The Short Answer: If you hold a Federal Firearms License and want to offer gunsmithing services, you’ll need proper licensing, compliant record-keeping systems, and a clear understanding of when repair work becomes manufacturing. Following Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) regulations and using the right compliance software will keep your gunsmithing operation running smoothly and legally.
As a Federal Firearms License holder, adding gunsmithing services to your business can help boost revenue and customer loyalty. However, navigating the regulatory landscape requires careful attention to compliance, proper documentation, and understanding where repair work ends and manufacturing begins. This guide breaks down everything FFLs need to know about operating a compliant gunsmithing business in the United States.
Understanding Gunsmith License Requirements
Which FFL type do you need?
Most gunsmiths operate under a Type 01 FFL license (Dealer in Firearms). This federal firearms license requires an initial application fee of $200 and a renewal fee of $90 every three years, as outlined in 27 CFR 478.42. This license also authorizes activity as a retail gun dealer. A Type 01 FFL authorizes standard gunsmithing activities such as:
- Repairs and adjustments: Fixing broken parts, adjusting triggers, or replacing stocks
- Customization work: Installing scopes, threading barrels, or adding accessories.
- Refinishing services: Bluing, parkerizing, or applying protective coatings.
- Occasional firearm sales: Occasional firearm sales as a Type 01 dealer are permitted, but transfers to non-licensees require a completed Form 4473 and NICS check, per 27 CFR 478.124.
A Type 01 FFL is generally sufficient for repairs or customization work when the firearm is returned to the same customer. A Type 07 FFL is required if you manufacture firearms for sale, assemble receivers into complete firearms for commercial purposes, or routinely modify firearms for resale.
State and Local Requirements
Your federal firearms license is just the beginning. Local authorities often have additional requirements:
- Zoning Compliance: Many areas restrict home-based firearm businesses.
- State Licensing: Some states require separate gunsmithing permits.
- Business Registration: Standard business licenses and tax permits apply.
- Insurance Requirements: General liability coverage is recommended.
The ATF may deny your FFL if you are not in compliance with state or local laws, such as zoning regulations. Form 7 requires applicants to certify compliance, as outlined in 27 CFR 478.47.
Record-Keeping Obligations for Gunsmithing FFLs
The cornerstone of FFL compliance is your Acquisition & Disposition (A&D) record, commonly called the bound book. For gunsmithing operations, you need to understand when A&D entries are required:
- Same-Day Returns: If a firearm is received and returned within the same business day, no A&D entry is required.
- Overnight Stays: Any firearm remaining overnight (from one business day to another) must be entered into the bound book.
- Subcontractor Work: If you send a firearm to another FFL for work, record a disposition to that FFL, log an acquisition when it returns, and then record the final disposition to the customer.
Your bound book must include the following information for each firearm, as required under 27 CFR 478.125(e). During inspections, an ATF agent will review your bound book for compliance.
- Manufacturer and, if applicable, importer
- Model
- Serial number
- Type (for example, pistol, rifle, shotgun)
- Caliber or gauge
- Date received
- From whom received (name and address or FFL number)
- Date of disposition
- To whom disposed (name and address or FFL number)
When background checks are required
- Returning to the same person: A Form 4473 and NICS check are not required when a repaired firearm is returned to the same individual from whom it was received.
- Picked up by someone else: If anyone other than the original owner collects the firearm, including immediate family members, you must complete Form 4473 and conduct a NICS check.
- Prohibited persons: If you have reason to believe the customer is prohibited from possessing firearms, you may not transfer the firearm.
- Firearms taken in trade: If a firearm taken in trade is sold or transferred to someone other than the original owner, a Form 4473 and NICS check are required.
Common Gunsmithing Compliance Mistakes
- Incomplete bound book entries: Missing required fields violate regulations.
- Poor organization: Disorganized records hinder inspections.
- Manufacturing without a proper license: Crossing the line from repair to manufacturing
- Interstate transfer violations: Returning a repaired firearm across state lines to the same person is permitted under 27 CFR 478.147. In all other cases, the firearm must be sent to an FFL.
- Working on NFA items: Special rules apply to firearms regulated under the National Firearms Act.
Applying for a Gunsmith FFL
Step-by-Step Process
- Choose your business structure
Decide whether you will operate as an LLC, sole proprietor, or other entity. This affects taxes, liability, and how you’ll run your own business. - Select the correct license type
Most shops focused on repairing firearms apply for a Type 01 firearm dealer (includes gunsmiths), manufacturers use Type 07. - Complete ATF Form 7 (FFL application)
Submit ATF Form 7/7CR with all required fields. - Submit fingerprints and photos for all Responsible Persons
Except for Type 03 FFLs, each Responsible Person must provide an FD-258 fingerprint card and a 2×2 photo. - Notify local law enforcement (CLEO copy)
Send the Chief Law Enforcement Officer where your premises are located a copy of your Form 7. No action is required by the CLEO; it is notice only. - Expect an ATF review and interview/inspection
An Industry Operations Investigator (IOI) will contact you, review your gunsmith application, and conduct an initial interview and inspection of your premises and recordkeeping plans. In certain states, this may include obtaining a pistol permit in addition to your FFL. Some states also have specific firearm repair and transfer rules for non-licensees who are not the original gun owner. - Meet zoning and local licensing requirements
You must certify compliance with state and local law (including zoning and business licensing) as part of eligibility.
Operate only after approval
ATF approves or denies completed applications within about 60 days of receipt, assuming eligibility and a complete submission.
Operational Best Practices For Gunsmithing FFLs
A smooth customer intake process prevents compliance headaches for any skilled gunsmith
- Verify Customer Identity: Check driver’s license or state ID.
- Documentation: Use detailed work orders with firearm information.
- Set Clear Expectations: Provide written estimates and timelines.
- Secure Storage: Lock customer firearms immediately after intake.
- Pricing & Turnaround: Shop rates and timelines vary. A turnaround time of two to four weeks for basic repairs is common in the industry.
Tools and training investments
- Basic Hand Tools: Quality screwdrivers, punches, measuring tools.
- Specialized Equipment: Action wrenches, barrel vises, gauges.
- Machine Tools: Drill press, lathe, milling machines for advanced work.
- Training Programs: Skilled professionals often attend programs at established schools or complete manufacturer-specific armorer courses.
Special Considerations for Different Firearm Types
Working with National Firearms Act (NFA) items
- Repairs to NFA items do not require a transfer application. However, ATF recommends submitting a Form 5 in advance to document that the item is being shipped for repair and will be returned to the same owner.
- Confirm that the firearm is properly registered and that the required tax stamp is in place. A new law under H.R. 1 changes the tax requirements for certain NFA items starting January 1, 2026. The $200 tax stamp will no longer be required for suppressors, short-barreled rifles, short-barreled shotguns, and any other weapons. NFA registration and approval will still be required, and the $200 tax will continue to apply to machine guns and destructive devices.
- Maintain NFA records in compliance with 27 CFR Part 479, which governs the possession, transfer, and manufacture of NFA-regulated firearms. If you are a Special Occupational Taxpayer (SOT) such as an NFA dealer, manufacturer, or importer, you have additional obligations. These include recording all acquisitions and dispositions of NFA firearms, keeping these records at your licensed business premises, and using the appropriate ATF forms, such as Form 3 for tax-exempt transfers between SOTs, to document transactions.
- Do not modify any NFA firearm in a way that would change its legal classification.
Antique and collectible firearms
Firearms that meet the “antique firearm” definition under 27 CFR 478.11 outside the Gun Control Act’s definition of “firearm” do not require A&D entries. FFLs should still aim to keep track of these transactions by:
- Thoroughly documenting the condition of the firearm with photographs before starting work.
- Using restoration techniques that are appropriate for the firearm’s age and value.
- Maintaining insurance coverage suitable for valuable or rare collectables.
- Evaluating whether any planned modifications might reduce the firearm’s collector value.
FastBound: Your Partner in Gunsmithing Compliance
Operating a gunsmithing business as an FFL requires balancing technical expertise with regulatory compliance. Success comes from understanding the distinction between repair and manufacturing, maintaining meticulous records, and following all federal, state, and local requirements.
FastBound’s electronic A&D software simplifies FFL compliance with cloud-based bound book management and automated Form 4473 processing. The platform handles complex record-keeping while offering real-time compliance monitoring to help prevent costly violations.
Whether you’re adding gunsmithing services to an existing FFL or starting fresh, build systems that ensure compliance from day one. Invest in training, quality tools, and reliable record-keeping practices. Stay current with regulations through industry associations and ATF updates.
Take the first step toward bulletproof compliance with FastBound by exploring how specialized software can simplify record-keeping and reduce audit risks. Start your Free Trial today to see how the right compliance tools can streamline your operations and provide peace of mind.
Frequently Asked Questions
Federal law only requires a Federal Firearms License (typically a Type 01) to perform gunsmithing. However, some states and local governments require additional permits or licenses.
Yes, but all FFL requirements still apply. If the firearm remains in your possession overnight, it must be entered into your bound book. When returning the firearm to the same person who brought it in, a Form 4473 is not required.
Gunsmithing is the repair or modification of a customer-owned firearm that is returned to the same owner. Manufacturing includes building, assembling, or modifying firearms for sale or redistribution.
You must maintain both your A&D records and all completed Forms 4473 for as long as you hold your license. When the business closes, these records must be sent to the ATF.
Yes. You may return a repaired firearm directly to the same person across state lines in compliance with 27 CFR 478.147. If returning it to anyone else, the transfer must be processed through another FFL.
