Have a Tax Question? Ask a Tax Expert
You will have to pay both state and federal excise taxes and that is what makes the cigarettes so expensive. If you don't pay federal excise tax the ATF will not be pleased. Also you will have to follow all the same laws that any other distributor in your state has. The marginal profit , if any, would be nominal. To set up the business you would simply incorporate and then seek out the appropriate licensure. Compliance and record keeping are key! I would suggest not doing this if you are unfamiliar with the industry as a whole. Please let me know if you need anything additional. If not please rate positive.