What Are the Legal Requirements for Running a Gun Shop?
- Dec 2, 2025
- 2 min read
Opening and operating a gun shop requires strict compliance with federal, state, and local regulations. The firearms industry is heavily regulated to ensure safety, accountability, and proper record-keeping. Missing even a single requirement can lead to fines, revoked licensing, or business shutdown.
This guide breaks down the key legal requirements every gun shop owner must follow, from federal licensing to insurance protection.
Federal Firearms License (FFL)
To legally sell firearms, you must obtain a Federal Firearms License (FFL) issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Requirements include:
Being at least 21 years old
Not prohibited from possessing firearms
A business location that complies with zoning laws
Completion of background checks
Interview and inspection by ATF
State and Local Licensing
In addition to your FFL, most states require:
State firearm dealer licenses
Local business permits
Zoning approvals
Sales tax registration
Requirements vary, so check your state’s firearm laws to maintain compliance.
Record-Keeping Compliance
Gun shops must maintain detailed records of all firearm transactions.
Required records include:
ATF Form 4473
Acquisition and Disposition (A&D) logbook
Background check documentation
Secure storage of all compliance paperwork
These records must be retained for the duration required by law and provided during ATF inspections.
NICS Background Checks
Before transferring a firearm to a buyer, you must conduct a background check using the National Instant Criminal Background Check System (NICS).
This check determines if the customer is eligible to own a firearm and must be documented accurately.
Secure Storage Requirements
Gun shops must secure firearms and ammunition to prevent theft and unauthorized access. Required storage typically includes:
Locked firearm display cases
Secure ammunition storage
After-hours vaults or safes
Alarm and security surveillance systems
ATF may review your security measures during inspections.
Firearm Transfer Procedures
Legal firearm transfers must follow strict guidelines:
Verify customer identity
Ensure completion of Form 4473
Conduct NICS background check
Comply with waiting periods in your state
Record the transfer in your A&D book
Failure to follow transfer regulations can result in license revocation.
Inventory Management Requirements
Gun shop owners must maintain accurate inventory records. ATF inspections often review:
Missing inventory
Unlogged firearms
Discrepancies between records and physical stock
Proper inventory management helps avoid violations and protects your business.
Insurance Requirements for Gun Shops
Insurance is not just a smart business decision—it may be required by landlords, lenders, and contracts. It also helps you remain compliant and protected from liability.
Essential insurance coverages include:
Final Thoughts
Running a gun shop requires strict adherence to federal, state, and local regulations. From securing your FFL to maintaining accurate records and ensuring proper insurance coverage, compliance is essential for long-term success.
Wexford Insurance simplifies the insurance process so you can focus on operating legally and safely.
Contact Wexford Insurance today.