Did you know it is possible to legally manufacture and own machine guns, despite the ban on new registration of machine guns that has been in place since 1986? And did you know FFL123 can help you get the licenses you need to engage in that business?
With the addition of the infamous Hughes Amendment to the 1986 Firearm Owners Protection Act, the registration of machine guns under the National Firearms Act of 1934 ended, cutting off law abiding American gun owners, collectors, sport shooters, experimenters, inventors and hobbyists from acquiring any additional full auto firearms.
The Hughes Amendment was ramrodded through Congress, and did nothing of value accept to appease a certain segment of voters who conflated legally owned machine guns with contraband and bad 1980’s action movie cliches. Fast forward to the present day, and the few machine guns that are legally held have become insanely priced investment grade guns out of the reach of the average collector or sport shooter.
But there is a way you can still acquire post May 1986 machine guns! When you become a Special Occupational Taxpayer (SOT) you hold one or more special FFL’s that allow for importing, selling or manufacturing full auto firearms and other NFA devices such as silencers or short barrel rifles.
What Is An SOT?
The snarky answer is an SOT is a violation of our right to keep and bear arms, and we won’t argue that. But snark doesn’t put you in the business of selling silencers or building machine guns, while getting your SOT license will.
Once you have acquired a regular FFL, you can apply to be a SOT. There are three classes of SOT:
- Class I SOT. The Class I SOT is a licensed importer of NFA items. That allows you to import silencers, full auto weapons, short barrel rifles and other NFA items or parts that can only be used in those items. Of course there are even more regulations about what you can import, how it has to be done, and when you can do it.
- Class II SOT. The Class II FFL is a real fun one. It allows you to manufacture NFA items. Most class II SOT’s make silencers, short barrel rifles and shotguns, and destructive devices – things that can still be registered and sold. However, it also allows the manufacture of full auto weapons under certain circumstances.
- Class III SOT. This one lets you deal in NFA items. That means you can sell silencers, short barrel rifles and shotguns and other NFA items. Class III dealers are a rapidly growing industry with the increasing popularity of silencers and short barrel rifles/shotguns. You can also sell machine guns that were already registered prior to May of 1986 to private citizens if your state allows it, and full auto weapons made after that to law enforcement and government buyers.
Building and Dealing in Full Auto Weapons
Let’s say you’ve got a Class II SOT, and have all your zoning worked out, and are in business. Exciting isn’t it? Now you can build that select fire M4 you’ve always wanted, or rig your AK with a happy switch. While this is true, you still need to be in the actual business of making and selling NFA items, otherwise your FFL will get yanked the first time you are audited. The key here is you have to be actively in business.
You also can only sell full auto firearms you build to other Class II or III SOT’s, or government agencies. It’s probably a good idea to be making silencers, or short barrel firearms as well, because there is a large market among private citizens for them, while the market for full auto weapons is limited to government purchasers. But hey, if you’ve got that Class II, you might as well enjoy it along the way.
When you no longer maintain your Class II SOT, you have to destroy, turn over to the government or transfer to another SOT any full auto weapons you’ve built.
If you have a Class III SOT, you can acquire all the pre May 1986 full auto weapons you can legally get and afford. Or, if you have a written request to demo a particular type of full auto weapon from a local police department or other government agency, you can purchase what is called a dealer sample. The letter is called a demo letter, and after you allow the government agency to examine and try out the sample gun, you can keep it for as long as you stay in business.
Demo letters let you order full auto firearms from manufacturers, so if you have good contacts with local government, you can probably get some neat guns, and some good sales to boot.
Don’t Forget The Other NFA Goodies
While we cannot stress enough that you must be actively in business to maintain your SOT and the privileges that come with it, there is zero reason why you shouldn’t work that SOT for all it’s worth and get some full auto firearms if and when you can.
Because the full auto market is small, one of the best ways to maintain an active business as a Class II or III SOT is to make and sell other NFA items that can still be purchased by the general public. These include short barrel rifles and shotguns, destructive devices, AOW’s (any other weapon) and of course silencers. But what are these different NFA items and who buys them?
- Short barrel rifles (SBR) are any rifle with a stock and barrel under 16”. These are less popular now with the rise of pistol and wrist braces, but there are a great many people buying SBR’s.
- Short barrel shotguns (SBS) are similar to SBR’s, only they are shotguns with a stock and a barrel length under 18”.
- Destructive devices (DD) are a catchall for oddball guns, usually with bores larger than half an inch (although many sporting cartridges are exempted from this classification.) DD’s can include vintage WWII anti-tank rifles, modern 20mm rifles, and other unusual large bore firearms, as well as some crazy stuff like grenades and artillery.
- Any other weapons (AOW) are proof that the government needs neat little check boxes for everything. An AOW is a strange, strange world of things like pen guns, sword guns, briefcase guns, pistol grip shotguns or rifles with very short barrels and a vertical foregrip that were never built with buttstocks, or anything that doesn’t look like a firearm when it’s fired. A classic example of an AOW is the Serbu Shorty shotgun. AOW’s are unique in transferring on a $5 tax stamp instead of a $200 tax.
- Silencers are an important part of the NFA market. Legal in 42 states, and legal for hunting in 40, silencers are enjoying a wild resurgence as a new generation discovers the safety and convenience of shooting a suppressed gun.
Making and dealing in other NFA items is a great way to stay in active business and turn a real profit, so you can enjoy dealer sample machine guns.
FFL123 Puts These In Your Hands
We’ll make sure you get the SOT you want and deserve – guaranteed! With a 150% money back guarantee, there is literally no risk in getting your Class II or III FFL. Are you ready to enter the exciting world of manufacturing and selling NFA items? Want to get in on the still growing silencer industry? Do you have a machine shop and want to turn some extra cash in the slow season by making silencers or short barrel rifles, then why wait any longer?
FFL123 has tens of thousands of satisfied, happy customers, and a proven track record of success after success after success. With FFL123, you’ll be a player in the NFA game in no time flat!