Class 3, SOT, and Why 'Class 3 Dealer' Is a Misnomer

You will constantly hear the phrase 'Class 3 dealer' in the NFA world. It is useful shorthand, but it is also technically a misnomer. What people mean is a firearms business that holds a Special Occupational Tax (SOT) status allowing it to deal in NFA items like suppressors and machine guns.

This guide clears up the confusion: what SOT is, what the three SOT classes actually are, and how SOT sits on top of an underlying FFL type.

This is general information, not legal advice; verify with the ATF or a qualified attorney.

FFL vs. SOT

An FFL (Federal Firearms License) authorizes the firearms business itself — dealing, manufacturing, or importing. The SOT (Special Occupational Tax) is a separate annual tax a licensee pays to deal in, manufacture, or import NFA items.

You need both: the FFL establishes the business, and the SOT adds NFA authority. A plain Type 01 dealer without SOT cannot commercially handle suppressors or machine guns.

The three SOT classes

There are three SOT classes, and they correspond to what the underlying FFL does with NFA items:

Class 1 is an importer of NFA firearms. Class 2 is a manufacturer of NFA firearms (who can also deal in what they make). Class 3 is a dealer in NFA firearms — buying and selling, but not manufacturing or importing.

Class 1 SOT: importer of NFA items
Class 2 SOT: manufacturer of NFA items (can also deal)
Class 3 SOT: dealer in NFA items

Why 'Class 3 dealer' is a misnomer

People say 'Class 3 dealer' to mean 'a shop I can buy a suppressor from.' Strictly speaking, 'Class 3' is a tax status, not a license, and a business is really a Type 01 (or 07) FFL that also pays the Class 3 SOT.

So a more precise description is 'an FFL with an SOT.' The everyday phrase persists because it is convenient, and most people understand what it means, but now you know the technicality.

How SOT relates to FFL type

The SOT class layers onto the FFL type. For example, a Type 07 manufacturer that pays the Class 2 SOT can make NFA items; a Type 01 dealer that pays the Class 3 SOT can sell them. A Type 08 importer with a Class 1 SOT can import NFA items.

This layering is why understanding FFL types and SOT together gives you the full picture of what a given business can legally do.

What this means for buyers

As a buyer, you simply need to find a dealer with the right SOT status to transfer an NFA item to you on a Form 4. You do not need your own FFL or SOT.

Our directory lets you filter for NFA-capable dealers so you can find one near you.

Frequently asked questions

Is 'Class 3' a type of license?

Not exactly. Class 3 is a Special Occupational Tax status, not a license. A so-called 'Class 3 dealer' is really an FFL holder (often a Type 01) that also pays the Class 3 SOT to deal in NFA items.

What is the difference between Class 2 and Class 3 SOT?

A Class 2 SOT is a manufacturer of NFA items (typically paired with a Type 07 FFL) and can also deal in what it makes. A Class 3 SOT is a dealer that buys and sells NFA items but does not manufacture or import them.

Do I need an SOT to buy a suppressor?

No. SOT status is for businesses dealing in, making, or importing NFA items. As a buyer, you just need to find an FFL with the appropriate SOT to transfer the item to you on a Form 4.

Which SOT class imports NFA firearms?

The Class 1 SOT covers importing NFA firearms, typically paired with a Type 08 (or Type 11 for destructive devices) importer FFL.

Last reviewed 2026-07-07.