Do You Need A License To Sell CBD Oil

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Do you need a license to sell CBD? Whether or not you need a license to sell CBD depends on the state in which you live. CBD products are used to treat anxiety, stress, and pain. There is no doubt that you can make a great profit selling CBD products. But how do you get started?

Do You Need A License To Sell CBD Oil

Today’s question is: “Do you need a license to sell CBD”?

Whether or not you need a license to sell CBD depends on the state in which you live.

Generally speaking, every state has its laws, and there is also the Federal Law to be considered.

This can be a bit troublesome when you need to make a business decision.

Luckily, each state has its own governmental websites where you can get this information.

Alternatively, you can read this article and make sure you need a license to sell CBD in your home state.

We will list all US states and how they address this matter.

Legal Status of CBD in Each State

Legal Status of CBD in Each State

Do you need a license to sell CBD in Alabama

The state laws say that you’re able to sell CBD products as long as they’re derived from hemp. In 2019, the plant was grown in this state for the first time after several decades. Nowadays, you don’t have to be a researcher to utilize hemp, but you can also get a commercial permit to grow and sell it.

Do you need a license to sell CBD in Alaska

Before you can start selling or marketing medical cannabis in this state, it is necessary to register your company with The Alaska Department of Natural Resources or DNR. The plant has been legal since 2018, when the government passed Senate Bill 6. This was initially a pilot program that would allow the plant’s growth, but nowadays, everyone can do it for commercial purposes.

Do you need a license to sell CBD in Arizona

Medical cannabis is entirely legal in this US state. According to some agricultural experts, the plant will soon overtake some of the more traditional crops, such as cotton. Keep in mind that, whether you’re selling seeds or flowers, you will need to have an appropriate license in this state.

Do you need a license to sell CBD in Arkansas

Like most other countries, Arkansas has controlled CBD substances for a long time. But today, you can sell it freely without any permit or registration. But, before you do so, you will need to get an appropriate license from the Arkansas Department of Agriculture. You don’t need a doctor’s prescription for hemp products, but you will need one for medical marijuana.

Do you need a license to sell CBD in California

As you well know, California is one of the more liberal countries when it comes to cannabis in general. You can use recreational cannabis, and you can also produce and sell cannabidiol items without any restriction. But, you cannot label these products as “food” or “beverage.” Perhaps the only limitation to growing hemp in California is that DEA licensed laboratory has to check it beforehand.

Do you need a license to sell CBD in Colorado

Like California, Colorado is very liberal when it comes to cannabis and other products. The state allows cannabidiol products, infused food, and drinks. The great thing about Colorado is that people can grow this plant in their backyard without any restrictions. This is why there are so many hemp companies located in this state.

Do you need a license to sell CBD in Connecticut

You can buy CBD in Connecticut and use it without any legal problems. Like some other states on the list, you require a grower’s license from Connecticut’s Department of Agriculture. You can get these products from other states and transport them to Connecticut as a consumer. If you wish to transfer raw hemp into a consumable, you will need a special consumables license.

Do you need a license to sell CBD in Delaware

Delaware is one of the first US states that allowed the use of medical cannabis. Since 2014, people can use CBD items without any issues. You don’t need a license or prescription, and it is relatively easy to get ahold of it. The state also covers various costs associated with high-CBD medical products.

Do you need a license to sell CBD in Florida

Hemp products became legal in Florida on July 1st, 2019. While the state of Florida permits cannabidiol use, there isn’t a proper legal framework that would define various situations. Still, if you’re caught with medical cannabis, you won’t face jail time. If you’re making CBD consumables, they are registered as foods, which is why you will need to get a food establishment permit.

Do you need a license to sell CBD in Georgia

Generally speaking, you can use CBD products in Georgia. However, they need to have less than 5% THC content. Starting a farm in this state is not that easy. Like in most other parts of the US, you will need a grower’s license. The license costs $50 per acre cultivated, and the total free can go all the way up to $5,000.

Do you need a license to sell CBD in Hawaii

According to Hawaii state law, patients cannot use cannabidiol substances without a proper prescription. Since August 27th, 2020, and with the introduction of Act 014, you can now grow the plant as long as it’s in according to the US Department of Agriculture (USDA) Domestic Hemp Production Program.

Do you need a license to sell CBD in Idaho

Initially, Idaho was very restrictive for CBD products. Every cannabidiol product that was sold in this state couldn’t have any THC. Furthermore, it could only be extracted from mature hemp plants. In fact, it is the last state to legalize the substance. Nowadays, you can use CBD with up to 0.3%, similar to you in other states.

Do you need a license to sell CBD in Illinois

The state of Illinois permits medical marijuana without any special designations. Whether you’re a farmer, a university member, or a part of the Department of Agriculture, you can grow these plants while following certain limitations.

Do you need a license to sell CBD in Indiana

The state of Indiana permits medical marijuana without any special designations. One exciting thing about this state is that you can only grow industrial hemp commercially. In other words, it cannot be used for research purposes. This is a pretty unique provision setting Indiana apart from other American states.

Do you need a license to sell CBD in Iowa

If you wish to sell medical marijuana in Iowa, you will need an appropriate dispensary license issued by the state government. According to Iowa law, hemp growers are advised to do their research before starting a hemp business. The government recommends that hemp entrepreneurs should perform market research before investing in seeds and equipment.

Do you need a license to sell CBD in Kansas

Similar to Idaho, Kansas allows its citizens to use medical marijuana but with a twist. The products cannot have any THC. But, in case of a severe medical condition, the patients can use cannabidiol products with up to 5% THC

Do you need a license to sell CBD in Kentucky

People in Kentucky can grow and sell medical cannabis and hemp. Again, you will need an appropriate license to do this business. But, the law clearly states that this is subject to a change. Kentucky hemp farmers use more than 30,000 acres for hemp cultivation.

Do you need a license to sell CBD in Louisiana

Louisiana has a law that allows the use and sales of CBD products, although the products cannot have more than 0.3% THC. Like many other states, Louisiana legalized the plant by introducing the 2018 Farm Bill. Nowadays, it has its own state-run program that regulates every aspect of plant growing, sales, distribution, and consumption.

Do you need a license to sell CBD in Maine

It is essential to note that this US state doesn’t allow sales of cannabidiol products if a company presents false or outrageous medical claims. In fact, the companies should refrain from making any claims whatsoever. Every individual in Main can grow up to 3 hemp plants for their own consumption as long as they have less than 0.3% THC content.

See also  CBD Oil Regulations

Do you need a license to sell CBD in Maryland

Maryland allows sales and use of medical marijuana. However, there are some limitations on where the plant can be grown. For example, a manufacturer should be at least 1,000 feet away from a school or a park. For a person to grow the plant, they need to partner with an institute of higher education or the Maryland Department of Agriculture,

Do you need a license to sell CBD in Massachusetts

the Massachusetts Department of Agricultural Resources regulates CBD use in the state. Although patients can use the product, there are a lot of restrictions. For example, cannabis companies cannot make any medical claims or sell CBD-infused food. The farmers in this state cannot feed their animals with hemp, nor can it be used unprocessed.

Do you need a license to sell CBD in Michigan

Michigan has very liberal cannabis laws. If you want to use a CBD product, you don’t even need a medical card. But, if you wish to grow the plant, you need to be registered with the MDARD Pilot scheme. Furthermore, a farmer needs to properly mark the area for hemp growing to know which parts of the property are for growing and which ones are off-limit.

Do you need a license to sell CBD in Minnesota

The state has allowed the use of cannabidiol since 2018. They started their legalization with a pilot program that went from 2016 to 2020. It was meant to explore various aspects of hemp growing and consumption. Eventually, the state officials approved the growing and use of the plant on May 6th, 2021, by introducing the Minnesota State Plan.

Do you need a license to sell CBD in Mississippi

cannabidiol products can only be used for medical treatments. Furthermore, cannabidiol hemp oils are under constant supervision. If you wish to get a growers license in this state, you will have to apply for it via the United States Department of Agriculture. Keep in mind that marijuana is still illegal in Mississippi.

Do you need a license to sell CBD in Missouri

CBD products can only be used for epilepsy. A patient needs an appropriate medical card to use these items. Alternatively, the plant can be grown for research purposes but not for personal consumption.

Do you need a license to sell CBD in Montana

Using CBD items is tricky in Montana. No laws regulate this subject, and although the substance isn’t allowed by the law, it also isn’t forbidden. According to state law, hemp is categorized as an alternative agricultural crop. The exciting thing about Montana is that it has the largest hemp crop in the country exceeding 50,000 acres.

Do you need a license to sell CBD in Nebraska

The state no longer regulates hemp and hemp products. Previously, they were on the list of forbidden substances, but this is no longer the case. If you wish to grow the plant in this state, you need to get a Nebraska Department of Agriculture license. Alternatively, you will have to get it from a local Tribe. If you don’t have the document, cultivation, and sales of hemp will be regarded as an illegal act.

Do you need a license to sell CBD in Nevada

You can sell cannabidiol products except for CBD-infused food. The state has legalized the plant back in 2015, but only for research and pilot programs. In time, CBD products became completely legal. In order to grow it, you will need both a state hemp license and a local business license.

Do you need a license to sell CBD in New Hampshire

Similar to Nevada, CBD is legal unless it is present in food. Keep in mind that the law doesn’t clearly define hemp. Because of that, there is no limit as to how much hemp-derived substance you can possess. You can use all cannabis products regardless of their CBD or THC content if you have an appropriate medical card.

Do you need a license to sell CBD in New Jersey

cannabidiol products are legal in the state of New Jersey. In fact, this is one of the first three states to have hemp cultivation approved by the USDA. Before buying or possessing hemp seeds, you will need to sign a Growers Licensing application.

Do you need a license to sell CBD in New Mexico

Since 2019, companies and individuals can sell CBD items of every possible type. The great thing about New Mexico is that you don’t need a license to sell pre-packaged CBD and other hemp items. On the other hand, if you’re a plant grower (refers to any plant), The New Mexico Plant Protection Act requires you to be licensed.

Do you need a license to sell CBD in New York

Generally speaking, the state of New York allows sales and use of cannabidiol products. On December 9th, 2019, the state has legalized the plant. However, there isn’t appropriate legislation regarding CBD edibles. If you wish to get a proper license, you will have to go through New York State Cannabinoid Hemp Program.

Do you need a license to sell CBD in North Carolina

Today, you can use any CBD product in this state except for smokable hemp. North Carolina growers have a significant advantage over other states as they don’t need a license to start their business. But, you need a license if you wish to sell living hemp plants.

Do you need a license to sell CBD in North Dakota

The only way you can use the substance is if a registered cannabis company makes it and it has less than 0.3% THC. Cannabidiol is still on the list of controlled substances. On the other hand, if you wish to grow the plants yourself, you will have to apply for a license before buying any plant propagation material (hemp seeds).

Do you need a license to sell CBD in Ohio

Since 2019, you can use hemp CBD products without any legal ramifications. The state doesn’t allow the growth of strains that have more than 0.3%. If such a plant is found on your property, you are legally obliged to destroy it. Because of that, farmers in this state are somewhat reluctant to start growing hemp.

Do you need a license to sell CBD in Oklahoma

Oklahoma has some of the most complex cannabis laws in the country. The state emphasizes proper labeling; a company has to provide lots of data regarding used CBD. The Oklahoma Department of Agriculture, Food, and Forestry supervises everything regarding this plant.

Do you need a license to sell CBD in Oregon

Oregon is one of the largest producers of cannabis in the US. In fact, they were among the first state to license its production. According to predictions, this plant might become the number one agricultural commodity in the new few years due to increased hemp popularity within the state. However, CBD items have to be tested in the designated Oregon lab when it comes to CBD items.

Do you need a license to sell CBD in Pennsylvania

The patients can use hemp products in this state. Things are a bit complicated for cannabis cannabidiol items that need to be processed by the regulatory bodies. Luckily, things are getting a bit better for farmers. From 2021, all hemp processors and growers can apply for a license that would allow the cultivation and processing of the plant.

Do you need a license to sell CBD in Rhode Island

The processing and production of industrial hemp became legal in Rhode Island on January 1st, 2017. You can sell and use CBD products with a low percentage THC at your leisure. Items that have high THC content have to be sold via cannabis dispensaries. Besides paying an application fee to open a dispensary, a hemp entrepreneur will also need to enter a lottery that would allow or prevent them from doing this business.

Do you need a license to sell CBD in South Carolina

CBD products have been legal since 2017. There aren’t proper laws covering the use of raw hemp and its byproducts. If you wish to grow the plant, you will need proof of residency, pay the application and permit fee, and perform a criminal check.

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Do you need a license to sell CBD in South Dakota

Until recently, all cannabidiol items, as well as cannabis-derived products, were illegal. This all changed in 2021 when the state finally legalized the plant. Businesses will need to get a license from the appropriate state body to cultivate, distribute, and sell hemp products.

Do you need a license to sell CBD in Tennessee

As long as your products have less than 0.9% THC, you can sell drugs in this US state. Tennessee has allowed the use of medical cannabis since 2015. Furthermore, you can use the plant for other industrial purposes, such as making ropes, fabrics, and construction materials.

Do you need a license to sell CBD in Texas

There are many different laws meant to regulate the Texas cannabidiol market. For example, state officials are apprehensive about their hemp crops and proper labeling. Although you can use CBD products and sell them via dispensaries, they cannot have any THC in them.

Do you need a license to sell CBD in Utah

You can grow and buy medical cannabis in Utah since 2018. You will need an appropriate license from the Utah Department of Agriculture to cultivate the plant. A consumer has to get educated regarding these products as laws vary based on the production method applied to create a hemp substance.

Do you need a license to sell CBD in Vermont

You can grow and buy medical cannabis. According to the Vermont law, hemp is an agricultural product that you can grow as a crop, produce, possess, and commercially trade within the state borders.

Do you need a license to sell CBD in Virginia

Like, in many other US states, it is possible to sell CBD products in Virginia. But, you cannot add the substance to food. The law refers to pre-rolls, cigarettes, and oils, but it isn’t applied to edibles. This is a common cause of confusion among consumers.

Do you need a license to sell CBD in Washington

Similar to Virginia, Washington authorities allow medical marijuana but don’t let them use cannabidiol in food. This is one of the first states that permitted sales of marijuana and hemp together.

Do you need a license to sell CBD in West Virginia

CBD is legal in the state. The government officials are doing their best to improve the internal medical marijuana market. A great thing about this state is that regular retail stores can sell hemp without a license. As long as a product is below 0.3% THC, there is no limit as to how much you can use it.

Do you need a license to sell CBD in Wisconsin

The patients living in this state can use CBD oil with an appropriate medical certificate and card. Growers will need to have a proper license and pay for annual registration issued by DATCP.

Do you need a license to sell CBD in Wyoming

You can buy, sell, grow, and hold hemp and hemp products on your person. The first hemp was enacted in 2020, and since then, the state has been making significant strides in empowering the local hemp market.

Conclusion

We hope we answered this article’s question, “Do you need a license to sell CBD?”

There are some differences between the state laws, but generally speaking, most of the states allow CBD use as long as it is controlled.

Some states are very restrictive when it comes to cannabis-infused food.

Anyway, it seems that the general consensus is to allow the growth and selling of medical marijuana.

These laws will improve as time goes by, and we will probably see a more integral, more wholesome CBD market.

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Do You Have To Have A License To Sell CBD?

CBD products are used to treat anxiety, stress, and pain. There is no doubt that you can make a great profit selling CBD products. But how do you get started? Do you have to have a license to sell CBD?

You do not need a license to sell CBD products. However, you must form a business such as an LLC and acquire a resale license if you purchase CBD products from wholesalers. You can legally sell CBD if the oil is sourced from industrial hemp and the THC content of the product is below 0.3%.

Let’s explore the sale of CBD and the requirements to sell these products legally. Learn more about the top three states where the sale of CBD products is skyrocketing, and understand some key factors regarding starting a CBD business. There are important rules and regulations CBD sellers must abide by to run their business smoothly.

Table of Contents

Do You Have To Have a License To Sell CBD?

It is legal to sell CBD products without CBD-related licenses. However, businesses are still required to obtain a business license, and, if you plan to purchase CBD from wholesalers, you need a resale license. These two licenses are mandatory whether you have a walk-in or an online store.

Prospective CBD sellers must research the requirements of selling CBD products since the regulations can vary, depending on the state. However, the sale of CBD hemp products is legal if you comply with the rules and regulations as set out in the 2018 Farm Bill regulations.

Hemp-extract CBD products should contain no more than 0.3% THC. CBD products with more than 0.3% THC are considered to be marijuana and possession of them is a federal crime. [1]

States With the Most CBD Sales and How To Get the Licenses

It cannot be stressed enough that there is a big market for CBD, and businesses selling these products are growing and expanding daily to accommodate their customers. California, Florida, and New York are the states with the most cannabidiol sales in the US. [2] Here is how you can acquire a license to sell CBD in these three states:

How To Get a CBD License in California

It is mandatory in California to acquire a state license (which allows you to run a CBD establishment) before operating a CBD business. The state also requires approval from your local jurisdiction or proof that you received a Conditional Use Permit. [3]

If the local jurisdiction forbids trading cannabis, it will not provide the licenses. Knowing the state laws and regulations is necessary since they often change, so make sure you obtain the correct permits and licenses if you want to sell CBD in California.

After implementing the 2018 Farm Bill, California instituted the AB 228 Bill, which affirms the legal status of hemp-derived cannabis and CBD without limitation. Nevertheless, this bill prohibits the sale of unregulated CBD products that do not adhere to the FDA cannabis regulations.

How To Get a CBD License in Florida

Florida does not require a license to consume CBD hemp products, but licensing is necessary if sellers grow and sell CBD hemp products. If you plan to sell edible CBD products, you must obtain a food establishment permit. [4]

You may also be required to register for additional licenses if you sell frozen or dairy products. Cultivating hemp plants means you must be willing to provide your fingerprints, transportation plans, and environmental containment plans, and obey hemp cultivation site statutes.

How To Get a CBD License in New York

To sell CBD hemp goods in New York, you must apply for a Cannabidiol Hemp Retail License. You can easily apply for the license via the New York Business Express website. [5]

Distributors of CBD hemp products require a Cannabinoid Hemp Distributor Permit before selling and distributing CBD produced outside of New York to CBD hemp retailers. This requirement guarantees that all outside CBD products meet the requirements of the Cannabinoid Hemp Program. [6]

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What About Delta 8

Delta 8 is made from CBD, so you may be wondering if your CBD license will work for delta 8. Many but not all states have similar licensing rules for delta 8 as CBD. Follow this link if you’re wondering, “do I need a license to sell delta 8?”

States That Prohibit Hemp- and Marijuana-Based CBD Products

Unfortunately, in nine US states, you are not allowed to start a CBD business. All states have their own Controlled Substance Act (CSA), but these nine states prohibit the sale of CBD products, making it illegal to consume or distribute CBD products in that state. These states are:

  1. Texas
  2. North Carolina
  3. Kansas
  4. Indiana
  5. Kentucky
  6. Tennessee
  7. South Carolina
  8. Mississippi
  9. South Dakota

You must have a valid reason to use cannabis products, including CBD, which means you can only use them for medical purposes in these states. Doctors who approve the use of cannabis and CBD will provide you with a licensed medical card for purchases. In these nine states, you cannot obtain licenses to sell CBD online or in-store. [1]

The remaining states have legalized the sale and purchase of CBD products, allowing businesses to open CBD stores and pharmacies to sell CBD. In these states, you can possess, buy, and use hemp-based products without restrictions. Products that can be legally sold in these states include hemp capsules and CBD oils.

However, states such as Nebraska and Michigan are in the process of making regulatory decisions and evaluating the 2018 Farm Bill changes. Therefore, sellers and consumers in these states cannot open or purchase CBD products from stores, but luckily consumers can legally buy CBD from online retailers.

Essential Licenses That May Be Required To Sell CBD

It is mandatory to obtain a license to sell CBD hemp products in some states. If you have a CBD store in one of these states, it is important to familiarize yourself with what you need to acquire when establishing a business: [7]

  • Tax ID Number – An Employer Identification Number is a tax ID number that assists the IRS in recognizing your business for tax-related matters.
  • Business License – We have already established that a business license is required to operate your CBD business. The license is renewed annually and is proof that your business is legally allowed to operate in the country. Though this license has nothing to do with selling CBD, it is required for all businesses.
  • Business Formation – A business formation with the state aids in protecting potential liabilities and debts that may occur. It also protects your personal assets.
  • Sales Tax Permit – When collecting local sales and state taxes, you must have a permit.
  • Permits – Businesses need different permits depending on the products and services they offer. For example, a CBD business might need a permit from the health department if they sell food or treats.

How To Obtain a CBD Certification

A CBD certification signifies that the CBD products you sell to your customers have been third-party tested, are safe to consume and use, comply with FDA regulations, and adhere to the legal level of THC (0.3%). This certification assures buyers that the CBD is of a high standard.

If your business complies with the certification requirements, you will get a stamp of approval featured on all your CBD-infused goods and/or your CBD website. Many organizations, such as NSF, US Hemp Authority, and BSCG, provide sellers with CBD certifications. Let’s look at one top-rated organization that can thoroughly assist you:

LegalScript for CBD Certification

LegalScript is meticulous when it comes to product credibility. The organization evaluates and ensures that you have the necessary documentation to start the application process for running a CBD business. [8]

Sellers must prove that their CBD products meet the federal and state regulations to be certified, and product labeling should accurately state that the goods contain CBD. To meet the standards of LegalScript’s certification process, you must always be transparent with customers and regulators.

The content of the products must not consist of ingredients that LegalScript has prohibited. To have the LegalScript stamp on your CBD website, your domain name must be clear and accurate and not be privacy-protected. Your website must be simple and easy to navigate so that customers can easily find your contact information and location of your CBD store (if applicable).

LegalScript only allows applicants to market LegalScript-certified CBD goods. There are numerous standards CBD sellers must be willing to meet, including agreeing to on-site inspections by LegalScript, supplying unexpired and usable samples for testing, and consenting to background and history checks for criminal offenses or civil violations.

You can simply apply on the LegalScript website to create an account and pay the once-off application fee (the annual subscription fee is only payable after sellers have been successfully certified). [9] Applicants must complete a questionnaire (you can return to the questionnaire anytime you want), and the LegalScript team will review it.

LegalScript may ask for additional information, underline flaws in the application, and have CBD sample products at their disposal for testing. Once the grueling process ends, you pay the subscription fee and become certified.

It is important to have all the required documents ready before starting the application process, be completely clear and truthful in the questionnaire, quickly respond to the company’s requests, and instantly pay the subscription fee.

Investing in CBD certification is costly. Be prepared to pay a substantial fee for LegalScript’s services.

Total of CBD Products Application Cost Per Product Annual Monitoring Cost Per Product
1-5 $1,495 $3,495
6-10 $1,395 $3,295
11-20 $1,295 $3,095
21+ $1,095 $2,895
CBD Website Once-Off Application Fee Per Website Annual Fee Per Website
Website $1,495 $3,495
Probationary Website $1,495 $4,995

Disadvantages That CBD Businesses Face

CBD businesses must deal with a few hurdles that other companies typically do not face. So, consider these challenges before you make your final decision to sell CBD products: [10]

  • Insurance – CBD businesses have difficulty finding affordable and quality insurance. Even though it’s legal to sell CBD and hemp products, insurance for such a business is expensive. Many people are not adequately educated about CBD and hemp products, making certain aspects of running the business challenging.
  • Banking – Another challenge for CBD sellers is access to reliable banking services. Banks are hesitant to provide services and capital to CBD businesses due to the probability of facing issues and risks associated with CBD sales. Owners of CBD companies face unexpected hurdles because they may have to switch to another bank or deal with the sudden closure of merchant accounts. These problems can be time-consuming and interfere with day-to-day work tasks.
  • Payment Processing – Recently, Visa announced that it would not do business with CBD companies and sellers. Payment processors ask for hefty fees. A few of the best payment processors include Mastercard, Discover, SMB Global, PayWize, and USAePay.
  • Funding and Resources – Funding and resources are difficult to acquire from banks, mainly because banks believe the CBD business is too perilous and there are no apparent regulatory requirements. Sellers have turned to outside investors or willing lenders to obtain the desperately needed growth capital.

Conclusion

The CBD industry is booming. You can make a large profit from selling these products. California, Florida, and New York are the states that have the most CBD sales. If you are opening your own CBD business, research the requirements of the state where you plan to sell the products. Not all states have favorable laws regarding the sale of CBD.

There is no specific license required to sell CBD products; however, a business license, sales tax permit, business formation, other permits, and a tax ID number may be necessary to obtain. A resale license is required if you’re planning to resell CBD products from wholesalers. There are no definite costs for the permits, licenses, or additional paperwork necessary for CBD sales.

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