Selling tobacco means following strict rules, starting with the right license. Having a tobacco license allows your shop to operate under state and federal laws. Without it, you risk fines, shutdowns, or denied shipments — especially if you sell online or across state lines.
Whether launching a new storefront or expanding your current product line, knowing how to get a tobacco license depends on your location, setup, and how you plan to sell.
Here are four steps to help you get licensed, stay compliant, and protect your business from day one.
1. Check Your Federal, State, and Local Requirements
License rules vary depending on what you sell and where. Most tobacco retailers need to get approval at multiple levels.
Here’s how to get a tobacco license application started:
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Apply for a retail license: Register to sell tobacco products directly to consumers in store or online.
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Register for a wholesale permit: Sign up with the Alcohol and Tobacco Tax and Trade Bureau (TTB) if you manufacture or distribute tobacco to other businesses.
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Verify state licensing rules: Visit your state’s tax or licensing agency to see what permits you need — most states require a separate license.
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Confirm local permit needs: Contact your city or county clerk’s office to find out about local permits, signage requirements, or zoning restrictions.
Some states, like Massachusetts and California, also restrict flavored tobacco, limit where it can be sold, or require signs and display rules.
2. Register Your Tobacco Business
Your application won’t go far unless your business is registered and tax-ready. Here’s what to do to get your business set up the right way:
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Pick a business structure: Choose how you want to operate — sole proprietorship, partnership, Limited Liability Company (LLC), or corporation. Many tobacco retailers opt for an LLC because it offers liability protection without complicating taxes.
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Register with your state: File your business with your state’s Secretary of State. Not sure where to start? The SBA has a registration directory to help you find your state’s site.
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Get an EIN from the IRS: Your Employer Identification Number (EIN) is your business’ ID for tax purposes. You’ll need it for filings, licenses, and opening accounts. You can get one on the IRS EIN portal.
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Set up a business bank account: Bring your EIN and state registration documents to the bank and open a business account. This keeps your shop’s finances separate and clean, and some states may require it during the licensing process.
Getting this part right upfront means fewer delays when you’re ready to apply for your tobacco license, and a simpler path toward staying compliant long term.
3. Complete Your State License Application
Once your business is registered, you can apply for a tobacco retail license through your state. While requirements vary, most follow a similar process:
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Complete the application: Enter your business name, address, legal structure, and contact information.
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Submit tax ID numbers: Include your federal EIN and state tax ID for tax and licensing records.
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Pay the license fee: Cover the required retail fee based on your state. For example, in Texas, it costs $180 for two years, in Florida, the fee is $50 per year, and in California, it’ll cost you $265 per location plus local fees.
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Track your renewal date: Set reminders so your license doesn’t expire. Most states require annual or biennial renewals.
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Apply online if available: Visit your state’s tax or licensing website. For example, in California, use the CDTFA Online Portal.
Once you receive your license, post it near the checkout where customers and inspectors can see it — most states require it to be clearly visible.
4. Follow Age Checks and Daily Compliance Rules
Once your tobacco license is approved, you’re ready to open your doors.
But selling tobacco products comes with strict rules, and staying compliant is just as important as learning how to get a tobacco license in the first place:
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Scan customer IDs: Follow FDA guidelines by checking photo ID to verify the customer is over the age of 30. This applies to all tobacco products, including cigars, vapes, cigarettes, and smokeless tobacco. Make it a habit at every sale, whether you scan or visually verify.
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Avoid self-service sales: Only sell tobacco through staffed checkout counters if your store is accessible to underage customers. Vending machines or displays that allow self-service are usually off limits unless you’re in a 21+ establishment.
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Get an adult signature on deliveries: The PACT Act requires an adult signature at delivery if you sell online or ship tobacco. Make sure ID is verified when the product is handed off — no exceptions.
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Review state shipping laws: Some states restrict or ban direct-to-consumer shipping of tobacco products. Research local laws before fulfilling orders. States like New York, Connecticut, Maryland, and Arkansas have clear restrictions.
Compliance can be easier with the right tools. POS systems like Cigars POS can automate age checks, log regulated sales, and keep your records organized for inspections. That way, you obey the rules without extra paperwork or second-guessing.
How to Get a Tobacco License and Stay Compliant With a POS
Getting a tobacco license is just the beginning — staying compliant should be part of your daily routine. You’ll need to verify age at every sale, track inventory accurately, and keep records organized for audits and renewals.
POS systems built for tobacco retailers can take the pressure off maintaining compliance. With Cigars POS, you can scan IDs at the register, track products down to the SKU, and pull detailed reports whenever you need them for audits or license renewals. And being a cloud-based solution means that regular software updates to help you stay compliant are rolled out to your system automatically.
You can also manage staff hours, monitor sales trends, and see what’s selling and where — all from the same system.
Book a demo with Cigars POS to see how it can support your business with tools for compliance, sales, and day-to-day business management.
