Type 10 FFLs
Manufacture Destructive Devices and Ammunition
What is a Type 10 FFL?
The Type 10 Federal Firearms License is a more specialized FFL type that allows you to do much more than just selling guns or doing gunsmithing work. A Type 10 FFL allows you to manufacture and sell destructive devices, ammunition for destructive devices, and armor-piercing ammunition.
Advantages and Disadvantages of a Type 10 FFL
Advantages
- A Type 10 FFL allows your firearm business to manufacture destructive devices, ammunition for destructive devices, and armor-piercing ammunition, as well as occasionally import firearms.
- There isn’t a huge market for these items, but there’s also not a lot of competition, so a Type 10 FFL can open up your opportunities to sell if you can make quality products.
Disadvantages
- A Type 10 FFL is more expensive than other FFL options, costing $3000 for application or renewal.
- To manufacture destructive devices other than explosives, you’ll need to get a Class 02 Special Occupational Taxholder (SOT) license.
- To manufacture explosives, you’ll need a Federal Explosive License (FEL)
- A Class 02 SOT can cost between $500 and $1000, depending on the size of your business, and an FEL costs $100.
- If you’re not interested in the extra paperwork, you might as well save yourself some money and hassle and get a Type 07 FFL.
Electronic 4473
Leading Integrations
Compliance backed by legal defense
Type 10 FFL Requirements
The requirements to get a Type 10 FFL are mostly similar to those for getting any other type of FFL, and an FFL application must meet several federal and state requirements to ensure compliance with firearms laws and local zoning ordinances.
Generally, a Type 10 FFL is attainable if you’re 21 years of age or older, legally allowed to own a firearm, and intend to operate a business involving the activities permitted with a Type 10 FFL.
The basic requirements under federal law for a license holder are:
- Be at least 21 years of age and a US Citizen or legal permanent resident
- Be legally permitted to possess firearms and ammunition (no felony convictions, controlled substance abuse, or disqualifying mental health issues)
- Have a predetermined physical location for conducting your FFL activities
- No violations of the Gun Control Act or other firearms-based regulations
- Fully and honestly fill out your ATF Form and submit it appropriately to the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
- Pay any associated application fees/tax stamps. Type 10 FFLs cost $3000 for the application fee and $3000 every three years for renewal.
State law and local requirements depend on your location, but most states require the Federal Firearms License to register their business with the state government, obtain an additional state firearms license after receiving the federal license, and secure zoning permissions for their business location.
You may also need permission from your local zoning board to establish a physical location for your firearm dealer and manufacturer, particularly if you intend to manufacture explosives. It’s very likely that your zoning board will not allow you to have a home-based FFL if you intend to manufacture explosives.
Technically, you don’t need a Class 02 SOT (Special Occupation Taxpayer) license or a Federal Explosives License (FEL) to become an FFL holder. In fact, you need the FFL before you can get the SOT. However, you can’t make full use of your Type 10 FFL without a Class 02 SOT or FEL.
A Class 02 SOT allows you to deal in NFA-regulated items, including destructive devices, and an FEL allows you to deal in explosives.
To get a Class 02 SOT, you’ll first need to get your FFL. Once you’ve done that, fill out the Special Occupational Taxpayer registration form and pay the tax that applies to your business, either $500 or $1000. You should then receive your SOT in the mail within a few weeks.
Getting an FEL is trickier than getting an SOT and more similar to the process of getting your FFL. To get an FEL, fill out an ATF Form 5400.13/5400.16. The Federal Explosive License Center will coordinate with the ATF to conduct its own set of background checks, interviews, and inspections.
How FastBound Can Help Type 10 FFLs
FastBound offers an all-in-one solution for Type 10 FFL holders to simplify compliance and streamline business operations. With FastBound, you can create unlimited, ATF-compliant bound books, turning any computer, tablet, or smartphone into an electronic compliant 4473 with digital signature support.
Our software suite includes automated multi-state background checks, A&D record tracking, form completion, bulk changes, and automated multi-sale reporting, ensuring gun dealers stay compliant with any type of FFL. FastBound’s attorney-backed guaranteed legal defense from FFLGuard provides peace of mind by protecting your firearm business from potential license revocations or transfer denials. We ensure compliance with all record-keeping requirements for federal, state, and local law enforcement to help you focus on growing your business.
