Class Iii

[Greg]

Hey guy's, I'm having to retire and am considering starting/opening a small gun shop/store. I'd like to hear from any Class III dealers and see if a Class III license would be worthwhile to increase sales and profit.

[philasteen]

If you are already doing a FFL/gun shop, getting the SOT can be easy to pay for - 5 inbound transfers per year at $100 each pay for your stamp. Anything above that is profit.

[JTinIN]

The problem now days is getting any stock to sell on display in your Class III gun shop. Almost like they did not make anymore for the last 18 years ;-).

 

However, as Greg pointed out, once you have a FFL / gun stop , not much of an issue to having the SOT.

 

A couple of the local dealers (in a 100 mile radius) sell a few suppressors and AOWs in between the various collections that show up (which are few and far between now days and/or tend to take a fair amount of capital to purchase in block).

Edited September 9, 2004 by JTinIN

[rkr]

I would strongly recommend investing your money in something else. I do not believe one can earn a living or even a reasonable return on your investment by trying to buy and sell class 3. Selling title 1 firearms or other sporting goods may be a different story. I have had both licenses for sometime but if I did not earn a living doing something else my family would starve. Getting inventory at reasonable prices to sell at retail is very difficult particulary on the internet. I am sure others may disagree. IMHO

[TommyGunner]

Gentlemen,

 

Please correct me if I am wrong. To buy and sell registered MG's you would only need a type 1 ffl "dealer in firearms other than destructive devices". The class 2 and 3 sot is for manufacture and import respectively. Unless I confused it since the last time I looked. (hey happens all the time). Sorry if I was wrong on this.

 

Damon

 

[PK.]

3= dealer

2= manufacturer

 

The SOT is required for buying or selling tax free between licensees with SOT’s. Otherwise you pay the transfer tax every time. 2 also allows you to make post samples.

 

[TommyGunner]

PK,

 

Thank you! I am somewhat confused though. Tom's ffl states right on it FFL 01 "dealer in firearms other than dd's". I will have to double check his sources to be absolutely positive but, he told me he called the ATF and NYSP dept. that regulates NFA...and he claims that he was told by both agencies that he has the neccissary licensing to buy, sell and repair class 3 items. He also said that the NYSP said he could take them to the local range (descretely and with moderation as long as no-one on the range will object) and test fire them. He say's he has retained records of who he spoke with. I will double check but thanks again. http://www.machinegunbooks.com/forums/invboard1_1_2/upload/html/emoticons/biggrin.gif Am I confused? Are you saying that the SOT is only required for the tax benefit, but not to engage in commerce with class 3 items?

 

Damon

[philasteen]

QUOTE (TommyGunner @ Sep 10 2004, 05:24 PM)

PK, Thank you! I am somewhat confused though. Tom's ffl states right on it FFL 01 "dealer in firearms other than dd's". I will have to double check his sources to be absolutely positive but, he told me he called the ATF and NYSP dept. that regulates NFA...and he claims that he was told by both agencies that he has the neccissary licensing to buy, sell and repair class 3 items. He also said that the NYSP said he could take them to the local range (descretely and with moderation as long as no-one on the range will object) and test fire them. He say's he has retained records of who he spoke with. I will double check but thanks again. http://www.machinegunbooks.com/forums/invboard1_1_2/upload/html/emoticons/biggrin.gif Am I confused? Are you saying that the SOT is only required for the tax benefit, but not to engage in commerce with class 3 items? Damon

Paying the SOT tax is absolutely required to conduct business as a machine gun dealer. In fact, one of the first NFA criminal cases in the 30s was against a person who did not pay the tax.

 

If NYSP indicates you are in NY, forget being a dealer, your only hope is to license as a manufacturer. Dealers are not allowed to possess NFA. There are only three or four SOT manufacturers in the state. It's excessively burdensome to set up and is not feasible for a small shop.

[Grey Crow]

LOL, I just got back from checking the ATF site Hardrede.

 

Just as you stated. Plus a 1 or 2 can smith a NFA firearm with return to it's owner.

 

The catch 22 is ones local laws (State & City), as they supercede the Federal level.

[TommyGunner]

Gentlemen,

 

Thanks for the information! Hardrede, that website just about clears that up. Philasteen...you may just be right there unfortunately. Although the state police make it seem like its not a big deal. Jack...Can still repair them though? Good deal.

Thanks again everyone.

 

Best,

Damon

[Grey Crow]

According to the ATF you can work on NFA weapons.

 

When I held my FFL I did minor repairs, and maintenance.

(not even a 10th of what you, and PK do though)

 

Even general sales of non NFA weapons are under State and Local jurisdiction along with the Federal. Because you are in the State and City's backyard they need to be consulted as well. In my 9 years in the business I never once had a visit from the ATF agents. Guess I was lucky! But I still did everything by the book. I also kept a log of time in, and time out on privately owned guns.

 

Here I had to purchase a yearly local license as well as Federal just for the firearms side of the business, then throw in codes, and general merchant licenses. The latter depends greatly on your town. Seems that once you decide to go into business that everyone puts their hands out to be crossed with silver.