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

Starting a CBD business requires more than capital; you’ll need to learn the rules and regulations associated with the industry. Our guide will teach you how to obtain an Oklahoma CBD license while adhering to the law.

We’ll cover everything from application details to legal insights and renewal procedures to help you not only enter but succeed in the CBD industry.

How to Start a CBD Business in Oklahoma

Start by formulating a comprehensive business plan stating your objectives, product range, marketing strategies, financial projections, and operational tactics. Next, select an appropriate legal structure for your business, with options like LLC, partnership, or corporation being popular choices. Following this, proceed to register with the Oklahoma Department of Agriculture, Food and Forestry (ODAFF), and also obtain an Employer Identification Number (EIN) from the IRS to fulfill your tax obligations. Remember, acquiring an Oklahoma CBD license is a prerequisite before engaging in any cultivation or production activities.

Next, establish a dedicated business bank account. This account not only provides access to commercial credit cards and financing options, but also aids in building and nurturing your business credit profile. This asset can be invaluable for future funding endeavors and expansion initiatives.

A CBD license may not be needed if you focus on selling hemp products. Thanks to the 2018 Farm Bill, businesses have the liberty to sell hemp items, provided their THC content remains below the 0.3% threshold. However, if your ambitions revolve around hemp growing, processing, or handling, then securing a license becomes necessary.

How to Get a CBD License in Oklahoma

Obtaining an Oklahoma CBD license involves a structured process that varies based on your specific business activities within the CBD industry. Here’s a step-by-step guide:

1. Understand Your Business Activities — Determine whether your CBD business involves growing, processing, handling, or all three. This will dictate the type of license you need to apply for.
2. Gather Necessary Documents — Prepare all required documentation, including business formation documents, proof of identity, financial statements, security plans, and any other relevant information specified in the OMMA guidelines.
3. Register with OMMA — Create an account on the OMMA application portal if you haven’t already. This will allow you to submit your application and track its progress.
4. Submit Application — Log in to your OMMA account and submit the appropriate license application. Ensure that all required fields are accurately filled out and that you attach all necessary documents as outlined in the application process.
5. Pay Fees — Pay the required application and licensing fees as specified in the OMMA guidelines. Fees may vary depending on the type of license you’re applying for.
6. Background Checks and Inspections — You must Undergo background checks and inspections as part of the application process.
7. Await Approval — Once your application is submitted, OMMA will review it for completeness and compliance. This process may take some time, so be patient. You can track your application’s status through your OMMA account.
8. Stay Informed — Stay updated on any communications from OMMA regarding your application. Be prepared to provide any additional information or address any concerns they may have.
9. Receive Your License — Upon approval, you’ll receive your CBD license from OMMA. This license authorizes you to engage in the specific activities outlined in your application.

For a Grower Oklahoma CBD License, you’ll need:

1. Application
2. Legal Entity Formation
3. Ownership Information
4. Business Location
5. Security Plan — Develop a comprehensive security plan that outlines measures to protect the premises, prevent unauthorized access, and ensure the safety of employees and the public.
6. Financial Statements
7. Inventory Control Plan
8. Cultivation Plan
9. Packaging, Labeling, Staffing, and Waste Disposal Plans
10. Environmental Controls — Explain how you will maintain appropriate environmental conditions within the facility to ensure the health and safety of the plants.
11. Background Checks — Consent to background checks for all individuals associated with the business to ensure compliance with state requirements.

For a Processor Oklahoma CBD License, you’ll need:

1. Application
2. Legal Entity Formation
3. Ownership Information
4. Business Location
5. Security Plan
6. Financial Statements
7. Inventory Control Plan
8. Cultivation Plan
9. Packaging, Labeling, Staffing, and Waste Disposal Plans
10. Environmental Controls
11. Background Checks

Below is a list of all the fees linked with obtaining a CBD license in Oklahoma:

Fee Type	Fee Amount	Due Date
Application Fee	$2,500 – $50,000 for Grower $2,500 – $20,000 for Processors	At time of application

Laws & Regulations for Selling CBD in Oklahoma

Oklahoma has clarified CBD’s legal status within its boundaries, permitting the sale of diverse CBD products, including edibles and supplements. CBD, whether hemp-derived or marijuana-derived, is legal in Oklahoma to differing degrees, with the state accommodating hemp production and enabling various CBD sales. Despite this, the lack of comprehensive regulations raises potential risks regarding product quality.

Legislative changes like HB 2154 (2015) and the Oklahoma Hemp Pilot program (SB 868, 2019) have facilitated hemp-related regulations. Various CBD products, including foods and supplements, are permissible, although consumable CBD vendors must be licensed food establishments. Full-spectrum CBD with less than 0.3% THC is legal. While there’s no CBD possession limit, products with more than 0.3% THC may adhere to the medical cannabis program’s regulations. No prescription is needed to access hemp-derived CBD, and vendors may set their age limits, often aligning with tobacco regulations.

In regards to online sales, state age requirements vary, but many reputable CBD brands allow customers aged 18 and older to purchase online.

How to Renew Your CBD License in Oklahoma

You’ll have to renew your Oklahoma CBD license annually. To ensure a seamless renewal process, businesses are advised to submit their renewal application within a window of 60 days before the license expiration. During the renewal processing period, the current license will retain its validity if the renewal application is submitted in a timely manner. However, for renewal applications submitted on or after the expiration date, a $500 fee will be levied. Failure to submit a renewal application within 90 days after the license expiration results in permanent expiration of the license.

Start Selling CBD in Oklahoma

Deciding between online or brick-and-mortar sales is the first step toward selling CBD in Oklahoma. However, establishing an eCommerce presence will benefit your business even with a physical store.

Once you get your businesses going, start by creating a website. Creating a CBD sales website in Oklahoma involves some steps to build a reliable and successful platform. Start by outlining the range of CBD products you intend to offer, gathering product details such as descriptions, prices, and visual content. To enhance customer trust, incorporate authentic customer testimonials and reviews for social validation.

Choose premium hosting services to ensure top-notch performance and consistent availability. Adding a dedicated blog section can foster connections with customers and potential partners, showcase industry expertise, and drive website traffic. It’s important to note that if your plans involve hemp production, obtaining an Oklahoma CBD license is a mandatory requirement.

Any CBD business in Oklahoma should also look into a high-risk merchant account, given the industry’s inherent risk factors. A high-risk merchant account provides vital advantages, including dependable payment processing, decreased likelihood of account shutdowns, and improved safeguards against fraud. Additionally, some high-risk merchant account providers tailor their services specifically to CBD businesses, facilitating easier access to essential payment mechanisms!

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