Are you interested in getting a CBD license and becoming part of the growing cannabis industry? This guide will help you understand requirements, compliance and next steps as it relates to the production, distribution, and sale of your CBD products. Cannaspire’s Cannabis consultants support operators from application through daily operations.
CBD, or cannabidiol, is a naturally occurring compound found from cannabis plants. It was first discovered in 1940 by Dr. Roger Adams, an American chemist. Next to delta-9 THC, CBD is the 2nd most popular compound from the cannabis plant making up 40% of the plant’s extract. Unlike Delta-9 THC, CBD does not produce psychoactive effects that result in a high.
CBD can come in many forms including:
Oils or tinctures – a concentrated liquid form of CBD that is typically taken sublingually (under the tongue) or added to food or drinks
Topicals – any lotion, cream, or balm that may be applied directly to the skin and contains CBD
Capsules – a convenient way to take a precise dose of CBD and are swallowed like regular pills
CBD edibles – gummies, chocolates, and other food items that are infused with CBD
CBD products can be bought at brick and mortar stores or online retailers in most parts of the United States.
Studies suggest CBD could benefit one’s health in a variety of ways including:
Inflammation, arthritis, and nerve damage-related pain – CBD may help alleviate pain by interacting with certain chemicals in your body that transmit signals in your nervous system. In a study, individuals who had nerve damage in the lower half of their body reported significant pain reduction after using a CBD oil product applied topically.
Anxiety and depression – CBD (cannabidiol) may help reduce symptoms of anxiety and depression. A study found that CBD treatment was more effective for patients with moderate to severe symptoms, and it improved their overall well-being.
Post-Traumatic Stress Disorder – A review of studies in 2019 found that CBD (cannabidiol) may help ease symptoms of PTSD in some people. However, researchers need to conduct more studies to fully understand how effective and safe it is for treating PTSD with CBD.
Epilepsy – CBD has been shown in a research to lessen seizures in several kinds of pediatric epilepsy that are resistant to therapy.
It is important to note that even though evidence supporting CBD benefits exists, its potential uses are not yet fully understood and more research needs to be done.
CBD’s legality depends on factors such as:
At the federal level, hemp-derived CBD that contains less than 0.3% THC was legalized when then-President Trump signed into law the 2018 Farm Bill on December 20, 2018. The measure essentially made it legal to cultivate and manufacture hemp and items derived from it, such as CBD, by removing hemp from the Controlled Substances Act.
New amendments passed in 2025 are expected to take effect in November 2026, tightening how “hemp” and “hemp-derived products” are defined at the federal level. These changes are intended to address intoxicating hemp-derived cannabinoids and may shift enforcement toward a broader “total THC” or THC-like cannabinoid standard, depending on final implementation. As a result, some products currently sold as hemp-derived CBD may no longer qualify as federally compliant after this date, particularly ingestible and psychoactive formulations.
CBD regulation in the United States is not governed by a single law or agency. Instead, whether a CBD product can be legally produced or sold depends on several overlapping factors, including the source of the CBD (hemp or marijuana), federal hemp law, FDA oversight, state hemp licensing programs, and local regulations.
While marijuana-derived CBD remains illegal under federal law, some states allow it within their own regulated medical or adult-use cannabis systems. Hemp-derived CBD is treated differently under federal law, but states and local governments retain broad authority to regulate how these products are manufactured, marketed, and sold within their borders.
Regulatory Layer | Who Regulates | What It Covers | Why It Matters |
Federal Hemp Law | USDA | Defines what qualifies as hemp (≤ 0.3% delta-9 THC) and governs hemp cultivation through state, tribal, or USDA hemp programs | Determines whether CBD is federally classified as hemp or marijuana |
FDA Oversight | FDA | Product safety, labeling, marketing, intended use, and health claims | Controls whether CBD can be sold as a food, supplement, cosmetic, or drug |
State Hemp Programs | State Departments of Agriculture | Licensing for hemp growing, processing, and handling | Required to legally produce hemp-derived CBD |
State Business & Retail Licensing | State & Local Agencies | Business registration, resale permits, retail authorization | Determines who can sell CBD products within a state |
State Cannabis Laws | State Cannabis Regulators | Marijuana-derived CBD products | Limits sales to state-regulated cannabis systems only |
Local Regulations | Cities & Counties | Zoning, retail restrictions, local bans | Can restrict or prohibit CBD sales even when state law allows them |
Interstate Commerce Rules | Federal & State Authorities | Transport and sale across state lines | Critical for online sales and distribution strategies |
In addition to federal and state rules, CBD vendors and consumers must also follow FDA requirements. Under current FDA policy, CBD generally cannot be lawfully marketed as:
As of 2025, the only FDA-approved prescription CBD medicine is Epidiolex (cannabidiol), approved for seizures associated with Lennox-Gastaut syndrome, Dravet syndrome, and tuberous sclerosis complex.
The same as mentioned above, the legality of selling CBD also depends on the jurisdiction, the source of the CBD and complying with FDA regulations. It’s important to research and understand the laws and regulations in your specific area before selling CBD products.
According to the FDA, these are among the factors to be considered to determine if it is legal to sell CBD:
Even if a CBD product satisfies the 2018 Farm Bill’s definition of “hemp,” it must also abide by all other relevant rules, including the Food, Drug, and Cosmetic Act. For more information about this, the FDA has provided a question and answer you can check.
Most CBD problems show up in packaging, claims, and intended-use language, so build in labeling and claims compliance early.
To sell CBD products legally, you will likely be required to acquire specific licenses, such as a general business and resale license. The requirements can vary depending on the state you are operating in.
One way to determine a suitable business license for your company is by researching the available options on your state’s website.
A resale license may also be required if you plan to purchase goods from wholesalers or distributors and sell it. Conduct research beforehand to determine the requirements for obtaining a resale license in your state and whether or not you still need one.
Under federal law, there is no standalone federal license required solely to sell CBD. However, hemp cultivation and processing are regulated under USDA-approved state hemp programs, and CBD products remain subject to FDA rules and state-level licensing requirements. To give you an idea, here are some examples of the requirements to obtain a CBD license in select states:
To grow, produce, or sell hemp for CBD or CBD products in New Jersey, individuals must register with the NJDA Hemp Program and obtain an industrial hemp license. There are two types of licenses that you can choose from: the Grower license and the Processor/Handler license. To apply, individuals or businesses are required to provide personal or business information, details about the property, and any required documentation. There is a non-refundable application fee of $50 that needs to be paid only once.
Businesses that would like to sell cannabis hemp products must obtain a Cannabinoid Hemp Retail License from the NY Office of Cannabis Management. This requirement is applicable for both sales made online and in-person. To sell or distribute cannabis hemp products from outside of New York State to certified Cannabinoid Hemp Retailers, distributors must obtain a Cannabinoid Hemp Distributor Permit. Before submitting your application, make sure to review the requirements for the Cannabinoid Hemp Retail & Distributor application. The license to sell Cannabinoid Hemp at retail outlets requires a fee of $300 per outlet while permit for distributing Cannabinoid Hemp requires $300 per distribution site.
Depending on the state, there may be different types of CBD licenses that are required to legally cultivate, process, or sell CBD products such as:
At Cannaspire, we can assist your company in navigating the constantly shifting CBD landscape to ensure its continued success. Our team can help you with licensing your business with the state and more. Learn more about how Cannaspire’s cannabis licensing consultants or contact us today to get started. Our cannabis compliance services cover SOPs, GMP readiness, and ongoing monitoring.
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