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Getting and giving up and SOT 01 or 07, plus what's the deal when you let the license go with Post-Samples in the inventory.


daninnm

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I have the machines and tools, and now the time.  If I get an SOT 01 or 07 (and I have some bling-type MG parts kits for the movie business already - the stranger the better in the rental business!!!!):

What are my options to KEEP  or  DISPOSE of the post sample I BUILD after I give up the SOT

What are my options to KEEP or DISPOSE of post samples I BUY after i give up the SOT?

Do the Form 4 guns I already have go on the SOT license (they're in trust) or are they unaffected?

Just asking because health issues are just around the corner but I do want to build a few things I can rent to the film industry.  In this complex world, the background information turns out to be as important as the start up information.  Any pitfalls for applying for the SOT?  thanks for answering

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Unfortunately post samples will have to be sold to other manufacturers/importers when you drop your FFL/SOT. Whether you buy them or built them it doesn’t matter. Or they can be cut up into parts kits but the value on “no law letter” guns is pretty insane right now so I wouldn’t cut up anything.

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On 10/17/2021 at 11:54 PM, daninnm said:

What are my options to KEEP  or  DISPOSE of the post sample I BUILD after I give up the SOT

sell them, destroy them and sell parts kits, or give to the atf

What are my options to KEEP or DISPOSE of post samples I BUY after i give up the SOT?

you cant buy/keep post samples w/o a 07/SOT

Do the Form 4 guns I already have go on the SOT license (they're in trust) or are they unaffected?

form 4 guns stay on the individual form 4, you can move them to the FFL if its a sole proprietorship on a form 5 (not yours), otherwise each takes a tax stamp top put it into inventory.

 

There is no one and done with MGs, there is no cheap way to get them which sounds like you are trying to do.

You can make money with them but it takes a substantial investment plus all the taxes/fees/expenses per year adds up.

Edited by taylorwso
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5 hours ago, daninnm said:

not concerned about the investment; if i rent them, they'll pay for themselves. 

I was going to do that too until insurance cost. Now with ammo high as camel cock it would never pan out unless you could do huge volume.

good luck

If you concerned about the cost, manf MGs is cheaper than the semi versions in most cases.

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  • 3 weeks later...

Daninnm  saidt

What are my options to KEEP  or  DISPOSE of the post sample I BUILD after I give up the SOT

You cannot Keep them and actually you have 90 days from the time you notify you are giving it up 

 to dispose of them with No law letter required

to qualified SOTs and Non Qualified Sot's like  01s can get them with a law letter 

What are my options to KEEP or DISPOSE of post samples I BUY after i give up the SOT?

Same as the answer above 

Do the Form 4 guns I already have go on the SOT license (they're in trust) or are they unaffected

They dont have to go. you would pay $200 to transfer each one and the advantage is if you sell them ,

its a quick transfer like 7-14 days to a SOT on a form 3

as compared to a 3-6 month transfer on a form 4 to SOT.

Me personally, I would much rather buy from a SOT so it makes a sale way ,more marketable

 

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