• Winner! Quick Shot Challenge: What’s the dumbest shooting myth you’ve heard?

    View thread

Suppressors Class III Dealer Application

Early Cuyler

Gunny Sergeant
Full Member
Minuteman
Mar 3, 2011
1,032
32
38
WB, GA
Hi I was wondering how long it takes to get your Class III Dealer's License after you apply for it? My local shop has already applied and the list of suppressors I want is getting longer as time goes on....
 
Re: Class III Dealer Application

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: 737SHARK</div><div class="ubbcode-body">As soon as you fill out the form, have your EIN and copy of check, not even cashed you are an SOT.

</div></div>

Technically I dont believe this is true. I called 4 days after they cashed my check and they had no records of me being an SOT, so had I tried a transfer at that point it wouldve gotten kicked back.

That being said, the process was so quick once their accounting dept sent the info to the actual licensing center that it was less than two weeks all said and done anyhow.
 
Re: Class III Dealer Application

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: halcyon575</div><div class="ubbcode-body">Well I live in Waynesboro, GA and the only SOT within 2.5hrs is a dick to deal with and not helpful at all. </div></div>

I bet a $1 that I can find you a dealer who is not a dick to deal with a lot closer than 2.5 hours. Move out of the sticks!
grin.gif
 
Re: Class III Dealer Application

Class 3 is not a license. It is a status of tax payment. However, you are not eligible to pay this tax if you do not have a federal firearms license.

As a type 1 FFL (dealer) you could pay $500 and submit the form and become a Class 3 SOT (special occupational taxpayer) for one year. This allows you to buy and sell Title II items other than destructive devices.

As a type 7 FFL (manufacturer) you could become a Class 2 SOT via the same process and you could manufacture title II items other than destructive devices.

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.

These are the two most common types of SOT but there are others.
 
Re: Class III Dealer Application

Dont forget to mention that as a type 07 ffl and 02 sot you are also REQUIRED to pay a ~$2800/yr tax to the state dept no matter whether you manufacture 1 or 500 firearms, and no matter whether you export any of them or not. People get away with it, but its only a matter of time before they come looking for their money.
 
Re: Class III Dealer Application

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: jonaddis84</div><div class="ubbcode-body">Dont forget to mention that as a type 07 ffl and 02 sot you are also REQUIRED to pay a <span style="font-weight: bold">$<span style="text-decoration: underline">2250</span></span>/yr tax to the state dept no matter whether you manufacture 1 or 500 firearms, and no matter whether you export any of them or not. People get away with it, but its only a matter of time before they come looking for their money.</div></div>

Fixed it for you.

There are a ton of type 7s that I know who don't pay. I am sure that once they start going after type 7s who don't export, they will be sued and lose and the law will be re-written. The ITAR ($2250/yr) comes from the Arms Export Control Act. Someone in all of their tax-taking wisdom thought that they could reach above and beyond the exporting and importing manufacturers and tax everyone. If you make bullets...ITAR. If you write software that another government can use...ITAR. If you make gun barrels...ITAR. They want you to pay even if you are a small bullet manufacturer and you only sell them at the local gun show. Look at the AEC act and ITAR and please point out to me where it says if Jon Doe makes barrels that he should be subject to ITAR? It is the tax on the exportation of these items and the Dept of State should be sued for trying to collect these taxes on non-exporters.
 
Re: Class III Dealer Application

<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.

</div></div>

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?
 
Re: Class III Dealer Application

If you give up your license you will have to pay the $200 per item you wish to keep and all post samples go away.

While your a dealer/manufacturer you do not pay the $200 per item.

O and when renewing you FFL they ask how many guns came in and how many went out. My guess is if your using for personal collections they will not renew. However I do not know the magic #'s or ratio of in to outs one would need.
 
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">

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.

</div></div>

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 'your SOT business' 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.
 
Re: Class III Dealer Application

<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.

</div></div>

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?
 
Re: Class III Dealer Application

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: operator45</div><div class="ubbcode-body">If you give up your license you will have to pay the $200 per item you wish to keep and all post samples go away.
</div></div>

Not correct. If your FFL/SOT business is a sole proprietorship - not a partnership or corporation, then you keep any transferable or pre-86 items with no additional paperwork after your FFL/SOT lapse. The items stay on the Form 3. But if you wish to sell any of them after your FFL/SOT lapse, then they must transfer out on a tax-paid Form 4 either to an SOT or an individual. This is why they call pre-86 samples 'keepers' because you can keep them. If you couldn't keep them, then they would retain their original value like post-86 samples and not appreciate in value.
 
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.

</div></div>

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.
 
Re: Class III Dealer Application

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Silenced America</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: jonaddis84</div><div class="ubbcode-body">Dont forget to mention that as a type 07 ffl and 02 sot you are also REQUIRED to pay a <span style="font-weight: bold">$<span style="text-decoration: underline">2250</span></span>/yr tax to the state dept no matter whether you manufacture 1 or 500 firearms, and no matter whether you export any of them or not. People get away with it, but its only a matter of time before they come looking for their money.</div></div>

Fixed it for you.

There are a ton of type 7s that I know who don't pay. I am sure that once they start going after type 7s who don't export, they will be sued and lose and the law will be re-written. The ITAR ($2250/yr) comes from the Arms Export Control Act. Someone in all of their tax-taking wisdom thought that they could reach above and beyond the exporting and importing manufacturers and tax everyone. If you make bullets...ITAR. If you write software that another government can use...ITAR. If you make gun barrels...ITAR. They want you to pay even if you are a small bullet manufacturer and you only sell them at the local gun show. Look at the AEC act and ITAR and please point out to me where it says if Jon Doe makes barrels that he should be subject to ITAR? It is the tax on the exportation of these items and the Dept of State should be sued for trying to collect these taxes on non-exporters. </div></div>

Ive heard of a few stories of 07's getting caught up with after several years of no pay, I guess they ask for either their back taxes, or their license. If they do either of those they dont prosecute.

Do you know of any, or are these stories Ive heard made up? I would have loved to do 07/02 but that ITAR shit just scared the hell out of me.