Home based SOT...
You can become a home based SOT. You will first need to obtain a business licence for your home premisis (zoning laws will come in to play), you will then need to apply for your 01 FFL. This is a long and wierd application. You'll have a couple ATF "Compliance Inspections" from the ATF. They will want to know you do intend to do business. Once the FFL is granted you need to be aware that your ENTIRE premisis will be up for inspection at their discression for "compliance inpsections"... Although the rules state that only the space designated for business is inspectable, they will inspect your entire house (I have a friend that was home based until he got inspected.. then he moved his operation to a work-shed he keeps in his yard. It has a seperate address and all that so now the ATF can't come into him home)... Once you get the FFL granted, you then apply for a Class 3 SOT (its a simple 1 page form) and attach a $500.00 check to that. That will come back approved in about 2/3 months (if you can have an FFL you will be granted the SOT). Every year the SOT will cost you $500.00.
When you get the SOT you can purchase pre-86 dealer sample & transferable machinguns, Short shotguns & rifles, and AOWs. For post-86 dealer sample guns you HAVE to have a LEO Demonstration letter signed. Once you have that you can aquire that particular model gun and keep it as long as you maintain your SOT status. When you give up your SOT status you either have to sell beforehand, torch to ATF Specs, or turn/transfer to police departments all your Post-sample guns. The rest transfers tax-free into your personal inventory (thats what the 500.00 tax is there for.. its pre-pays the transfer tax.. this is why people that use the SOT for personal reasons and not for business get busted for tax evaison and fraud)... ALL YOUR HOME BASED FFL's /SOT's do it for the fun of it. For the personal gain & to aquire NFA WITHOUT having to They just use the SOT's to make a little extra money on the side.. and the ATF is ok with this.. it does not have to be full time..)
Federal Paperwork requirements (State Rules Vary):
1. Every time an item moves (in or out of inventory, reguradles of reason) you will have to input that into your "Bound Book" also known as "Disposition Record".
2. Every time you make a sale you are REQUIRED to maintain the 4473 indefinetly. These forms DO NOT EXPIRE.
3. For EVERY sale except NFA you will have to make a telephone call to your State's NIC Check center. BEFORE the customer can take posession of the item.
4. There are no minimun sales requirement set. Thats up to the individual SAIC stationed in your local ATF Branch. You want to try VERY HARD to get as many sales as you can. You HAVE to make a decernable effort to attract and aquire business! You annual compliance checks they are looking for this...
5. You have to keep meticulous records in your Bound Book! They will nit-pick the $hit out of this! They will also inspect your filing system of your 4473's and other state required paperwork.
6. For your first couple years you can expect a few inspections a year. By not just the Feds, but the local authorities as well. And dont expect them to call ahead of time. If you're at your full time job, be prepaired to leave early to come home to let them in... (they CANNOT break into your home for this, you MUST be present).
7. Also be prepaied for them to be rude. They are doing this on purpose. They want to see how well you handle yourself with their afrontofness. Do NOT be rude back to them. Be sturn, but professional AT ALL TIMES. If they insult you ask them to leave. Its rather simple actually.. but a LOT to get right.
8. They do not expect a new FFL to have everything right the first time around. They will give you a lot of grief over your mistakes, but they generally will not make you talk to the magistrate unless its the same mistakes over a couple inspections. If you are attempting to do it right they will answer all questions you have. The interviews they give prior to the ATF inspections is the best time to pick their brains on proper paperwork handeling questions. Get on Brownell's and purchase their copy of the ATF Dealers Disposition Record/Bound Book.. Ask other FFL's in your area how they do theirs... most FFL's that you're friendly with will help you out... They also expect that you know a good deal on how to do this BEFORE you apply for your FFL.
Just my 2 cents. Doug
(p.s I cant spell fer crap, and I aint gunna worry about usen Microsuft Werd rite naw.)