Originally Posted By Bunn19:
So technically I could apply for my FFL, out of my house, say as a transfer FFL to do transfers from people that have bought stuff off of gunbroker, etc., pay the $200 SOT and be able to posses post samples? How does this work, could I now do transfers for police agencies? What about manufacturing a new machinegun for sale to police/ law enforcment? I don't understand how all this works exactly, but I think it might be worth the hassle for $200 a year to be able to have access to machineguns and other title II firearms.
OK, couple things.
1. No such thing as a "transfer FFL" or "gunshow FFL" or "internet sales FFL" or any of special circumstances FFL. If you apply for a FFL you are going to be applying for the same kind of FFL as the gun shop down the street. Whether or not you can get a FFL based from your home will depend on local code and zoning laws.
2. If you get that FFL, the SOT is simply a matter of $500 (I earlier said $200 by mistake). But a SOT cannot simply start ordering post samples. For each post sample machine gun you will need to obtain a law enforcement demo letter. This is a letter from a local agency requesting a demonstration of a specific firearm. Only with this letter can a SOT obtain a post sample. Also post samples are not yours to keep, you are actually sort of renting them. You may have them ONLY so long as your SOT is current. They day you don't renew your SOT you have to transfer or dispose of all your post samples.
3. With a FFL/SOT you could then do transfers to agencies. Only a few problems. First they can buy cheaper direct from the manufacturer. LE agencies are not required to go through a FFL and can buy excise tax free directly from Colt, HK, etc. Second, if you ever DID get a agency sales most of the time you'd never even see the guns as most companies will drop ship your order directly to the agency.
4. Manufacturing of new machine guns requires a manufacturers license and SOT. All manufactured machine guns would be considered post samples and subject to the same regulation. In the end you pay $500 a year and really don't have much access to machine guns.