Congratulations on your new venture! Opening a smoke shop can be an exciting and profitable endeavor, and we’re here to help you get started the right way.
One of the first (and most important) items on your to-do list is to obtain your tobacco retail license.
Maintaining the proper licensure protects your business from fines and legal challenges — but applying for a tobacco retail license isn’t always straightforward. There are many different types of licenses and requirements in each state, and even some cities, and obtaining the right license can take time.
Keep reading for our step-by-step guide on how to find out your state’s requirements, apply for your license, and make sure your smoke shop is in legal compliance.
1. Start Early
Operating your smoke shop without the proper tobacco retail license can lead to hefty fines in some states — which certainly won’t make for a great grand opening.
That’s why it’s important to apply for your license well before you plan to officially open your smoke shop. In most states, the tobacco license application process itself is simple, but researching your area’s laws and waiting for your application to be approved can take time.
You’ll also need to give yourself time to put together the paperwork required for your tobacco retail license application, which may be a significant undertaking since you’re launching a new business.
2. Do Your Research
Before you can start the application process, you need to determine what type of license your state requires. Each state has a different set of laws regarding tobacco sales, and it’s critical to be aware of the ones that will apply to your business.
The CDC’s STATE System Licensure Fact Sheet is an excellent resource for seeing each state’s license requirements, as well as the state-specific fines and penalties associated with violations.
Once you’ve determined what type of license you need, get in touch with your state’s governing board to ask about any pre-application steps you’ll need to take before officially applying for your tobacco retail license.
To cover all your bases, you’ll also want to check if your city or county has any additional local license requirements for selling tobacco.
3. Apply For Your Tobacco License
It’s time to submit your tobacco retail license application!
Each state has a different application process, but the most common materials you’ll need are your business’ tax identification number, and proof of your business and home address.
Most states that mandate tobacco retail licenses also require you to pay a fee, which can be anywhere from $10 to hundreds of dollars.
4. Display Your License
Now that you’ve received your tobacco retail license, you need to display it so that the public can easily see it. This is a strict requirement in many states, and not having your license prominently displayed may result in a fine.
Make sure to check the applicable laws in your state or municipality to ensure that your license is located in the right spot in your smoke shop.
5. Stay in Compliance
Obtaining a tobacco retail license for your smoke shop is only one part of compliance with tobacco legislation. To keep your license in good standing, you need to make sure that your smoke shop is operating in full compliance with your state and local tobacco laws.
Here are a few examples of compliance requirements to maintain your tobacco retail license:
- Sell tobacco products only to customers who are of legal age (which is 21 in most states)
- Retain purchase invoices for your tobacco products for at least four years
- Be prepared to present purchase invoices or other requested documentation to authorities at any time
- Renew your tobacco retail license on time
Keep in mind that these requirements will vary from state to state.
Launching Your Smoke Shop the Right Way With Cigars POS
Your tobacco point of sale system is an invaluable asset for your smoke shop and can help you keep your small business in compliance with all tobacco regulations.
Cigars POS is an excellent option for smoke shop owners. Not only is Cigars POS an all-in-one, easy-to-use solution with features like advanced inventory management, but it also has features like built-in age verification that provide an extra layer of legal protection to your business.
Schedule a free demo of Cigars POS today to learn how our tobacco industry experts can help you open a successful smoke shop.
