Tobacco Retailer License Question

[mrjerke]

Hi all!
Been a while since I've been on. Due to divorce was temporarily living in a new place with no smoking allowed. So very few pipes were enjoyed for a while. But happy to say I'm in a new place where the piping can resume! :D
I've long wanted to start a small online pipe tobacco sales business. Specifically specializing in some of the harder to find tobaccos. I've looked at obtaining a tobacco retailer license in my county. My question is if I obtain that, am I then able to buy direct from a wholesale company such as Arango?
Any thoughts or insight would be appreciated.
Hope the forum is still as fun as the old days! Look forward to posting again.

 

[pipesmokingtom]

Hi and welcome back! Usually to buy from wholesalers (in any business) you only need to prove that you are a retailer with a business license. Your business tax ID will usually be required since as the retailer, you'll be collecting the sales tax and the wholesaler will not be charging it to you.

 

[jaytex1969]

Are you in the U.S.?
ATF likely will have some jurisdiction.
I use all their fine products, but I don't know if I'd want them as a business partner...

 

[pipesmokingtom]

Oh yeah, Jay. I wouldn't be crazy enough to start a tobacco business right now, but more power to OP! Brave soul.

 

[woodsroad]

ATF is not involved with tobacco retail. Yet.
Your state may require a specific tobacco retailer license or tobacco sales tax certificate.
As for opening an online e-tail establishment specializing in hard-to-get products, what exactly do you have in mind? Hard-to-find products are hard to find because the supply is limited and the demand is high. Large retailers generally have priority from the distributors on those products. Some products that are already in short supply may not be available to new retailers. I would discuss these issues with the specific distributors before you get too far into applying for and paying for licenses and permits.
You will also want to do a very close examination of the existing online tobacco etailers and decide whether you can compete with them on a retail price basis. Most purchasing decisions are made based on price.
Finally, you will want to keep a very close eye on the FDA and how the Deeming Regulations will effect tobacco retailers.

 

[mrjerke]

I am in the US. I do understand the current state of affairs and regulations getting worse by the day.
As long as taxes are paid properly and state laws are followed, there should be no issues, no?

 

[woodsroad]

No issues as far as the government stealing confiscating seizing appropriating a percentage of your business proceeds? Correct.
As to your original question "...am I then able to buy direct from a wholesale company such as Arango?".

Only Arango can answer that. You should contact them.

 

[pipesmokingtom]

As for opening an online e-tail establishment specializing in hard-to-get products, what exactly do you have in mind? Hard-to-find products are hard to find because the supply is limited and the demand is high.

Maybe he's got a wicked-deep cellar of aged, hard-to-find blends. MAYBE he's the bastard that keeps buying out all the good stuff from Pipestud!!!

 

[mrjerke]

Maybe he's got a wicked-deep cellar of aged, hard-to-find blends. MAYBE he's the bastard that keeps buying out all the good stuff from Pipestud!!!

I do have a pretty decent cellar. Lot of hard work and making connections! Never could keep up with Peck though! lol

 

[pipesmokingtom]

Never could keep up with Peck though! lol

Yeah, that's a fool's errand.

 

[cosmicbobo]

Okay, as of this moment you're all on Double Secret Probation for attempting to form an illegal toby cartel. Justice will be swift and merciless unless you send me some Captain Black Grape, the new Penzance.