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What is an FFL and How Can You Get a Federal Firearm License?

All firearms must be compliant with your local regulations and shipped to a valid FFL dealer. Please make sure your purchase is in line with your local and state restrictions before making your purchase. You must name your receiving FFL dealer before your item can be shipped and please be aware the shipping can be delayed if your receiving dealer fails to supply the necessary information for your item to be shipped contact our online support (the chat icon below) or incase you do not have receiver ffl dealer he will help you get one depending on your state, Discreet deliveries also available read this below before going trough with your order.

With the demand for guns is at an all-time high among gun enthusiasts, sport shooters, concealed carriers, and law enforcement, individuals interested in beginning online firearms and accessories businesses may see a unique opportunity. Low startup costs, low overhead, and a captive market make this a lucrative industry. But if you’re thinking of entering the business of buying or selling firearms, you may find yourself in need of a federal firearms license (FFL). At Optics Ammunition Shop we offer a large varieties of firearms in stock , primers in stock, Glock collections, handguns, pistols and many more but first to own a firearm in 2022 in the USA its important you know this

With an FFL, gun-friendly credit card processor, and less than $200, you could become a legal weapons dealer or firearm manufacturer in the United States. Read on to explore how to get an FFL and distinguish between the different FFL license types.

What is an FFL?

The acronym FFL stands for Federal Firearm License. Established to implement the Federal Firearms Act of 1938, FFLs serve the purpose of giving certified arms dealers access to legally sell firearms. Furthermore, there are several FFL types, ranging from Type 1 to Type 11 available for prospective sellers. FFL license types range from manufacturing firearms to simply selling or facilitating the trade of a gun between two parties. The latter is known as an FFL transfer.

Generally, all firearm manufacturers and dealers that ship or receive guns and ammunition require an FFL to conduct business. This license prevents businesses from selling these types of items to customers without meeting safety conditions.

Who is Eligible for an FFL?

An applicant is eligible for a federal firearms license if they:

  • Are 21 years of age or over
  • Are not prohibited from shipping, receiving, transporting, or possessing firearms, ammunition, or accessories
  • Have not failed to disclose material information or made false statements concerning material facts in connection with their application
  • Not in violation of the regulations of the Gun Control Act
  • Have a physical location or premises for conducting business

And certify that:

  1. The business conducted under the license is not prohibited by state or local law
  2. Within 30 days after approval, the business complies with the conduct requirements of state and local law
  3. The business does not make transactions under the license until the business conduct requirements of state and local law are met
  4. The applicant has notified the chief law enforcement officer that they intend to apply for a license
  5. Safe and secure gun storage and safety devices are available at the place in which firearms are sold

Applicants who fall outside these criteria may not be eligible for a license. However, you may be able to sell at gun shows without one. As always, it’s important to do your own research to determine what’s best for your business.

FFL Types

According to the US Bureau of Alcohol, Tobacco, and Firearms (ATF), there are 8 FFL license types. They are as follows:

  • 01: Firearms dealers or gunsmiths
  • 02: Pawnbrokers/dealers of firearms
  • 03: Collectors of curio and relics. This is a non-professional license, which basically allows you to buy curio and relic firearms more freely than typical firearms. You cannot sell firearms with this license
  • 06: Manufacturers of only ammunition
  • 07: Manufacturers of firearms and ammunition
  • 08: Dealers/importers of firearms
  • 09: Dealer of destructive devices
  • 10: Manufacturers of destructive devices, ammunition for destructive devices, or armor-piercing ammunition
  • 11: Importers of destructive devices, ammunition for destructive devices, or armor-piercing ammunition

Each type of license serves a different purpose. For instance, if you collect antique guns you will need a different license than if you manufacture guns or ammunition. Use this guide, as well as the ATF website, to decide which license is right for you before applying.

How Much Does an FFL Cost?

The cost to obtain an FFL depends on the type you’re looking to acquire. The sections below explore the application fees, renewal costs, and even some unforeseen costs you may encounter.

FFL application fee

The cost to obtain an FFL varies based on the type. The list of application fee for an FFL, based on type, are as follows:

  • 01 FFL – $200 to apply
  • 02 FFL – $200 to apply
  • 03 FFL – $30 to apply
  • 06 FFL – $30 to apply
  • 07 FFL – $150 to apply
  • 08 FFL – $150 to apply
  • 09 FFL – $3,000 to apply
  • T10 FFL – $3,000 to apply
  • 11 FFL –$3,000 to apply

Renewal cost

The renewal cost of an FFL also depends on the type. They are as follows:

  • 01 FFL – Renewal fee is $90
  • 02 FFL – Renewal fee is $90
  • 03 FFL – Renewal fee is $30
  • 06 FFL – Renewal fee is $30
  • 07 FFL – Renewal fee is $150
  • 08 FFL – Renewal fee is $150
  • 09 FFL – Renewal fee is $3,000
  • 10 FFL – Renewal fee is $3,000
  • 11 FFL – Renewal fee is $3,000

Additional costs

There are various additional costs you may encounter when obtaining an FFL. One of which is an ITAR/DDTC registration. If you meet the State Department’s definition of a gun manufacturer, and manufacture products listed in the USML, you must register with the Directorate of Defense Trade Controls (DDTC) per the International Traffic in Arms Regulations (ITAR). The cost of this registration is $2,250 every year.

Another additional cost, and a sneaky one at that, is exercise tax payments. This is enforced if you’re a manufacturer and made 50 or more firearms in one year. This cost comes in the form of a 10 to 11 percent tax on the firearm’s value. To make such a steep tax worth it, manufacturers tend to either stop yearly production at 49 firearms or produce in such excess of 50 that the tax is worth it.

Fingerprinting

Fingerprinting is part of the process to obtain an FFL. However, there’s no requirement that fingerprinting must be done by law enforcement or other government professionals. That said, you can buy your own kit to take your fingerprints for the form.

The cost for fingerprinting varies on the method of execution.

FBI check

The FBI does not charge a fee for NCIS checks. However, states acting as points of contact may charge a fee. The background check itself only takes about 30 seconds.

Required training courses

In 1999, the ATF implemented the National Firearms Examiner Academy (NFEA), which is currently the only national training program that provides a standardized curriculum in the firearm field.

Permit to Purchase

State governments, not the federal government, regulate firearms. That said, gun laws vary from state to state. If you’re in a state that mandates a permit to purchase, your customer will have to obtain such before purchasing a firearm from you.

SOT Registration

If you plan on importing, dealing, or manufacturing silencers, machine guns, and/or other products that fall into the NFA category, you need to register as a Special Occupational Taxpayer (SOT). There are three classes of SOT. They are as follows:

  • One – Importer of NFA firearms
  • Two – Manufacturer of NFA firearms
  • Three – Dealer of NFA firearms

SOT registration is valid for one year, but that year is specifically from July 1 to June 30. A SOT registration beginning in April may not be a great investment, as you’ll have to renew in a few months.

SOT registration varies between $500 to $1,000 for entities over $500,000. For entities under $500,000, SOT registration is $500.

FFL Cost Per Year

You pay upfront for an FFL, but that license is valid for three years. Thus, the cost of the license should be considered over a three-year period. For example, if you obtain a Type 01 FFL, you’ll pay a $200 fee to apply for the three-year license. The yearly cost of which is $67.

The renewal fee is $90, which also has a three-year lifespan. Thus, the cost per year for, say, years four through six is $30.

How to Get an FFL

Step 1: Review FFL requirements

If you’re 21 or older, and can legally purchase a firearm, you likely meet the criteria by the ATF to be eligible for an FFL. Still, it’s important to double-check to be sure you qualify.

Unfortunately, certain groups of people cannot possess firearms or ammunition, and therefore aren’t eligible for an FFL. These are “prohibited persons” by the ATF, and include anyone who is or has been:

  • A felon
  • Found guilty of any crime punishable by more than a year in prison
  • Under indictment for any crime punishable by more than a year in prison
  • A fugitive
  • An unlawful user of any controlled substance
  • Adjudicated as a mental defective
  • Committed to a mental institution
  • An undocumented immigrant
  • Received a military discharge that was dishonorable
  • Relieved of U.S. rights of citizenship
  • Under order from the court restraining you from making threats against, stalking, or harassing an intimate partner or their child
  • Found guilty of a misdemeanor domestic violence crime

If you meet all the criteria required for a license, the next step is to ensure you’re not considered a prohibited person. After this, you can move forward with your application.

Step 2: Decide on the FFL type

There are eight different varieties of federal firearms licenses. As mentioned earlier, the type of FFL for which you’ll apply depends on what you plan to do with the license.

If you plan to deal in firearms or be a gunsmith, you’ll need a Type 1 license. If you plan to manufacture firearms, you’ll need a Type 7 license. A Type 7 Federal Firearms License also allows you to be a firearms dealer. Therefore, if you want to manufacture and sell firearms, a Type 7 FFL covers both.

Step 3: Take an online course

There are currently only a few online certified FFL courses available. When looking into choosing an FFL License course, you want to make sure you are receiving:

  • Advice from a licensed firearms attorney that has the necessary qualifications
  • Guidance from an industry professional who knows the ins-and-outs of the ATF and the firearms industry
  • Software that helps you track your progress in the course
  • Automatic notifications of updates in the applicable firearms law
  • Any compliance training available for both you and your employees

Step 4: Apply for your FFL

Once you’ve decided to file an application for a Federal Firearms License, mail in your application! The application must include the appropriate application fee, which you can pay by check, credit card, or money order.

After processing the fee, the Federal Firearms Licensing Center will enter your information into the database and commence a full review of your application.

Next, a field office supervisor will issue assign an Industry Operations Investigator (IOI) to conduct your in-person interview. The IOI will discuss the legal requirements and go over your application with you to be sure the information is current and correct.

The IOI will prepare a report of their interview and the inspection and make a recommendation to issue you the license or deny the application.

How Long Does it Take to Obtain an FFL?

Generally, it takes 2 months to issue your FFL from the time the Bureau of Alcohol, Tobacco, Firearms, and Explosives receives your application.

How Long Is an FFL Valid?

Your FFL will be valid for three years from the issuant date on the license. However, there are incidences in which an FFL can be closed or revoked before the expiration date.

Final Thoughts

While owning a gun shop or gun accessories business can be quite lucrative, it is a high-risk business. Therefore, it’s necessary to go the extra mile in becoming an FFL dealer.

After you become certified, you’ll be able to sell guns and firearms according to your license type and legislation in your state. The firearms industry is booming, therefore, it’s never been a better time to complete your FFL application and reap the benefits of providing firearms to the buyers.

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