FFL Management

A gunsmith who only performs repairs and does not buy or sell firearms may operate without an FFL in some circumstances, but any gunsmith who acquires firearms for repair and retains them overnight is generally required to hold an FFL and maintain A&D records for those firearms. Most gunsmiths operate under a Type 01 dealer FFL to cover both retail and service work.

Yes. Each physical premises where firearms are sold or stored must have its own FFL license. Under common ownership, you can operate multiple licensed locations, but each must maintain its own separate A&D records and comply independently with ATF regulations. Multi-location management software can consolidate business reporting while keeping compliance records properly separated by location.

Firearms taken in pawn must be logged as acquisitions in your A&D book. When redeemed, the return is logged as a disposition back to the original owner. If the firearm is forfeited and sold, it must go through the full 4473 and NICS process. A pawnbroker FFL POS should handle all three scenarios — intake, redemption, and forfeiture sale — with the correct A&D entries for each.

NFA transfers require tracking ATF Form 3 (tax-exempt dealer-to-dealer) or Form 4 (civilian transfer) paperwork, the associated tax payment or exemption, and the often lengthy wait time for ATF approval. Your POS should hold the item in a pending status during the approval period and log the final transfer into the A&D book only when the approved paperwork is returned and the transfer is completed.

When you receive a firearm as an inbound FFL transfer, you must log it as an acquisition in your A&D book with the sending dealer’s FFL number. When the customer takes possession, you complete the 4473 and NICS check and log the disposition. Your POS should handle both the acquisition and disposition as linked steps in one workflow so neither entry is missed.

Most retail gun dealers operate under an FFL Type 01 (Dealer in Firearms). If you also do gunsmithing and manufacture or modify firearms, you may need a Type 07 (Manufacturer). Pawnbrokers who accept firearms as collateral need a Type 02. If you want to deal in NFA items (suppressors, machine guns, SBRs), you’ll need to pay the Special Occupational Tax (SOT) on top of your dealer FFL. Your software should support the specific recordkeeping requirements for your license type.

When an FFL is surrendered, revoked, or lapses, you are required to submit all A&D records and 4473s to the ATF National Tracing Center. Digital records make this process significantly easier — you can generate a complete export rather than shipping boxes of paper. Always maintain a current backup of your digital records regardless of whether you plan to close.

Every firearm received from a distributor must be logged as an acquisition in your A&D book on the date of receipt, before the firearms are placed in inventory for sale. This means entering the manufacturer, model, caliber, and serial number for each individual firearm. Many distributors provide electronic manifests that can be imported directly into a firearms POS to speed up the receiving process and reduce manual entry errors.