When applying to get your Federal Firearms License (FFL Dealer Licenses), one of the most important things you need to consider is what you want to do with your FFL after it has been approved. That is, what’s your business model?
Is your goal to maintain a small inventory and focus more on internet-sale transfers for others? Maybe you just want the ability to buy and sell guns and ammo as a side-hustle before making the full-time leap? Or perhaps you like working with your hands and want to do gunsmithing? Whatever the reason, each of these goals has a different Federal Firearms License type associated with it.
If you accidentally apply for the wrong FFL dealer license, then your request could be denied, requiring you to start the entire process over again and delaying your business opportunity. Or, perhaps an even worse scenario, you get approved only to find out that you will not be able to use your FFL for what you intended.
Getting an FFL and then having to reapply later because you selected the wrong one can be a very painful (and sometimes costly) experience. Concerns about applying for the wrong FFL is one of the many reasons that applicants seek out our insights and expertise at FFL123.com.
There are actually nine different types of FFLs, but many of them are obscure and won’t apply to the average person. Here are the most common ones that people seek out for business purposes:
The Type 01 FFL is the basic FFL that lets you buy, sell, and repair most guns. It is somewhat limited in scope, but is very popular as it addresses the most common forms of commercial transactions in the gun world. You cannot, however, sell NFA items like suppressors, machine guns, short-barreled rifles, or short-barreled shotguns.
It costs $200 to apply for the Type 03 (good for three years), and then it costs $90 every three years for however long you retain your FFL.
The Type 07 FFL is by far the most useful and versatile type for most people. Not only can you buy, sell, and repair guns, you can also manufacture guns and ammo, plus sell NFA items. If you add on a Class 03 SOT, you can also legally manufacture NFA items as well as sell them!
It costs $150 to apply for the Type 07 (good for three years), and then it costs $150 every three years for however long you retain your FFL. This does not include the SOT costs, which vary depending on the specific one(s) that may be most applicable to your business needs.
Many customers opt for the Type 07 FFL because it allows the most business and financial versatility. Even if you don’t think you’ll get into the extra offerings that come with the Type 07 right away, it’s worth considering if you think you might enter that realm in the near future. This way, you won’t have to reapply for an FFL; you’ll just need your SOT.
Picking the Right One
It all comes down to your intended purposes. Make sure you give it some thought and don’t jump the gun when making your decision. Check out our Ultimate FFL Guide for answers to just about any question you can think of. While you’re there, check out the other posts on our blog, as there’s lots of great info that can help on your journey.
Here to Help to Get Your FFL Dealer Licenses
If you want to make sure that you get the right FFL dealer license then you will enjoy the help we provide from Brandon Maddox, also owner of Silencer Central. Brandon and FFL123 has been helping people get their FFLs for many years. As a result, he knows just about everything there is to know about helping people get home based Federal Firearms Licenses. We’ve been able to streamline the process so well, that many of our customers are reporting that they received their FFL dealer license in 60-90 days.
Once you join up, you’ll have access to our members’ forum, where you can learn from other FFL123.com members. The forums are divided by state so that you can get real world suggestions from others in your exact area. Knowing that there are other people local to you who have had the same questions and found the answers can be very reassuring!
Once you have your FFL, you will find so many new opportunities that you never knew were even possible. If you have any questions about becoming an FFL dealer or to get your FFL Dealer Licenses, don’t hesitate to contact us.