A Framework of License Types
The Federal Firearms License (FFL) system, created under the Gun Control Act of 1968 and administered by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), sorts regulated firearms activity into distinct license categories. Each license type authorizes a specific kind of engagement in the firearms business, and the type a licensee holds defines the scope of activity federal law permits. This overview describes how those categories are organized.
Type 01: Dealer
A Type 01 license authorizes dealing in firearms other than destructive devices, and it is the most common category. Holders may engage in the business of transferring firearms and, in many cases, gunsmithing. The Type 01 dealer sits at the center of the retail regulatory framework because most transfers to non-licensees are routed through such a licensee.
Type 07: Manufacturer
A Type 07 license authorizes manufacturing firearms and ammunition, and it also carries dealing privileges. Manufacturers are subject to additional obligations, including marking requirements and, where applicable, excise tax administration. A Type 07 combined with Special Occupational Tax (SOT) status can extend activity into items regulated under the National Firearms Act.
Types 06 and 08: Ammunition and Importers
A Type 06 license covers manufacturing ammunition only, without firearms. A Type 08 license authorizes importing firearms and ammunition, connecting the domestic framework to the separate import-regulation regime. Each imported item is still subject to authorization criteria under federal law.
Types 09, 10, and 11: Destructive Devices
Higher-numbered types address destructive devices and other specialized categories. Type 09 covers dealing in destructive devices, Type 10 covers manufacturing them, and Type 11 covers importing them. These categories overlap with the National Firearms Act and typically require SOT registration in addition to the license.
Worked Example
Suppose an entity intends both to build rifles and to transfer them to non-licensees. A Type 01 alone would authorize transferring but not manufacturing, so the entity would instead hold a Type 07 manufacturer license, which encompasses both activities. If it later wanted to produce suppressors, it would add SOT status because suppressors fall under the National Firearms Act, illustrating how license type maps precisely to permitted activity.
A Common Misconception
Many people assume a single "gun license" exists that lets a business do anything with firearms. In reality the framework is deliberately segmented: a dealer license does not authorize manufacturing, and neither authorizes importing. The type held is what defines the lawful scope, and engaging in an activity outside that scope falls outside the license.