Question for SOT's

[338weatherby]

I've got a question for those who are SOT's, with type 1 FFL. I've been current with my SOT for 6 years. However, I'm thinking of letting the SOT expire this July. My reason(s) are these:

• lack of sales on my end (nothing so far in the '25 tax year)
• competing with large online retailers with ship to home
• lack of digital finger printing in my area, and also competing with those that do

With the $200 stamp gone, there will be even more sales in my opinion online and through the large dealers which will make it even more difficult to sell enough to cover the $500/year tax. My question is, can I just keep my suppressors that were demo's in my FFL's name (book) without the SOT or should I transfer them to my NFA trust? From what I read, as long as I keep my FFL current, the suppressors can stay there. Looking for some opinions from anyone who's either done this or knows for sure. At some point before I pass, I'd have to either sell or transfer into the trust as the FFL business wouldn't be around. I just don't know if I'm missing any advantages one way or the other for the time being. At some point I guess I'll have to transfer to the trust so my family wouldn't have to deal with them when I pass. Hopefully I have a lot of time before that happens though being 50.

 

[biednick]

A legal entity can continue to possess anything transferred to it as long as the entity exists, excluding post samples but including presamples, regardless of license status. If you set up your business as a sole proprietorship you can keep everything once your SOT and FFL expire with no additional work. If you set it up as another legal entity (like an LLC) you can either keep that entity in existence after your license expires or transfer them to you/your trust on a form 4.

If you have any presamples you can't transfer them to yourself, so you'll have to keep the entity they were transferred to around if you want tp keep them.

 

[338weatherby]

A legal entity can continue to possess anything transferred to it as long as the entity exists, excluding post samples but including presamples, regardless of license status. If you set up your business as a sole proprietorship you can keep everything once your SOT and FFL expire with no additional work. If you set it up as another legal entity (like an LLC) you can either keep that entity in existence after your license expires or transfer them to you/your trust on a form 4.

If you have any presamples you can't transfer them to yourself, so you'll have to keep the entity they were transferred to around if you want tp keep them.

I'm a LLC, hindsight on that decision seems like sole proprietor would have made more sense maybe. I guess I can deal with the cans later as I will keep the FFL current for as long as I'm able. I guess I'll see what the next few months bring for NFA sales. Maybe there will be enough to justify the $500 still. I was just wondering how this explosion of new manufactures and sales will effect this market for small dealers.

 

[Little Church Mouse]

I've got a question for those who are SOT's, with type 1 FFL. I've been current with my SOT for 6 years. However, I'm thinking of letting the SOT expire this July. My reason(s) are these:

• lack of sales on my end (nothing so far in the '25 tax year)
• competing with large online retailers with ship to home
• lack of digital finger printing in my area, and also competing with those that do

With the $200 stamp gone, there will be even more sales in my opinion online and through the large dealers which will make it even more difficult to sell enough to cover the $500/year tax. My question is, can I just keep my suppressors that were demo's in my FFL's name (book) without the SOT or should I transfer them to my NFA trust? From what I read, as long as I keep my FFL current, the suppressors can stay there. Looking for some opinions from anyone who's either done this or knows for sure. At some point before I pass, I'd have to either sell or transfer into the trust as the FFL business wouldn't be around. I just don't know if I'm missing any advantages one way or the other for the time being. At some point I guess I'll have to transfer to the trust so my family wouldn't have to deal with them when I pass. Hopefully I have a lot of time before that happens though being 50.

MO you need legal advice from an attorney in your state that is competent in 2A/firearms issues and wills/probate involving such matters.

 

[338weatherby]

MO you need legal advice from an attorney in your state that is competent in 2A/firearms issues and wills/probate involving such matters.

I'm good with my NFA trust as well as my family trust regarding wills/probate. I was more curious about if there is an advantage to keep the suppressors in my business name or transfer to NFA trust now and if anyone else has done this will keeping their FFL and letting the SOT expire. Thanks