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How Do CBD Oil Shops Get Licensed?

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The CBD industry is one of the fastest-growing markets in the USA and looks set only to grow further. It is, therefore, not surprising that an increasing number of people are looking to tap into the market while it’s so hot. 

There is definitely money to be made selling CBD, and the industry still shows no signs of slowing down. However, setting up a CBD store is no easy task and requires several licenses and research to get right.

Whether you’re looking to open a retail CBD store or a website that allows customers to buy CBD oil online, it is vital to know what licenses are required and the steps that must be carried out before selling to customers.

Knowing Which CBD Products Are Legal to Sell

The passing of the 2018 Farm Bill made it legal on a federal level to sell and use industrial hemp products. As part of the Farm Bill, CBD was removed from the list of controlled substances in the Controlled Substances Act.

The Farm Bill also changed the regulating body for CBD and other industrial hemp products from the Drug Enforcement Agency to the U.S. Food and Drug Administration (FDA). The change acknowledged the use of hemp products as health supplements and ensured that the industry could be regulated effectively.

The Farm Bill also set out precisely what is considered an industrial hemp product and what is not. The bill stated that all CBD and hemp products could not contain any more than 0.3% delta-9 THC in content.

Products that do contain more than 0.3% delta-9 THC are still regulated under the Controlled Substances Act and are illegal to sell and use on a federal level.

Many states have legalized the sale and use of THC products. However, due to being a state matter, the regulations and licenses required vary based on the state. The regulations are also very different from those needed to sell CBD products.

When setting up a CBD store, it is important to familiarize oneself with the laws and regulations to ensure that all products being sold are one hundred percent legal.

What Licenses Are Needed to Sell CBD Oil Products?

Two essential licenses need to be obtained before selling CBD oil products.

Firstly, a business license is required to be able to market and sell CBD products. There are several options to choose from, varying based on the state where the business is being run.

An LLC is the most common license for small businesses and typically costs around $100. Small business licenses are relatively easy to obtain and tend to be more of a form-filling process than anything else.

Secondly, a resale license is needed to set up a CBD store. A resale license allows CBD products to be purchased from distributors and wholesalers and resold. Resale licenses are managed at a state level, although the process is similar across the country.

Of course, a resale license is unnecessary for stores making their own CBD products. However, it is rare for new stores to be making their own products. Additional licenses would also be needed to make CBD oil products that can legally be sold.

Checking That Suppliers Have the Correct Licenses

When setting up a CBD oil store, one of the most critical steps is sourcing products and choosing suppliers that will deliver high-quality products that customers will love.

An essential step in the process of choosing where to source products from is checking that suppliers have the correct licenses and are conforming to regulations. Failing to take these steps and selling products that are not being made in line with regulations can have serious legal consequences.

Suppliers must have the necessary licenses to both manufacturers and distribute CBD oil products on a state level. If products are being sold across states, they must also have distribution licenses for this too.

Alongside licenses, manufacturers also have to conduct regular third-party testing of their products. Testing is used to ensure that all products being sold meet specific standards and that they are safe for customers.

All lab tests should be written up in a full report which distributors can show to CBD stores looking to buy their products.

Final Steps

Once all necessary licenses have been obtained and a certified supplier has been chosen, it is time to consider marketing.

Whether you’re setting up an online CBD site or a walk-in store, this is where the fun begins. It’s time to plan the small details that will make the store stand out and be an instant hit with customers.