 | Collector of curios and relics (C&R) | $30 |
| 06 | Manufacturer of ammunition for firearms | $30 |
| 07 | Manufacturer of firearms other than destructive devices | $150 |
| 08 | Importer of firearms other than destructive devices | $150 |
| 09 | Dealer in destructive devices | $3,000 |
| 10 | Manufacturer of destructive devices, ammunition for destructive devices, or armor-piercing ammunition | $3,000 |
| 11 | Importer of destructive devices, ammunition for destructive devices, or armor-piercing ammunition | $3,000 |
Every license runs three years. Notice there is no Type 04 or 05; those designations were retired decades ago, which is why the list of nine skips two numbers.
The Two Licenses Most Retailers Actually Use
Type 01: Dealer in Firearms
The Type 01 is the standard dealer license. It covers buying and selling firearms at retail, running transfers for online purchases, and gunsmithing. It is the license behind most gun stores, most home-based FFLs, and most transfer-fee businesses. If your plan is to sell firearms and you will not manufacture them, this is almost certainly your license. Our step-by-step guide to applying for an FFL covers the ATF Form 7 process, and if you plan to run it from your house, read the home-based FFL requirements guide first.
Type 02: Pawnbroker in Firearms
The Type 02 covers everything a Type 01 does, plus taking firearms as collateral on pawn loans. If you are a pawnbroker who handles guns, you need the Type 02, not the 01: a pawn transaction where the customer redeems their own firearm still triggers a NICS background check and a Form 4473 at redemption in most cases, and your A&D book has to log every firearm that comes in on loan. This dual retail-plus-loan workflow is exactly why pawn shops that sell firearms need a point of sale system built for both sides; see our pawn shop platform if that describes your counter.
The Manufacturer and Importer Licenses
Type 06: Ammunition Manufacturer
Covers manufacturing ammunition for sale. It does not cover manufacturing firearms and does not license armor-piercing ammunition, which falls under Type 10.
Type 07: Firearms Manufacturer
The Type 07 licenses manufacturing firearms and also lets you deal, which makes it the second most popular license after the 01. Builders who assemble rifles for sale, cerakoters who take in receivers, and anyone serializing frames needs an 07. Remember manufacturers also register with the State Department's DDTC or under its successor regime for ITAR purposes; budget for that before choosing 07 over 01.
Type 08: Importer
Licenses importing firearms and ammunition for sale. Import permits (ATF Form 6) are a separate layer on top of the license.
The Destructive Device Licenses (09, 10, 11)
Types 09, 10, and 11 mirror the dealer, manufacturer, and importer structure but for destructive devices: grenades, launchers over half an inch of bore with exceptions, and armor-piercing ammunition on the manufacturing and import side. The $3,000-per-term fees and the specialized market keep these licenses rare; they exist mostly in the defense-contract world.
Type 03: The Collector License Is Not a Dealer License
The Type 03 C&R license gets its own callout because it is the most misunderstood type. It licenses collecting curios and relics, generally firearms 50 years old or older or specifically designated by the ATF. It lets you receive eligible C&R firearms across state lines directly. It does not license dealing of any kind. Using a C&R to run a business is a fast route to an ATF conversation about being engaged in the business without a license. We compare the two head-to-head in C&R vs. Type 01 for the at-home licensee.
What About NFA Items? Adding an SOT
No FFL type by itself covers National Firearms Act items like suppressors, short-barreled rifles, or machine guns. For those you pair your FFL with a Special Occupational Tax registration:
- Class 1 SOT pairs with an importer license (08 or 11) to import NFA items.
- Class 2 SOT pairs with a manufacturer license (07 or 10) to make and deal NFA items.
- Class 3 SOT pairs with a dealer license (01 or 02) to deal NFA items. This is the common suppressor-dealer setup.
The SOT is an annual tax ($500 or $1,000 per year depending on business size), unlike the three-year license term.
How to Choose: Three Questions
- Will you make firearms or serialize receivers? Yes: Type 07. No: keep reading.
- Will you take firearms as pawn collateral? Yes: Type 02. No: Type 01.
- Will you sell suppressors or other NFA items? Add the matching SOT class to whichever license you chose.
Whichever type you land on, the compliance workload is the same at its core: a complete ATF Form 4473 for every transfer, a NICS check on every unlicensed buyer, and an A&D book that reconciles to your inventory every day. That recordkeeping, not the license choice, is what decides how your first ATF inspection goes; half the battle is getting off paper before the inspector arrives.
Frequently Asked Questions
How many FFL license types are there?
What is the most common FFL license type?
How much does an FFL license cost?
Do I need a Type 02 FFL to sell guns at a pawn shop?
Can I sell suppressors with a Type 01 FFL?
Can I use a Type 03 C&R license to buy and sell guns?
Next step: ready to apply? Follow the FFL application walkthrough, then browse the compliance guide library for your state.