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Thread: Distributor Business

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  1. #1

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    For various reasons, I think this is a fairly difficult market to jump into. That being said, I would strongly caution you to pay attention to the legal issues -- set up an entity and shield your personal assets, figure out what licenses you need (and where) and pay your taxes. Under the auspices of consumer protection, I suspect a very large percentage of the states are going to attempt to regulate those who sell tobacco products. At a minimum, you'll need to look in what your state does to regulate tobacco distributors. Ignorance isn't bliss, and I know that in certain licensing contexts (automobile manufacturing and distribution) failure to obtain the required license and proceeding with a sale could be a misdemeanor and possibly a felony. It may be the case that states don't or can't regulate out-of-state distributors -- either way, you need to be certain of that.

  2. Default Re:

    Thanks for the information. I will be setting this up out of California and have looked up the necessary licenses in order to start up this type of business. I will look up regulations regarding selling to other states (i.e., Neveda might require me to meet their regulations in order for my company to sell tobacco to their residents via online).
    Nice heads up and Thank you!
    "Enjoy your Smoke"

    Mike

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