Many people might wonder how to get a license to sell CBD in Texas. The FDA has approved the sale of cannabis products as prescription drugs. Hence, you can find these products in dispensaries and licensed outlets around Texas. The selling of CBD products was legalized by the State Health Department of Texas in 2019. However, according to CBD federal laws, you must note that you cannot add these products to dietary supplements, cosmetics, or food.
To obtain the license to sell consumable CBD products in Texas, you must follow certain steps. We have outlined these steps to help you get the license to sell these products in Texas.
The first thing you need to do in your licensing journey is submitting your documents to the Department of State Health Services. You don’t have to submit the documents physically and can use the official website provided by the body to submit your documents. When visiting the website, you must download the application form. You can use the application form to select the type of product you want to sell.
You will notice consumable hemp products under the types of certificates you need. Check the box, and then select the number of products you want to sell. After that, you can complete the rest of the form. The Department of State health services requires you to pay a certain amount of money after completing the form. After that, you can proceed to the next step.
After submitting your documents, the next step is to submit your fingerprints. You will receive an email from the Fingerprint Service Code of Texas to guide you throughout the process. You must print and complete the FBI authorization form, then wait for your fingerprint schedule. You can add multiple outlets you own during the registration process. Hence, you can sell from these outlets once you have approval from the DSHS.
Is the Application Process Tedious?
You can visit the online platform of the (DSHS) Department of State Health Services to apply for the license. Next, use the “Business and Professional License” tab to begin the registration process. They will require you to submit supporting documents with your application.
Do You Require a License to Sell CBD Products in Texas?
Although you can sell CBD freely in Texas, you need a license. In 2019, the Texas Government signed house bill 1325, which permits the free sale of CBD products. In addition, the bill permits the sale, manufacturing, production, and retail of these hemp-derived products. Hence, the Texas Controlled Substance act removed CBD from the list of prohibited substances in the State. Another thing to know before you start selling or apply for a license is that the THC content, if any should remain below 0.3%.
If you plan to sell CBD products, you must prove that the products come from licensed distributors. In addition, these distributors must have accessible results from independent third-party laboratories. You also need to verify that the products are, in fact, hemp-derived and are not derived from marijuana. The regulators prefer hemp over marijuana because the latter has higher THC content. Thus, marijuana remains illegal to buy and sell. The FDA does not permit over-the-counter sales of any CBD products made from marijuana. Hence, some companies do not test their products since they use marijuana extracts in their CBD products. Such products will not obtain permission from the FDA. Therefore, you must always ensure that the products you want to sell come from companies with outstanding results. If the FDA finds out you sell marijuana-derived CBD products, you will have your license revoked.
Are There Any Basic Legal Requirements for the Licensing Process?
For a state like Texas that requires sales of CBD products, you need specific licenses to start a business. Firstly, you will need to incorporate your business or form an LLC with the State. This step is vital because you can protect your assets from potential liabilities and debts when you hit the ground running. Secondly, you will also require a Federal Tax Identification Number, otherwise called Employer Identification Number. This number serves as your identification whenever the IRS wants to sort out anything related to taxes in your business.
The third thing you will need is a general business license. This license allows you to operate a business legally in Texas. However, it does not give you the right to sell CBD-infused products. You will have to obtain the Consumable Hemp Products license to sell CBD products. Another requirement to complete your process is the DBA (Doing Business As) filing. The DBA gives you the freedom to legally do business using a unique business name used in all your business papers. You will also need the sales tax permit, which works for retailers. It does not matter whether you want to sell your CBD products online or offline. You will have to get this permission to collect local and State sales taxes.
Which Department Handles Licensing?
The Department of State Health Services (DSHS) handles CBD-infused product licensing in Texas. As we earlier discussed, the department offers an online option to ease your license application process. If you do not feel comfortable with the online method, you can fill out the form printed online and submit it manually.
Most states have legalized CBD products’ sales, as long as they are hemp-derived. In addition, some States require you to obtain permits before selling CBD products within their territories, and Texas is one of them, requiring you to obtain a license from the DSHS. You can navigate the department’s website to fill out your information and begin applying.
You also need to ensure that the products you want to sell are from trustworthy suppliers and retailers, and have results from independent third-party laboratories. These tests ensure that the THC content remains within the regulated levels. Additionally, these tests ensure that the ingredients used in the products do not cause harm to consumers. Ensure that you don’t sell marijuana-derived CBD products because you could get your license revoked. How to get a license to sell CBD in Texas? Just follow the steps mentioned above.