If you’re thinking about getting a federal firearms license (FFL) one of the first questions you may have is how much an FFL will cost.
The cost of your license will depend on a few factors, like which ffl type you choose, but the overall fee also includes other variables like renewal costs and whether you want to work with NFA firearms (silencers, short barreled rifles, and more).
In this article, we’re going to cover:
- Summary of FFL Cost
- Which FFL License Type to Get
- FFL Application Costs
- FFL Renewal Costs
- FFL Fees (Additional License Costs)
Summary of FFL Cost
How much you’re going to pay to become a federal firearms licensee depends largely on what you want to do with your FFL.
For example, if you want to be an FFL dealer so that you can buy and sell guns, or even charge a transfer fee for each firearm transfer, then you will likely get a Type 01 FFL which costs $200 for the first three years and only $90 for each three year renewal.
However, if you want to manufacture guns, then the cost is $150 for the first three years and also for every three year renewal thereafter.
Summary of each FFL License Cost by FFL Type:
- Type 01 FFL – $200
- Type 02 FFL – $200
- Type 03 FFL – $30
- Type 06 FFL – $30
- Type 07 FFL – $150
- Type 08 FFL – $150
- Type 09 FFL – $3,000
- Type 10 FFL – $3,000
- Type 11 FFL – $3,000
There are three main FFL costs to consider:
- The initial FFL license application cost
- The renewal cost for your FFL
- Cost of registering as an SOT (if applicable)
A Type 1 Dealer’s license, the most common type of FFL, has a license cost of $200. The license is valid for three years. After that renewals for each subsequent three year period are $90.
The next most common type of FFL, the manufacturer FFL, has a cost of $150 every three years.
The cost for your initial Federal Firearms License, SOT registration, and other secondary costs can all depend on the FFL license type you want/need.
Let’s look at the types of FFLs first to help determine what you might need.
Which FFL license type should you get?
There are currently 9 different types of Federal Firearms Licenses (FFLs) – these range from your typical gun dealer/gunsmith FFL (Type 1) all the way up to firearm manufacturer and importer FFLs.
For a more information, see the article on FFL Types or, better yet, sign up for an online course to help you Get Your FFL.
For a simplified break-down of which type of FFL allows which kind of gun or ammunition activity (dealer, gunsmith, pawnbroker, curio and relic C&R collector, manufacturer, or importer) please see the chart below.
Note the columns which help you to determine what each type of FFL will allow and which Class of SOT may be required. Only the Type 9, 10, and 11 FFLs can work with ‘Armor Piercing Ammunition’ and ‘Destructive Devices.’ Therefore, a Type 1 FFL can deal in standard firearms but not Armor Piercing Ammunition nor Destructive Devices. A Type 9 FFL, on the other hand, can.
FFL License Types
| FFL License Type | FFL License Purpose | SOT Class |
|---|---|---|
| Type 01 FFL | Dealer/Gunsmith of Firearms | 3 |
| Type 02 FFL | Pawnbroker/Dealer of Firearms | 3 |
| Type 03 FFL | Collector of Firearms | n/a |
| Type 06 FFL | Manufacturer of Ammunition | n/a |
| Type 07 FFL | Manufacturer/Dealer of Firearms and Ammunition | 2 |
| Type 08 FFL | Importer/Dealer of Firearms | 1 |
| Type 09 FFL | Dealer of Destructive Devices | 3 |
| Type 10 FFL | Manufacturer/Dealer of Destructive Devices | 2 |
| Type 11 FFL | Importer/Dealer of Destructive Devices | 1 |
Firearm Activity by FFL License Type
| FFL Type | Firearm Dealer | Firearm Manufacturer | Firearm Importer |
|---|---|---|---|
| Type 1 FFL | ✓ | X | X |
| Type 2 FFL | ✓ | X | X |
| Type 3 FFL | X | X | X |
| Type 6 FFL | X | X | X |
| Type 7 FFL | ✓ | ✓ | X |
| Type 8 FFL | ✓ | X | ✓ |
| Type 9 FFL | ✓ | X | X |
| Type 10 FFL | ✓ | ✓ | X |
| Type 11 FFL | ✓ | X | ✓ |
The two most popular types of FFLs are the Type 1 dealer/gunsmith FFL and the Type 7 firearm manufacturer FFL.
FFL Application Cost
As you can see in the chart below, each FFL lasts for 3 years.
Depending on which type you get, the FFL cost ranges from $30 to $3,000 for the first three years.
Let’s cover the costs from least to most expensive. When you’re looking at the application fees, don’t panic! I’ll show you below how you can make back the cost of your FFL, and more, at the end of this article with your first two firearms!
| FFL License | Application | Renewal | Years |
|---|---|---|---|
| Type 01 | $200 | $90 | 3 |
| Type 02 | $200 | $90 | 3 |
| Type 03 | $30 | $30 | 3 |
| Type 06 | $30 | $30 | 3 |
| Type 07 | $150 | $150 | 3 |
| Type 08 | $150 | $150 | 3 |
| Type 09 | $3,000 | $3,000 | 3 |
| Type 10 | $3,000 | $3,000 | 3 |
| Type 11 | $3,000 | $3,000 | 3 |
$30 application fee FFLs – these are the Type 3 and Type 6 FFL licenses. These are both unique because they may NOT be used for typical firearms transfers. The Type 3 FFL is called the “Curio & Relic Collector FFL” and is only used for . . . you guessed it . . . collecting curios and relics. Curios and relics are those firearms which meet one of the following critera:
- Firearms which were manufactured at least 50 years prior to the current date, but not including replicas of such firearms; or
- Firearms which appear on the ATF’s official Curio and Relic List which includes:
- Firearms which are certified by the curator of a municipal, State, or Federal museum which exhibits firearms to be curios or relics of museum interest; and
- Any other firearms which derive a substantial part of their monetary value from the fact that they are novel, rare, bizarre, or because of their association with some historical figure, period, or event.
The Type 6 FFL is the Ammunition Manufacturer’s FFL and may NOT be used for firearm transactions!
Be very careful here.
If you are an FFL, you must pay special attention to the FFL License Number to ensure that you are shipping a firearm to an eligible FFL. As you’ll learn in our article on FFL ID Numbers, each number means something and you must pay attention.
$150 application fee FFLs – these are the Type 7 manufacturer’s license and the Type 8 Importer’s license.
These licenses are used to manufacturer or import GCA/Title I firearms. If you are also a Special Occupation Taxpayer (SOT), then these licenses may be used to manufacture or import NFA/Title II firearms also. In addition to their primary purpose, both of these licenses can also be used to deal (buy/sell) firearms.
$200 application fee FFLs – these are the Type 1 firearm dealer/gunsmtih’s license and the Type 2 pawnbroker’s license.
These are your most common store-front gunshop and ffl dealer licenses. Interestingly (to me, at least), these licenses cost more up front than a Type 7 manufacturer’s license which allows you to manufacture and deal in firearms (including conducting a ffl transfer where you can charge a transfer fee)
$3,000 application fee FFLs – these are the Type 9 dealer’s license, the Type 10 manufacturer’s license, and the Type 11 importer’s license.
These licenses are very similar to their counterparts with one major difference: all three of these licenses allow the particular activity to be conducted with Armor Piercing Ammunition (AP) and Destructive Devices (DD).
FFL Renewal Cost
Before 3 years is up, you’ll need to renew your FFL.
Just as the initial application cost for each FFL varied, so too does the renewal cost. Remember how the license to manufacture and deal (Type 7) was cheaper up front than the license to only deal (Type 1)? Well, that changes at renewal time.
The Type 01 FFL is so much cheaper to renew than the Type 07 FFL that is ends up being less money out of pocket by your fourth year in business. The Type 1 FFL will cost $290 in your fourth year whereas the Type 7 FFL will cost you $300 in your fourth year. In fact, the only Federal Firearms Licenses that have a renewal fee that is cheaper than their application fee are the Type 1 and 2 FFLs.
FFL Fees (Additional Costs)
Unfortunately, the license application fee may not be the only fee you’ll have to pay.
Depending on what you are going to do with an FFL, there may be some extra FFL fees.
SOT Registration Cost
If you plan to work with NFA firearms (silencers, short barreled rifles, machine guns, etc.), then you’ll need to register as a Special Occupational Taxpayer (SOT).
Depending on your FFL license type, you’ll either need to be a Class 1, 2 or 3 SOT. See the chart below to help determine which class of SOT registration each FFL requires.
The SOT registration is good for one year from July 1 to June 30. Therefore, if you start in this business in the first half of the year, you might be stuck paying for a full year’s registration and only get a couple months of use out of it because it’ll expire on June 30th.
The good news is that you’ll likely be in the “under $500k yearly sales” category below so you won’t waste too much money. If you’re wondering more about what an SOT is, check out the article What is an SOT?.
If you’d like to get your FFL and become an SOT, sign up for your Guide to Get Your Own FFL and Become an SOT course bundle to save money!
SOT Registration Cost
| FFL Type | Under $500k | Over $500k | Class | Years |
|---|---|---|---|---|
| Type 01 | $500 | $500 | 3 | 1 |
| Type 02 | $500 | $500 | 3 | 1 |
| Type 03 | n/a | n/a | n/a | n/a |
| Type 06 | n/a | n/a | n/a | n/a |
| Type 07 | $500 | $1000 | 2 | 1 |
| Type 08 | $500 | $1000 | 1 | 1 |
| Type 09 | $500 | $1000 | 3 | 1 |
| Type 10 | $500 | $1000 | 2 | 1 |
| Type 11 | $500 | $1000 | 1 | 1 |
ITAR/DDTC Registration
If you meet the State Department’s definition of a manufacturer, then you must register with the Directorate of Defense Trade Controls (DDTC) per the International Traffic in Arms Regulations (ITAR).
If you’re not sure about this, please consider taking the Guide to Get Your Own FFL to learn more.
The cost to register is $2,250 every year and the State department enforces this one – be careful! This used to be significant cost for FFL manufacturers, however, with the new ITAR rules, a manufacturer doesn’t need to register for non-NFA firearms.
Excise Tax Payments
If you’re a manufacturer and make 50 or more firearms per year, then you must pay 10-11% (depending on firearm type) of the firearm’s value as an excise tax.
This is steep!
It just isn’t worth making 51 firearms in a year. Keep it at 49 or go to 100 or more to make it worth your time.
How Much Does an FFL cost?
As you can see, it depends on what you want to do with your FFL.
If you want to be a dealer in standard firearms (non-NFA), then you can be up and running for three years as an FFL for $250.93 (that’s $200 to the ATF, $49.95 for your Get Your FFL course, and two postage stamps at 49 cents a piece).
If you want to be a manufacturer it’ll actually be cheaper for your first three years!
FFL Cost Breakdown
| FFL Type | FFL Purpose | First 3 Year Fee | Subsequent 3 Year Fee | Cost per year (year 1-3) | Cost per year (year 4+) |
|---|---|---|---|---|---|
| Type 01 FFL | Dealer | $200 | $90 | $67 | $30 |
| Type 07 FFL | Manufacturer | $150 | $150 | $50 | $50 |
If you want to work with NFA Firearms, you’ll be registering as an SOT and that will add $500 per year, but it let’s you make and/or buy and sell as many NFA Firearms as you want tax-free (no $200 tax per item).
If you’ve heard about ITAR registration and that is making you second-guess becoming a firearm manufacturer – worry not! The ITAR rules have changed and probably won’t apply to you in most cases. We cover this in our Get Your FFL Course.
DON’T LET THE MONEY DISCOURAGE YOU!
Remember, you are doing this to save and make money with firearms!
You can recover the cost of your FFL in as little as two firearms!
The MSRP for a Glock 19 is $599. The licensed FFL dealer cost for that gun from Lipseys.com is only $440! That means you can make/save $159 on only one Glock 19 – you’ll be able to off-set your FFL cost after your second gun!
Ok, you now know what the FFL cost of each type of Federal Firearms License is – are you ready to Get Your FFL?
Check out our article on How to Get Your FFL License for more info or sign up for our online FFL Course.
Type 01 FFL Cost
If you’re going to be a firearms dealer, you’re most likely going to get a Type 1 FFL.
The Type 01 FFL costs $200 for three years.
After that, license renewals will only be $90 for each three year period.
As a licensed dealer, you’ll be able to have your own gun shop where you can buy and sell firearms (even from your own home). Also, you can make some side money by receiving a firearm shipment for someone and charging them an ffl transfer fee for the transferred firearm.
With calls for legislation for universal background checks, as an ffl holder, you can even make money charging for a private party transfer (to cover the NICS background check required by the Gun Control Act) even a storage fee if someone needs you to hold onto a gun for them.
If you want to buy and sell NFA firearms, like a silencer, short barreled rifle, or machine gun instead of just standard firearms like a rifle, handgun, or shotgun, you’re also going to want to become an SOT which will cost $500 per year (but it saves the $200 per NFA item tax).
Type 07 FFL Cost
If you want to make guns (and also be able to sell them), the you’ll likely want a Type 07 FFL.
The Type 07 FFL costs $150 for three years.
After that, license renewals will also be $150 for each three year period.
As a licensed manufacturer, you’ll be able to make firearms and sell them to other FFLs or even to a customer as a buyer at your licensed location.
If you want to make and sell NFA Firearms, you’ll need to become a Special Occupational Taxpayer (SOT).
FFL License Cost FAQ
Q: How Much Does an FFL License Cost?
A: An FFL License costs between $30 and $200 for 3 years.
Q: What is the FFL fee?
A: The fee for an FFL is the original license cost (the most common is $200 for the first three years) plus any additional fees like SOT Registration.
Q: How much does a Type 01 FFL cost?
A: A Type 01 FFL costs $200 for the first three years and $90 for every three year renewal afterwards.
Q: How much does a Type 07 FFL cost?
A: A type 07 FFL costs $150 for the first three years and $150 for every three year renewal afterwards.
Q: How much does a FFL license cost?
A: An FFL license typically costs between $30 and $200 for the first three years.
Q: Are there any extra fees in getting an FFL?
A: Getting an FFL has some extras fees in some situations – if you make enough firearms, there can be excise tax payments, if you make NFA Firearms there is an ITAR registration fee, and if you’d like to become an SOT to work with NFA Firearms, there’s an annual registration fee.
Q: What is the most common type of FFL?
A: The most common type of FFL, for business, is a Type 01 FFL. You can learn more about FFL Types here.
I like the idea of manufacturing ammo, or assembling and selling an AR down the road… But I don’t have a way to do that now. Would it be better to just get the type 7 just in case? Or just get a type 1, and upgrade to a 7 later if I get the equipment to start manufacturing?
Wish I could give a better answer but it’s your call. I you have the intent to manufacture, get a Type 07. If you don’t get a Type 01 and you can always add a Type 07 later.
So to make sure I understand correctly, if I use a 3D printer to make a grip for a client’s pistol or a scope mount, I _could_ be considered an arms manufacturer and have to pay to register under ITAR just like someone building anti-tank weapons? If so, that’s absurd.
Only if you’re making parts for items under ITAR control – as of now, most firearms are not.
I have my C&R license but I’m frustrated by some type 1 dealers that refuse to accept my license for transfer of a weapon 50 years or older. Do I have any recourse? Thanks…
Recourse? As in legal recourse? No, they are free to engage in business with someone or not. Best bet is to try and educate them.
As a Type 07 SOT 2 are you allowed to manufacture your own suppressors and MGs for personal use? From my understanding I was thinking there must be a reason to manufacture these Type II items. For instance if you build a MG you must be building it for distribution to a Gov/Law enforcement agency and not for personal benefit/fun
Kind of. You must have a business intent. However, that doesn’t mean you can’t shoot your own machine guns to test them or demonstrate them for possible sale.
I have your FFL & SOT course, just started going through them. If I want to go FFL 7 SOT 2, I intend to assemble SBR and at some point make silencers, do I have to pay ITAR $2250. I know Trump made a change in March 2019 to the ITAR rules. Can you clarify the ruling please?
SBRs, no. Silencers, yes.
with a class 1 can you sell a gun you assembled ? what about bolts and chargers ?
Hi Ron. Ryan breaks down each type of FFL and each class of SOT in the start-up guides and also on the blog article “FFL License Types“. For dealing only, you would want a Type 01 FFL but to assemble/manufacture, you’d need a Type 07.
are there any special laws in the state of nc
Hi Joseph! There aren’t currently any additional state-level requirements for operating an FFL in NC.
How do you prove “intent” is there a minimum amount, and Im assuming you will need a business set up for this?
Not necessarily. Intent can be proven a few ways (we cover this in the course).
If i want to gunsmith, finish 80% lowers and assemble full ar’s along with sell some guns does having the 7 cover or do i need a 2 and a 7 both. If so is it the full cost for each?
A Type 07 FFL would cover everything.
If I purchase the course will I be able to access newer versions should you update the course?
Absolutely! The course is continually updated as the ATF makes changes.
Would upgrading sights require a type 7 and/or ITAR registration? Thanks!
Nope. That would be gunsmithing activity (covered under a Type 1 FFL)
Thank you very much for the information, also sorry for asking rhetorical question but basically i want to own a machine gun, silencer other…etc. legally own it without paying out huge amount of money for it. For example m4 manufactured before 1986 cost over $25k…..that is insane and stupid in my opinion.
1. legally own machine gun, silencer other NFA items
2. pay less money firearms
3. maybe open up a online store or small shop
4. don’t pay too much on fees or tax
As long as you have some business intent, you’ve just listed Great reasons to get an FFL and become an SOT.
How long is the process to get approved to be a Type 1 or 7 registered as an SOT? I have been thinking of getting an FFL for a while now and looking at buying my first suppressor but loathing the 12mo wait times. Will it take just as long to get approved as an SOT? Not many “class 3 dealers” around me either so may be a chance to serve an underserved market in addition to shortening wait time for my own suppressor!……Or would the suppressor still be in jail until ATF approves the transer to Me (personally) vs just my FFL?
Great question – it is MUCH faster to get your FFL. It takes about 2 months to get an FFL. After that, once you’ve paid to register as an SOT, you can get NFA items ins couple of days each. This means faster to get to to yo and faster to be able to sell them.
If I get a class 1 does that also allow me to buy larger amounts of ammo? I do not intend to sell guns or ammo!
Maybe. It isn’t required but being an FFL does help you set up relationships with distributors and may get you better pricing and access to ammo.
Have a question just for my clarification, if I get a Type 1 FFL, will this also allow me to receive parts i.e. lower receivers? I know it allows me to sell them, just want to be clear I can have them shipped to me as well. Thanks
Absolutely! You can get them straight to your FFL address (your home?) and much cheaper than retail.
I have taken the course & still a bit confused… I plan on building ar15’s with the intent to sale & keep a few for me & possibly keeping a few hand guns for myself as well.. from what I seen and heard in the course a type 1 ffl is good for that?
Ray, we have no record of you taking our course. In our course, we explain the type of FFL you’d need to do exactly what you describe (it’s NOT a type 1 ffl) and we even cover pros and cons of the decisions you’ll need to make along the way. If you used another email address for this comment, please sign into your account and we can help you in our members’ area or we can help you with customer support to point you in the right direction.
What type would I need for selling firearms and ammunition?
You would need at least a Type 1 to sell firearms – we break this down in our Get Your FFL Course to help you determine which is best for your situation.
So will type 07 allow you to purchase and sell complete firearms outside of manufacturing?
It sure will! A Type 07 FFL gives you the ability to manufacture and all of the benefits of a type 1 license.
Will having an FFL registered at my home address be public record? Could I use a UPS Store as a registered address for the FFL?
Yes – your licensed premises will be a public record. No, you can not have a UPS store as your licensed premises (but it can be your other address on your license, your mailing address)
To maintain your FFL, do you have to process a certain number of firearm transfers per year/month?
Nope. You just must have an “intent” to be engaged in the business of firearms.