FFL License Types – Complete Guide By a Firearms Attorney

by Ryan Cleckner

January 10, 2021



Depending on the type of Federal Firearms License (FFL), different business activities with firearms can be conducted.

For example, one type of FFL will allow you to be a firearms dealer and/or gunsmith (Type 01 FFL) whereas a different type is required if you’d like to also manufacture firearms (Type 07 FFL).

There are 9 different types of FFL Licenses and, contrary to popular belief, you may not need an FFL. However, if you do want to get an FFL, you really need to make sure that you’re getting the right license type. Also, there’s something called an SOT, commonly called a “class 3 license” that exists in conjunction with an FFL, but it is not a type of FFL (or even a “license”).

For more help with this, check out our article: How To Get an FFL

In this article, we’ll explore:

What is an FFL?

An FFL is a Federal Firearms License which allows the holder (a person or company) to lawfully engage in various business activities with firearms and ammunition.

The Federal Firearms License system was created by the Gun Control Act of 1968 (GCA) and is regulated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

The term “FFL” can be used to refer to both the license and the license holder – this can be confusing if you aren’t paying attention to context. For example, it is sometimes said “I got my FFL” and also, “he is an FFL.”  In this article, we will sometimes refer to the thing as an “FFL License” even though the term is a bit redundant. ????

Who needs an FFL?

You need an FFL if you intend to be engaged in the business of buying, selling, making, or importing firearms.

The “engaged in the business” part is very important (but it does NOT mean that a business/company is required)

You do not need an FFL to buy or sell personal guns. Nor do yo need an FFL to make your own firearms.

However, once you buy a firearm or make a firearm with the intent to sell it, you need to have an FFL. If you’re interested in getting an FFL, even an FFL from your home (most FFL’s are home-based), then you should check out my article on how to get an FFL.

What are the Different Types of FFL Licenses?

There are 9 different types of FFL Licenses – we cover each FFL type in detail below.

FFL License Types
FFL TypeFFL License Purpose
Type 1 FFLFirearm Dealer and/or Gunsmith
Type 2 FFL Firearm Dealer and/or Pawnbroker
Type 3 FFLCurio and Relic Firearm Collector
Type 6 FFL Manufacturer of Ammunition
Type 7 FFLManufacturer of Firearms
Type 8 FFLImporter of Firearms
Type 9 FFLFirearm Dealer (including Destructive Devices)
Type 10 FFLManufacturer of Firearms (including Destructive Devices)
Type 11 FFLImporter of Firearms (including Destructive Devices)

As you can see from the table of FFL License Types above, you can either be a firearms dealer (sell firearms), a firearms or ammunition manufacturer (make firearms and ammunition for sale), a firearms importer (bring foreign guns into the country), or you can be a collector.

It’s easiest to explain each type of FFL by grouping them into categories:

  • Dealer FFLs (Type 1, Type 2, or Type 9 FFLs) generally allow the licensee to engage in the business of selling firearms. As an FFL Dealer, you can also be a gunsmith. If you’re interested in pawning firearms, you’ll need a Type 02 FFL and if you’d like to deal with Destructive Devices (DD), you’ll need a Type 09 FFL .
  • Manufacturer FFLs (Type 6, Type 7, or Type 10 FFLs) allow the licensee to manufacturer firearms or ammunition as a business. Under federal law, you can make your own firearms and ammunition. However, if you make them with the intent to sell them, then you’ll need the appropriate license. If you’d like to only make ammunition, a Type 06 FFL is for you. However, if you’d like to make firearms, and also possibly ammunition, then you’ll need a type 07 FFL. And just like with the Dealer category above, if you want to make Destructive Devices (DD), you’ll need a specific FFL, in this case a Type 10 FFL. As a note, if you have a firearm manufacturer FFL (Type 07 or Type 10), you can also be a dealer.
  • Importer FFLs (Type 08 or Type 11 FFLs) allows the licensee to import firearms from another country.
  • A Collector FFL (type 03 FFL) allows the licensee ONLY to collect Curio and Relic (C&R) firearms. This does not allow any “business” activity with firearms (making, selling, or importing) and is only for people that like collecting C&R firearms for themselves and want the firearms shipped straight to them. C&R firearms are those at least 50 years old or that appear on a list from the ATF.

Even if you’re not interested in getting your own FFL, knowing about the different types of Federal Firearm Licenses is still important because you should know who you’re dealing with. For example, if you are shipping a firearm to someone who is claiming to be an FFL but they only hold a Type 6 FFL (ammunition manufacturer) then you MUST use another FFL that can deal with firearms for a transfer.

We’ll cover more about each FFL type in detail below.

FFL License Cost

Each FFL License has a different cost for the first three years and FFL renewals depending on which FFL Type you get.

The most common type of FFL, the Type 01 dealer/gunsmith FFL costs $200 for the first three years and $90 for each renewal period thereafter.

The second most common type of FFL, the Type 07 firearm manufacturer FFL, costs $150 for the first three years and also $150 for each three year renewal.

As you can see, although the Type 7 Manufacturer FFL is cheaper for the first three years, the Type 01 dealer FFL is much cheaper for renewals.

Here’s a breakdown of the cost of each FFL Type for the initial application and first 3 years and also the renewal cost for each subsequent 3 year period:

FFL License Cost (Application and Renewal)
FFL TypeFirst 3 Year CostRenewal Cost
Type 1 FFL$200$90
Type 2 FFL $200$90
Type 3 FFL$30$30
Type 6 FFL $30$30
Type 7 FFL$150$150
Type 8 FFL$150$150
Type 9 FFL$3000$3000
Type 10 FFL$3000$3000
Type 11 FFL$3000$3000

If you’d like to learn more about these costs, please see my article on FFL License Cost.

What is an SOT (Class 3 License)?

First off, an SOT is a status as a taxpayer so it’s not really a “license.”

SOT stands for Special Occupational Taxpayer. To become an SOT, you must first be an FFL and then pay an annual federal tax. SOTs are divided into three classes (discussed below).

By registering as an SOT and paying the once a year tax, you can work with NFA firearms without having to pay a tax for every single NFA firearm you make or sell.

NFA firearms, so called because they are covered under the National Firearms Act) are a special class of firearms that are highly regulated under federal law.

NFA firearms are:

  • silencers/suppressors (yes, they’re legally “firearms”),
  • short barreled rifles (rifles with a barrel less than 16″ or an overall length less than 26″),
  • short barreled shotguns (shotguns with a barrenness than 18″ or an overall length less than 26″),
  • destructive devices (grenades and bombs), and
  • “any other weapons (AOWs)” (pen guns, handguns with a vertical fore grip, etc.)

The making or transfer of NFA firearms requires a $200 federal tax upon manufacturer and for each and every transfer for all but AOWs… they cost only $5.

However, as an FFL that is also an SOT, the once yearly tax is all that is needed and the per item tax isn’t paid. This not only saves money when dealing multiple items, it is required for manufacturers.

Depending on the type of activity you’d like to conduct and which type of FFL License you have, you need to be one of the three classes of SOT:

  • Class 1 SOT: For importing NFA firearms
  • Class 2 SOT: For manufacturing NFA firearms
  • Class 3 SOT: For dealing/selling NFA firearms

Note, an FFL who sells NFA firearms is sometimes called a “Class 3 Dealer” or that they sell “Class 3 firearms.” Neither is technically correct – they are a dealer FFL who is a Class 3 SOT selling NFA firearms. The NFA firearms aren’t “class 3” because they were made by a Class 2 SOT or imported by a Class 1 SOT.

Here’s a table with the type of FFL matched up with the Class of SOT and the cost to be an SOT whether you make over or under $500k annually. Note, the cost only increases over $500k for certain FFL types:

FFL License Type, SOT Class, and SOT Cost
FFL TypeSOT ClassUnder $500k CostOver $500k Cost
Type 1 FFL3$500$500
Type 2 FFL 3$500$500
Type 3 FFLn/an/an/a
Type 6 FFL n/an/an/a
Type 7 FFL2$500$1,000
Type 8 FFL1$500$1,000
Type 9 FFL3$500$1,000
Type 10 FFL2$500$1,000
Type 11 FFL1$500$1,000

For more details, check our “Class 3 Firearms License” article or if you’d like help with the process, this course on How to Become an SOT

FFL License Type Details

As discussed above, there are 9 types of FFLs – each license type allows different firearms activity.

Let’s explore each type of FFL, and what each license type allows:

Type 01 FFL

The Type 01 FFL License type for dealers and/or gunsmiths is, by far, the most popular type of FFL in the country. Your local gunshot, and even most home-based FFLs (yes, you can have an FFL from your home) are Type 01 FFLs.

With this FFL License type, you can buy and sell guns for a business purpose. If you’d like help getting this FFL, check out RocketFFL

Type 02 FFL

Type 02 FFLs aren’t very common – they are effectively a Type 01 FFL but they allow you to conduct pawnbroker activities. The difference to the ATF is that some firearms in your inventory won’t be the business’s property and pawned firearms have a higher likelihood of being crime guns.

Type 03 FFL

Type 03 FFLs are for collectors of Curio and Relics ONLY. You can not engage in any business activity related to firearms with this FFL. If you’d like to collect antique guns and avoid having to go down to your local gun shop for transfers, then this collector’s FFL might be for you.

Type 06 FFL

The Type 06 FFL is for manufacturing ammunition ONLY. You can not use this FFL to buy and sell firearms nor make guns. Remember, it is perfectly legal under federal law to make your own ammunition. However, once you start to make ammunition with the intent to sell it, you need with this FFL or a Type 07 FFL.

Type 07 FFL

The Type 07 manufacturer FFL is the second most common FFL type in the country. This FFL allows you to manufacture firearms for sale (it also allows you to manufacture ammunition, too). If you are getting this FFL and plan to make firearms (even simply assembling AR style rifles), then you need to be prepared to have the firearms marked in accordance with ATF rules and regs. If you need help, check out Rocket FFL’s ATF compliance program.

Type 08 FFL

If you’re going to import standard firearms, then the Type 08 FFL is for you. Just like with the Type 07 FFL, you need to be prepared to mark them properly.

Type 09 FFL

If, in addition to buying and selling normal firearms, you’d also like to buy and sell Destructive Devices, you’ll need to be a Class 3 SOT and have this FFL.

Type 10 FFL

If you’d like to manufacture firearms AND/OR Destructive Devices, then you’ll need to be a Class 2 SOT and have this FFL License type.

Type 11 FFL

If you’d like to import firearms AND/OR Destructive Devices, then you’ll need to be a Class 1 SOT and have this type of FFL License.

Which FFL Type Should You Get?

You’re likely reading this because you want to get an FFL and are wondering which FFL license type you should get.

Chances are you’re most likely going to be able to use a Type 01 FFL if you want to be a firearm dealer or a gunsmith. The Type 01 FFL is, by far, the most popular type of FFL for conducting business.

The second most popular FFL is the Type 07 FFL which is needed if you intend to manufacture firearms.

Here’s a chart of the popularity of each FFL License type:

FFL License Types By State

Here’s a breakdown of how many of each FFL License type is currently in each state of the country.

As you can see from the table of FFL Types by state below, Texas has the most FFLs. This shouldn’t be surprising.

Also, as you can see, the Type 01 and the Type 07 are the most popular FFL License Types in the country.

Number of FFLs by Type and State


How many types of FFLs are there?

There are 9 types of FFLs

What are the types of FFL?

The types of Federal Firearms Licenses are:

  • Type 01 FFL – Dealer in Firearms Other Than Destructive Devices

  • Type 02 FFL – Pawnbroker in Firearms Other Than Destructive Devices

  • Type 03 FFL – Collector of Curios and Relics

  • Type 06 FFL – Manufacturer of Ammunition for Firearms Other Than Ammunition for Destructive Devices or Armor Piercing Ammunition

  • Type 07 FFL – Manufacturer of Firearms Other Than Destructive Devices

  • Type 08 FFL – Importer of Firearms Other Than Destructive Devices or Ammunition for Firearms Other Than Destructive Devices, or Ammunition Other Than Armor Piercing Ammunition

  • Type 09 FFL – Dealer in Destructive Devices

  • Type 10 FFL – Manufacturer of Destructive Devices, Ammunition for Destructive Devices or Armor Piercing Ammunition

  • Type 11 FFL – Importer of Destructive Devices, Ammunition for Destructive Devices or Armor Piercing Ammunition
  • Which FFL Type is needed for manufacturing firearms?

    To manufacture firearms, you need at least a Type 07 FFL.

    Which FFL type allows you to manufacture ammunition for sale?

    Either a Type 07 FFL or a Type 06 FFL allow you to manufacture ammo for sale.

    Which FFL type is themes common license?

    The Type 1 FFL License is the most common type.


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    About Ryan Cleckner

    Ryan is a former special operations sniper (1/75 Ranger) and current firearms attorney, firearms industry executive, university lecturer, and bestselling author of the Long Range Shooting Handbook.

    Recent Posts


    1. Ryan,
      I would like to purchase guns online without having them shipped to a FFL holder, which license would afford me this capability?

    2. I work for a company that has multiple site some ITAR ceritfied some not. We recently received a one off CNC request to quote a couple of items associated a firearm. It is not ITAR regulated but the customer said it is FFL. I would like to make sure the an FFL is needed for a one off project with no assembly and minimal parts of the weapon being produced.

    3. Ryan do you need more than one type to do more than one catagory like buy and sell and like deal with silencers and import etc.

      1. One license can work for multiple activities but, in some cases, two licenses are needed. (confusing, I know) For example, a Type 07 manufacturer’s license can be used to make guns and also act as a dealer.

    4. My husband and I are only looking to do transfers and sell accessories, nothing that would help modify or anything like that. Looks like we would need be an 8 right? Looking into the course right now! Thanks!

      1. Based on that information, it looks like a Type 01 FFL would be best for you. RocketFFL breaks down the pros/cons of each in the Get Your FFL course.

    5. Does a type 10 FFL with a Type 2 SOT allow you manufacture both regular firearms and DD’s? Also total cost seems to be 3,500 for a Type 10/02 licensee is that accurate outside of the increase in cost at 500k and does the 500k me total gross revenue is more than 500k or is that 500k profit? Lastly with a Type 10/02 you can manufacture DD’s but can you purchase/manufacture the ammunition for them?

      1. Yes – you can manufacture both. That’s the price before the $500k increase which is for total revenue. You can purchase DDs with an LE nexus.

    6. I am a Class 7 and have an SOT 2. Are there any restrictions to me buying full auto kits, boltcarrier group and trigger assembly, for either building the NFA weapon or servicing them? I understand the reporting process for manufacturing, I just want to understand if I can buy these parts from other manufacturers.

    7. Ryan,

      I currently hold an FFL-01 and am looking to manufacture ammunition. I plan on obtaining my FFL-06 for this purpose. Is an ITAR application needed for the -06 license? I understand that the requirement may have been substantially modified.

      I do not plan on importing or exporting ammunition, just manufacture for sale/consumption in the US.

      1. Hi Dave! Depends on the ammunition. DDTC registration is required when manufacturing items on that remained on the USML, such as belted/linked ammo. Ryan covers this in-depth in the RocketFFL – ATF Compliance program, and also on his Trigger Words podcast: Episode #28

    8. I am an 01 FFL switching to an 07 with SOT 2. Seems that I will have to engrave the already serialized weapon (let’s say an Anderson lower with a Colt upper) with my FFL name, City and State. Question is, as an 07 manufacturer… what is the minimum amount of weapons ATF expects me to “build” per year? Can i get away with one AR build per calendar year? I am only doing this to get into post 86/no letter submachine/FA collection. Well as long as I can afford the hobby.

      1. There is no number limit. Only a clear intent to be engaged in the business. Unfortunately, I can’t offer legal advice here.

    9. Getting ready to open a retail gun store with an indoor gun range to follow. I am tentatively planning to get a Type 7 FFL. Can I apply for a Class 2 at the same time? And is Class 2 correct, instead of Class 3? We want to sell, trade, and gunsmith all types of regular weapons as well as NFA type weapons. I keep reading to apply for Class 3. So I am confused.

      1. The RocketFFL “Get Your FFL Course” walks you through all of this – it covers not just what you can/should do but how to do it.

    10. Hi, so type 11 with SOT is you can basically buy/import anything. Do the normal machine gun rules apply as far as acquiring post 86 machine guns where they generally need to be manufactured domestically under your license or have to produce a law/demo letter?

      1. Yes, the normal machine gun rules apply. You can learn more about all of this from RocketFFL

    11. Starting a cerakote business, if I only take complete guns, disassemble, paint and reassemble that’s just a type 01 correct?
      If someone sends me a bunch of brand new in box ar parts, I paint and assemble it for them, that’s 07?
      In the 2nd example, would I need to pay the ITAR fee too?

      1. It’s not so clear cut. Arguably, if they own the parts and are hiring you after, that can still be gunsmithing too. No ITAR anymore for non-nfs firearms.

    12. Could I obtain a class 06 with a PO box? I’m having a hard time finding the requirements of the business location for a class 06.

      1. You would most likely need a Type 07 FFL. We explain more to help you know which one is right for your situation in the RocketFFL course.

    13. To manufacture firearms and sell them, do you need a Type 7 AND a Type 1, or will a Type 7 allow you to sell as well?

      1. GREAT question! You would only need a Type 07 FFL to make and sell firearms (including firearms you didn’t make).

    14. I have my stamp to have a suppressor I’m curious as to whether this covers me manufacturing and/or selling supressors

      1. Definitely not. Your stamp only gives you the ability to possess the particular NFA firearm it is for. If you want to make or sell suppressors, you’re going to want to get a Type 07 FFL and become a Class 02 SOT.

    15. Hi Ryan, this is a “I live in Calif” question. I do a lot of range shooting so buying ammo in bulk for the best price from online out of state sellers makes sense. Is there a license which would allow me to purchase bulk from online out of state sellers and have it shipped direct to my home and not to my ffl which adds cost?

      1. Under federal law, no license is required to purchase ammunition online and have it shipped to your home. However, you may live in a state that has specific rules about this.

    16. Would i need anything other than a class 7 FFL to build bolt action riffles with barrels longer than 16 inches? Basically build custom riffles, rebarrel, muzzle breaks, trigger jobs, etc. in the state of TX.

    17. Ryan, great post! I’m looking at getting the different FFL options and I’m not really interested in manufacturing ammunition just selling ammo that others have mfg’d. Does the 01 allow this or would I need the 06? I noticed none of them really referenced dealing in ammo.

      1. I’m glad to see that you’re looking into this! However, I can tell that you haven’t taken the RocketFFL course. 🙂 No FFL is needed to sell ammunition – only to make it for sale.

    18. would casting my own lead bullets and selling a few of them to my neighbor require an FFL? I am only asking about the lead projectile not load ammunition.

      1. GREAT question! Yes, you would need an FFL to manufacture bullets with the intent to sell them. “Ammunition” is defined in federal law as a complete cartridge AND each of the components. Therefore brass, bullets, primers, and powder are all “ammunition” individually and together.

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