Do I Need Special Permits for Selling Wholesale CBD Products?

Financial experts predict a potential market value of $20 billion by 2024 for the CBD industry. As a result, entrepreneurs and businesses across the United States are looking for ways to enter the budding industry.

Thankfully, the 2018 Farm Bill has made it easier than ever. Because of this bill, CBD has been officially removed from the federal government’s list of controlled substances.

So when it comes to CBD, the demand is clearly there and the legal landscape is wide open. All the same, there’s a bit of confusion surrounding regulations. CBD is relatively new, so rules and regulations are still being finalized by government entities.

If you’re new to the industry, you probably have questions about permits and other legal loopholes that need to be jumped through before you can legally sell your wholesale CBD products. In this article, we’ll discuss this matter in detail and provide some information on permitting.

Obtaining Permits to Sell CBD: Getting Started

CBD is now federally legal, but there is some variation between state laws when it comes to manufacturing, distributing, selling, and buying CBD. So if you’re considering setting up a business selling wholesale CBD products, your first step should always be to study the relevant legal landscape of the state in which you plan to set up shop.

Do I Need Special Permits?

No. You do not need any special permits to sell CBD products. That said, you should exercise caution when entering the industry. Make absolutely sure that your product is being sourced from a reputable, licensed source, and that your business model aligns with federal and state regulations.

Some states do require a reseller’s permit for companies reselling items from wholesalers. Check your local state laws to see if that’s the case for you. As a Colorado-based company, we do not require reseller permits for any wholesale orders.

Legal Considerations

Unless you happen to live in a state such as Idaho or Nebraska (in which case you may have to wait a few years for the laws to change) the process of becoming registered as a legitimate seller of wholesale CBD products is relatively straightforward. But it does require some homework on your part. First, like any business, you need to obtain a business license and permit. Once you’ve done this, you’ll need to research your state, county, and local laws regarding CBD and take the necessary actions to become compliant.

Here are the main federal legal considerations that you’ll need to observe:

  • THC Content. All of your CBD products must contain less than 0.3% THC.
  • Compliance with local, regional, and state regulations. (See above.)

Avoid Making Health Claims

Be careful about making unsupported health claims. Scientific research regarding CBD is still limited at this time. In order to avoid trouble with the FDA, you should only market your products using claims that can be thoroughly backed up by science. The FDA has made it clear that businesses should not market their products as a treatment option for health conditions. Additionally, businesses should also avoid describing their product as a “food” or “dietary supplement.”

Shop for Wholesale CBD Products!

At Hemp Depot, we make it easy for businesses to obtain high-quality wholesale CBD. Contact our office today to learn more about our products and our wholesale program!

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