Guidelines For Acquiring an E-Cigarette Business License

If you plan on opening a vape shop, there are many things you need to take into consideration. One of these is the licenses and permits you will need. These licenses and permits are essential because they will ensure your business is compliant with the state and local regulations, not to mention that often you’ll need to acquire them even before deciding on a location.

In today’s blog, we go over the guidelines for acquiring an e-cigarette business license and provide a broad overview of what you need if you plan on opening a vape shop in the United States.

Table of Contents

1. Do I Need a License to Sell E-Cigarettes?
2. What Licenses are Needed to Sell E-cigarettes?
3. Who is Not Eligible for Tobacco or E-Cigarette Business Licenses?
4. Guidelines for Acquiring an E-Cigarette Business License
5. Conclusion

Do I Need a License to Sell E-Cigarettes?

If you plan on opening up your vape shop in the United States, the answer depends on where you are. In the United States, as of June 15, 2019, 26 states require a specialized tobacco or vape license to sell vaping products. If you live in any of the following states, you will need a specialized electronic cigarette retail dealer license or tobacco license to sell vaping products:

• Alabama
• Alaska
• Arkansas
• California
• Connecticut
• Delaware (needs license only to sell e-liquid, not vape devices)
• District of Columbia
• Hawaii
• Indiana
• Iowa
• Kansas
• Louisiana
• Maine
• Maryland
• Minnesota
• Missouri
• Montana
• Nebraska
• New York
• North Carolina (need to obtain a license if they obtain their stock from outside of North Carolina)
• Pennsylvania
• Rhode Island
• Texas
• Utah
• Vermont
• Washington

What Licenses are Needed to Sell E-cigarettes?

Like any retailers, vape shops and vape dealers are subject to essential business licenses. But because electronic cigarettes and vapes are considered tobacco products, they’re also subject to local and state laws requiring tobacco sales permits. Since these licenses vary by state, county, and city, and there aren’t any federal laws that dictate specific license requirements, to find out what licenses you need to sell vape products and be vape certified, you must get in contact with your local or state government. 

Who is Not Eligible for Tobacco or E-Cigarette Business License?

Again, here this will vary by state, counties, and even cities, but if we were to use the Minnesota City Retail Tobacco Licensing Ordinance as an example, then the following reasons could all be used to deny a request for a license:

• Persons under the age of 21 are not eligible to obtain a license.
• Suppose the applicant has been convicted within the past five years of any violation of a federal state or local law, ordinance provision, or other regulation relating to licensed products. In that case, he is not eligible for a license.
• The applicant has had a license to sell licensed products suspended or revoked within the preceding 12 months of the application date; he is not eligible.
• The applicant fails to provide the information required on the license application or provides false or misleading information; he cannot obtain a license.
• The applicant is prohibited by federal, state, or other local law, ordinance, or other regulation from holding a license he is not eligible.
• The business for which the license is requested is a movable place of business. Only fixed location retail establishments are eligible to be licensed.

Depending on your state, eligibility requirements will vary, but this is a good starting point if you don’t know the eligibility qualifications needed to obtain a tobacco or electronic cigarette license.

Guidelines for Acquiring an E-Cigarette Business License

Remember that for each state, county, and city, the requirements will be different. But because cities and states tend to use models that have already been successful, we can again use the Minnesota City Retail Tobacco Licensing Ordinance as a model to see the possible requirements you might face. Some of these requirements include:

• Filling out an Application
• Enacting an Instructional Program
• Making Sure Employees Must be 18 or 21 Years of Age
• The Retail Location Should be Away from Youth Facilities
• The Retail Location Should be Away from other Licensed Retailers
• Retail Location Can’t Be a Pharmacy
• Fees Must Be Paid in Full
• There are Spot Available in the Licensing Cap

Filling out an Application

According to the Minnesota City Retail Tobacco Licensing Ordinance, one of the requirements is filling out your tobacco license application. To fill out the application, you will need the applicant’s full name, the applicant’s residential and business addresses, phone numbers, business name, and any other information the city requires to obtain the license.

Enacting an Instructional Program

One of the requirements at least of the Minnesota City Retail Tobacco Licensing Ordinance is to enact an instructional program that will educate your employees on how to properly sell tobacco products and the consequences that can arise if there are violations of the license requirements. The program needs to be approved by the local government or city, and you must keep records that demonstrate your compliance. 

Making Sure Employees Must be 18 or 21 Years of Age

A common requirement that states, counties, and cities have is that your employees must be of legal age, whether 18 or 21 depending on the local or state laws. 

The Retail Location Should be Away from Youth Facilities

Another requirement you will probably stumble upon is your retail location’s need to be away from youth-centered facilities. This includes schools, playgrounds, churches, colleges, and other institutions your state or city deems a youth-centered facility. Check with your local government if this is a requirement, and if it is, ask how many feet away from these facilities your retail location must be. 

The Retail Location Should be Away from other Licensed Retailers

Some states and cities might also require that to obtain a license. Your retail location has to be away from other licensed retailers. If the location you plan on using is close to other vape juice retailers that are already licensed, you might not be able to obtain a license. Again, this might not be a requirement in your state or city, so check with your local government. 

Retail Location Can’t Be a Pharmacy

Another requirement to obtain a tobacco license is that the business can not have a pharmacy located inside. This requirement seems to appear in many cities and states because, according to several studies, pharmacies that do not sell tobacco products (including e-cigarettes) see fewer health disparities within their communities. If you plan on opening a branch of a pharmacy/store like Walgreens and selling electronic cigarettes, you might not be able to obtain a tobacco license.  

Fees Must be Paid in Full

To obtain your license, you must have paid all the licensing fees. Once all the fees are paid, and you meet all the requirements, the license is yours.

There are Spot Available in the Licensing Cap

Finally, depending on your state, county, or city, there might be a licensing cap. This means that the state or local government has created specific licenses that can be acquired. If there is a licensing cap, you won’t obtain a permit if the city has already distributed all the requests. However, there will usually be a waiting list that will allow you to acquire a license if current license holders do not renew or have their licenses suspended.

Conclusion

Remember that this is a comprehensive overview of what states and cities require to obtain specialized electronic cigarette selling licenses. To get the information you need, you have to contact your state and local government to see the steps you need to take to obtain a license. You can also get an attorney who can guide you through the process of acquiring your tobacco license.