How to Become an SOT (Class 3 Dealer)

There are three SOT classes, and the one you need depends on what you plan to do with NFA items. Each class pairs with a compatible license type.

• Class 3: a dealer in NFA firearms. This is the class most retail shops mean when they say they want to be a "Class 3 dealer," and it lets you buy and sell NFA items.
• Class 2: a manufacturer of NFA firearms, which also allows dealing in what you make and acquire.
• Class 1: an importer of NFA firearms.

Because the classes map to license types, the right move is to confirm your FFL supports the activity you want before you pay the tax. A dealer license generally pairs with Class 3, while manufacturing generally pairs with Class 2.

The SOT is an annual tax paid on ATF Form 5630.7. Once paid, your registration runs through the tax year and must be renewed to stay valid. The tax amount can differ depending on your class and the size of your business, so confirm the current figure with the ATF before you file. Do not begin receiving or transferring NFA items until your registration is confirmed, because handling NFA inventory without valid SOT status is a serious compliance problem.

Adding NFA business means adding recordkeeping. NFA transfers still require a completed 4473 on the non-licensee side, they still require an entry in your acquisition and disposition records, and they carry extra transfer paperwork on top. When those records live in separate tools, the odds of a mismatch go up right when the scrutiny is highest.

An integrated system like e4473 keeps the 4473, the sale, and the electronic bound book in one record, and it can maintain a dedicated NFA bound book alongside your standard one. That means an NFA transfer is captured once and reconciled automatically, so a new Class 3 line of business does not become a new source of inspection findings. See logging NFA items in the bound book for how those entries work day to day.