By saumi March 30, 2025
As CBD continues to grow in popularity, licensing requirements vary across the U.S. Whether you’re looking to cultivate, manufacture, or sell CBD products, understanding state-specific regulations is crucial. This guide provides a state-by-state breakdown of the latest CBD licensing requirements in 2025, helping you navigate the process and stay compliant with evolving laws.
What Is a CBD License?
A CBD license is a legal permit allowing individuals or businesses to manufacture, distribute, or sell CBD products. Since CBD comes from hemp, licensing requirements vary by location.
The type of license depends on your role:
- Retailers need a retail license to sell directly to consumers.
- Manufacturers and processors may need additional permits, especially for edibles.
- Some areas offer temporary licenses for events or pop-up shops.
CBD licenses help regulate the industry, ensuring legal compliance, safety standards, and proper THC limits. Researching local requirements is essential before starting a CBD business.
CBD Licensing and Regulation State by State
Each U.S. state has its own set of rules regarding CBD sales, cultivation, and processing. While some states have fully embraced CBD and hemp-derived products, others impose strict regulations on production, distribution, and labeling. Below is a breakdown of how different states regulate CBD businesses.
Nevada
Nevada legalized CBD in 2015 for research purposes, and later expanded the law to allow hemp cultivation. If you plan to grow or process CBD products in the state, you’ll need both a state hemp license and a local business license. However, CBD-infused food and beverages remain illegal under state law.
Application Requirements for a Nevada CBD License
All applicants must provide:
- Applicant’s name & address
- Business name & address (where hemp will be grown, handled, or produced)
- Land & crop management details
- Certified & registered site information for growing or handling hemp
- Background check (to identify any disqualifying charges, if required)
Required Documentation
To apply for a CBD license, you must submit:
- Completed application form
- Proof of identity
- Business registration documents
- Zoning approval for your business location
- Registration with the Nevada Secretary of State
- Operating agreement (if applicable to your business structure)
- Registration with the Nevada Department of Taxation
- Local (city or county) business registration
- Proof of handler, processor, or grower license (if modifying hemp products)
How to Apply
- Complete your application with the required documentation.
- Submit it to the Nevada Department of Taxation with applicable fees.
- Await review & background check processing (if required).
- Receive certification & comply with state regulations.
Nevada CBD Licensing Fees
Department of Agriculture Fees
- Grower Certificate
- Application Fee: $900
- Acreage Fee: $5 per acre OR
- Square Footage Fee: $0.33 per 1,000 sq. ft.
- Seed Producer Certificate
- Application Fee: $100
- Acreage Fee: $5 per acre
- Square Footage Fee: $0.33 per 1,000 sq. ft.
- Handler Certificate
- Application Fee: $1,000
Nevada requires strict compliance for those cultivating or handling hemp, but CBD retailers do not need a license if selling legal products.
New Hampshire
New Hampshire allows residents to grow and use CBD products as long as they are not infused into food. The state does not impose strict regulations on hemp possession or use, but high-CBD or THC products require a medical card for legal consumption.
- Determine Your Business Structure
- Decide whether you will cultivate, process, sell, or resell CBD products.
- Choose a business entity (LLC, Corporation, Sole Proprietorship, etc.) that fits your business model.
- Submit the Required Applications
- Applications must be submitted to the U.S. Department of Agriculture (USDA).
- Include all required documentation and supporting materials.
- Application fee: Up to $50.
- Undergo a Background Check
- First-time applicants must provide fingerprints and other data for a criminal background check.
Application Requirements in New Hampshire
The requirements vary depending on the type of permit you apply for. It is important to review guidelines from New Hampshire Department of Health and Human Services and New Hampshire Liquor Commission
General Requirements:
- Completed application form
- Business plan outlining operations
- Business registration certificate
- Background checks for key individuals involved
- Proof of financial stability (e.g., financial statements)
- Product packaging & labeling compliance
- CBD product analysis certificate (lab testing results)
- Compliance certificate to prove adherence to manufacturing and labeling standards
- Application fee
New Jersey
New Jersey was one of the early adopters of hemp cultivation under the USDA’s approval. Anyone looking to grow hemp in the state must first submit a Grower’s Licensing application before purchasing or possessing hemp seeds. Retailers can sell CBD products as long as they comply with federal guidelines.
To start a CBD business in New Jersey, follow these key steps:
- Choose the Right License – Identify whether you need a cultivation, processing, or retail license under the NJDA Hemp Program.
- Prepare a Business Plan – Outline operations, financials, and compliance strategies.
- Submit Your Application – Download and complete the NJDA application with a $50 fee.
- Pass a Background Check – First-time applicants must submit fingerprints and undergo screening.
Application Requirements
- Business plan & registration
- Completed application
- Background checks
- Financial proof
- Product labeling compliance
- Certificate of analysis
- Application fee
New Mexico
New Mexico has a business-friendly approach to CBD. Individuals and companies do not need a license to sell pre-packaged CBD and hemp products. However, hemp growers and processors must comply with the New Mexico Plant Protection Act and obtain proper licensing.
Key licensing requirements depend on your business type:
- Hemp Cultivation – Apply through the New Mexico Department of Agriculture.
- CBD Manufacturing – Submit a food permit application to the NM Environmental Department Cannabis and Hemp Bureau.
- Cannabis Products (over 0.3% THC) – Obtain a license from the CCD and register for a Cannabis Excise Tax account.
Application Requirements
- Completed application form
- Business registration
- Background check
- Compliance with state regulations
- License type-specific requirements
New York
New York legalized CBD cultivation on December 9, 2019, under its Cannabinoid Hemp Program. While CBD products are widely available, regulations around CBD-infused food and beverages remain unclear. Business owners must obtain a license from the New York State Cannabinoid Hemp Program to operate legally.
Applying for a CBD license in New York is straightforward and can be done online through the New York State Business Express website. First-time applicants must create an NY.GOV ID to access the system. Once registered, you can track your application’s progress through your account.
Application Requirements
- Primary contact information
- Business location and hours
- Proof of New York State sales tax registration
- Supplier details (including manufacturers’ contact information)
- List of cannabinoid products to be sold
- Payment of license or permit fee
North Carolina
North Carolina allows the sale and use of CBD products but prohibits smokable hemp. No special license is needed to sell CBD products, but if you plan to sell living hemp plants, you’ll need a license.
Application Requirements
- Contact details of growers and business executives
- Business addresses and emails
- Criminal background checks (within 60 days of application)
- Geo-spatial locations of cultivation sites
North Dakota
CBD products are legal in North Dakota as long as they contain less than 0.3% THC. However, cannabidiol is still listed as a controlled substance, meaning businesses must register with a licensed cannabis company to sell it. Anyone looking to grow hemp must obtain a license to buy and cultivate hemp seeds.
- Processor license fee: $200 per year
- Grower license fees:
- 1 lot: $100
- 2 lots: $200
- 3 lots: $300
- 4+ lots: $350
Application Requirements
- Personal details of applicants
- Two sets of fingerprints
- Field locations (for growers)
- Criminal history record check request
- Completed hemp grower or processor application form
- $41.25 background check fee (payable to the North Dakota Department of Agriculture)
Ohio
Ohio has relaxed hemp CBD regulations but does not allow strains with more than 0.3% CBD to be cultivated. Farmers who accidentally grow high-CBD plants must destroy their crops, which has made many hesitant to enter the industry. For businesses looking to grow hemp, Ohio requires a hemp cultivation license. The fees are :
- Application fee: $100
- Growing location fee: $500 annually
- Site modification fee: $250 per coordinate
Ohio Hemp Processor License
Businesses wanting to process hemp also need a hemp processor license. The process involves signing up for an OH ID account and submitting required documents. The fees are:
- Application fee: $100
- Processing raw grain: $500 annually per site
- Processing raw fiber: $500 annually per site
- Processing raw floral component: $3000 annually per site
- Wholesale production of cannabinoids: $500 annually per site
- Retail production of cannabinoids: $250 annually per site
Application Requirements for Ohio
- For hemp cultivation:
- Personal details of applicants
- Background checks for all key personnel
- Mapping coordinates for cultivation areas
- For hemp processing:
- Personal details of applicants
- Background checks
- Certificate of Occupancy for the processing facility
- Label reviews and product inspections
- Surety bonds
Oklahoma
Oklahoma’s cannabis laws are complex, requiring businesses to provide detailed labeling for CBD products. The Oklahoma Department of Agriculture, Food, and Forestry oversees regulations and enforces compliance for hemp businesses.
- Determine Your Business Type – Identify if your business will focus on cultivation, processing, or both, as this determines the type of license required.
- Gather Required Documents – Prepare key documents, including business registration details, proof of identity, financial records, security plans, and compliance-related paperwork.
- Register with OMMA – Create an account on the Oklahoma Medical Marijuana Authority (OMMA) portal to submit your application and track its progress.
- Submit Your Application – Fill out the application accurately, attaching all required documents.
- Pay Licensing Fees – Fees vary based on the type of license and can range from $2,500 to $50,000.
- Undergo Background Checks and Inspections – All business owners and key personnel must pass a background check.
- Await Approval – OMMA reviews applications for compliance, and you can track the status online.
- Receive Your License – Once approved, your license allows you to legally operate under the specified guidelines.
License Requirements
- For a Grower License:
- Completed application
- Business formation documents
- Ownership and business location details
- Security, cultivation, and inventory control plans
- Packaging, labeling, staffing, and waste disposal plans
- Environmental control measures
- Background checks for all key individuals
- For a Processor License:
- Same requirements as the grower license, including financial statements and security measures
Fees for an Oklahoma CBD License
- Grower license: $2,500 – $50,000
- Processor license: $2,500 – $20,000
Oregon
Oregon is a major hemp producer and requires licenses for cultivation and processing. The state has strict testing requirements, meaning all CBD products must be lab-tested in state-approved facilities before they reach the market.
- Develop a Business Plan – Outline your goals, products, marketing strategies, and financial projections.
- Choose a Legal Structure – Register your business as an LLC, partnership, or corporation.
- Meet Application Deadlines – All licenses expire on December 31, and applications (new or renewal) are due by May 31 for the upcoming season. Fees are not prorated.
- Obtain a License Number – This is required before you can start cultivation.
- Submit a Complete Application – Incomplete or incorrect applications won’t be processed.
- Undergo Background Checks – Since 2022, Oregon requires fingerprinting and background checks for all key participants. Applicants with felony drug convictions in the last 10 years are ineligible.
- Check for Moratoriums – Some counties may restrict new hemp licenses, so verify before applying.
License Requirements
- For a Grower License:
- Completed application
- Criminal history disclosure
- Proof of Oregon residency
- Cultivation plan
- Soil testing and land preparation details
- Security plan
- Fingerprint submission
- Agricultural Hemp Seed License (if producing hemp seeds)
- GPS coordinates and proof of land ownership or permission to cultivate
- Recordkeeping plan
- For a Handler (Processor) License:
- Business entity registration
- Facility location details
- Proof of legal residency
- Background checks
- Financial statements
- Security plan
- Business insurance
- Recordkeeping plan
- Inspection compliance
Pennsylvania
Pennsylvania allows medical patients to use hemp-derived products. While hemp farming and processing are permitted, the industry is highly regulated, requiring licenses for cultivation and processing.
- Understand CBD Regulations – Review the U.S. Farm Bill (2018) and the PA Hemp General Permit guidelines to ensure compliance with state and federal regulations. These rules cover cultivation, distribution, wholesale, retail, and storage of hemp-derived products.
- Complete the Permit Application – Submit your application through the PA Plants website or via the Hemp Permit and Application & Renewal Form. Application fees vary based on your business type.
- Undergo Background Checks – First-time applicants must complete an FBI background check within 60 days of submitting their application. This includes fingerprinting to check for criminal activity.
License Requirements
- Completed application form
- Business registration certificate
- Background checks for key business individuals
- Business location details
- Contact information
- Product packaging and labeling data
- CBD product analysis certificate
- Compliance certificate (proving adherence to manufacturing and labeling standards)
- $150 application fee
Rhode Island
Hemp cultivation and processing became legal in Rhode Island on January 1, 2017. Businesses must obtain a license to sell hemp-derived CBD products. High-THC products are only available at licensed dispensaries, and dispensary applications may be subject to a lottery system.
- Login – Access the DBR website and log into your account.
- Update Profile – Ensure your account details are up to date.
- Apply for a License – Select the appropriate license type, complete the application, and upload required documents.
- Resubmit Incomplete Applications – Use your Submission Record ID to return to unfinished applications.
- Renew License – Renew up to two months before expiration by selecting the “Renew” option.
- Update Information – Modify existing licenses by submitting a Change Request.
- File Complaints – Use the portal to report concerns related to CBD product sales.
License Requirements
- Applicant Information – Name and address of the person overseeing CBD sales (must be 21+ and pass a background check).
- Partners and Consultants – List of individuals or businesses involved in consulting or partnerships.
- Facility Location – Address where CBD products will be sold.
- Procurement Documentation – Proof of purchase agreements with licensed hemp handlers or distributors.
- Tracking & Recall Procedures – A detailed plan for monitoring, recalling, and ensuring product safety.
- Zoning Compliance – Documentation confirming your retail location meets local zoning laws.
South Carolina
CBD has been legal in South Carolina since 2017, but regulations on raw hemp and byproducts remain unclear. However, if you plan to farm, process, or handle hemp for CBD production, you must apply for a license from the South Carolina Department of Agriculture (SCDA).
Types of Hemp Handler Licenses in South Carolina
- Warehouse/Storage/Drying Facility
- Transporter
- Laboratory
- Seed Dealer/Supplier
- Other (Broker, R&D, Sales Representative, etc.)
Hemp processor and handler licenses are accepted year-round, while hemp farmer applications have specific deadlines (e.g., February 28th in 2023). Applications and details are available on the SCDA website.
License Requirements
Since there is no CBD retail license, there are no application requirements for sellers.
For hemp farming, processing, or handling, requirements vary but generally include:
- Personal and business details of the applicant
- Brief business plan outlining hemp-related activities
- Purpose of hemp cultivation or processing
- List of affiliated businesses or farmers (if applicable)
- GPS locations of hemp fields or processing facilities
- Background checks for all applicants
South Dakota
Until 2021, South Dakota had some of the strictest anti-CBD laws in the country. Now, businesses can legally grow, distribute, and sell hemp products, but they must obtain a state-issued license to operate.
- Determine the Permit Type – Choose between a grower’s license or a processor’s license. Consulting with a merchant service provider, business attorney, or accountant is recommended for unique cases.
- Submit a License Application – Apply through the DANR website. Fees include:
- Non-refundable application fee: $50
- Grower’s license: $200
- Processor’s license: $2,000
- Undergo Background Checks – The South Dakota Division of Criminal Investigation and FBI will conduct background checks on key business members.
License Requirements
Applicants must provide:
- Complete federal and state background checks
- Contact details of key business personnel
- Legal business description (name and location)
- $50 non-refundable application fee
- Intended use of harvested hemp
- Good Standing Certificate from the South Dakota Secretary of State.
Tennessee
Tennessee allows the sale of CBD products with less than 0.9% THC. The state legalized medical cannabis in 2015 and permits industrial hemp cultivation for textiles, construction materials, and rope production. However, after January 2024, a Seller’s Permit is mandatory for retail CBD sales.
- Hemp Producer’s License – Required for cultivating or processing hemp.
- Seed Dealer License – Required for selling hemp seeds.
- Movement Permit – Required for transporting rooted hemp plants or harvested hemp for commercial use.
License Requirements
To apply for a Hemp Producer, Hemp Propagator, or Hemp Broker license, you must:
- Comply with state regulations and pay all required fees annually.
- Allow random inspections at manufacturing facilities and comply with product testing standards.
- Pass a background check (Applicants with a drug-related felony within the last 10 years are ineligible).
- Pay a 6% retail tax on the sale of hemp-derived cannabis products.
Texas
Texas has strict labeling laws for CBD products. High-CBD items can be sold through licensed dispensaries, but THC content must be zero. Businesses must ensure all products meet state testing and labeling requirements.
- Apply Online – Submit your application through the Texas Department of State Health Services (DSHS) portal.
- Pay Fees – The initial license fee is $258, valid for one year.
- Submit Additional Requirements – These include:
- Fee per location
- Fingerprints
- Business documents
- Fingerprint Submission – You will receive an email with a code to print the FBI authorization form (if applicable). Bring this form to your fingerprint appointment.
Retail CBD Registration in Texas
If you sell consumable hemp products, including those with cannabinoids, you must register each retail location.
- Fee per location: $155 (valid for one year).
Utah
Since 2018, Utah has allowed residents to grow and purchase medical cannabis. However, cultivators must be licensed by the Utah Department of Agriculture. Regulations vary depending on how the hemp product is processed, requiring consumers to be well-informed before purchasing.
- Determine the Type of License Needed
- Industrial Hemp License – Required to grow, produce, or sell CBD from industrial hemp.
- Medical Marijuana License – Falls under state licensing for medical marijuana (separate from CBD).
- Submit a License Application
- Apply through the Utah Department of Agriculture and Food (UDAF).
- Pay a non-refundable $50 application fee.
License Requirements
To apply for a CBD license, you must provide:
- $50 non-refundable application fee
- Contact information of key business personnel
- Business details (legal name, location, and license number)
- Written consent allowing UDAF representatives to inspect the premises where CBD is processed or sold
Vermont
Hemp is classified as an agricultural product in Vermont, allowing residents to grow and sell it. Businesses involved in cultivation, processing, or sales must comply with state regulations to operate legally.
- Determine the Type of License Needed
- Hemp Cultivators – Must apply through the USDA Hemp Program instead of the Vermont Agency of Agriculture, Food, and Markets.
- CBD Producers – Must register through a unique portal based on their product type.
- CBD Merchants – Required to register if selling intoxicating CBD products (with 1.5 mg THC per serving or higher).
- Apply for the Appropriate License
- Register on the Cannabis Control Board (CCB) portal.
- Select the correct CBD license tier:
- Tier 3 Manufacturer – Can process, manufacture, and transfer cannabis products but cannot sell to consumers.
- Tier 2 Manufacturer – Uses water-based, food-based, or heat/pressure-based extraction but cannot sell directly to consumers.
- Tier 1 Manufacturer – Small home-based businesses earning under $50,000 annually.
- Complete the Background Check
- Submit fingerprints and a criminal history report through the FBI (must be done within 60 days of application).
- Follow Federal Labeling Guidelines
- Ensure compliance with federal CBD labeling and packaging requirements.
License Requirements
To apply for a CBD license in Vermont, applicants must provide:
- Full legal name, date of birth, and address
- Fingerprints and a copy of state ID or Commercial Driver’s License (CDL)
- Business registration details
- Payment of applicable fees (if required)
- Proof of compliance with the USDA Hemp Program or CCB requirements
Virginia
CBD products are legal in Virginia, but edibles are not explicitly covered under state law. This has created confusion among consumers, as some hemp-derived oils, cigarettes, and pre-rolls are allowed, while CBD-infused foods remain unregulated. However Virginia requires CBD retailers to obtain a license and comply with new product standards.
- Ensure Compliance with Federal and State CBD Laws
- CBD products must contain 0.3% THC or less, per the 2018 Farm Bill.
- Apply for a CBD Retailer License
- Licenses will be issued by the Virginia Department of Agriculture and Consumer Services (VDACS).
- Annual license fee: $1,000.
- Failure to comply can result in fines up to $10,000 per day.
- Meet New CBD Product Standards
- Virginia has introduced additional restrictions on CBD products, including labeling and advertising rules.
- Further details will be available as VDACS provides updates.
License Requirements
Since the application process is still developing, official details remain limited. However, based on SB 903, businesses will likely need to submit:
- Business registration details
- Product testing and compliance documents
- Proof of adherence to federal and state THC limits
- Payment of the required licensing fee
Washington
Washington was one of the first states to legalize both hemp and marijuana sales. However, the use of CBD in food products remains prohibited under state law.
- Choose the Right License Type
- Washington requires different licenses for cultivation, processing, and retail.
- Determine if your business needs additional permits for transportation, research, or cooperative registration.
- Applications must be submitted to either:
- Washington State Liquor and Cannabis Board (WSLCB) for cannabis business licenses.
- Washington State Department of Revenue’s Business Licensing Service (BLS) for business registration.
- If forming a corporation or LLC, register with the Washington Secretary of State’s office (SOS) to obtain a Unified Business Identifier (UBI) number.
- Meet Residency and Background Check Requirements
- Business owners and associates must fulfill state residency requirements.
- Applicants must pass criminal background checks as per state regulations.
- Ensure Business Location Compliance
- Retail locations must be at least 1,000 feet from restricted areas like schools, parks, and libraries.
- Additional zoning and land-use permits may be required.
- Submit the Application and Await Approval
- The Washington Liquor and Cannabis Board will review and approve your application before operations begin.
License Requirements
To apply for a CBD license in Washington, businesses must provide:
- Complete License Application
- Business Permits (zoning, land use, and other local CBD-related permits)
- Business Structure Documentation (for LLCs/corporations, including UBI number)
- Residency and Background Checks
- Location Compliance Information (proving the business meets distance requirements)
- Additional Local, State, and Federal Licenses (if required)
- Insurance Requirements:
- General liability insurance ($1 million minimum coverage)
- Product liability insurance
- Financial Documentation (if accepting outside investment, financiers must be U.S. residents)
West Virginia
West Virginia permits the sale of CBD products and is actively working to expand its medical marijuana industry. Retailers can sell hemp-derived CBD without a license, as long as THC content remains below 0.3%.
- MFill Out a CBD Registration Application
- Applicants must provide basic details about their business, including:
- Business Name & Address
- Hours of Operation
- Intended Sales Channels (physical store, online, etc.)
- Pay the Registration Fee
- A $100 registration fee is required.
- If you are only selling CBD products you manufacture yourself, you are exempt from the fee but still must register.
- Submit Your Application by Mail
- There is no online application option—it must be mailed via traditional postal services.
- This can lead to potential processing delays.
- Provide a Tax Compliance Certificate
- Applicants must submit documentation from the West Virginia Tax Division to prove their business is in good standing with the state.
- Wait for Approval
- Once processed, you will receive official registration paperwork confirming your compliance with state regulations.
License Requirements
To register as a CBD seller in West Virginia, you need:
- Completed Registration Application
- $100 Registration Fee (unless selling self-made products)
- Business Information (name, address, hours, etc.)
- Tax Compliance Documentation from the West Virginia Tax Division
Wisconsin
Hemp growers in Wisconsin must obtain a state-issued license and pay an annual registration fee through the Department of Agriculture, Trade, and Consumer Protection (DATCP). Patients with a medical card can legally use CBD oil for treatment.
- Create an Account on the Hemp eManagement Platform (HeMP)
- Sign up and log in to the HeMP system.
- Initiate a New USDA Wisconsin CBD License Application
- Navigate to “Application and License” → “Applications”
- Click “New” next to “My Applications”
- Select Wisconsin as your state and click “Start Application”
- Enter Business and Key Participant Information
- Provide details on owners, partners, and executives
- Upload FBI criminal history reports for all key participants
- Submit the Application
- Review all details for accuracy
- Click “Sign & Submit” to finalize the application
- Receive Approval and Download License
- Check the Application Status (it should change to “Submitted”)
- If approved, you’ll receive an email from DHPP with compliance guidelines
- Download your license and supporting documents
License Requirements
While specific requirements may vary, applicants typically need:
- Hemp Producer License Application (submitted through USDA’s Domestic Hemp Production Program)
- FBI Criminal Background Check (for all key participants)
- Legal Documentation (proof of land ownership or lease agreements)
- Site-Specific Information (GPS coordinates, acreage, and maps)
- Crop Plan (details on hemp varieties, intended use, and cultivation practices)
- Sampling & Testing Plan (to ensure THC compliance at 0.3% or lower)
Wyoming
Wyoming legalized hemp cultivation in 2020 and has since been expanding its local hemp market. Residents can grow, buy, sell, and possess hemp-derived products without restriction, making the state one of the most business-friendly for CBD entrepreneurs.
- Meet Eligibility Requirements
- Must be 18 years or older
- No felony drug convictions within the past 10 years
- Complete the Hemp License Application
- Applications are available online or in paper format through the WDA
- Submit Supporting Documentation
- Photo ID (driver’s license or state-issued ID)
- Proof of business registration (if applying as a business)
- Aerial maps of cultivation or processing sites
- Criminal history report
- Statement of intended hemp usage
- Pay the Application Fee
- $750 for businesses and individuals
- $500 for non-profits and educational institutions
- Await Approval from WDA
- Once reviewed, the WDA will issue the license if all requirements are met
Types of Hemp Licenses in Wyoming
- Hemp Producer License – Required for cultivating hemp in the state.
- Hemp Processor License – Required for processing hemp-derived products.
CBD Retail in Wyoming
- No license is required for selling CBD products.
- Retailers must comply with federal labeling regulations under the Federal Food, Drug, and Cosmetic Act (FDCA).
Alabama
CBD products derived from hemp are legal in Alabama as long as they contain no more than 0.3% THC. The state launched its hemp cultivation program in 2019, allowing farmers to grow hemp commercially with a license from the Alabama Department of Agriculture and Industries (ADAI). However, selling CBD-infused foods and beverages remains a gray area under FDA regulations.
Each license requires a $150 application fee plus a 4.5% convenience fee, along with a $1,000 per site fee. Applications are only accepted during a set period each year— for example, the 2023 window ran from October 11 to November 30, 2022. Licenses are limited, making the process competitive.
For retailers, compliance is straightforward—just ensure products meet state and federal guidelines. Growers and processors, however, must follow strict regulations, including inspections and THC testing. Staying informed and applying on time is key to running a successful CBD business in Alabama.
License Requirements
Here are the CBD License Application Requirements for Alabama
- Business Details: Provide Articles of Incorporation and other formation documents.
- Key Member Information: List all key members mentioned in the Articles of Incorporation.
- Criminal Background Reports:
- Submit fingerprint-based background checks for key members.
- Non-Alabama residents must obtain background checks from a state law enforcement agency, not a local sheriff.
- Residency Requirement: At least one applicant must be an Alabama resident or live within 50 miles of the proposed grow site.
- Annual Updates: Requirements may change each year, so applicants should check with the Alabama Department of Agriculture & Industries for the latest information.
Alaska
Alaska permits the sale and use of CBD products, but businesses must register with the Alaska Department of Natural Resources (DNR). The state legalized hemp through Senate Bill 6 in 2018, transitioning from a pilot program to full-scale commercial production. Any company dealing in hemp-derived products must comply with state testing and labeling requirements.
- Visit the Alaska Division of Agriculture website and find the Industrial Hemp Program section.
- Complete the Retailer/Distributor application, providing business and ownership details.
- Pay the fees:
- $100 application fee
- $300 annual registration fee (Total: $400 for the first year)
- Submit your application—processing typically takes 5-10 business days. Apply early to avoid delays.
Lisence Requirements
- Business Details: Name, physical address (with GPS), website, and contact info.
- Owner’s Information: Legal name, home address, phone, and email.
- Store Details: Type of business (physical, online, mobile) and operating hours.
- Product Information: List of CBD products (brands & types).
- Responsible Applicant: Name of the person handling registration.
Arizona
CBD is completely legal in Arizona, and the state has embraced industrial hemp as a viable agricultural product. Businesses looking to cultivate or distribute hemp-derived products must obtain a license from the Arizona Department of Agriculture. Given the state’s favorable climate, hemp is considered a promising alternative to traditional crops like cotton.
However, CBD products with more than 0.3% THC are classified as marijuana and require a cannabis business license from the Arizona Department of Health Services (ADHS).
Types of Cannabis Licenses (for products over 0.3% THC)
- Retail Location License – Operate a dispensary, sell to consumers, and manufacture products.
- Off-Site Cultivation License – Grow and process marijuana but cannot sell directly to consumers.
- Off-Site Manufacturing License – Produce, package, and store products without direct sales.
License Requirements
- Completed application (via ADHS website).
- Business registration in Arizona.
- Background checks for all applicants.
- Arizona residency & 21+ age requirement.
- Financial documentation proving operational capability.
- Operating plan covering security, compliance, and product handling.
Arkansas
While CBD products are widely available in Arkansas, they are regulated by the Arkansas Department of Agriculture. Retailers do not need a license to sell CBD products, but farmers must obtain a permit to cultivate hemp. Unlike medical marijuana, which requires a doctor’s prescription, CBD products can be purchased freely
License Requirements
- Background Check – Submit a notarized Arkansas Background Check Form with a $25 fee via check or money order. Authorize its release to the Arkansas Department of Agriculture.
- Review Program Rules – Applicants must acknowledge and comply with the Hemp Program Rules for the duration of their license. Pay close attention to Section 12 (Sale & Transfer Restrictions) and Section 17 (Prohibitions).
- Submit Application & Fees – Complete the application form and ensure all fees are paid on time.
Licensing Fees
To obtain a CBD Processor/Handler License in Arkansas, you must pay several fees. Here’s what to expect:
- Application Fee – $50, paid via check or money order when submitting your application.
- License Fee – $200, invoiced upon approval.
- Site Modification Fee – $200, invoiced if modifications are needed.
- GPS Verification Fee – $100 per storage location, invoiced upon approval.
- Processor/Handler Fee – Ranges from $500 to $1,500, invoiced upon approval.
California
California has some of the most liberal cannabis laws in the country. Both recreational and medical cannabis are legal, and CBD products can be sold freely. However, they cannot be marketed as food or beverages unless specifically approved. Hemp cultivation is also allowed, but products must be tested by DEA-certified laboratories to ensure compliance.
The process of applying for a CBD business license varies by state, but the general steps are straightforward:
- Check Local Regulations – Some cities or counties have restrictions on cannabis businesses. Ensure your location allows CBD sales and obtain any necessary local permits.
- Understand State Requirements – Each state has specific regulations for CBD businesses, including operating procedures, facility standards, and employee training.
- Gather Required Documents – Prepare key documents like business registration, operating plans, and compliance paperwork before applying.
- Create an Account & Apply – Most states require businesses to register online with a licensing agency, fill out the application, and upload documents.
- Pay the Application Fee – This non-refundable fee is separate from the actual licensing cost.
- Submit & Respond to Requests – After submitting your application, regulators may request additional details or corrections. Respond promptly.
- Pay the Licensing Fee – If approved, you’ll receive instructions to pay the final fee before receiving your license.
- Post Your License – Once issued, your license must be displayed in a visible area at your business location.
License Requirements
To obtain a CBD business license in California, you must meet these requirements:
- Be a California resident
- Pass a background check
- Obtain a cannabis seller’s permit
- Provide proof of bond
- Submit an operating plan outlining business procedures
- Show legal permission to use the business location (from the city or landlord, if applicable)
Connecticut
CBD is legal in Connecticut, and residents can purchase it without restrictions. However, anyone growing or processing hemp must obtain a license from the Connecticut Department of Agriculture. Businesses selling raw hemp for consumption must have a special consumables license.
- Visit the State of Connecticut’s eLicense website.
- Create an account and complete the digital application.
Hemp Producer License Fees:
- Application Fee (Nonrefundable): $50
- Licensing Fee: $450 for the first acre, $30 per additional acre (max $3,000)
- Site Modification Fee: $30 per additional term.
License Requirements:
- Social Security Number (SSN) or Federal Employer Identification Number (FEIN)
- Business and personal details of the applicant
- Date of birth and home address for all key participants
Delaware
Delaware legalized CBD for medical use in 2014, and now, anyone can purchase hemp-derived products without a prescription. There are no licensing requirements for retail sales, but those cultivating hemp must be registered with the state.
- Download and complete the Delaware Hemp Production Application.
- Submit fingerprints and background checks through the FBI Criminal History Report system.
- Pay the required fees and submit your application.
License Types & Requirements in Delaware
- Producer License (For Growing Hemp)
- Fee: $300 (renewed every 3 years)
- Requirements:
- Criminal History Report (FBI, recent)
- Growing Site Registration ($500 per site)
- GPS map with labeled roads & entry points
- Optional: Authorized Representative
- Handler License (For Handling Hemp)
- Requirements:
- Criminal History Report
- Personal Information
- Processor License (For Extracting/Manufacturing CBD)
- Requirements:
- Criminal History Report
- Facility Registration
- Key Participant Information
Florida
Florida legalized hemp and CBD products in 2019, though the laws remain somewhat unclear. CBD consumables must be registered as food products, and companies must obtain a food establishment permit. However, medical cannabis users can access high-CBD products through licensed dispensaries.
- Determine Your License Needs – Identify whether your business requires a CBD or medical marijuana license.
- Submit an Application – Provide details about your business, product sourcing, manufacturing process, and testing procedures.
- Provide Additional Documentation – This may include ingredient lists, proof of liability insurance, and compliance records.
- Pay the Fee – The application fee is around $650, though it may change.
- Pass Inspections – FDACS will review your application and may inspect your business facilities.
- Receive Your License – Once approved, your license will be mailed to you.
License Requirements
- Must be 21 or older
- Legal resident of Florida
- Submit a completed application with supporting documents
- Pass a background check (includes fingerprinting and a separate fee)
- Pass an inspection if required
Georgia
CBD products with less than 5% THC are legal in Georgia, but starting a hemp farm requires a license. Farmers must pay a fee of $50 per cultivated acre, with total costs reaching up to $5,000. The state has strict regulations on hemp production to prevent misuse.
In Georgia, CBD retailers do not need a specific license, but businesses involved in growing or processing hemp must obtain a state license.
License Types
- Hemp Grower License – Required for cultivating hemp. Costs $50 per acre, with a $5,000 annual cap. Must be renewed yearly.
- Hemp Processor Permit – Required for processing hemp into CBD products. Costs $25,000 per year and must be renewed annually.
Hemp Producer License Requirements
- Business and grower contact details
- Geo-spatial locations of grow sites
- Criminal background checks for all key individuals (within 60 days of applying)
- No felony drug convictions in the past 10 years
Idaho
Idaho has some of the strictest CBD laws in the country. Only THC-free CBD products are legal, and they must be derived from mature hemp plants. The state was the last in the U.S. to legalize CBD, finally allowing products with up to 0.3% THC in 2019.
- Idaho requires a Handler License for businesses that process, store, or sell hemp-derived CBD products.
- Submit your application online and pay a $100 application fee.
- If approved, you’ll receive an invoice for additional license fees.
- Upon payment, your license will be issued.
License Requirements
- Background Check – Must be completed within 60 days of applying (Idaho State Police or FBI fingerprint-based).
- Key Participants – Gather contact details and background checks for all key individuals in your business.
- Facility Information – Provide a labeled map of your business location, including roads, entrances, and hemp processing or storage areas.
Illinois
CBD is legal in Illinois, and both medical and recreational marijuana are permitted. Farmers, universities, and state agriculture departments can cultivate hemp under certain conditions. No special designation is required for the sale of CBD products, but businesses selling CBD-infused edibles or beverages must register themselves with the Illinois Department of Public Health (IDPH). Here’s what you need to know:
License Requirements
- IDPH Registration – Submit an application, pay the fee, and provide product details.
- CBD Labeling Compliance – Products must clearly state, potency, content and batch information per Illinois Department of Agriculture rules.
- Farm Bill Compliance – CBD Hemp-derived must come from licensed sources and contain no more than 0.3% THC.
- Local Zoning Rules – Some areas have restrictions on where CBD businesses can operate, including limits on proximity to schools and other dispensaries.
Indiana
Indiana allows the sale of CBD products without restrictions, but hemp cultivation is limited to industrial purposes. Research-based hemp cultivation is not permitted, setting Indiana apart from many other states, but businesses involved in growing or handling hemp must be licensed under the Indiana Hemp Program, regulated by the Office of the Indiana State Chemist (OISC).
- Register an account on the hemp program application portal.
- Submit an application with business details.
- Pay the $750 license fee ($1500 for both handler and grower licenses).
License Requirements
- Business name (and DBA, if applicable)
- EIN (Employer Identification Number)
- Primary contact details
- Mailing and physical addresses
Iowa
Selling CBD in Iowa requires a dispensary license from the state government. Before entering the hemp business, growers must conduct thorough market research, as required by law. Iowa doesn’t issue a CBD retail license, but businesses must register with the Iowa Department of Health and Human Services (DHHS) as “registrants.”
Lisence Requirements and Application
- Create an account with Iowa DHHS.
- Choose Retailer Registration (for selling) or Manufacturer Registration (for making CBD products).
- Pay the $475 registration fee.
- List all CBD products you plan to sell.
- Provide business details (registrations are location-specific).
Kansas
Kansas permits the use of THC-free CBD products. However, patients with severe medical conditions may access CBD with up to 5% THC. The state remains strict about recreational cannabis use.
Kansas regulates CBD businesses under the Commercial Industrial Hemp Act, managed by the Kansas Department of Agriculture (KDA).
Lisence Requirements and Application
- Submit a Kansas Commercial Industrial Hemp Producer License application.
- Complete a state and national criminal history check (fingerprints required).
- Provide a copy of your state-issued photo ID.
- Keep records of your application and receipts.
Fees
- Application Fee: $100
- Criminal History Check: $47
- License Fee: $1,200 (due within 15 days of approval)
- Testing Fee: $225 per lab test
- Sampling Fee: $45/hour (if required)
- Modification Fee: $50
Kentucky
Kentucky has embraced industrial hemp, with over 30,000 acres dedicated to cultivation. Farmers must obtain a license, but laws around hemp production are subject to change.
License Fees
- Online Application: Free
- Paper Application: $200
- Hemp Grower License: $400 per location (renewed annually)
- Hemp Processor License:
- Fiber Processing: $500/year
- Floral (CBD) Processing: $3,000/year
Application Requirements
- Personal details of the primary applicant
- Business name and KY Secretary of State Organization Number
- Business address
- Map of growing fields
- Key participant details
- Annual background checks on key participants
Louisiana
CBD sales are regulated by the Louisiana Department of Agriculture, and products cannot exceed 0.3% THC. The state introduced its regulatory framework in line with the 2018 Farm Bill, overseeing cultivation, sales, and distribution.
Louisiana offers three types of CBD permits for businesses selling CBD products:
- CBD Retail Dealer Permit – For businesses selling CBD in physical stores ($175 per location, renewed annually).
- Remote Seller Dealer Permit – For businesses selling CBD online or through catalogs ($175 per registered domain, renewed annually).
- Annual Special Event Permit – For businesses selling CBD at special events ($175, but requires one of the above permits).
- To apply, visit the Louisiana Alcohol and Tobacco Control website and complete the application form.
License Requirements
- Ownership type (individual, LLC, corporation, etc.)
- Applicant’s legal name and trade name
- Mailing address, business email, and phone number
- FEIN and Louisiana State ID number
- Details of ownership group members (name, title, DOB, SSN, ownership percentage)
- Physical store address (if applicable)
Maine
Maine permits CBD sales but strictly regulates medical claims made by companies. Residents can grow up to three hemp plants for personal use, provided they contain less than 0.3% THC.
- Apply for a Conditional License
- This license allows applicants to secure a business location and begin construction.
- Complete Background Checks & Inspections
- All key participants must undergo a background check ($20 per person).
- If applying for a Cultivation Facility or Manufacturing Facility license, a state inspection is required:
- $500 for a cultivation facility
- $300 for a manufacturing facility
- Submit Final Application
- Once the business location is ready and compliant, submit the final license application.
- Receive License Approval
- Upon approval, the business can legally operate under Maine state law.
Types of Cannabis Licenses in Maine & Fees
- Cultivation Facility License
- $10,000 application fee
- $20,000 licensing fee
- Products Manufacturing Facility License
- $5,000 application fee
- $10,000 licensing fee
- Storefront (Retail) License
- $250 application fee
- $1,000 licensing fee
- Testing Facility License
- $1,000 application fee
- $2,500 licensing fee
- Fees may change over time, and additional costs (such as local permits) may be required.
Maryland
Maryland supports medical marijuana and CBD sales but has zoning restrictions on cultivation. Growers must be at least 1,000 feet away from parks or schools and must partner with the Maryland Department of Agriculture or a university. you must obtain a license through the Maryland Medical Cannabis Commission (MMCC).
- Choose the Right License – Maryland offers licenses for growers, processors, and dispensaries. Select the one that fits your business.
- Prepare Documents – Gather business registration proof, financial records, security plans, background checks, and labeling info.
- Submit Application – Send your completed form and required documents to MMCC and pay the fee (varies by license type).
- Review Process – MMCC will conduct background checks, inspections, and interviews as needed.
- Approval – Once approved, you’ll receive your CBD license and can begin operations.
License Requirements
- Proof of liability insurance
- Valid business license
- Zoning compliance evidence
- Completed application
- Supporting documents (financial statements, product labels, etc.)
Massachusetts
CBD sales are regulated by the Massachusetts Department of Agricultural Resources. While the state permits CBD use, companies cannot make medical claims or sell CBD-infused foods. Farmers are prohibited from feeding livestock with hemp.
License Requirements
- A license is required through the Massachusetts Department of Agricultural Resources to harvest, cultivate, process, and sell CBD products.
- Before cultivation and harvesting, THC content must be below 0.3%.
- Cannabis-derived CBD from industrial hemp is banned.
- The sale of CBD products in Massachusetts is currently prohibited.
- The state is evaluating federal laws regarding CBD in food, beverages, and dietary supplements.
- Massachusetts plans to regulate retailers selling CBD products, including CBD oil merchant.
Michigan
Michigan has relaxed CBD laws, allowing consumers to purchase products without a medical card. Farmers can cultivate hemp under the MDARD Pilot Program and must mark their growing areas for compliance.
To legally sell CBD in Michigan, you must secure the appropriate license after registering your business with the Michigan Department of Licensing and Regulatory Affairs (LARA).
- Register with LARA and obtain a unique identification number.
- Complete the CBD License Application according to LARA’s guidelines.
- Submit required documents and pay applicable fees.
- Await approval after review and inspection.
License Requirements
- Choose Your License Type
- Grower License – Required if you plan to cultivate hemp for CBD.
- Processor-Handler License – Needed for businesses that process or resell CBD products.
- Background Check
- Some licenses require background checks for owners and key employees.
- Certain criminal convictions may disqualify applicants.
- Product Testing
- CBD products must meet state safety and quality standards.
- If selling third-party products, ensure they have certified test results.
- Proper Labeling
- Labels must include CBD content, ingredients, and warnings.
- Health claims on packaging are prohibited.
Minnesota
Minnesota legalized CBD in 2018 after a pilot program from 2016-2020. In 2021, the state fully approved hemp cultivation, making it available for commercial and personal use.
The Minnesota Department of Agriculture (MDA) oversees hemp cultivation, processing, and sales, while the Office of Cannabis Management handles broader cannabis regulations.
Application Process and License Requirements
- Determine License Type
- Apply for the appropriate CBD license through the MDA website.
- Provide details about your business, product formulations, and manufacturing processes.
- Pay Application Fee
- Fees vary based on the license type.
- Background Check
- Key personnel must pass a criminal background check.
- Product Testing
- The MDA may require product samples for compliance testing.
- Ensure quality control and accurate labeling.
- Certification
- Hemp purchases must have a “Fit for Commerce” certificate issued by the MDA.
- Cannabis Tax Registration
- Businesses selling taxable cannabis products must register with the Minnesota Department of Revenue to remit the Cannabis Tax.
Compliance & Inspections
- Maintain records for three years and present them during inspections.
- If sourcing hemp from outside Minnesota, you must have a bill of lading, certificate of analysis, and supporting documentation.
Mississippi
CBD in Mississippi is only legal for medical use. All hemp-derived oils are strictly monitored. Farmers must apply for a USDA growers’ license, as marijuana remains illegal in the state.
Licensing Process
- The licensing process involves multiple steps, including applications, background checks, and inspections
- The Office of Marijuana Policy (OMP) provides a comprehensive guide on its website.
- Applicants must first apply for a conditional license to secure a business location and begin construction.
- After completing construction, applicants must submit a final application for a state license.
Missouri
Missouri permits CBD use for epilepsy patients with a medical card. The state only allows hemp cultivation for research purposes, not for personal consumption.
Since the USDA now oversees hemp cultivation and processing in Missouri, applicants must apply through the USDA Hemp eManagement Platform (HeMP).
- Create an account on the USDA HeMP portal.
- Verify your identity online.
- Submit your application and wait for USDA approval.
Licensing Process in Maine
- The licensing process involves multiple steps, including applications, background checks, and inspections.
- The Office of Marijuana Policy (OMP) provides a comprehensive guide on its website.
- Applicants must first apply for a conditional license to secure a business location and begin construction.
- After completing construction, applicants must submit a final application for a state license.
Missouri
Missouri permits CBD use for epilepsy patients with a medical card. The state only allows hemp cultivation for research purposes, not for personal consumption.
Since the USDA now oversees hemp cultivation and processing in Missouri, applicants must apply through the USDA Hemp eManagement Platform (HeMP).
- Create an account on the USDA HeMP portal.
- Verify your identity online.
- Submit your application and wait for USDA approval.
License Requirements:
- Business & Grower Information
- Provide names, phone numbers, addresses, and emails of all key business executives and growers.
- Criminal Background Checks
- Required for growers, owners, and employees who handle hemp.
- Must be completed within 60 days of the application.
- Geo-Spatial Locations
- Submit exact coordinates for hemp-growing locations.
Montana
CBD laws in Montana are vague. While not explicitly permitted, CBD use is not prohibited either. Montana is one of the largest hemp-producing states, with over 50,000 acres of hemp farmland.
- Determine your license type (Processor or Grower).
- Fill out the Montana hemp license application.
- Pay the required fees.
License Requirements
- Hemp Processor License
- If you plan to process hemp for CBD derivatives, you’ll need a Montana hemp processor license:
- $2,500 fee for processing floral and root portions of hemp.
- $1,000 fee if processing only hemp grain, seed, oil, or fiber.
- Hemp Grower License
- Farmers who want to grow hemp must complete a two-part licensing process to ensure compliance with state and federal THC limits.
Nebraska
Nebraska has limited hemp regulations. Farmers must obtain a license from the Nebraska Department of Agriculture, or purchase hemp from local tribes. Without proper documentation, growing or selling hemp is illegal.
- Determine your license type (Cultivator or Processor-Handler).
- Prepare required documents listed above.
- Download & complete the application form from the NDA website.
- Submit application, documentation, and fees to the NDA.
- Wait for review & background checks (may take some time).
- Pass inspection (if required).
- Receive your Nebraska hemp license upon approval.
- Follow all regulations (proper labeling, testing, record-keeping, etc.).
License Requirements
- Hemp Cultivator License
- Completed application
- Background checks for all individuals involved
- Criminal history records
- GPS coordinates of the cultivation area
- Site plan & layout (showing planting areas, irrigation, buffer zones, etc.)
- Plant variety information
- Testing & sampling plan
- Harvest & disposal plan for non-compliant plants
- Cultivation activity records
- Hemp Processor-Handler License
- For businesses processing or handling hemp, you’ll need:
- Completed application
- Background checks & criminal history records
- Operational plan (detailing extraction methods, formulation, packaging, etc.)
- Facility information (address, layout, and blueprints if required)
- Product testing plan
- Inventory tracking system
- Cultivation activity records
Conclusion
Navigating CBD licensing in 2025 requires understanding state-specific regulations. Stay informed, comply with local laws, and secure the right permits to operate legally and successfully.