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If you’re considering starting a CBD business in Delaware, understanding how to obtain a CBD license is essential. Whether you’re planning to sell CBD products or cultivate hemp for CBD production, this guide will provide you with the information you need to navigate the licensing process and kickstart your CBD venture in Delaware. We’ll show you how to start a CBD business, how to get a CBD license in Delaware, and everything you need to know about the laws regarding CBD!
How to Start a CBD Business in Delaware
Starting a CBD business in Delaware requires careful consideration and a step-by-step approach. You can begin by creating a comprehensive business plan outlining your goals, products, marketing strategy, financial projections, and operational plans. Decide on the appropriate legal structure for your business, such as an LLC, partnership, or corporation, and register it with the Delaware Division of Corporations. You’ll also need to apply for an Employer Identification Number (EIN) from the IRS, which identifies your business for tax purposes. And don’t forget, you won’t be able to start operating your organization without a Delaware CBD license.
You’ll also need a dedicated business bank account. This account will serve as a facilitator for obtaining commercial credit cards, loans, and various financing options. It will play a pivotal role in establishing and strengthening your business credit profile. A good credit profile can be beneficial to you in the future, particularly when seeking additional funding to expand and grow your business.
The last requirement for getting your CBD business ready is to join the Delaware Domestic Hemp Production Program. Potential sellers and producers must complete the Producer Application and Growing Site Registration for each site. Once you do this, you’ll get your Delaware CBD license and you can start operating safely.
How to Get a CBD License in Delaware
According to Delaware state law, businesses selling CBD products containing less than 0.3% THC don’t need licenses. For other CBD products, or if you want to grow it yourself, you’ll need a CBD license. Here’s how to get one:
The first step is to download and complete the Producer Application and Growing Site Registration for each of your growing sites. There is an application fee of $300, which you’ll need to pay during the application process, and every three years (when renewing your license).
Next, you’ll need to obtain a Criminal History Report from the FBI, dated within four months of your application. You can find information on fingerprinting and other requests on the FBI’s website, including the application fees, which are typically around $18. Furthermore, the Delaware Department of Agriculture requires one sealed copy of the report. You’ll need to fill in all required fields on the website, specifying “Personal Review” as the reason for the background check. You must also submit a printed confirmation email from the FBI alongside your application.
If you are growing hemp, each growing site requires an annual Growing Site Registration, which will include a map with GPS coordinates, at least 2 labeled roads and points of entry, and the boundaries or dimensions of the growing area. The registration fee is $500, and the modification fee is also $500 per site.
Lastly, a Licensed Producer can designate one individual as an Authorized Representative, acting as a point of contact on behalf of the producer. You must indicate this person in the Delaware Domestic Hemp Production Program Producer Application with their Criminal History Report. Once this is approved, you’ll have a Delaware producer CBD license.
CBD License Application Requirements for Delaware
If you’re planning to sell CBD products over 0.3% THC, you’ll need one of the three licenses offered by the Delaware Domestic Hemp Production Program.
For a Producer CBD License, you’ll need:
- Application (Which you can only submit between November 1 and February 1)
- Criminal History Report
- Personal Information
- Growing Site Registration
- Have an Authorized Representative
For a Handler CBD License, you’ll need:
- Application (Which you can only submit between August 1 and October 31)
- Criminal History Report
- Personal Information
For a Processor CBD License, you’ll need:
- Application (Which you must submit by October 31)
- Criminal History Report
- Personal Information
- Facility Registration
- Key Participant
The approval process for a Delaware CBD license is similar for all of them, here are the steps:
- The Delaware Department of Agriculture will review your completed Processor Application and verify eligibility through submitted documents. If additional information is needed, they will contact you for follow-up.
- Once approved, you’ll receive a Processor Registration and Registration Number.
- Note that the FBI Criminal History Report can impact application approval.
- The Department will inform Law Enforcement of your approval status.
- All documents will be stored for record-keeping and may be disclosed under FOIA.
Laws & Regulations for Selling CBD in Delaware
In a landmark decision, the 2018 Farm Bill, granted the federal legalization of hemp products containing 0.3% THC or less. As a result, CBD products are now widely accepted across the nation, as long as they meet the specified THC concentration guidelines. For CBD retailers, ensuring compliance with these limits is key, and you must also obtain a certificate of analysis from an independent third-party tester for every product supplied to your business. This step guarantees the legitimacy and safety of your CBD offerings.
In Delaware, gaining access to hemp-derived CBD products is usually straightforward and doesn’t require a prescription or a specific CBD license. These products are available over the counter, and doctors generally don’t issue a traditional “prescription” for them. Instead, they can “recommend” CBD products. Even if medical marijuana is legal in the state, obtaining it typically involves a doctor’s referral rather than a standard prescription. This approach ensures that individuals can benefit from CBD’s potential therapeutic properties without unnecessary barriers.
How to Renew Your CBD License in Delaware
As previously mentioned, if you’re planning to sell CBD products with less than 0.3% THC, there’s no need to obtain or renew a license. However, you do need to renew your Producer, Processor, or Handler’s CBD license in Delaware. In contrast to other states that require annual renewal, Delaware requires renewal of your CBD license every three years for a $300 fee paid on the NIPR website.
If you decide not to renew your Delaware CBD license, it’s important to inform the Department in writing. You’ll need to send a signed request via fax or email ([email protected]) to the Department. Remember that timely renewal and communication can help prevent any potential administrative actions.
Start Selling CBD in Delaware
After choosing your business’s legal structure, you will either decide to sell CBD online or at a brick-and-mortar store, in person. Even if you decide on a brick-and-mortar store, adding an eCommerce store can give your business more sales opportunities for growth, broadening your customer reach by catering to the digital market.
Consequently, not all platforms natively support CBD sales because many consider the CBD industry “too risky”. In turn, you may need to partner with a suitable payment processor to facilitate these types of transactions. Choosing a provider that offers CBD merchant accounts with specialized support will help you build a resilient and successful CBD business.
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Delaware CBD License: FAQs
Is CBD legal in Delaware?
Yes, CBD is legal in Delaware. The state aligns with federal laws established in the 2018 Farm Bill, which legalized hemp and hemp-derived products including CBD, as long as they contain no more than 0.3% THC on a dry weight basis.
This means that hemp-derived CBD products with THC concentrations of 0.3% or less are legal at the federal level and in Delaware. However, it’s essential to ensure that the CBD products you sell or use comply with the THC limits and any other relevant regulations in the state.
How much does a CBD license cost in Delaware?
Retailers selling hemp with less than 0.3% aren’t required to pay fees. However, producers, processors, and handlers need to pay the fees associated with their application. Application fees are $300 (every three years), criminal report history fees are $18, and growing site registration is $500 per site.
Can you sell CBD without a license in Delaware?
In Delaware, selling CBD products at a retail location without a license is allowed under the law. The same goes for products with less than 0.3% THC. However, if you want to cultivate, process, or handle hemp for CBD products, you’ll need to acquire a permit through the Delaware Domestic Hemp Production Program. It’s crucial to stay in compliance with Delaware law, and that means renewing the necessary license every three years to continue your hemp-related activities legally.
How long is a CBD license valid in Delaware?
After you get your license, it will last you three years. This means that once three years pass, you’ll either have to renew it or give your license up. If you decide to give it up, you’ll need to inform the Delaware Department of Agriculture as soon as possible via email or fax.