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So I, or rather the company I setup, has been 01FFL licensed for some years. As a side hustle it hasn't been bad, though I really had to scale it back during 2020 due to nightmare that year was for us. Anywho, back at it, and renewal is coming up soon and thinking about adding a SOT to the license.

As I understand it:

Cons:
  • $500 a year to have said on the license.
  • More paperwork surrounding NFA items.
  • Not clear if there are any tax implications in adding said, but I don't believe anything of any concern.
Pros:
  • New service to offer my small, but regular customer base. And maybe add some new buyers.
  • Handle NFA transfers without getting drilled with another tax stamp.
  • NFA items transfer to us on Form 3, which is pretty fast.
  • Depending on their terms and conditions, could setup a Silencer Shop kiosk. I have the space for that in my building, but not sure what all is required by the aforementioned vendor.
  • I'm unclear on the whole post-dealer sample thing with respect to machine-guns, but maybe someone can fill me in.
Anything I missed? Thoughts?
 
I say do it. The more people that get exposed to NFA items and the fact that they can acquire and own them the better for the firearms community. If you're in an area that lacks SOT's (like where I live) you'll definitely expand your customer base.
Every time I take my M16 to the range, there's always multiple perplexed people questioning how I got it and I get the "aren't machine guns illegal?" questions. So I have to do on the spot education on "transferable machine guns"
 
I would carefully consider the different types of SOTs to determine which pros and cons apply to that specific type.

Of the three, the only one on the table is Class 3—Dealer. No need for Importer. Manufacturer requires a different license and, as I understand it, I'd have to pay ITAR if actually building stuff, which is ridiculously expensive for a small shop.
 
In that case you can't even spend two minutes cutting a rubber circle for a customer who needs a new wipe for a can. From my vague knowledge, and of course I would look at the actual text before making decisions, dealer SOTs also need a department letter to obtain post-86 machine guns.
 
I got my Class 3, last year and believe that it was well worth it. The ease of obtaining the items without having to pay for the stamp every time and waiting months is worth the $500 alone. My triple letter agent told me that when I got my SOT, I would make more money with it from suppressor sales as there is a huge markup and market for them here in OR. I am a Silencershop dealer and signing up with them is pretty easy. They do all of the paperwork for you and the customer so it is hassle free.
 
My local FFL is an 07/SOT (manufacturer) I maybe mistaken but I don't think he pays anything exorbitant beyond the $500. He doesn't manufacture anything, according to him it made more sense to go with the manufacturer SOT. H
 
I got my Class 3, last year and believe that it was well worth it. The ease of obtaining the items without having to pay for the stamp every time and waiting months is worth the $500 alone. My triple letter agent told me that when I got my SOT, I would make more money with it from suppressor sales as there is a huge markup and market for them here in OR. I am a Silencershop dealer and signing up with them is pretty easy. They do all of the paperwork for you and the customer so it is hassle free.

Thanks much for the feedback. That is the kind of information I was looking for. :)
 
The one exception to post 86 machine guns needing a law letter.
Is a dealer going out of business, can sell to another sot dealer
without letter, If you are 07.
 
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I've been thinking of getting my FFL with the plan for a SOT soon after. I have a local SOT that invited me to his shop to play. We have similar interests and builds except his are not hamstrung by stupid laws.

I hope I get to meet you in person one day, CountryGent.
 

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