CBD

How to Get a CBD License in Louisiana & Start Your Business

CBD products displayed by a merchant who carries a CBD license in Louisiana.
A leaf being treated with CBD in Louisiana.

Since the 2018 Farm Bill federally legalized hemp products containing 0.3% or less THC, CBD products have surged in popularity across the United States. Even Louisiana, known for its strict cannabis laws, now permits retail businesses to sell CBD products both online and in-store.[1]Shreveport Times. “CBD sales legalized in Louisiana“. Accessed on November 1, 2023.

However, starting a new CBD business in Louisiana comes with its challenges. Louisiana requires its retailers to apply for CBD permits and follow strict rules regarding CBD labeling, concentration limits, and more. Conforming with Louisiana CBD rules and licensing requirements is critical for new and existing cannabinoid businesses. Not doing so can result in heavy penalties and the closure of your business.

This guide explores how to start a CBD business in Louisiana, how to get a CBD license in Louisiana, regulations for selling CBD products in Louisiana, and other related topics. Read ahead if you’re ready to start selling CBD to Louisiana residents!

How to Start a CBD Business in Louisiana

While CBD has only recently been legalized in Louisiana, the state authorities have already established a permit program to streamline the process for sellers in the CBD market. However, before you apply for a CBD license in Louisiana, you need to set up a business. Start by deciding which business structure is most suitable for your company, many CBD business owners choose to form an LLC for its liability protection benefits.

Next, register your business with the Louisiana Department of Revenue (LDR) for sales tax and withholding tax. The IRS also requires your business to register for an Employee Identification Number (EIN) if you have employees. You can obtain an EIN via an application on the IRS website.

Once you’ve set up the legal framework, you can elect to open a business bank account. Opting for dedicated business banking aids in segregating business from personal finances, helps establish business credit, and facilitates access to finances.

Once your business is running, it’s time to apply for a Louisiana CBD Retail Dealer Permit. This permit allows a business to sell legal CBD products to customers throughout the state. We’ll explore the application process in more detail in the section below.

How to Get a CBD License in Louisiana

Obtaining a Louisiana CBD permit is relatively straightforward, especially for those with experience in the CBD industry. Louisiana offers three types of CBD permits for business owners: the CBD Retail Dealer Permit, Remote Seller Dealer Permit, and Annual Special Event Permit. Each serves a unique purpose:

  • CBD Retail Dealer Permit: This is a permit for a business selling legal CBD products in a physical retail space. An individual permit is needed for each physical location. The pricing is $175 per year (per retail location).
  • Remote Seller Dealer Permit: This is a permit for a business selling legal CBD products via online stores, catalogs, or other “remote” business locations. A permit is required for each individual domain name registered for selling CBD products. The pricing is $175 per year (per registered domain name).
  • Annual Special Event Permit: This is a permit for a business holding a “special” CBD event that involves selling CBD products. For example, if you organize a CBD fair to advertise and sell products, you must obtain an Annual Special Event Permit. This permit is only available to businesses already holding a CBD Retail Dealer Permit or a Remote Seller Dealer Permit. The pricing is $175 (with the prerequisite of possessing either a CBD Retail Dealer Dealer Permit or a Remote Seller Dealer Permit.

To obtain a CBD license in Louisiana, head to the Louisiana Alcohol and Tobacco Control website and begin filling out an application form.

A document with a green checklist.

CBD License Application Requirements for Louisiana

Ensuring you have all the relevant information before submitting a CBD license application can prevent unnecessary delays. Below is the information required for a CBD permit application in Louisiana:

  • Type of Ownership
  • Applicant’s legal name (individual, partnership, LLC, or corporation)
  • Trade name
  • Official mailing address
  • Primary business email address
  • Business phone number
  • Cell Number
  • Federal Employee Identification Number (FEIN)
  • Louisiana State Identification Number
  • Details about individuals in the ownership group, including name, title, date of birth, SSN, and percentage of ownership
  • Address details about any physical retail locations operated by the business

It’s crucial to ensure all information on your application is accurate and complete to avoid processing delays.

Laws & Regulations for Selling CBD in Louisiana

Louisiana prohibits the sale of various types of CBD products within the state. Prohibited products include those intended for:

  • Inhalation
  • Subcutaneous or transdermal application
  • Intravenous or intramuscular injection or infusion
  • Rectal or vaginal insertion
  • Vaping, such as products designed for or including a vape cartridge, vape pen, or e-cigarette

Additionally, the state outlines the following rules on its website:

  1. CBD must be produced from hemp grown by a licensee authorized to grow hemp by the USDA or under an approved state plan.
  2. CBD shall be registered with the Louisiana Department of Health (“LDH”) and receive label approval.
  3. CBD must not be marketed as a dietary supplement.
  4. CBD must not contain any active pharmaceutical ingredient recognized by the FDA.[2]Louisiana Office of Alcohol and Tobacco. “CBD RETAIL DEALER PERMIT APPLICATION PACKET“. Accessed on November 1, 2023.

Regardless of the type of CBD products you plan to sell in Louisiana, compliance with legal standards is crucial. In early 2023, Louisiana Governor John Bel Edwards indicated the state would intensify enforcement of laws concerning unregulated THC products, potentially encompassing CBD products that do not adhere to THC limits.[3]Fox 8 Live. “Louisiana governor says stricter enforcement on THC products; law change may be coming“. Accessed on November 1, 2023. Always check Louisiana’s government websites for the latest rules and regulations, as restrictions are subject to change.

How to Renew Your CBD License in Louisiana

Currently, CBD Retail Dealer Permits in Louisiana are valid for a maximum of one year, with all permits expiring on March 31 annually. This structure means that your permit may cover less than a full year, depending on the issue date during your first cycle.

Fortunately, renewing a CBD Retail Dealer Permit is not difficult if your business conforms to Louisiana’s legal requirements. Head to your customer portal on The Louisiana Office of Alcohol & Tobacco Control’s website. After logging into your account, scroll down and view the “My Approved Licenses” tab on the dashboard. A “Renew” button will appear next to eligible permits 30-45 days before the expiration of the permit.

Start Selling CBD in Louisiana

People using CBD dropper on giant brain after getting a Louisiana CBD license

The CBD industry has rapidly expanded since hemp legalization in the United States. In 2019, the year following the 2018 Farm Bill, more than 900 businesses held Lousiana CBD permits.[4]Cannabiz Media. “CBD Retail and Wholesale Licenses Issued in Louisiana – Here’s the Data and Why It Matters“. Accessed on November 1, 2023. With more than 4.59 million Louisiana residents, 76.6% of whom are 18 or over, many potential CBD consumers are available to permit holders in the state.[5]United States Census Bureau. “Quickfacts Louisiana“. Accessed on November 1, 2023.

In addition to obtaining a CBD permit, finding a payment processor for accepting credit cards is critical. With the value of noncash transactions exceeding $128 trillion annually in the United States, your CBD business can’t afford to ignore card payments.[6]Federal Reserve. “The Federal Reserve Payments Study: 2022 Triennial Initial Data Release“. Accessed on November 1, 2023. However, many Louisiana CBD businesses struggle to access merchant services due to the high-risk nature of the industry—CBD’s evolving regulatory environment leads many traditional banks to steer clear. CBD merchant account providers help Louisiana CBD businesses access online and in-person payments. Likewise, these specialized merchant account providers offer a range of additional benefits to CBD retailers, including industry-specific tools, payment stability, quick payout timeframes, high chargeback thresholds, dedicated support, and more!


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Louisiana CBD License: FAQs

Is CBD legal in Louisiana?

Yes, CBD products conforming to pre-specified limits are legal in Louisiana. CBD products must have 0.3% THC concentration or less, as well as conform with other legal requirements. Additionally, CBD retailers cannot sell products intended for:

  • Inhalation
  • Subcutaneous or transdermal application
  • Intravenous or intramuscular injection or infusion
  • Rectal or vaginal insertion
  • Vaping, such as products designed for or including a vape cartridge, vape pen, or e-cigarette

How much does a CBD license cost in Louisiana?

Pricing for each permit is as follows:

  • CBD Retail Dealer Permit: $175 per year (per retail location)
  • Remote Seller Dealer Permit: $175 per year (per registered domain name)
  • Annual Special Event Permit: $175 (with the prerequisite of possessing either a CBD Retail Dealer Dealer Permit or a Remote Seller Dealer Permit.)

Can you sell CBD without a license in Louisiana?

No, selling CBD in Louisiana without a valid CBD Retail Dealer Permit is not legal.

How long is a CBD license valid in Louisiana?

Louisiana CBD permits are valid for a maximum of one year. Unlike other states, Louisiana CBD permits expire on March 31st each year, regardless of when the permit is issued. This means when a business first applies for a CBD retail permit, it may be valid for less than one year. To continue selling CBD products in Louisiana, a retail business must renew its license by March 31st of each year.

Article Sources

  1. Shreveport Times. “CBD sales legalized in Louisiana“. Accessed on November 1, 2023.
  2. Louisiana Office of Alcohol and Tobacco. “CBD RETAIL DEALER PERMIT APPLICATION PACKET“. Accessed on November 1, 2023.
  3. Fox 8 Live. “Louisiana governor says stricter enforcement on THC products; law change may be coming“. Accessed on November 1, 2023.
  4. Cannabiz Media. “CBD Retail and Wholesale Licenses Issued in Louisiana – Here’s the Data and Why It Matters“. Accessed on November 1, 2023.
  5. United States Census Bureau. “Quickfacts Louisiana“. Accessed on November 1, 2023.
  6. Federal Reserve. “The Federal Reserve Payments Study: 2022 Triennial Initial Data Release“. Accessed on November 1, 2023.


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