How to Open a Gun Store in 4 Key Steps

Gun stores are a fixture of American retail, and licensed firearms dealers operate in every state. Still, opening a gun store is a high-risk venture – demanding a high risk merchant account to operate, and posing a variety of other challenges for aspiring entrepreneurs and gun veterans alike.

In recent years, restrictive gun laws have made it more difficult for businesses to sell guns and ammunition. If you comply with the law, though, owning a gun shop can be extremely lucrative.

This guide will outline how to open a gun store in four key steps, so you can get your own enterprise up and running.

4 Key Steps

1. 1. Step 1: Research the Market
   2. Step 2: Understand State & Federal Laws
   3. Step 3: Create a Solid Business Plan
   4. Step 4: Find a Dependable Payment Processor
   5. Final Thoughts

Step 1: Research the Market

Before you go any further, research the gun and ammunition market in the U.S. and check out the latest trends. For instance, were you aware that U.S. gun and ammunition stores generate more than $20 billion in annual revenue, according to IBISWorld?

Legality

First, you’ll need to stay on top of the legal landscape, because it has a strong association with movements in the market. For instance, state legislatures pass new firearms laws every year, some restricting sales and others expanding access, and these laws (and even the threat of them) can move firearms sales.

For instance, recent legislative proposals – including plans to ban rapid-fire assault weapons – have fueled a spike in gun purchases. However, if those bans do become the law, they will hurt the industry. Future bills passed at every level of government have the ability to both boost or hinder firearms sales in America, so it’s crucial to pay attention as an entrepreneur.

Employment, market size

Gun retail is a large, established industry, with licensed dealers ranging from independent shops and ranges to big-box sporting goods chains. Demand is broad and steady, and ownership spans every region and age group, which gives new stores room to win local customers with expertise and service.

Gun control has been (and will remain) a controversial topic amongst Americans. Researching the latest attitudes toward gun ownership in your area will help you gauge the market for firearms in your town or city.

Step 2: Understand State & Federal Laws

As a gun store owner, you can sell guns, ammunition, and accessories to adults in your local area. However, governmental regulations at both the federal and state level will restrict the type of products you sell and to whom. These laws regulate the trade of firearms in your jurisdiction, and specify the records you need to keep.

Before you open your gun store, you’ll need to procure a Federal Firearm’s License (FFL). This license applies to both corporations and individuals. The ATF publishes a monthly listing of federal firearms licensees, which shows how many dealers are already licensed in your state and area.

Here are some of the other legal issues you will need to consider as a firearm’s dealer:

• The federal government requires you to keep accurate records of your gun sales.
• You will need to conduct background checks on customers who want to purchase firearms. The background checking process will differ depending on your state. Some states, such as Florida, let you conduct a background check on customers using an in-state database.
• You will also need to apply for business permits, depending on your state. These documents might include zoning compliance permits. Other important records you might need include tax compliance and insurance policy documents.

Step 3. Create a Solid Business Plan

Like any business owner in the U.S., you will need a solid business plan — a strategic document that outlines your goals and objectives.

Be sure to take the following steps in yours:

1. Describe the customers you plan to attract to your business. Gun buyers vary a lot by region, so study who shops in your area, from hunters and sport shooters to first-time buyers focused on home defense.
2. Detail how you plan to make money. You might want to conduct a financial analysis of your business that predicts income and cash flow.
3. Identify any problems that might occur in the future which could potentially impact your business. These problems might include changes in firearms legislation, and a decline in the demand for guns and accessories in your area.
4. Plan how you will market your new business. You should invest in digital marketing solutions and brand building, plus explore social media marketing and search engine optimization (SEO). Doing so will help improve your visibility not just in your local area, but across the U.S. as well.

4. Find a Dependable Payment Processor

Taking credit card payments is crucial for a gun store owner, because many purchases will be big ticket items. Having a variety of payment processing options for your customers will provide both you and your patrons greater flexibility. Plus, it will also make it easier for you to compile firearms sales records.

Getting approved for payment processing as a firearms dealer can be difficult, as most banks will consider you a risky business in need of a high risk merchant account. However, there are numerous providers out there that specialize in tailored payment solutions for businesses deemed “high risk”, so do some homework and find out what kind of deals you can get before signing any contracts. One warning up front: mainstream options like Square, PayPal, and Stripe prohibit firearms sales entirely, so build on a gun-friendly processor from day one. And once you’re processing, keep your dispute ratio low: since 2025, Visa’s VAMP program counts fraud and disputes together against a single threshold (see our 2026 chargeback guide for the rules).

Final Thoughts

There are various laws and regulations to consider when setting up a new gun store, so don’t do so lightly. Not to mention, the market has been a bit volatile recently as political tensions surrounding guns have increased.

However, for industrious entrepreneurs, the firearms industry is a huge one with plenty of potential. By following the previous four steps outlined in this piece, you should be well on your way toward entering and succeeding in it.

Ready to accept payments? Paymotile provides gun-friendly credit card processing for firearms dealers.

Sources

Statistics and legal references in this guide come from the sources below. We review them regularly and update the page when newer data is published.

1. IBISWorld, Gun & Ammunition Stores in the US Industry Analysis, 2025 (updated October 2025).
2. CNBC, US judge strikes down California ban on handgun ads (September 12, 2018).
3. Legal Information Institute, Cornell Law School, 27 CFR § 478.125: Record of receipt and disposition.
4. Bureau of Alcohol, Tobacco, Firearms and Explosives, Apply for a License.
5. Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Firearms Listings.
6. Giffords Law Center, Gun Dealers (updated August 2026).
7. U.S. Small Business Administration, Plan your business: Write your business plan.