I have the paper and have talked to the ATF I'm planning on getting my 07 and the SOT after June. My question for those that might know is it good to start up as a Corp. or a LLC? I have found that the LLC will be viewed no better then a Sole proprietorship in the way I'm wanting to set up the business end. Or should I start as a sole proprietor first and then change to a Corp.? I don't plan on selling anything in the beginning because I have 2 weapons that I have designed that I want to build first, plus a silencer design. I need the SOT to design and build these, I explained this to the ATF agent and he said that should be just fine. I just need to know what would be best for my business entity.

The LLC (limited liability company) will shield your personal assets from civil liability. A corporation will do the same thing, but your earnings are taxed twice. With the LLC it's taxed like a partnership.

Thanks for your response
I spoke with 2 attorneys today and in my state the LLC will be seen as a partnership and will give me no protections from liability that a Corp will.  I also spoke with my CPA and he said the Tax issues can be worked out so I think I'm just going to Incorporate.  

Quoted: The LLC (limited liability company) will shield your personal assets from civil liability. A corporation will do the same thing, but your earnings are taxed twice. With the LLC it's taxed like a partnership.

At the state level, a corporation is a corporation. Your Articles of Incorporation make no distinction between tax status. You make your tax selection with the IRS when you choose between 'C' or 'S' corp. I think 'C' is the default until you specifically file to be an 'S'.

An 'S' corp is a financial flow-through entity and all profits and losses transmit directly to your personal tax return. There is no double taxation.

If you plan on being a class 3 dealer, you should really consider being a sole proprieter...  Do a little research on Pre '86 dealer samples.   They are less expensive than transferables, and you can keep them if you give up your C3 status down the road.

I decided to go with the S corp. now I'm just waiting for the state to get back to me.  I thought as a Sole Proprieter you had to give up the post samples as well?  
I have a plan for what I 'm going to try to do with this SOT  when I get it all done.  My main focus is going to be on Defense contracts and bids with the designs I have.  I have just been wanting to do this for  a very long time and I'm just tired of talking the talk to everyone so if I fail I fail but I just would rather be trying.  

A sole proprietor can keep pre '86 dealer samples,  correct?

I was planning on waiting until April/May to submit for the SOT so I wouldn't be hit with the $500.00 back to back.  Costing me $1000.00 in just a few months time, I need more time to get my shop set up any how.  Is that a good idea to put in after June?

Thats what I was thinking, Thanks