Type 07 FFLs
Manufacturer of Firearms & Ammunition
What is a 07 FFL?
A Type 07 FFL (Federal Firearms License) is one of three licenses required for businesses that manufacture firearms and ammo. It’s specifically for FFL license holders who intend to manufacture firearms or ammunition, but not destructive devices.
How Can FastBound Help?
One of the biggest hurdles for firearm manufacturers is the process of documenting the acquisition, disposition, and reacquisition of firearms. With FastBound, the system efficiently manages these tasks, reducing the time and labor you would need to invest in doing this manually.
For gun dealers with a Type 07 FFL, it’s crucial to document parts or materials that eventually become high parts and firearms, like a lower receiver. FastBound streamlines this process, ensuring that Bound Book records remain accurate, which is essential for any FFL dealer to ensure compliance with federal law.
With FastBound, your firearms business can maintain compliance without the massive amount of time it would take to perform accurate documentation and legally track inventory, guns, sales, and transfers. We give you the peace of mind that your information is ATF compliant, so you can focus on running your business.
Electronic 4473
If you’re a retailer with a Type 07 FFL, FastBound can transform any computer, tablet, or smartphone into a compliant 4473 with digital signature support with no transaction fees or special hardware requirements.
Leading Integrations
With more integrations than any other FFL software provider, we are the leading choice among software providers who are serious about their customer’s firearms compliance.
Compliance backed by legal defense
FastBound™ was the first to engage an FFL law firm to back their FFL Software with a guaranteed legal defense related to the use of its software–often imitated, never duplicated.
Advantages and Disadvantages of a Type 07 FFL
An FFL Type 07 can be paired with a SOT Class 02 (Special Occupational Taxpayer), which extends the FFL holder’s ability to manufacture restricted NFA items like machine guns and short-barreled rifles. However, expect to pay an additional fee between $500-$1,000, depending on the size and scope of the firearms business.
This firearm manufacturing license is not too expensive. It costs around $150, making it affordable for most firearm manufacturers wanting to make guns or parts. There is no limit on the number of firearms or parts you can manufacture, which provides flexibility for businesses in the firearms industry. There is also no longer an ITAR tax for guns or parts manufactured under a Type 07 FFL
Pairing a Type 07 FFL with a 02 SOT offers the firearm manufacturer more freedom in what they make and sell. This benefits businesses looking to expand their product offerings to include NFA firearms.
What is a Class 3 SOT (Special Occupational Tax)
A Class 3 SOT license allows an FFL holder to buy, sell, or transfer NFA firearms. This SOT registration applies to FFLs who have:
A Class 2 SOT allows FFLs to extend the power of their FFL license type to manufacture restricted firearms and NFA items such as short-barreled shotguns, barrels, or receivers. This SOT class pairs with:
The big difference is that a Class 03 SOT applies to those who buy and sell firearms – an FFL dealer – and a Class 02 SOT is for those who manufacture firearms or ammo and want to expand the list of what they can legally manufacture.
Type 07 FFL Requirements
Obtaining a Type 07 Federal Firearm License involves meeting several federal and state requirements, as well as completing ATF Form 7.
- Be a United States citizen or legal permanent resident
- Be at least 21 years old
- Have a predetermined location for conducting FFL activities
- No felony convictions or misdemeanor crimes of domestic violence
- Submit fingerprint card to the ATF
- Undergo a background check that assesses all responsible people in your business, including sole proprietors, partners, managers, and leadership
- ATF ensures that all applicants comply with federal firearms regulations under the Gun Control Act and National Firearms Act
State laws may vary depending on the location of the business. Many states have additional requirements, such as zoning regulations, compliance with local laws, and approvals from local law enforcement and government agencies.
Certain states may also require additional licenses for manufacturing ammunition components. Applicants must ensure that they adhere to any laws regarding explosives content or armor-piercing ammunition.