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Step 1: Form Your Business Entity (Week 1) Register an LLC or corporation with the Texas Secretary of State ($300 filing fee) Get your EIN from the IRS (free, instant online) Open a business bank account Estimated cost: $300-$500 Step 2: Secure Your Location (Weeks 1-3) Research zoning before signing a lease confirm tobacco retail is allowed Check proximity to schools (most cities require 300+ feet) Negotiate your lease with contingency clause for permit approval Estimated cost: varies (first/last month rent + security deposit) Step 3: Apply for State Permits (Week 2) Texas Sales Tax Permit through Comptroller eSystems (free) Texas Tobacco Retail Permit through Comptroller eSystems ($180 for 2 years) E-Cigarette Retailer Permit if you sell vapor products (Form AP-242) $90 for 2 years with the tobacco permit, or $180 on its own FDA Tobacco Retailer Registration at FDA.gov (free) Estimated cost: ~$180-$270 Step 4: Apply for Local Permits (Week 2-3) City business license or registration (fee varies by city contact your city) Certificate of Occupancy ($50-$200) Fire inspection if required ($50-$100) Signage permit ($25-$150) File DBA if applicable ($15-$50) Estimated cost: $200-$800 Step 5: Set Up Your Business (Weeks 3-6) Get general liability insurance ($1,000-$3,000/year) Set up your point-of-sale system with age verification Create your employee age verification policy Write your employee training materials Step 6: Source Your Inventory (Weeks 4-8) Connect with licensed wholesale distributors browse verified Texas suppliers on SmokeAxis Verify PMTA compliance on all vape products Request COAs for any hemp-derived products Start with a focused inventory don't over-order before you know your market Estimated initial inventory cost: $15,000-$50,000 depending on shop size and product mix Step 7: Final Inspections and Opening (Weeks 8-12) Confirm all permits are approved and displayed Complete any required city inspections Post required signage (age verification, tobacco warnings) Train all employees on compliance Open your doors Total Estimated Startup Costs (Permits and Licensing Only) That's remarkably affordable compared to Illinois, where Chicago's city tobacco license alone runs $500 per location plus $330 per register annually, or New York City, where the state registration is modest but the flavor ban and compliance load raise the real cost