How to Start a CBD Business in 2021

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If you’re thinking of changing your profession to a CBD entrepreneur, then you’re probably already business savvy as CBD products are quickly growing in popularity. A 2019 study found that there were over 6 million Google searches for CBD that year, and that number has only increased since then.

2021 is a great year to start your new CBD business, but there are a few things you are going to need to take care of before you can start making people’s day with your hemp products, but don’t worry. We’ve saved you the hassle and created a list of everything you need to do in order to legally sell CBD in the united states.

Reseller’s License


While the FDA does not require any special license to sell CBD, every business owner should obtain their reseller’s license. The exception to this rule is if you plan to make all of your CBD products in-house. This comes with its own headaches because you will need to have your product lab-tested and approved by the FDA to ensure that it is compliant with the 2018 Farm Bill.

Under the Farm Bill, all CBD products with a THC content lower than 0.03% are considered compliant and require no other special permissions to sell. If you want to avoid the legal fees and lab tests then a resellers license is the option. Just make sure that every CBD product you buy is compliant with the Farm bill and you are good to go.

Business Insurance


Now that you’ve taken care of your licenses, you can legally buy and sell large amounts of CBD products at your home office. The next step is to make sure that you, your employees, and your small business are protected by purchasing business insurance.

The term “business insurance” is an umbrella term that can cover many different insurance policies such as property insurance, small business insurance, and workers’ compensation insurance. If you are unsure of which type of insurance to buy, then you might want to consider buying a small business insurance bundle.

Many small businesses that purchased business interruption insurance were happy they did so during the shutdowns of 2020 and 2021 and are insulating themselves against business interruption by adding business interruption insurance and liability insurance to their business owner policy. As we all learned in 2020, anything can happen to stop us from providing our professional services, so it’s smart to be prepared.

Business interruption insurance can be helpful to you even if you operate entirely online in the case of a global pandemic or a natural disaster. Anything that could cause bodily injury to you or your employees, or stops you from being able to do business is covered, which makes it a great option for younger businesses.

Limited Liability Corporation (LLC)


As a small business owner, you are going to want to start a Limited Liability Corporation (LLC). There are other corporations you could form but an LLC is the smartest option for small businesses. If you do not form a corporation and simply starting selling your CBD through your name, you will regret it come tax season.

The US government is dramatically kinder to corporations when it comes to taxes as a way to incentivize economic growth. As you start your business, you are going to want to save every penny you can so that you can reinvest that money back into your business so that it can grow and thrive.

You’re all set! Now that you’ve obtained a resellers license, purchased business insurance, and formed a Limited Liability corporation, you are fully covered to start selling your relaxing CBD products to the world!