How to Become a Firearms Dealer

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Is it time to take your interest in guns to the next level? Looking to share your passion with those who have similar interests? Perhaps it is time to do some research on how to become a firearms dealer and determine which type of FFL might be right for you.

What is an FFL license?

The answer isn’t easy. There are nine different types of Federal Firearms Licenses and each of these FFLs carries different restrictions. Knowing the differences is really important.

Getting an FFL isn’t as easy as getting a driver’s license—but it is hardly difficult. Most types require that you are actually engaged in a business venture of some sort. Then there is the assumption that you’ll remain in compliance with all of the rules.

The lower is the only serialized part of the gun and has to be transferred through an FFL.
The lower is the only serialized part of the gun and has to be transferred through an FFL. Most guns, though, are sold complete, rather than in pieces or parts.

FFL license types

Here are the different types of FFLs. Each license allows you to do something slightly different.

  • Type 01 FFL – Firearm Dealer and Gunsmith
  • Type 02 FFL – Pawnbroker and Firearm Dealer
  • Type 03 FFL – C&R Collector
  • Type 06 FFL – Ammunition Manufacturer
  • Type 07 FFL – Firearm Manufacturer
  • Type 08 FFL – Importer of Firearms
  • Type 09 FFL – Dealer of Destructive Devices
  • Type 10 FFL – Manufacturer of Destructive Devices
  • Type 11 FFL – Importer of Destructive Devices

Type 01 FFL – Firearm Dealer and Gunsmith

The Type 01 is a fairly typical license—the kind you would find in most mom-and-pop brick-and-mortar gun stores. This allows you to buy and sell new and used guns.

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Type 02 FFL – Pawnbroker and Firearm Dealer

The Type 02 is more for used guns. Most pawn stores don’t sell new guns they’re buying from manufacturers.

Type 03 FFL – C&R Collector

The Type 03 is unique and only allows you to buy guns that have been legally determined to be curios and/or relics. This is a collector’s license, though you can use it to buy and sell some old guns. Only old guns.

Type 06 FFL – Ammunition Manufacturer

Type 06 licenses allow holders to make and sell ammunition. This isn’t needed if you are a simple reloader, reloading for your own range trips. But if you plan on selling your ammo, this is a useful option.

Type 07 FFL – Firearm Manufacturer

Everyone can make guns for their own private use. Selling those guns is more complicated. If you plan on making firearms for other people (selling them to other people), the Type 07 is for you.

Type 08 FFL – Importer of Firearms

The Type 08 is an important step in the importation of guns. There are many rules that govern what can and cannot be brought into the country, and this importation license is an important first step in the process.

Type 09 FFL – Dealer of Destructive Devices

The Type 09 FFL allows for the sale of destructive devices. What exactly is a destructive device? Glad you asked. https://www.atf.gov/firearms/firearms-guides-importation-verification-firearms-national-firearms-act-definitions-1

  • A missile having an explosive or incendiary charge of more than 1/4 oz.
  • Any type of weapon by whatever name known which will, or which may readily be converted to expel a projectile, by the action of an explosive or other propellants, the barrel or barrels of which have a bore greater than one-half inch in diameter.
  • A combination of parts designed and intended for use in converting a device into a destructive device and from which a destructive device can be readily assembled.

Type 10 FFL – Manufacturer of Destructive Devices

Now that we know what a destructive device is, we can talk about the Type 10. That’s the FFL you need if you intend to manufacture any of those items in the list above.

Type 11 FFL – Importer of Destructive Devices

And, as the name suggests, the Type 11 will allow you to bring these destructive devices in.

Many of the companies engaged in this industry will have numerous different types of FFLs. There are proverbial lines that might be crossed in ambiguous definitions and having a good combination of coverage will help ensure that all operations stay above board.

AT3 has just about everything you'll need to build a rifle from scratch.
AT3 has just about everything you’ll need to build a rifle from scratch–and only the receiver of an AR-15 needs to be sold by an FFL.

How to get an FFL license

FFL license requirements are strict. There are obvious prerequisites like age and criminal history. Apart from that, the biggest question is often if have to have a separate “place of business” than where you live.

You don’t. You can work from home in almost all locations. Homeowners associations and local ordinances may interfere, so you should look into those regulations locally—before you get started.

Once you begin the process, you may find that the paperwork is cumbersome. Like many governmental processes, there are numerous forms, background checks—and (depending on the type of license you want) visits from your local ATF agents.

Many people go through a guided DIY service like FFL 123. These courses are designed to break down the application process, provide the resources and answers to the more complicated questions, and guarantee that you get the guidance you need to complete the application.

If you are more of a DIY type, head on over to the ATF’s webpage. You’ll find the FFL license application you need there. And it can be done alone.

How do you become a gun dealer?

Getting an FFL is one step in the right direction, but it doesn’t make you a dealer. In order to begin selling, you first have to have guns to sell. And there are numerous places to find those.

Many FFLs resell guns on the used market. This can be a lucrative business model if you can find good deals on the antiques, classics, rare, or in-demand firearms. But it isn’t likely to make you rich.

Most Type 01 FFLs buy guns from distributors. Manufacturers sell their guns in bulk to companies like Lipsey’s or Davidson’s, and those companies sell to the retail stores. Distributors carry numerous brands and offer FFLs one-stop-shopping, in some cases.

Some manufacturers sell directly to some FFLs. This cuts out the middle-man. This is especially common for the larger accounts—big-box stores and chains, too.

Smaller gun companies will sell directly to some dealers. Again, if you haven’t picked up on the theme, scale is important. The more guns you sell, the more likely you are to build bridges in the industry.

If you’re asking “how do I become a gun dealer,” you probably have a passing familiarity with how all of this works.

Aero Precision Gen 2 AR-15 Stripped Lower Receiver - FDE
In order to qualify for an FFL, you’ll need to be involved in the firearms industry in some definable way–though an FFL is sometimes the first step toward such an occupation.

FFLs for personal use

You can get an FFL for your personal use—that’s the Type 03. Those are very useful for collectors of vintage guns. If you have a Curio & Relic license (C&R), some guns can be shipped directly to your door.

But you won’t make it far if your intention is to get a Type 01 and use it to buy guns for your personal collection at wholesale prices. There’s way too much oversight for that to fly. And you would have a hell of a time convincing anyone to sell directly to you.

Do gun dealers make good money?

Any money is good money, right? Maybe not. That’s clearly not the answer to the question.

FFLs and gun dealers don’t make a ton of money. Look at the most successful one you know personally. Some may make a respectable living, and that could be what you’re after, but it is real work and there’s a lot more to their business models than just selling guns.

That isn’t to say that you can’t supplement your income selling firearms. You can. And there are thousands of dealers who work gun shows, sell through online outlets, or do after-hour sales for select customers, and some of these folks make a hobby into something more.

What is an SOT?

There’s another layer here, though, and that’s the Special Operations Tax. You may well hear that someone is an FFL/SOT. That means they’re also capable of working with silencers, short-barreled shotguns and rifles, and machine guns.

The Types of SOTs

 

  • Class 1 SOT – These SOTs may Import and deal NFA / Title II firearms
  • Class 2 SOT – These SOTs may manufacture and deal NFA / Title II firearms
  • Class 3 SOT – These SOTs may deal NFA / Title II firearms

A Class 1 SOT buys and sells imported and domestic NFA and Title II firearms. It is useful for those who engage in business that requires them to import such items. Otherwise, the Class 3 SOT would be fine.

A Class 2 SOT can deal in these NFA and Title II firearms, but they can also make them. Some custom shops are Class 2 SOTs, and all silencer makers in this country, and all of the gun manufacturers that make short-barreled rifles and shotguns.

A Class 3 SOT is more limited and reserved for those dealers who want to sell these NFA and Title II firearms without manufacturing anything or importing anything.

How much does it cost to become an FFL dealer?

The last question may be the most commonly asked. How much it costs to become an FFL depends on the type of FFL you intend to get. The Type 03 is easy on the wallet. Even the Type 01 isn’t bad (just $200 for the first three years, and $30 per year after that).

Some, like the Types 09, 10, and 11 are $3,000. SOTs will pay more in taxes—obviously. The word Tax is in the title.

You may want to put aside some scratch for legal guidance or practical assistance. You might also find there are costs associated with preparing your place of business to safely store and protect the guns. And then there is the never-ending cost of the guns themselves.

Getting into the gun business means keeping track of sales and acquisitions in a meticulous way.
Getting into the gun business means keeping track of sales and acquisitions in a meticulous way.

Do you need an FFL?

In the end, ask yourself what you want to do and why. The answers will guide you in the right direction. If you want to jump in and take on the business aspect, get an FFL. If you were hoping this might be a good way to get guns cheap, odds are you’re not on the right track.

And there are other options, too–ways to get into the business that don’t require an FFL. One way is to become a reseller. Accessories, parts, uppers, barrels… many of the components of firearms are sold without any need for an FFL.

Want to find out more? Check out how to become an AT3 reseller. It could be the start of something big.

One Last Tip

If there’s anyone that knows the AR-15 platform, it’s the US military. As a special offer for our readers, you can get the Official US Army Manual for AR-15/M4/M16 right now – for free. Click here to snag a copy.

2 THOUGHTS ON "How to Become a Firearms Dealer"

  1. Daniel Stark
    October 18, 2023

    You know the amount of information without making the reading redundant and boring helps a ton. Now I have been playing with these ideas, as I already run 1 business, I want to branch off into something else new. And want to have source of income, while working with products that have interested me my entire life. Thanks

  2. Julio Moran Jr
    June 25, 2021

    This is some very valuable and thorough information, thank you.

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AT3 Tactical Terms of Use Agreement

AT3 Tactical Terms of Use Agreement

Last Updated: January 5, 2022

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One Last Tip

If there’s anyone that knows the AR-15 platform, it’s the US military. As a special offer for our readers, you can get the Official US Army Manual for AR-15/M4/M16 right now – for free. Click here to snag a copy.

AT3 Tactical, LLC Privacy Policy

AT3 Tactical Privacy Policy

Last Updated: October 11, 2024

AT3 Tactical, LLC (“AT3”) values the privacy of its users and believes that you should know what kind of data we collect from you, how we use it, and how you can have control over, and stop the collection of it. We make every attempt to be transparent in our data collection efforts and to provide you with information that you need to make decisions about our collection of data from you.

When you use the AT3 Website, even if you are just browsing, we may collect some basic data from you such as the type of device that you are using, your geographical location, and your IP address. If you choose to complete a purchase through the Website, you share additional data with us, which is outlined below. We also provide you with the ability to limit the data that we collect from you and how we use it. We also may use your interactions with the AT3 Website to show you more relevant content.
If you have any questions about our privacy policy, how we collect data from you, how we use your data, or how you can control your privacy settings, you can contact us at any time at support@at3tactical.com.

Data You Share with Us
We may collect data from you when you voluntarily share it with us. This may include the following data:
Transaction Data. When you purchase a product through the Website, you provide us information needed to complete your purchase, such as your name, phone number, address, billing address, email address, city, state, zip code, and any notes you provide to AT3. This data is used to help us contact you, complete your purchase, and ship products to you that you have purchased through the website.
Public Data. Some of the activity on the Website is public. We may use this public data to provide you with the services requested, to provide you with more relevant content, to tailor content to your preferences, to keep records of communications between us and you, and to defend against legal claims.
Private Communication Data. We may use your contact data, such as any data that you voluntarily provide to us like your phone number, address, and email address, to authenticate your purchase, to communicate with you, to respond to communications sent to you by us, to keep records of our communication, to fulfill your orders, or to pursue or defend against legal claims. We may store and process your private communications with us and data related to them to scan for malicious content, to review content for violations of our terms of use agreement, or to respond to legal process or law enforcement inquiries.

Additional Data We Receive From You
We may also collect data from you automatically when you use the Website. This may include the following data:
Location Data. We may collect data about your location by collecting and processing your IP address and device settings. We may use this data to tailor our offerings to your geographic location, respond to law enforcement requests, or to provide you with content that is relevant to your geographic location.
Technical Data. We may collect technical data about your use of the Website, such as your IP address, your device IDs, your phone number, pages visited, referring web page, your mobile phone model, mobile charrier, search terms, cookie data, your operating system, your geolocation, and your time zone. We may use this data to analyze your use of the Website, to administer and secure our services, to determine how we should allocate resources to our Website, and to understand the technical load on our servers.
Marketing Data. We may collect your IP address, your device IDs, your geographical location, your phone numbers, pages visited, referring web page, mobile phone model, search terms, cookie data, Google Advertising IDs, and Apple Advertising IDs to provide advertisements to you through third-party ad networks. We may use your data to provide advertisements to you, to provide remarketing advertisements to you after you previously visited the Website, to determine the relevance of advertisements, to measure the effectiveness of advertisements, and to help make those advertisements more relevant to your preferences.

Use of Cookies
We may also collect data from you through the use of cookies and other technologies. This helps us understand how you use the Website and to understand any patterns that may be associated with your use of our services. This aids us in developing or improving our services in response to your needs or wants.
We may use session or persistent cookies. Session cookies are only stored on your computer or mobile device during your use of the Website and are automatically deleted when you close your web browser. Persistent cookies are stored as a file on your computer or mobile device that remain on your computer or mobile device even after you close your web browser. Persistent cookies can be read by the website that created the cookie when you revisit it again. We may use persistent cookies when we utilize Google Analytics or other analytics providers, which are intended to track the origin and behavior of traffic to the Website. We may also, from time to time, receive data from third parties including analytics providers or advertising networks such as Google, Facebook, or Apple.

Marketing Communications
We may send you marketing communications if you have asked us for information concerning our services or if you have agreed to, and have not opted out from receiving marketing communications from us. You may ask us to stop sending you marketing messages at any time by following the opt-out link in any marketing message sent to you.

Disclosure of Personal Data
We only share your personal data in limited circumstances.
We may share or disclose your personal data with your consent or at your direction.
We may also share your data with certain third parties to aid us in operating the Website. For example, we may share your personal data with third parties, such as analytics providers, to utilize their software tools and measure the effectiveness of our Website or advertisements. We may also share personal data, such as device IDs, with third party advertisers to help them determine whether they should serve an ad to you. The data that we share with these third parties does not include your email address, name, phone number, or username, but it may include your geographical location.

We may also share your personal data with our accountants, auditors, insurers, or attorneys where doing so is necessary to protect the interests of AT3 or to comply with any law or regulation.

We may also share your personal data with government or law enforcement agencies when we are required to report our data processing activities, upon receipt of an exigent circumstances request, upon receipt of a duly authorized subpoena or court order, to comply with any law or legal process, to comply with government or regulatory requests, or where doing so is necessary to protect our users, our employees, our contractors, third parties, or property.

Finally, we may share your personal data to a third party if we sell, transfer, or merge any part of our business or assets. In the event that we share your personal data in the sale, transfer, or merger of any part of our business or assets, this Privacy Policy will continue to apply to your personal data when transferred to the new entity.

Management, Protection, and Retention of Your Personal Data
To stop our collection and use of your data, you need only cease using Website and clear your web browser’s cookies and cache.

We put data security measures into place to protect your personal data. We allow access to your personal data only by employees and service providers who have a need to know or access your personal data on our instructions. We will notify you and any regulatory body of any breach of your personal data or our security measures if and when we are legally required to do so.

We will only retain your personal data for so long as necessary to fulfill the purposes for which it is collected under this Privacy Policy or for the purposes of satisfying any legal, accounting, or reporting requirements.

Third Party Links
Our services may include links to third party websites and applications. By clicking on third party links, you may allow third parties to collect or share data about you. We do not control these third-party links and you are advised their respective privacy policies.

Responding to Do Not Track Signals
You can generally opt-out of receiving personalized ads from third party advertisers and ad networks, such as Google and Facebook, who are members of the Network Advertising Initiative (NAI) or who follow the Digital Advertising Alliance’s Self-Regulatory Principles for Online Behavioral Advertising by visiting the opt-out pages on the NAI website and DAA website. Our websites are not currently set up to respond to browser do-not-track signals, but you can configure your browser settings to reject all cookies or prompt you before a cookie is set.

California Privacy Rights
California residents have a right to request that we disclose what personal information we collect from you and whether, and how, we disclose or sell that personal information. California residents may also request that we delete any personal information collected or maintained by us from you.

AT3 collects personal and personally identifiable information from you when you visit the Website. AT3 may provide this personal and personally identifiable information to third parties to deliver ads tailored to your interests.

California residents may also have the right to opt out of the sale of their personal information by clicking a link or icon associated with an advertisement. Specifically, this link or icon may state “Do Not Sell My Personal Information” or “Do Not Sell My Info.” By selecting this link or icon, you “Opt Out,” which means that you have opted out of the sale of your personal information as set forth in the California Consumer Privacy Act. However, even though you may have opted out, you may still see interest-based advertisements. To learn more about interest-based advertising across websites and additional opt-out choices, you can visit http://optout.aboutads.info. If you opt-out of the sale of your personal information but do not opt out of interest-based advertising more generally, you may still receive ads tailored to your interests based on personal information that was not sold by us, personal information that was sold to downstream participants at least 90 days before you opted out, or personal information that was sold by other sources from which you have not opted out.

To submit a request for a list of the categories of personal information collected from you or to request that AT3 delete your personal information, please email us at support@at3tactical.com, or send a letter to our US-based legal counsel at the following address:
AT3 Tactical, LLC Privacy Request
c/o Revision Legal, PLLC
444 Cass St., Suite D
Traverse City, MI 49684
United States of America

To verify your request, we may request certain information from you to confirm that you are an AT3 user, such as your phone number, username, email address, city, state, or geographic location. You may also designate an authorized agent to make a request to AT3 to disclose or delete your personal information. To do so, you must provide AT3 with proof that the individual or business has been appointed as your agent, such by providing a a signed power of attorney form, and provide accurate responses to any information requested by AT3 that may be necessary to confirm that you are an AT3 user, such as your phone number, username, email address, city, state, or geographic location. California residents have a right not to receive discriminatory treatment by AT3 for their exercise of these rights conferred under California law.

10DLC Compliance and Privacy

  1. Collection of Personal Information
  1. Use of Personal Information
  1. Privacy and 10DLC
    As a 10DLC service provider, we adhere to the following principles:
  1. Opting Out
  1. Disclosure of Personal Information

Notification of Changes
Whenever we change our Privacy Policy, we will post those changes to this Privacy Policy and other places that we deem appropriate. Your use of the Website following these changes indicates your consent to the practices described in the revised Privacy Policy.

Contact Information
If you have any questions or suggestions regarding our Privacy Policy, or if your personal information is not accurate or complete, please contact our Data Protection Officer at:
Zachary Plansky, support@at3tactical.com

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