How to Become a Tobacco Distributor

The federal government includes cigarettes, cigars, pipe tobacco, roll-your-own and smokeless tobacco in its definition of tobacco products. All U.S. manufacturers of tobacco products must obtain a manufacturing permit through the U.S. Alcohol and Tobacco Tax and Trade Bureau. However, distributors of tobacco products are monitored through state government offices and are required to obtain a business license, a sales tax permit and follow state laws about what brands they sell.

Step 1

Call your state tobacco business licensing department and ask about the distributor licensing process. State governments control the licensing of tobacco distributors. The state where your primary business is conducted or where your home office is located is the state you should contact.

Step 2

Review the state's tobacco distributor requirements to make sure you and your products comply with state mandates. Mandates may include selling state-approved tobacco brands with the correct tax stamp affixed to the tobacco packaging. Tobacco stamps are available from your state government if you are a licensed tobacco distributor.

Step 3

Apply for a tobacco distributor's license through your state government. The licensing process will include providing information about your business, such as disclosing your federal identification number, your business street address and personal information about other business owners. You will also obtain a sales tax account so you can forward collected taxes to the state. State governments do not usually require a fee for obtaining a business license or a sales tax permit.

Step 4

Contact your local government offices and inquire about a business location license. Cities and counties may require you to pay for a business license to operate a business location within their boundaries. Fees are usually small, ranging from $25 to $50 annually.

Step 5

Contact the tobacco manufacturers your state allows you to distribute. Ask about purchasing in quantity as a distributor or applying to become a distributor. The manufacturer will ask for your state license number to verify that you are licensed to distribute tobacco.

Step 6

Contact the tobacco licensing department or board in every state you wish to distribute in. A license in one state may not allow you to distribute in neighboring states.

Tip

Cold-calling retailers or mailing discount offers to retailers are good ways to begin developing your business connections. Becoming a member and advertising with local, state, regional or national tobacco retailers associations is another way to network and build your business.

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Resources (3)

About the Author

Alex Burke holds a degree in environmental design and a Master of Arts in information management. She's worked as a licensed interior designer, artist, database administrator and nightclub manager. A perpetual student, Burke writes Web content on a variety of topics, including art, interior design, database design, culture, health and business.

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Monday, July 22, 2013