Securing a tobacco license seems simple enough, but this step is often a hurdle between new smoke shop owners and their grand opening plans.
If you can’t organize your paperwork and submit your application on time, you may have to delay your business’ launch — potentially costing you thousands of dollars.
Want to take the stress out of this process? We’ve got you covered.
This blog includes everything you need to know about how to get a tobacco license, including three mistakes to avoid and seven key steps to follow.
Opening a brand-new smoke shop comes with a lengthy to-do list. Between scouting locations, curating the perfect selection of cigars, and assembling a fantastic team, it’s easy to overlook the tobacco licensing process.
That’s why mistakes like these are so common:
Since you can’t open your doors without a tobacco license, making one of these mistakes can be disastrous.
To avoid them, you need a rock-solid plan to secure and protect your license. Let’s look at seven critical steps to follow.
What license(s) do you need? Your first step is to answer this question with confidence. Let’s look at some common license types at the state, federal, and local levels.
Federal
In general, the Alcohol and Tobacco Tax and Trade Bureau (TTB) doesn’t require tobacco retailers to obtain special licensure. However, you need a federal license if you plan to manufacture, import, or export tobacco products.
For example, if you’re planning to import cigars directly from Nicaragua or the Dominican Republic, you’ll need a TTB importer license to ensure you’re compliant with tariffs and regulations.
State
First, check with your state’s department of revenue (DOR) to see what licensure is required for tobacco retailers. You may have to get:
The CDC’s STATE System Licensure Fact Sheet provides a solid starting point for learning about your state’s requirements.
Local
Your county or city government may also require you to get additional licenses and permits before opening your tobacco shop. These requirements vary significantly from place to place, so check with your local government office before setting a grand opening date.
You know what kind of tobacco license you need — now let’s make sure you’re eligible to get it.
Here’s what most states require you to prove before accepting your tobacco license application:
These are just a few examples of tobacco license requirements, so do your research and prepare before submitting your application.
Applying for a tobacco license means that you’re committed to following state and local regulations regarding the sale of tobacco and vape products.
Before finalizing your business plan and submitting your application, make sure you’re prepared to follow these laws and protect your license eligibility.
Here are a few examples of federal, state, and local tobacco laws:
Let’s look at how these regulations look in a specific state, using California as an example. You have to:
Misunderstanding or failing to comply with these laws and regulations can be disastrous, especially for a new tobacco shop. We recommend consulting with a lawyer who specializes in tobacco retail law to create your compliance plan.
Pro tip: The right point of sale (POS) system makes it easier to prevent underage sales and stay compliant with financial and tax regulations. Look for one that includes built-in, scanner-powered age verification, as well as in-depth financial reporting specifically designed for the tobacco industry.
Now, let’s answer the question at the top of any new business owner’s mind: How much will this cost?
Tobacco licensing fees vary from state to state, but let’s look at some general estimates:
Don’t forget to factor in ongoing costs like a POS system with legal compliance features and tobacco retailer insurance.
Related Read: How Much Is a Tobacco License? [Costs & Criteria]
Applying for a tobacco license can be a stressful process, especially if you’re scrambling to gather the essential paperwork.
Want to make sure you’re prepared? Here are some of the most commonly required documents:
Having everything ready before you start the application process will prevent headaches and slowdowns.
It’s finally time to submit your tobacco license application!
Most states have an online application option. This is a preferred method for government officials and business owners because it’s quicker and easier to track.
However, if you can’t apply online, most states allow you to print your application and deliver it by hand or by mail.
Remember: Waiting for your application to be processed is one of the most time-consuming steps in getting a tobacco license, so apply as soon as possible.
Congratulations! Your tobacco license has been approved, and you’re ready to start making sales.
But the work doesn’t stop here — you need a plan to renew your license and keep it in good standing.
Immediately after receiving your license, note the renewal date and any associated deadlines. Mark these dates prominently in your business calendar and set up reminder systems well in advance of renewal deadlines.
Most states require you to renew your license every year or every other year. Some allow renewal applications to be submitted months in advance, while others have strict windows for renewal submissions.
Understanding these timelines ensures you never operate without a valid license.
Ready to turn your dream of owning a smoke shop into a reality? You know how to get a tobacco license — now it’s time to take the next step.
The right POS system can help you launch, manage, and grow a thriving business.
Cigars POS is our top pick for smoke shops, tobacco stores, and cigar lounges. This powerful, all-in-one software includes:
See these features (and more) in action by scheduling your live, personalized demo with one of our tobacco industry experts today.