How to Start a Cigar Kiosk Business
Starting any tobacco-centered retail business can be complicated, and a cigar kiosk is no exception. Tobacco products are regulated at a federal level by the Alcohol and Tobacco Tax and Trade Bureau (TTB). Individual states and local governments also regulate retail tobacco sales. Once you have decided that a cigar kiosk can be successful in your area, follow these steps to ensure you are in compliance with all state and federal regulations.
Other People Are Reading
Instructions
-
-
1
Register your business in the state you operate in. You need to file with your secretary of state or division of corporations. Check what forms you need to file with your state's Department of Revenue so you can charge sales, withholding and business tax.
-
2
Obtain an employer identification number if you have employees, are an LLC or operate under a corporate business structure. File form SS-4 with the IRS by mail or on its website.
-
-
3
File with the TTB online at its website if you plan to import cigars. You will also need to register for excise tax, which can be done at the TTB website. If you will only engage in retail operations, you do not need any TTB permits.
-
4
Contact the state agency that regulates tobacco products in the state you operate in. You will need to acquire any permits and tax certificates that are required. Also contact your local city hall and check if they have any additional permit or tax requirements.
-
5
Find licensed cigar wholesalers to purchase inventory from. Check with a number of different wholesalers and try to find the best possible prices. You can find wholesalers online or by using tobacco industry registries.
-
6
Evaluate locations for your kiosk. Find an area that is appropriately zoned for commercial business and is a high-traffic area. Check with your state government if any special vending licenses are required for running a kiosk.
-
7
Purchase humidors, cigars, cutters, matches, lighters and other accessories for your kiosk. You can purchase these items from tobacco industry wholesalers and specialty cigar companies.
-
8
Open a merchant account and purchase point of sale equipment so you can process payments. Merchant accounts allow you to accept credit and debit card transactions. Talk to your business banking specialist to set up an account.
-
1
Tips & Warnings
Aggressively market your business to bring in new customers.
Become an expert in all types of cigars.
References
Resources
- Photo Credit Creatas Images/Creatas/Getty Images
