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Posted: 2/25/2001 5:48:30 PM EDT
Hey guys,
  Got some more FFL questions to throw at you. Lets say I was to obtain a FFL, or in my case, My dad. (I am under 21) I would like to run a little home based gun buisness and make a little cash. Would be be able to buy LEO Carbines and mags, in PreBan Config? Also, Would I be able to shoot/posess said guns?  Keep in mind, my dad would be the FFL holder. I am also curious about about Class III, Class II stuff. What is entailed for that? Someone else mentioned an SOT, What is that?  Also, Lets say in 3 years there is not sutuible profit coming in. What happens to the the "post dealer sample" guns? I know its alot of questions, Just wanting to clear some stuff up.

Link Posted: 2/25/2001 6:18:13 PM EDT
Not as easy as it once was, now you have to prove to the ATF that your "home based business" complies with all local zoning laws and the like, before you get the license.
Link Posted: 2/26/2001 7:59:54 AM EDT
Dear Joker,

Having had, for a brief moment in history, the dubious distinction of being the youngest FFL dealer in the country (got it right after my 21st birthday), and having dumped it due partly to the paperwork inconvenience and my own lack of maturity at the time, I have a little insight.

Now, keep in mind that my information is almost a decade old now, but I can answer a few of your questions:

1. Nowadays, the ATF is very picky about FFL's operating out of their homes.  When I dumped mine, they were making noises about "Inspecting My Place of Business" and when they found out it was my home, they wanted a floor plan.

I don't think so.

2. SOT stands for Special Occupational Tax.  That's what the "Class 3, Class 2" sort of thing means.  It's not a license in and of itself;  It's a tax paid by an FFL holder to transact business in NFA (National Firearms Act) weapons, such as fully automatic firearms, short barrelled shotguns (SBS's), Short Barrelled Rifles (SBR's) and Any Other Weapons (AOW's).  Definitions for these can be found, if I recall correctly, under Title 18, Chapter 44, United States Code.  But back to the SOT:  They (The ATF) issue you another piece of paper that looks a lot like a license but is actually a "Tax Stamp", with the amount paid and which SOT it is.  There are three classes:  Class 1 is Importer, Class 2 is Manufacturer, and Class 3 is Dealer.  For any and all NFA weapons (guys, correct me if this has changed).

3.  Getting an FFL gives the ATF very specific legal authority to enter and search your place of business any time they feel like it.  If this is your home, you are giving up some pretty serious constitutional rights.  THINK about it.


If you have given all these things their proper consideration, and still would like to do this, I recommend getting a storage unit or other off-premises location, or rent an office from someone else, wherein you can keep your "business".  And get a really good safe.

Best of luck to you,

Link Posted: 2/26/2001 8:24:02 AM EDT
Panzer Boy, Thanks for the reply. What about LEO weapons? Also, What happenens to say a Class III if I dump the FFL? Thanks.

Link Posted: 2/26/2001 9:34:14 AM EDT
PJ:  PanzerBoy's right about some stuff, but off base on ATF's right to inspect.

As an FFL out of your home, the ATF can't inspect anytime they feel like it - they can do one "routine" inspection of your books and licensed premises per year, during business hours.  Other than that one inspection, they need a warrant, or must be investigating a specific criminal complaint.

You can buy LEO only weapons as a dealer, for sale to law enforcement only, or make them as a manufacturer.  Assembling a complete LEO weapon from parts is legal, as long as it's for sale to law enforcement, and you mark it properly as restricted/law enforcement in accordance with the ban.  This is not a way to purchase LEO guns for your personal use, although you might be able to justify using ONE as a demonstrator, provided you did actual LE demonstrations now and then.  The only legal reason a dealer can have a LEO weapon is for resale - not personal recreation.

There are no class 3 weapons - only class 3 dealers.  If, as a class 3 dealer or class 2 mfg, you relinquish your license and SOT, the NFA stuff becomes yours (except post-sample MG's).  Tax free if you're a sole proprietor, or requiring a tax-paid transfer if your FFL/SOT was under a corporation.  Post-sample machine guns must be sold off to other eligible entities (law enforcment or another SOT), destroyed or surrendered to the ATF.  The sell-off can be hard to accomplish, since transfer of a post-sample requires a "law enforcement demo request" letter.
Link Posted: 2/26/2001 2:09:10 PM EDT
Do you have to sell a certain amout of firearms a year? Where can I find out more info on applying? Thanks for any information.

Link Posted: 2/26/2001 6:32:29 PM EDT
Link Posted: 2/27/2001 10:02:04 PM EDT
Anyone had more experience with the LEO weapons info and regulations (current FFL holder) Like if the gun can be stored off store front. I think that is a NO.
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