Hello to all,
I'm helping a couple of friends of mine get an internet dropshipping site off the ground and I had a few questions about legal issues. Personally I know nothing about dropshipping, I'm just the website designer but these two are coming to me with all sorts of questions about what kind of products we are going to carry and I have no idea what to tell them.
They are thinking about adding tobacco products (cigars, cutters, lighters, etc...) to the site and I need to know if we are required to have a Tobacco dealers license for the starte of Texas? Also what kind of issues are there with state/federal taxes since these will be shipped from a company in Virginia?
Another question along these lines involves adult products (toys, oils, romance kits, etc...). Again are we required to have an adult dealers license?
One more.... what can we do to insure age verification for all of these products?
Thanks!,
Trickcoyote
Clueless admin in Texas
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Legal issues with Dropshipping
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They are thinking about adding tobacco products (cigars, cutters, lighters, etc...) to the site and I need to know if we are required to have a Tobacco dealers license for the starte of Texas? Also what kind of issues are there with state/federal taxes since these will be shipped from a company in Virginia?
I can only respond to the tobacco issue. Most cigar sellers are staying away from internet sales because "they" are watching them closely because of the age disclosure. After attending the RTDA, where the major manufacturers of cigars sell, they either have their own site or distributors, but don't find the need to sell this way. Most stores, hotels, restaurants that carry cigars know where to go for product. But the accessories can be easily sold without a problem.
As far as special licenses, you could find that ...
http://www.window.state.tx.us/taxinfo/s ... iness.html
http://info.sos.state.tx.us/pls/pub/rea ... sch=O&rl=Y -
ArtBroker,
OK, I kind of figured as much. I'm pretty familiar with the retail licensing requirements for selling tobacco in Texas, I just wasn't too sure about shipping it across state lines or having a third party do it for us.....guess I'll do a bit more research. I know the ATF has been keeping a close watch on sites selling stuff like that. I've had to deal with the ATF before and I'd rather not do it again (different job...different subject...)
So I guess I'll just tell these two to hold off on selling that sort of thing until they have a bit more experience.
Thanks,
Trickcoyote
Clueless Admin in Texas -
Here is a show your "people" may have an interest. But if I read your post correctly, do they want to buy product? Lots of seminars, and a wide range of products. Check it out. There are some major cigar and cigarette manufacturers exhibits. Fuente, Davidoff, General Cigar, RJR Tobacco Company.
Las Vegas Convention Center for March 29 – 31, 2005.
* Show Specials
* 400+ Exhibit Booths
* 3 days of Business Building Seminars
* Network ing Opportunities
* Special Promotions
The show will provide a new pavilion featuring candy/confections, snacks, and general merchandise.
http://www.natoexpo.com/index.asp -
Taxing online tobacco sales is becomeing a huge issue here in Pannsylvania. (Of course we're known as the land of taxes so it's not surprising)
NYC already took preliminary steps to collect taxes. Here's a link to an article about it. You can find a lot more info if you Google.
http://www.cnsnews.com/ViewNation.asp?P ... 0117a.html -
oops...make that PENNsylvania.
sorry -
This show will have the people who can answer all those kind of questions as well as to buy direct. No middlemen. Plus all the accessories will be exhibiting.
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