Questions about applying for SOT to sell suppressors

[ARCHIVED THREAD] - Questions about applying for SOT to sell suppressors

Posted: 3/7/2015 9:25:12 AM EDT

I have an FFL and run a retail store. I would like to sell suppressors so I need to apply for an SOT. I know the tax is due July 1st.

My question is: How do I apply so that I can start doing business as close to July 1st as possible?

I would love to apply now but will hold off awhile if it means I will have to renew within a couple of months.

I hope my question makes sense. Thanks guys!

jonblack

Posted: 3/7/2015 9:37:15 AM EDT

[#1]

Just to clarify, it's not an application, just a tax. Why wait? The sooner you get your SOT, the sooner you can sell NFA firearms. Give Amy a call at NFA branch to see when they start accepting payments for 2016.

Posted: 3/7/2015 2:09:21 PM EDT

[#2]

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Just to clarify, it's not an application, just a tax. Why wait? The sooner you get your SOT, the sooner you can sell NFA firearms. Give Amy a call at NFA branch to see when they start accepting payments for 2016.

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I don't want to pay $500 now just to have to pay $500 again July 1st.

jonblack

Posted: 3/7/2015 2:24:53 PM EDT

[#3]

I am doing some more reading and admittedly I have more to learn. I really just don't want to pay the $500 tax twice within a few months.

jonblack

Posted: 3/7/2015 6:35:01 PM EDT

[#4]

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I don't want to pay $500 now just to have to pay $500 again July 1st.

jonblack

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Quoted:

Quoted:
Just to clarify, it's not an application, just a tax. Why wait? The sooner you get your SOT, the sooner you can sell NFA firearms. Give Amy a call at NFA branch to see when they start accepting payments for 2016.

I don't want to pay $500 now just to have to pay $500 again July 1st.

jonblack

Waiting until July 1st means nearly four months of no NFA sales or transfers.
In that time period how many current customers will go elsewhere?
In that time period how many new customers will go elsewhere?

It's not like Title 1 guns where you can have a new gun shipped to you the day after getting your FFL, the NFA game involves weeks and weeks of waiting for approvals and stamps.

My SOT didn't pay for itself until my second year. With the slow processing times for Form 3's and 4's it was taking two months for a Form 3, followed by another 8-11 months for approved Form 4's.

If you are serious about conducting sales and transfers of NFA items don't wait.

Posted: 3/7/2015 11:37:42 PM EDT

[#5]

I value your input and opinion Tom. Y'all are right, I should go ahead and get my SOT.

jonblack

Posted: 3/8/2015 10:42:27 AM EDT

[#6]

Hey Tom

I know you do a lot of firearm transfers but I didn't know you did Class III stuff. Can you give me a general breakdown of what you do with your SOT and how much I should be charging. I think you do more business than what I will do and since you said you didn't break even until your second year I want to get a better idea of if/when this would be profitable for me.

I hope my question isn't too personal for an open forum. I apologoze if it is.

Thanks
jonblack

Posted: 3/8/2015 1:27:32 PM EDT

[#7]

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Can you give me a general breakdown of what you do with your SOT

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Can you give me a general breakdown of what you do with your SOT

Most are transfer but I do the occasional sale. About 85% are silencers, the remainder machine gun and SBR.

and how much I should be charging.

I charge $50 for NFA transfers. Remember, you'll be sitting on that suppressor, SBR, machine gun for 4-11 months. I charge more for NFA transfers because it means more insurance coverage.
What you charge depends on your market. If others are charging $35 for an NFA transfer you'll not likely do as many if you charge $75.

I want to get a better idea of if/when this would be profitable for me.

If you charge $50 per NFA transfer you'll pay for your SOT after ten transfers. But there may be indirect expenses........I bought another safe. Silencers take up very little room, but SBR/SBS/MG's do.

Posted: 3/8/2015 11:26:30 PM EDT

[#8]

Tom

Thanks for the added information. Makes sense. In my AO NFA transfers are $100 if they are just doing transfer. As far I know dealers who stock SBRs and suppressors don't charge a transfer fee. But, they would be making profit off the sale of the NFA item.

jonblack

Posted: 3/8/2015 11:50:13 PM EDT

[#9]

In the SOT process, is there an interview/visit like when you get an FFL?

Posted: 3/9/2015 3:40:31 AM EDT

[#10]

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In the SOT process, is there an interview/visit like when you get an FFL?

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No, you write a check. A couple of weeks later your SOT arrives in the mail.

Posted: 3/11/2015 12:52:58 AM EDT

[#11]

I believe it is time to get on it.

Posted: 3/13/2015 7:31:23 PM EDT

[#12]

is the SOT a deductible business expense or is it a "tax paid"? seems it would be the former, not a way to get a "tax credit". I guess if you pay 2 times in a single tax year, you'd get to do a double write off?

Posted: 3/14/2015 5:15:17 PM EDT

[#13]

Business expense...

Posted: 3/15/2015 4:38:39 PM EDT

[#14]

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Business expense...

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Yep, write it off.

Posted: 3/18/2015 10:49:59 AM EDT

[#15]

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No, you write a check. A couple of weeks later your SOT arrives in the mail.

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Quoted:
In the SOT process, is there an interview/visit like when you get an FFL?

No, you write a check. A couple of weeks later your SOT arrives in the mail.

in a faaaaaaaaaaabulous pink envelope

Posted: 3/25/2015 11:54:17 PM EDT

[#16]

I came here to ask some of the same questions. I hope you dont mind just asking in here.

Im currently an 01 dealer. The only experience I have with NFA stuff is my personal AR SBR I did a couple years ago on form 1. I did it all myself, no dealer was involved.

I was wondering what else is involved once they get their stamp back?

And am I able to order guns with the sig brace (or any other AR pistol) and swap it out for a stock? Or will I have to be an 07 for that?

Sorry for the stupid questions, but this is new territory for me.

Posted: 3/26/2015 7:18:34 AM EDT

[#17]

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I came here to ask some of the same questions. I hope you dont mind just asking in here.

Im currently an 01 dealer. The only experience I have with NFA stuff is my personal AR SBR I did a couple years ago on form 1. I did it all myself, no dealer was involved.

I was wondering what else is involved once they get their stamp back?

And am I able to order guns with the sig brace (or any other AR pistol) and swap it out for a stock? Or will I have to be an 07 for that?

Sorry for the stupid questions, but this is new territory for me.

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When the stamp comes back, just like any other firearm; 4473 box 22 and affidavit if trust or other entity involved and any state laws that need to be followed.

On the second question, FFL07/SOT is needed or you can file a form 1 to make an SBR.

Posted: 3/26/2015 9:18:03 AM EDT

[#18]

Thanks! I really appreciate the help.

Posted: 6/20/2015 1:16:28 PM EDT

[#19]

I paid my tax this past week and I am looking forward to getting started in the business of selling and transferring suppressor.

Posted: 6/20/2015 5:50:48 PM EDT

[#20]

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I paid my tax this past week and I am looking forward to getting started in the business of selling and transferring suppressor.

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Welcome aboard...

Posted: 6/21/2015 9:25:30 AM EDT

[#21]

Thanks!

I am still a little unclear on how everything works. I know my customers will have a lot of questions and I want to be able to answer them so I have been trying to study these forums as much as I can.

My wife is a notary and she works in the store. In my state a notary can do a trust so I think that will be a big benefit.

We are thinking of $75 transfers but I am reading that is some areas people charge much less. The suppressor market has grown relatively slowly in my area so there is not much in the way of cut-throat competition. I want to set a price that encourages people to use us but we are only going to get so much volume, no matter the price.

Posted: 6/21/2015 12:12:44 PM EDT

[#22]

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in a faaaaaaaaaaabulous pink envelope

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Mine came in a boring white envelope this year.

Posted: 6/21/2015 3:44:44 PM EDT

[#23]

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Thanks!

I am still a little unclear on how everything works. I know my customers will have a lot of questions and I want to be able to answer them so I have been trying to study these forums as much as I can.

My wife is a notary and she works in the store. In my state a notary can do a trust so I think that will be a big benefit.

We are thinking of $75 transfers but I am reading that is some areas people charge much less. The suppressor market has grown relatively slowly in my area so there is not much in the way of cut-throat competition. I want to set a price that encourages people to use us but we are only going to get so much volume, no matter the price.

View Quote

It should be fairly easy to find the going rate in your market, and it's always good to find a niche no one else is currently serving...