How to Get a CBD License in North Dakota & Start Your Business

Cannabis laws have been liberalized throughout the country, but many states remain committed to preventing the recreational use of marijuana. One state remaining against the use of recreational cannabis is North Dakota— where cannabis is only available for medical use. However, due to the 2018 Farm Bill, which reclassified cannabis with 0.3% THC concentration or less as hemp, some CBD products are now legally available in North Dakota without the need for a CBD license to sell them.

Still, many entrepreneurs have used this new approach regarding hemp to sell products with psychoactive properties. North Dakota lawmakers are now revising regulations to prohibit the sale of “psychotropic or purely synthetic hemp-derived products, such as various forms of Delta-THC,” while simultaneously permitting the sale of CBD products that comply with federal legality.^[1]Minot Daily News. “CBD law changes go into effect Aug. 1“. Accessed on Feb 13, 2024.

All of this makes it challenging for CBD entrepreneurs to open new businesses in North Dakota. This guide explores how to start a CBD business in North Dakota, CBD licensing requirements, rules and regulations for selling CBD, and other related topics. Let’s dive in!

How to Start a CBD Business in North Dakota

To start a CBD business in North Dakota, it’s essential to follow a systematic approach. Begin with a comprehensive business plan that outlines your objectives, target market, and product offerings. Next, select a business structure that offers liability protection for your business’s owners—a Limited Liability Company (LLC) is a popular option for many CBD entrepreneurs in North Dakota.

Once you select a business structure for your new CBD business, it’s time to register it with state authorities. Head to North Dakota’s “New Business Registration” website and begin the process of registering your business. If you want to form an LLC, you can file Articles of Organization for $135.

Once you register your new business with North Dakota authorities, you must obtain an Employer Identification Number (EIN) from the IRS. This number is a requirement for employing people at your business; it also operates as an identification number for your business, making it easier to access trade credit, loans, business bank accounts, and more.

Once all the core business infrastructure is in place, it’s time to focus on CBD. So, what type of CBD licenses and permits do you need in North Dakota? We explore this in-depth in the section below!

How to Get a CBD License in North Dakota

CBD License Application Requirements for North Dakota

To apply for a hemp grower or hemp processor license, it’s critical to understand the application requirements. Collecting the correct information before applying can help your business avoid delays. Let’s explore the details you must provide during the application process:

• Core personal details about the applicants
• Two sets of fingerprints
• Field locations and details (for grower applications)
• Criminal History Record Check Request
• Hemp License Application Form
• Hemp Processor License Application Form
• $41.25 check or money order made out to the North Dakota Department of Agriculture to pay for background checks

Laws & Regulations for Selling CBD in North Dakota

In North Dakota, CBD retailers must sell hemp-derived CBD products with less than 0.3% THC concentration (these are the rules outlined in the 2018 Farm Bill). Likewise, CBD must not be infused with food products, as this is against current FDA regulations. Recently, the FDA has sent warnings to a North Dakota retailer due to the improper sale of CBD-related food products.^[2]Food Safety News. “Companies in California and North Dakota warned over THC in food products“. Accessed on Feb. 13, 2024.

Throughout 2023, North Dakota has been very intentional about preventing retailers from exploiting loopholes and selling psychoactive CBD products to consumers in the state. Agriculture Commissioner Doug Goehring recently elaborated on the state’s attempts to improve its CBD legislation:

“The issue is that out-of-state processors are taking legal hemp extracts (CBD) and using a chemical process to convert CBD into synthetic psychotropic substances like tetra cannabinoid-O-acetate (THCO), hexahydrocannabinol (HHC), Delta-8, Delta-9, and Delta-10, etc. These products are being shipped into North Dakota and sold at retailers in the state,” Goehring said. “The intent of the 2014 and 2018 Farm Bills that legalized hemp was not to create loopholes for psychotropic products. These processes are synthetically creating a drug that will cause the user to get high.”^[3]North Dakota Department of Agriculture. Goehring clarifies cannabidiol bill. Accessed on Feb. 13, 2024.

As North Dakota’s efforts to curtail the sale of psychoactive products continue to evolve, it’s critical to keep tabs on the latest CBD rules and regulations in the state.

How to Renew Your CBD License in North Dakota

As there is no retail North Dakota CBD license, your business will not need to renew licenses or permits to continue selling legal cannabidiol products to consumers. However, businesses growing or processing hemp for CBD products in North Dakota must renew their licenses annually. To renew a hemp grower or processor license, you must fill out the same application form as when your business initially applied for a hemp license. The only difference is that you must tick the “Renewal license application” box at the top of the form instead of the “Initial license application” box.

Start Selling CBD in North Dakota

Your business is now equipped with all the details it needs to start a new CBD business in North Dakota. As retailers don’t require a North Dakota CBD license to sell legal cannabidiol products, there are no significant hurdles to overcome when you first set up a new CBD business. Just make sure you stay on top of the latest rules and regulations for CBD products, as the industry in the state is currently evolving. Once your business is up and running, you’ll have access to more than 590,000 adult consumers in North Dakota!^[4]US Census. “Quick Facts North Dakota“. Accessed on Feb 13, 2024.

Likewise, having a high-risk merchant account provider for processing CBD payments in North Dakota is crucial because the CBD industry faces higher risks due to regulatory uncertainties. High-risk providers specialize in handling businesses with increased risk factors such as legal and compliance challenges, and are more likely to approve and support CBD businesses. They also offer tailored CBD merchant accounts that include fraud protection and unique payment tools. This ensures smoother, reliable payment processing and safeguards your business from payment disruptions, helping you maintain financial stability and customer trust in a challenging regulatory environment.