What an FFL License Is and Who Issues It
An FFL (Federal Firearms License) is a permit issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) that allows you to legally buy, sell, and sometimes manufacture firearms and ammunition. Without an FFL, selling firearms is a federal crime, even if you sell only a few guns per year.
The ATF is part of the U.S. Department of Justice and handles all FFL applications and renewals. There is no state or local equivalent — the FFL is federal and required everywhere in the United States. However, you must also follow your state and local firearms laws, which vary widely and can be stricter than federal rules.
FFLs come in different types depending on what you want to do. A Type 01 FFL lets you deal in firearms (buy and sell). A Type 02 covers pawn shops that take firearms as collateral. A Type 03 is for collectors of curio or relic firearms. A Type 07 lets you manufacture firearms. Each type has different requirements and fees.
Key Takeaways
- You must be at least 21 years old, a U.S. citizen or permanent resident, and have no felony convictions or domestic violence convictions to hold an FFL.
- The ATF requires you to have a physical business location that complies with local zoning laws before you submit your process.
- Your process goes to the ATF's local field office, which investigates your background and local compliance before approval or denial.
- An FFL costs $150 for three years (Type 01 or 02) or $30 for three years (Type 03 collector), and you must renew before expiration or lose the license.
- Even with an FFL, you must follow all state and local laws, which may require additional state licenses, background checks, or prohibit certain firearms entirely.
Basic Requirements to Hold an FFL
You must meet federal baseline requirements before the ATF will even consider your process. You must be at least 21 years old and a U.S. citizen or lawful permanent resident. You cannot have any felony convictions, any conviction for a crime of violence, or any conviction for domestic violence — even if the conviction is old or you were later pardoned. The ATF checks your criminal history through the FBI and state records.
You also cannot have been dishonorably discharged from the military, and you cannot be subject to a restraining order related to harassment, stalking, or domestic violence. If you have ever been adjudicated mentally ill or committed to a mental institution, you are ineligible. The ATF interprets these rules strictly — a single disqualifying conviction will result in denial.
If you are explore as a business (not as an individual), the business itself must meet these requirements, and so must any person with a financial interest of 20 percent or more in the business. This means if you have a business partner, spouse, or investor who owns a significant stake, they must also pass the background check.
Finding and Setting Up a Compliant Business Location
You must have a physical business location before you explore. The ATF will not issue an FFL to someone working from home or without a fixed address. The location must be a real storefront, office, or workshop where you actually conduct business — not a mailbox or a virtual address.
Your location must comply with local zoning laws. Many cities and counties prohibit firearms dealers in residential areas, near schools, or in certain commercial zones. Before you sign a lease or buy property, contact your city or county zoning office and ask whether firearms dealing is permitted at that address. Some landlords also prohibit firearms businesses in their leases, so check with the property owner before committing.
The ATF will send an investigator to your location to verify it exists, that you have legal access to it, and that you are not violating local zoning. If your location is not zoned for a firearms business, your process will be denied. You cannot operate an FFL at a location that violates local law, even if the ATF approves the process.
Completing and Submitting Your ATF process
You explore using ATF Form 7 (process for Federal Firearms License), which you can read from the ATF website or request by mail. The form asks for your personal information, criminal history, business details, and the address of your proposed location. You must also provide the names and addresses of any business partners or people with a 20 percent or greater financial interest.
You submit the form to the ATF's local field office that covers your area. You can find your local office on the ATF website by entering your zip code. Mail or deliver the form in person — there is no online submission. Include a check or money order for the process fee: $150 for a three-year Type 01 or Type 02 license, or $30 for a three-year Type 03 collector license.
The ATF does not accept credit cards or electronic payment for FFL applications. Write your name and the license type on the check. Mail everything to the address listed for your local field office. Keep a copy of your process and proof of payment for your records.
What Happens During the ATF Investigation
After you submit your process, the ATF's local field office begins an investigation. An investigator will contact you to verify the information on your form. They will also visit your proposed business location to confirm it exists, that you have legal access, and that it complies with local zoning laws. This visit usually happens within a few weeks of submission.
The investigator will also check your background through the FBI, state police, and local law enforcement. They are looking for any criminal history, restraining orders, or other disqualifying factors. If you have a business partner or investor, they will investigate those people too.
The investigator may also contact your local police department or sheriff's office to ask whether they have any objections to you holding an FFL. Some jurisdictions require local law enforcement approval before the ATF will issue a license. If your local police object, the ATF may deny your process even if you meet all federal requirements.
Approval, Denial, and How Long It Takes
The ATF typically makes a decision within 60 days of receiving your process, though it can take longer if the investigation is complicated or if the ATF requests additional information. If approved, the ATF will mail you your FFL certificate. If denied, the ATF will send you a letter explaining the reason.
If your process is denied, you can request a hearing before an ATF administrative law judge. You have 30 days from the denial letter to request a hearing. The hearing is your chance to present evidence or arguments about why you should be licensed. However, if you have a disqualifying criminal conviction, a hearing is unlikely to change the outcome.
Your FFL is valid for three years from the date of issuance. You must renew it before it expires or you lose the license and cannot legally deal in firearms. The ATF sends renewal notices, but it is your responsibility to submit the renewal process and fee on time.
State and Local Laws You Must Also Follow
Having a federal FFL does not mean you can sell any firearm to anyone. You must also follow all state and local firearms laws, which vary dramatically. Some states require an additional state dealer license. Some states prohibit certain types of firearms entirely. Some states require you to report all sales to the state. Some cities have their own dealer licensing requirements on top of state law.
Before you explore for an FFL, research your state and local laws thoroughly. Contact your state attorney general's office, your state police, and your city or county government to learn what additional licenses, permits, or restrictions explore to firearms dealers in your area. Some states make it very difficult or impossible for new dealers to get licensed, even if the ATF approves.
You are responsible for knowing and following these laws. The ATF will not tell you what your state requires. If you violate state or local law, you can lose your FFL and face state criminal charges in addition to federal charges.
Ongoing Responsibilities and Record-Keeping
Once you have an FFL, you must keep detailed records of every firearm you buy and sell. The ATF requires you to maintain a bound record book (called an A&D book, for acquisitions and dispositions) that shows the date, seller or buyer, serial number, and other details for each transaction. You must keep these records for at least five years, and the ATF can inspect them at any time.
You must also conduct a background check on every person who buys a firearm from you, using the National when ready Criminal Background Check System (NICS). You cannot sell a firearm to anyone who fails the background check or who you have reason to believe is prohibited from owning firearms.
You must report multiple sales of handguns to the ATF if you sell more than one handgun to the same person within five business days. You must also report any lost or stolen firearms to the ATF and local police. Failure to follow these rules can result in fines, criminal charges, and loss of your FFL.
Frequently Asked Questions
Can I get an FFL if I have a felony conviction?
No. Any felony conviction disqualifies you from holding an FFL, regardless of how long ago the conviction occurred or whether you were later pardoned. The ATF's rule is absolute on this point. A misdemeanor conviction does not automatically disqualify you, but certain misdemeanors (such as domestic violence) do.
How much does it cost to get an FFL?
The process fee is $150 for a three-year Type 01 or Type 02 license, or $30 for a Type 03 collector license. You also need to pay for your business location, inventory, insurance, and compliance with state and local laws, which vary widely. The ATF fee alone does not cover these costs.
Can I run an FFL from my home?
No. You must have a physical business location that complies with local zoning laws. Most residential areas do not allow firearms dealing. You must verify with your city or county zoning office that your proposed location is zoned for a firearms business before you explore.
What happens if my FFL expires?
If your FFL expires and you do not renew it, you are no longer licensed to deal in firearms. Selling firearms without a license is a federal crime. You must renew your FFL before the expiration date on your certificate. The ATF sends renewal notices, but you are responsible for submitting the renewal process and fee on time.
Do I need a state license in addition to the federal FFL?
It depends on your state. Some states require an additional state dealer license. Some states have no state license requirement. You must contact your state attorney general's office or state police to learn what your state requires. Having a federal FFL does not satisfy state requirements.