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FastBound’s software suite can also help with background checks, form completion, bulk changes, and automated multi-sale reporting. All of this works together to ensure that you’re totally compliant with the law, preventing license revocations and transfer denials.
Keeping up with your firearm business can be a struggle and staying completely compliant can be near impossible. FastBound gives you the peace of mind to know that your forms and transfers are completely ATF compliant, so you can get back to running your business.
A Type 10 FFL allows you to manufacture not just firearms, but also NFA destructive devices, ammunition for destructive devices, and armor piercing ammunition.
A destructive device, according to the NFA, includes guns (other than sporting shotguns) with a bore larger than a half inch, gas weapons, explosives, and anything that fires an explosive.
The main advantage of a Type 10 FFL is that it allows your firearm business to manufacture destructive devices, ammunition for destructive devices, and armor-piercing ammunition. There isn’t a huge market for these items, but there’s also not a lot of competition, so if you can make quality products, a Type 10 FFL can really open up your opportunities to sell.
The main disadvantage is cost. It costs $3000 to apply for a Type 10 FFL or to renew one.
You also have to do extra paperwork, or you can’t deal in destructive devices, in which case you might as well save yourself some money and hassle and get a 07 FFL.
To be able to manufacture destructive devices other than explosives, you’ll also need to get a Class 02 Special Occupational Taxholder. To be able to also manufacture explosives, you’ll need a Federal Explosive License
These extra permits come with costs of their own. A Class 02 SOT can cost between $500 and $1000, depending on the size of your business, and an FEL costs $100.
The requirements to get a Type 10 FFL are mostly the same as those for getting any other type of FFL. Of course, you have to go through the federal application process and there are state requirements as well, but generally, 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, you can get one.
The basic federal requirements are:
State and local requirements depend on your location. Generally, though, you can expect to have to register your business with the state government and get an additional state license after getting your federal firearms license.
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 these to get your FFL. 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 and an FEL.
You can’t deal in NFA-regulated items, including destructive devices, without a Class 02 SOT and you can’t deal in explosives without an FEL. Without them, you might as well just get the Type 07 FFL.
To get a Class 02 SOT, you’ll first need to get your FFL. Once you’ve done that, you’ll need to fill out the Special Occupational Taxpayer registration form and pay the tax that applies to your business, either $500 or $1000. Then you should get 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, you’ll need to fill out an ATF Form 5400.13/5400.16. Then the Federal Explosive License Center will coordinate with the ATF to conduct their own set of background checks, interviews, and inspections.