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NAICS 424940, industry

NAICS 424940: Tobacco product and electronic cigarette merchant wholesalers

NAICS 424940 is the industry code for tobacco product and electronic cigarette merchant wholesalers. Use it on loan applications, tax forms and registrations. Lenders price it on the business's own numbers rather than an industry program.

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What 424940 covers

This code covers wholesalers of cigarettes, cigars, smokeless tobacco and electronic cigarettes and vaping products, usually selling to convenience stores.

Included in this code

  • Cigarette and cigar wholesale
  • Smokeless tobacco
  • Electronic cigarettes and vape products
  • Tobacco distribution to convenience stores

Not this code

Businesses that use 424940

Convenience store distributorCigar wholesalerVape products distributor

Financing for this trade

Tobacco distributors need sizable lines to prepay excise tax stamps, plus bonding and delivery fleet loans. Lenders scrutinize licenses, tax compliance and the regulatory outlook for vaping products.

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Is 424940 the right code for a tobacco and vape distributor?

Yes, if cigarettes, cigars, smokeless tobacco or vaping products are your main wholesale lines, sold to convenience stores or smoke shops. Retail vape shops use 459991. If candy and snacks dominate sales, 424450 may fit better. The closest alternatives are 424450 (confectionery merchant wholesalers) and 459991 (tobacco, electronic cigarette, and other smoking supplies retailers). Use whichever matches your largest revenue stream, and keep it consistent across tax filings, SBA forms and lender applications.

What is the SBA size standard for 424940?

The SBA size standard for 424940 is 250 employees. SBA counts the average number of people on payroll, full time, part time and temporary, over the last 24 months, and adds in any affiliates. A tobacco and vape distributor under that headcount counts as small for SBA 7(a) and 504 loans and for federal small business contracts, whatever its revenue.

Why do tobacco distributors need large credit lines?

Cigarette tax stamps are bought up front, so cash goes out well before stores pay. Distributors use lines of credit, surety bonds for state tax obligations and truck financing. Many lenders limit vape exposure, so mixed product lines and strong tax compliance records help.

What does NAICS 424940 cover?

Tobacco product and electronic cigarette merchant wholesalers. Industry level code in NAICS 2022, under 42 Wholesale trade, 424 Merchant wholesalers, nondurable goods, 4249 Miscellaneous nondurable goods merchant wholesalers, 42494 Tobacco product and electronic cigarette merchant wholesalers.

What financing do NAICS 424940 businesses use?

Term loans, lines of credit, SBA loans and working capital are the usual products. Start an application and the AI matches the deal to lenders that fund this code.

Where do I put NAICS 424940?

On the SBA loan application, on federal Schedule C or Form 1120, on SAM.gov and state registrations, and on most lender applications. A business can report more than one code; use this one if it describes what produces most of your revenue.