The rapid growth of CBD products is a reflection of the trends towards health and wellness products. For an entrepreneur, starting a CBD business can prove to be a lucrative choice, but before you decide to start your own CBD startup, it is crucial to understand the industry. Starting your own startup differs from other industries due to its underregulated practices, a legal gray area, limited research, and more. For the people considering their own CBD company, here are the most frequently asked questions about how to start a CBD business.
What do I need to know about the landscape of the cannabis industry?
If you want to learn how to start a CBD business, you need to know what to look out for. While many entrepreneurs understand that the cannabis industry is not properly regulated and is open to constant changes, only a few of them understand the commercial danger that the industry present. For instance, if you invest in a marijuana product that won’t be broadly deregulated anytime soon, you may doom yourself to commercial failure. So, it is important to focus on the CBD products as they will remain in demand no matter the social and political changes by the time your CBD company is up and running.
What are the legalities involved with CBD products?
CBD can be derived from both cannabis or hemp plants, and each has different rules and regulations. For instance, the federal government states that cannabis products shouldn’t contain more than a 0.3% level of THC. While the federal government made it illegal to sell products that contain cannabis, some state has made it legal. However, hemp-derived products have less than THC legal limit.
Do I need a license to process hemp?
Before you can sell CBD products, you will need to get a few licenses. One is a business license. You can research your preference at your local government website, though most small businesses go for an LLC. If you wish to purchase your CBD products from wholesalers, you will also want to get a resale license. Resales licenses are handled at the state level, so you will need to determine your state requirements. In addition, if you plan to process raw hemp for commercial purposes, you must obtain a license.
Can I sell hemp to other states?
While the 2018 Farm Bill legalized hemp nationwide, there remains a patchwork of different rules and regulations state by state. Get in touch with the right agency in your start to find out their specific rules or requirements. If you want to start an online CBD business, you can ship your CBD to all states as long as the THC level is below the 0.3% legal limits.
It takes a lot of determination and hard work to grow your CBD business. Taking CBD business opportunities can be a smart business decision if you have a good plan and broad knowledge of the CBD industry. If you need more help understating how to get into selling CBD oil or a CBD wholesaler that offers the best quality products, contact Life Research today.