The ATF issues 9 different types of Federal Firearms Licenses. In addition, an FFL may get a designation as a Special Occupational Taxpayer (SOT) to manufacture, import, and deal in items that fall under the National Firearms Act.
The 9 types of FFL licenses
A Type 1 FFL is a standard dealer in firearms, other than destructive devices.
A Type 2 FFL is a pawnbroker who does not deal in destructive devices.
A Type 3 FFL, also called a Curios and Relics license or C&R license, is for collectors of specific firearms.
A Type 06 FFL is a manufacturer of ammunition, other than destructive device or armor piercing ammunition.
A Type 07 FFL is a manufacturer of firearms, other than destructive devices.
A type 08 FFL is an importer of firearms other than destructive devices, or ammunition for firearms (other than ammunition for destructive devices and armor piercing rounds).
A type 09 FFL is a dealer in destructive devices.
A type 10 FFL is a manufacturer of destructive devices or ammunition for destructive devices, or armor piercing ammunition.
A type 11 FFL is an importer of destructive devices or ammunition for destructive devices, or armor piercing ammunition.
What type of FFL license do I need?
Truthfully, probably several – depending on your business goals, clientele, and intention. Many FFLs obtain their 01/07 licenses to allow them to sell firearms and to either manufacture their own or to perform gunsmithing services. However, depending on what you intend to do with your business, additional licenses may be necessary.
What is an SOT?
An SOT or special occupational taxpayer, is a subcategory of an FFL. I.E., a Federal Firearms Licensee will pay the Special Occupational Tax to conduct business in the following categories:
Class 1 SOT – Importing firearms subject to the NFA
Class 2 SOT – Manufacturing NFA firearms like SBRs, SBSs, and suppressors
Class 3 SOT – Dealing in NFA firearms.
What can I do with an SOT?
Sometimes incorrectly referred to as licenses, an SOT classification is required if you intend to manufacture NFA items, import them, or sell them.
What FFL licenses or SOT classification is best for me?
The dedicated and expert firearms attorneys at Stone Rose Law are ready to discuss your business goals and intentions to help you figure out what type of license or licensees you need to obtain. If you are an FFL looking to add another license, or looking to start your own firearms business, contact the dedicated expert firearms attorneys at Stone Rose Law for a free consultation.