It really depends on where you live. First and foremost, a Type 1 FFL is a *dealers* license. That means that BATF requires that you are in the business of selling rifles for profit. You must have property that is legally okay for commercial use (either unzoned rural areas or commercial property in most cities), a business license & tax ID number, any required local permits, and you must comply with any local laws, such as those that don't allow gun shops within so many feet of a school or church. You must have listed hours of operation, during which time BATF can make inspections. 4pm-5pm on Sunday won't cut it.
In the PRK, you additionally need to have another permit (I forget what it's called) and be listed as a gun dealer by the state (additional yearly fees in both cases). There may be additional regs due to the new laws this year.
Then, you complete your FFL application, send the fee along with your fingerprint cards, and wait. BATF will schedule an inspection and you'll get your license in the mail.
Being an FFL isn't cheap or easy, especially in the PRK. Be thankful that we have any at all.