Class 3 Dealer – NFA Dealer
One of the FAQ’s FFLTRUST.com members ask is what a Class 2 License or SOT stands for and what they can use it for. Let’s start with what it means. SOT means Special Occupational Tax or Special Occupation Taxpayer. The difference applies to the way you use the term (i.e., I am a SOT versus I have a SOT). Terms such as “Class 3 dealer” or “Class 2 dealer” are quite common, however they are not the official denominations the for any ATF issued licenses. They are what we refer to as “slang”, hardly ATF accepted terms. As a matter of fact, if you’d call yourself a Class 3 dealer in an official conversation with an ATF member, they might give you a rough time, since the license is of an SOT dealer not a Class 3.
Prior to attaining your SOT license you must possess a FFL License. What the SOT is in fact, is somewhat of an FFL License upgrade. In such you must first solicit your FFL license in order to be eligible for the SOT License. After attaining your SOT License you can deal or produce (depending on your type of FFL) National Firearms Act (NFA) products. Amongst these products there are: firearms categorized as “any other weapon”, machine guns, silencers, short barrel shotguns and short barrel rifles.
Are you wondering what “any other weapon” stands for? There are a number of such items that the ATF has categorized as such. Please make sure to check the complete definition of the term on the ATF’s official website. The ATF also, mainly considers, any equipment that can suppress the report of a gun, to be a silencer. The short barrel rifle is a firearm whose barrel is less than 16 inches or that has a total length that is less than 26 inches. The short barrel shotgun is composed of one or several barrels or 18 inches (or shorter) or a total length of 26 inches. A machine gun is a firearm that discharges more projectile with one single trigger pull.
One of the benefits of having an SOT License is that the limits for silencers and SBR sales are higher than in regular weapons. The reason is the to possibility of time coverage due to the lengthy transfer process and paperwork amount involved. So, in case you wish to find an opportunity to earn some extra cash, go for the SOT License. The only inconvenience of the SOT License is that it must be renewed on a yearly basis. Nonetheless, the opportunity of selling some silencers in the first one year period, would reimburse the cost of the initial SOT License. Don’t forget, FFLTRUST.com is here to help you every step of the way in applying, successfully obtaining your SOT License and furthermore helping you get your paperwork ready in due time.
and check our FFL Resource Page for more information on firearm legislation and be a FFL owner yourself!
Check out our client map!
Find out more about the benefits of having the FFL!!!