Gun clubs do not need a Federal Firearms License solely to operate a shooting range where members bring their own firearms. However, clubs that want to sell firearms, rent guns to members, or offer gunsmithing services need appropriate FFL types for those activities.
Understanding licensing requirements helps firearms membership clubs plan their business models and the payment processing infrastructure needed to support various revenue streams.
Range Operations Without FFL
Operating a shooting range where members and guests use their own firearms does not require federal firearms licensing. The range provides the facility, lane access, targets, and safety supervision. Members bring personal firearms to shoot. This core range operation falls outside FFL requirements because no firearms transfer or sale occurs.
Clubs can charge membership dues, lane fees, and sell ammunition, targets, eye and ear protection, and other shooting supplies without an FFL. These retail activities do not involve firearms transfers. Many successful gun clubs operate profitably with range fees, membership subscriptions, and accessory sales alone.
Private clubs can set their own membership requirements, range rules, and access policies without federal involvement in these operational decisions. State and local regulations for range safety, noise, and environmental considerations apply regardless of FFL status.
Get a Free Quote and 2A Processing Consultation
Your information is secure and never shared. PCI DSS compliant.When FFLs Become Necessary
Adding firearms sales to club operations requires a dealer's FFL. Type 01 licenses authorize dealing in firearms other than destructive devices. Clubs wanting to sell new or used firearms to members need this license. The FFL allows the club to acquire firearms from distributors and manufacturers, then transfer them to buyers after completing required paperwork and background checks.
Gun rentals also require FFL licensing. When a club maintains a rental fleet that members can use on the range, the club is technically transferring temporary possession of firearms. While enforcement has historically been inconsistent, operating rental programs properly requires dealer licensing. Rentals become a valuable service for new shooters trying different firearms before purchasing.
Gunsmithing services beyond basic cleaning require Type 01 FFL with gunsmithing indicated on the license, or can be conducted under dealer licenses. Clubs offering repair services, customization, or modifications need appropriate licensing. Some clubs partner with independent gunsmiths rather than employing them directly.
Business Model Considerations
Most successful gun club operators find that adding FFL services significantly improves profitability. Range-only operations generate revenue from lane fees and memberships, but margins can be thin. Adding firearms sales captures revenue from members who would otherwise purchase elsewhere. The club already has relationships with these buyers through membership.
FFL status provides access to wholesale firearms pricing. Clubs can stock models their members want, offer competitive pricing, and provide the convenience of on-site purchasing. Members appreciate being able to buy firearms where they shoot, try rentals before buying, and have transfers handled at their club.
Understanding why firearms clubs need recurring billing helps plan payment infrastructure for membership-based operations. Adding FFL services introduces additional transaction types that payment processing must handle alongside membership billing.
FFL Application Process
Obtaining an FFL requires completing ATF Form 7 and submitting the application with appropriate fees. Type 01 dealer licenses cost $200 for the initial three-year period and $90 for subsequent three-year renewals. The ATF conducts background checks on responsible persons and inspects the proposed business premises.
Zoning and local permits often present more challenges than federal licensing. Some jurisdictions have regulations specifically addressing gun shops or dealers that may not apply to range-only operations. Clubs should verify local requirements before assuming FFL addition is straightforward.
The range address becomes the licensed premises for FFL purposes. All FFL activities must occur at this location unless additional licenses are obtained for separate locations. Clubs with multiple facilities need separate FFLs for each location conducting firearms transactions.
Compliance Obligations
FFL holders must maintain acquisition and disposition records, conduct background checks through NICS for all transfers, complete ATF Form 4473 for each sale, and submit to ATF compliance inspections. These requirements apply regardless of business size. A small club selling a few firearms monthly faces the same compliance obligations as high-volume dealers.
Record retention requirements mean keeping 4473 forms for 20 years. Acquisition and disposition records must be maintained throughout the license period and transferred to ATF if the business closes. Clubs must implement systems to manage these compliance requirements properly.
Annual reporting requirements and potential changes to regulations require ongoing attention. Clubs with FFLs need someone responsible for maintaining compliance awareness and updating procedures as rules change.
Payment Processing Implications
FFL status affects payment processing in several ways. Merchant account applications require FFL documentation when firearms sales are involved. Processors verify licensing as part of underwriting to confirm legal operations. Understanding what payment processing shooting ranges need helps clubs prepare for the various transaction types their operations will generate.
Clubs with FFLs process different transaction types including firearms sales, ammunition sales, range fees, membership dues, rentals, and training fees. Payment systems should accommodate these varied transaction types while maintaining proper categorization for accounting and compliance purposes.
High-value firearms transactions may require different authorization approaches than small membership dues payments. Working with processors experienced in firearms operations ensures systems handle all transaction types appropriately.
Get Firearms Membership Club Payment Processing from Elite 2A Pay
Elite 2A Pay provides payment processing for firearms membership clubs whether they operate as range-only facilities or full-service operations with FFL licenses. Understanding the varied needs of club operations including memberships, range fees, retail sales, and recurring billing, Elite 2A Pay offers comprehensive solutions through 2A-friendly banking partners.
Over 90% of merchants who speak with Elite 2A Pay discover they can save money on transaction fees compared to their current provider.
Or call (844) 692-2792 to speak with a firearm-friendly payment expert
Use the form at the top of this page for your quick quote application.