Federal Firearms License

Educational information, not legal advice. Gun laws change often and vary by state, county and city. Check current law where you are and talk to a firearms attorney before acting. Full disclaimer

Last reviewed October 31, 2026

Federal Firearms License: Where It Stands in 2026

A Federal Firearms License (FFL), issued by ATF under 18 U.S.C. 923, is required for anyone engaged in the business of dealing, manufacturing or importing firearms. FFL holders are the gatekeepers of lawful commerce: they run background checks, keep the Form 4473 and acquisition and disposition records, and handle interstate transfers. ATF reported 127,739 active licensees as of fiscal year 2025, down from a 2013 peak of 139,244.

For dealers, the climate improved sharply in 2025 and 2026. On April 7, 2025 the Justice Department and ATF repealed the 2021 “zero tolerance” Enhanced Regulatory Enforcement Policy, which had driven revocations over paperwork errors. Under ATF’s “New Era of Reform,” dealers revoked or surrendered under that policy may reapply under a new Administrative Action Policy that focuses on traceability and public safety. ATF reported just eight administrative revocation cases in FY 2025, six of which ended in revocation.

The 2024 rule expanding who counts as “engaged in the business” was vacated by a federal court in the Northern District of Texas on June 12, 2026, and ATF has proposed rescinding it. Collectors who buy and sell occasionally to improve a personal collection do not need a dealer license, and the 2022 Bipartisan Safer Communities Act definition (dealing to “predominantly earn a profit”) still governs.

Key Facts

127,739 active FFLs as of FY 2025; 41,931 licenses issued (including renewals) that year (ATF Facts and Figures).
Main license types: 01 dealer/gunsmith, 02 pawnbroker, 03 collector of curios and relics, 06 ammunition manufacturer, 07 firearms manufacturer, 08 importer, and 09-11 for destructive devices.
Fees (27 CFR 478.42): Type 01 $200 for three years ($90 renewal); Type 03 $30; Type 07 and 08 $150; Types 09-11 $3,000.
April 7, 2025: ATF “zero tolerance” inspection policy repealed.
June 12, 2026: 2024 “engaged in the business” rule vacated in full; ATF rescission proposal issued May 6, 2026.
Manufacturers and importers of NFA items also pay Special Occupational Tax (SOT); ATF collected about $10.8 million in SOT in FY 2025.

What Gun Owners Should Know

Applying: file ATF Form 7 (or 7CR for a C&R license) with fingerprints and photo; expect an in-person application inspection for most types.
You must have a business premises that complies with local zoning, and you must notify your local chief law enforcement officer.
A Type 03 C&R license lets collectors acquire curios and relics across state lines, but it is not a license to deal.
Pair a Type 07 or 08 license with SOT to work with suppressors and other NFA items; see NFA Buyers Guide.com and Suppressor Buyers Guide.com.
Related pages: FFLs by State, the 4473 and Antique Firearms.

Federal Firearms License