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Opening a Online Smoke Shop?

Discussion in 'General Business' started by m1ndless, Oct 10, 2009.

  1. #1
    Looking to see if anyone has any advice for opening a online smoke shop. I have wholesalers lined up, as well as local glass blowers.

    How do I go about taxes? Do I need to pay state taxes on the items I sell? Do I tax everyone or just people in my state who order?

    I hope to eventually open a actual retail store selling glass pipes, and get into making them myself as well.

    Do I need any type of licenses besides my states tobacco license?
     
    m1ndless, Oct 10, 2009 IP
  2. Traditione

    Traditione Well-Known Member

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    #2
    :) You're living the dream

    I'm going to take classes in the spring on how to blow glass. The art is absolutely fascinating.

    What I do know is that if you are looking to sell tobacco, you will need a license.

    As for tobacco use products, I'm not entirely sure you are required to have a license so you will want to triple check that. The ATF is not fun to cross.

    When you apply for your EIN for tax purposes, if you're making the business online to start, I'm pretty sure on the IRS page there is an area for businesses planning to provide tobacco products. Taxes in general in this regard are annoying, but not too complicated as a run through of your state's codes should answer most questions you have. Depending on the state you live, you might have additional or less taxes. Oh America...

    If you're buying glass, make sure it doesn't have lead in it. If you're buying glass from China, MAKE SURE IT DOESN'T HAVE LEAD IN IT.

    Stick to local and contacting more private/boutique suppliers/artists; wholesale is so cut and dry. Yes you will turn conversions and sales, but eventually even you will think your stock is stale.

    Oh, and make sure there is no mistake WHAT SO EVER that your products' only fathomable use is that of a tobacco utensil. No ambiguity is allowed here, no clever or tricky marketing trying to allude to something or another. Tobacco only.
     
    Traditione, Oct 10, 2009 IP
  3. 6speed

    6speed Guest

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    #3
    This is a very risky business

    If you send an item to a county that says it's illegal, you can go to prison. This is what happened to Timmy Chong from Cheech and Chong.
     
    6speed, Oct 10, 2009 IP
  4. averyz

    averyz Well-Known Member

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    #4
    Never know when you might end up on a DEA list and get your door kicked in and spend some time.

    I always hear hippies say “this law protects me blablabla.” Then they find them selves in the legal system and end up taking a plea bargin.
     
    averyz, Oct 10, 2009 IP
  5. rrbell

    rrbell Peon

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    #5
    Paraphernalia is a very risky business.
     
    rrbell, Oct 10, 2009 IP
  6. Rdkemp

    Rdkemp Peon

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    #6
    I would contact the ATF or talk to your local proecsutor... State laws vary to vary but selling over the Internet, you would want to make sure you comply with the federal laws.. and yes you are living the dream :) glass blowing is awesome. Got a friend local who makes glass pipes.. simply amazing to watch him do it :)
     
    Rdkemp, Oct 11, 2009 IP
  7. linkinpark2014

    linkinpark2014 Peon

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    #7
    no i think it's a good business and no you don't have to pay taxes maybe you gonna pay taxes for customers from your state only.

    and if you gonna start that and you need a partner I can help you in that.
     
    linkinpark2014, Oct 11, 2009 IP
  8. phpdoctor22

    phpdoctor22 Peon

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    #8
    You will need to get a business license and tax id. Make sure you put on your site that uses must ad here to local and state laws and you take no responsibility if the item is illegal in their country. You will only need to pay sales tax on items you sell in your own state and of course federal tax at the end of the year.

    Hope this helps.
     
    phpdoctor22, Oct 12, 2009 IP
  9. m1ndless

    m1ndless Peon

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    #9
    I have a EIN I am using for a hookah business, which is also tobacco related, can I use this EIN or do I need a new one?
     
    m1ndless, Oct 12, 2009 IP
  10. phpdoctor22

    phpdoctor22 Peon

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    #10
    I'm not sure what you mean by EIN, all I know is if your running a business in the USA, you need to go to your local tax collector get a business license and tax id. You will also need to sign up for a fictious name which can all be handled at the tax collectors office.
     
    phpdoctor22, Oct 13, 2009 IP
  11. InterMar

    InterMar Peon

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    #11
    PhxKarma, if I were you I'll take phpdoctor22 advice, I'm totally agree with doctor coz New Zealand is got the same kind of rules.
    6speed ,many thanks for the Webcons (icon package) link.Cheers.
     
    InterMar, Oct 14, 2009 IP
  12. m1ndless

    m1ndless Peon

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    #12
    Here you register your Tax ID online, I already have it.
     
    m1ndless, Oct 14, 2009 IP
  13. netdeveloped

    netdeveloped Peon

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    #13
    EIN is the federal tax id code in US....you kow the tax man wants to get paid too :[
     
    netdeveloped, Oct 14, 2009 IP
  14. Dylan73

    Dylan73 Peon

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    #14
    Hi PHX... Good luck with your new venture, hope it all pans out well for you.

    Are there any 'different' laws in selling your products as a gift?
     
    Dylan73, Oct 15, 2009 IP
  15. jackisback

    jackisback Peon

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    #15
    very risky business.
     
    jackisback, Oct 15, 2009 IP
  16. phpdoctor22

    phpdoctor22 Peon

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    #16
    It is not a risky business, tobacco is legal and so are pipes that allow people to smoke tobacco. You just need to do your research. Don't listen to a lot of these people as I can guarantee you 100% of them have never sold tobacco pipes
     
    phpdoctor22, Oct 15, 2009 IP
  17. Traffic-Bug

    Traffic-Bug Active Member

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    #17
    I would suggest meeting with a consultant attorney to know about the tax implications of how to collect tax on out of state orders. If you are going to make tobacco pipes yourself, even then you are going to need your own business license (which in your case is tobacco license).
     
    Traffic-Bug, Oct 15, 2009 IP