Do You Need a License To Sell CBD?
NOTE: We are not attorneys, and we recommend you consult legal counsel to ensure you’re following federal, state, and local laws. The following is based on our experience in the CBD business.
In recent months, you’ve likely seen or heard about CBD products and the claims of their medical benefits on a range of health conditions. You’ve also probably heard many people asking questions such as “Do you need a license to sell CBD products?”, “How to sell CBD,” or “Is CBD legal all throughout the US?
CBD (cannabidiol), and the cannabis plant it’s derived from, have created a booming industry and a huge business opportunity for anybody interested in health, wellness, dietary supplements, and/or holistic medicine.
In fact, since last year, the growing awareness of the CBD industry has made it one of the most-talked about topics on social media.
While cannabis is still illegal to cultivate, sell and purchase in many US States, the story is different for CBD.
If you are interested in selling these hemp-derived products and you’re asking yourself do you need a business license to sell CBD, read on to learn more about the laws surrounding CBD and the cannabis industry.
We’ll help you understand state government lines and federal regulations and tell you what you need to do if you’re interested in selling CBD as a part of your business.
Is It Legal To Sell CBD?
The use of trusted CBD brands among, for example, professional athletes, and kids and teens with drug-resistant epilepsy speaks about these products’ legality. But make no mistake, we are referring only to verified brands that have less than 0.3% THC in their product lines.
It’s easy to get confused about the legality of CBD because the laws have changed rapidly in the past few years, and there are some very specific stipulations regarding the selling of CBD.
That’s why it’s important to know a little about where CBD comes from to better understand how CBD falls into the medical marijuana laws.
CBD is one of the many natural chemical compounds found in the hemp plant. Hemp is a variety of cannabis, though it is not a psychoactive plant like marijuana (which is also a variety of cannabis) is. This is because hemp plants contain only a trace percent of THC (tetrahydrocannabinol), which is the intoxicating substance found in marijuana, while both hemp and marijuana plants contain CBD.
Cannabis plants have been controlled under the Control Substances Act since 1970. However, the DEA has recently removed CBD from the controlled substance list and has held a public hearing regarding its regulation. Now, the last step the entire industry is waiting for is a guideline for CBD consumer products to be developed.
In the meantime, the US federal government considers products made with CBD extracted from hemp legal to sell in all 50 states, as long as they contain less than 0.3% THC in their content. Anything higher than the 0.3% THC is likely to cause a positive on a drug test. When wondering whether CBD is illegal, understand that if you’re selling a CBD product with more than 0.3% THC, you’re not complying with federal laws, and you’re vulnerable to legal trouble.
In many cases, as long as the CBD is sourced from industrial hemp as opposed to marijuana, it shouldn’t cross the 0.3% THC threshold. In other words, you must know the source of your CBD before selling it to your customers.
Do You Need a License To Sell CBD?
Ok, so we’ve answered the question of whether it is legal to sell CBD. But do you need a license to sell CBD or any sort of special documentation before you start retail sales?
It is important to note that some states and local jurisdictions now require a license to sell CBD. We would recommend that you familiarize yourself with the regulations in your state or seek legal counsel to ensure that you are 100% compliant with federal law.
If you plan to purchase your product from a wholesaler (read more about this below) and become a CBD oil products distributor, you’ll also want to get a resale license if that is a requirement in your state.
CBD is becoming increasingly popular, and adding CBD products for sale in your boutique, clinic, cafe, or practice can be an easy and profitable new income stream.
As long as you’re selling high-quality CBD products from a reputable source and stay compliant with any regulatory requirements for your state, you should be able to sell CBD.
Tips For Selling CBD
Once you know if you do indeed need a license to sell CBD, you are ready to move on to the next stage. Before you start selling just any CBD product, it’s important to follow the tips listed below.
Find What Works
As a business owner, you should find products your customers want. There are a lot of CBD products available, from oils and tinctures to edible products like gummies and capsules, and beauty products like creams or salves.
Each type of product has unique applications depending on what type of business you’re already operating. You may want to test a few different products first to see which ones appeal the most to your audience.
Stay Up To Date
Pay attention to federal and state laws. Because the laws surrounding cannabis are constantly in flux, it is important to stay abreast of the latest news. Though it’s legal to sell CBD in all 50 states, the law is intentionally vague.
The Hemp Farming Act of 2018 originally made CBD legal on a federal level. Still, it also allows local authorities and jurisdictions from each state to make their own rules regarding the selling and distribution of industrial hemp-derived CBD products.
Buy From a Trusted Source
Find a high-quality brand to partner with. If you’re ready to sell CBD products, you’ll want to sell products from a brand that both you and your customers can trust. This means doing research. Because everyone is so eager to jump on the CBD train, there are plenty of fake CBD products out there. These products contain little or no CBD or may make false claims about the benefits their products offer.
To avoid these scams, find a brand with a legitimate-looking website and plenty of information about whether their hemp production operates under the Farm Bill and what other ingredients they use.
Legit brands should make this information easy for you to find on their website. Buying from a legitimate brand can also ease your mind if you’re worried about accidentally selling products that are over the 0.3% THC threshold because they will test the THC levels in all of their products before selling them, and they will also display the CBD QR code on their package label.
Buy In Bulk
Go wholesale. If you are looking to scale your sales, partnering with a CBD wholesale supplier can be a smart and cost-effective option. You can even choose a local program such as CBD wholesale Colorado, CBD wholesale Texas, or Florida.
Ready To Sell The Best CBD Products?
CBD is a valuable and reliable revenue stream for businesses of all sorts, like high-end cafes, yoga studios, health food shops, spas, and, of course, online!
Sourcing your CBD products from a reputable and trustworthy brand can help you bring in new customers and keep your current customers coming back for more.
If you’re looking for a great brand to partner with or purchase from on a wholesale level, Opulent Organics is your one-stop shop for all things CBD. We sell a wide variety of products and will help you navigate the complicated and competitive CBD market. Enjoy low minimum order quantities, and a dedicated account specialist to guide you to success.
Opulent Organics takes pride in offering the highest-quality CBD products sourced from the finest USA hemp. We lab test all of our products to ensure that their purity, strength, and safety are always regulated and within our standards.
Our products contain 0.0% THC and are made from natural ingredients, so you know you’re getting the best. If you’re ready to get started selling CBD, contact us for more information.
If we’ve managed to answer questions such as ‘Do you need a license to sell CBD?’, “Is CBD illegal?”, or “Is CBD legal all over the US”, why not follow our blog for more up-to-date info on the CBD industry.
You might also like: