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Tips on SOT...

Discussion in 'NFA Firearms and Accessories' started by Joshua M., Mar 15, 2019.

  1. Joshua M.

    Joshua M. Member

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    Location:
    OHIO
    Greetings,
    I have had a small shop in NW Ohio for 5 years now, just dealing in regular firearms, and accessories. We are now looking into getting our SOT, so we can start selling suppressors mainly, but possibly some full auto. Does anyone have any tips, or insight on what we should do? Is it just filling out another form, and paying the $500/yr annual SOT? I have 2 suppressors myself, in my personal name, and after using them on our range, I’ve had a lot of interest in selling suppressors...
    Thanks in advance.
     
  2. dogtown tom

    dogtown tom Member

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    Yes.
    Be aware that the SOT tax year is July 1st-June 30th.
     
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  3. MachIVshooter

    MachIVshooter Member

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    This. Being March already, just wait.

    Also, it's probably the $500 for you, but be aware that's a reduced rate for us low grossing outfits. If you generate enough revenue, SOT is $1,000.

    As for machine guns, if you are a type 01 FFL, you'll need LEO letters to get them as demos. If you're a type 07, you can manufacture them, but remember that we can't actually own them and the license isn't carte blanche to accumulate full auto toys. If you start resgistering a whole bunch of post samples, you're going to draw attention you don't want. I only have 4, built in calibers pertinent for torture testing my cans and giving them a legitimate full auto rating.
     
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  4. Ryanxia

    Ryanxia Member

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    The ATF's handbook on this is really handy. They don't mail a copy out any more with your SOT but tell you to download directly from website so you get the latest. You can download now (for free obviously) and peruse through it. https://www.atf.gov/firearms/national-firearms-act-handbook

    When you get your SOT don't forget to order your NFA related forms, definitely want form 1's (to make NFA items), form 3's (dealer to dealer NFA transfer) and form 4's (customers buying an NFA item) and probably others depending on the variety you think you'll be doing. Forms take about a week or two to get to your door.

    A lot of suppressor manufacturers will do a direct dealer account with you, a few of the big ones only go through distributors. Rebel suppressors has some really affordable stuff. Also the Silencershop kiosk has a lot of benefits but isn't cheap so probably only worth it if you're expecting a decent volume of NFA sales/transfers.
    Some suppressor companies that will do dealer accounts; Bowers suppressors, Dead Air, Liberty, Q suppressors, Rebel & Yankee Hill Machine. I think AAC & SilencerCo were distributor only. You'll need your SOT in hand before setting these accounts up.

    As mentioned above, pay attention to the dates the SOT is good for (July to June). And after you send in your application verify they received it, they lost two applications I mailed out last year.

    Have fun!
     
  5. dogtown tom

    dogtown tom Member

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    Making an NFA firearm on a Form 1is the same $200 tax for SOT's as anyone else.
    If the dealer is going to make NFA firearms to sell...…..he needs an 07FFL/SOT and report on a Form 2.



    Paper Form 3's are for dinosaurs and Luddites. :D Eform FTW.
    Using the blank Form 4's is a waste of good paper. Silencer Shop and several silencer manufacturers offer free Form 4 Generators that virtually eliminate mistakes.


    The problem with Rebel is that in three years they haven't decided if they really want a dealer network or want to sell direct using dealers for the transfer only. They'll beg you to become a stocking dealer, then turn around and sell below their own MAP direct from their website. That's why I'll never stock another Rebel silencer.
     
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  6. Ryanxia

    Ryanxia Member

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    Regular customers will sometimes come in and ask for help with form 1's, and the owner/employees will probably use them occasionally for their personal use. They're free might as well have them.

    And who cares if Rebel is selling them cheap on their website? A lot of people just come in and buy what's in front of them and its good to have a budget option.
     
  7. dogtown tom

    dogtown tom Member

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    If you don't understand why, you wont be in business very long.
     
  8. Ryanxia

    Ryanxia Member

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    Thanks for the tip.o_O
     
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