Re: Class III Dealer Application
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: jakhamr81</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: colt933</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: jakhamr81</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: colt933</div><div class="ubbcode-body">
You can consider your yearly SOT payment as a blanket tax which covers all of your transfers for the year instead of having to pay $200 (or $5) for each transfer. But this blanket tax only covers transfers among other SOTs - not to or from non-SOTs.
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Ok, so if you are transferring an item from a dealer or another SOT to yourself for personal use, you are saying that you do not have to get a $200 stamp per item? Do these transfers still stand if you let your SOT expire? </div></div>
If the other SOT is in another state, and you wanted to transfer it to 'yourself' and not 'your SOT business', then there would be two transfers - a Form 3 from one SOT to the other SOT and a Form 4 to transfer it from 'your SOT business' to 'yourself'. But really, what is the difference between 'your SOT business' and 'yourself'? If your business is a sole proprietorship, then there is no difference. But if your SOT business is a partnership or corporation, and you do not wish for your partner(s) or other owners to have access to the item, then you might consider transferring it to yourself on a Form 4.
However...any transferable or pre-sample items in the inventory of an SOT who is a sole proprietor (individual) may remain in the possession of that individual if and when the SOT and/or FFL lapse. I buy MGs all the time from old guys who let their SOT and FFL laps decades ago. The items are transferrable, and are currently on a Form 3. But as the individual is no longer SOT, the item must transfer on Form 4 regardless of whether the transfer is to an individual or SOT. Form 3 only works among active SOTs.</div></div>
So your saying that if you have items sitting on Form 3 as an SOT, they belong to your business and if you let your SOT and or FFL expire, those items can still remain in possession of your business indefinitely , correct? </div></div>
Yes, but it makes more sense if your business is a sole proprietorship.