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Your Step-by-Step Guide to Launching a Successful CBD/Smoke Shop in Texas

Starting a CBD/Smoke Shop in Texas can be a rewarding business venture, especially with the growing acceptance and legal status of hemp-derived products. This comprehensive guide is designed to help you navigate through the initial setup process, from obtaining the necessary licenses to stocking your shelves with products, setting up your physical space, and more.


Licensing and Registration

Obtaining a License In Texas, the Department of State Health Services (DSHS) manages the licensing and registration of consumable hemp products (CHPs) businesses. Depending on your business activities, you’ll need to obtain either a DSHS Retail Hemp Registration or a Consumable Hemp Product License.


DSHS Retail Hemp Registration is required if you:

  • Retail sell CHPs without making any changes to the product or its packaging.
  • Sell CHPs online without a storefront and make no changes to the products or packaging.


Registration applicants are not required to undergo an FBI fingerprint criminal background check. For the complete process, refer to the DSHS Retail Hemp Registration Guide (PDF).


DSHS Consumable Hemp Product License is required for activities such as:

  • Manufacturing CHPs, including preparing, compounding, processing, packaging, or labeling.
  • White labeling or private labeling CHPs.
  • Repackaging, labeling, or relabeling CHPs.
  • Selling CHPs in wholesale.


Both processes start on the DSHS Business and Professional Licenses webpage.


Setting Up Product Inventory with AWS Wholesale

AWS Wholesale is a distributor where new shop owners can get their inventory. The setup process involves:


Registration: Navigate to AWS Wholesale’s website and click ‘Register’ in the top right corner. Fill in your business name, email, and password. It’s crucial to use the email associated with your business for all correspondence and registration.


New Customer Form: Before placing your first order, complete the New Customer Form/Pact Act here to get approved. This step is necessary to access pricing and order capabilities.


First Order: Note that the first order must meet a minimum of $500. This initial investment is standard for wholesale purchasing to establish your inventory.


Setting Up Rack Space and Shelving Solutions

To efficiently display your products, setting up rack space and finding the right shelving solutions is vital. AWS Wholesale partners with National Wholesale Supply for display cases. You can contact their representative, Nipul Sangh, at 737-497-6457 for options that suit your store layout and product display needs.

Acquiring a Sign for the Building

A visually appealing sign can significantly attract more customers to your store. In Austin, Sign Expo Austin comes highly recommended for creating business signs. They are located at 10210 N Interstate 35 Frontage Rd suite 200, Austin, TX 78753. Contact them via email at [email protected] to discuss your signage needs.

Lease Assistance in the Austin Area

For those setting up shop in Austin, navigating the leasing process is crucial. Contact Rahim Kachchhi at 512-846-6000 or via email at [email protected] for leasing advice and services. Finding the right location is critical to the success of your CBD/Smoke shop, and professional assistance can provide invaluable insights into the best spots and deals.


Starting a CBD/Smoke Shop in Texas involves a series of regulated steps, from licensing to setting up your storefront. By carefully navigating the regulatory requirements, partnering with reliable suppliers like AWS Wholesale, and investing in your store’s physical appearance and location, you can establish a successful business in this growing industry. Remember, the key to a prosperous CBD/Smoke Shop lies in compliance, quality inventory, and an appealing shopping environment.

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