A guide for budding CBD entrepreneurs in the Lone Star State.
CBD business opportunities are rife in the United States. It's been projected that consumer sales may reach around $1.8 billion in 2022! As the popularity of CBD continues to grow, we’re seeing new businesses pop up across many states—and Texas is no exception.
If you’re looking to start a CBD business in Texas, you’ll need to know the laws, hemp licensing requirements, and the associated costs.
oHHo’s got you covered—consider this your CBD business starter kit!
CBD laws in Texas
First up on the checklist: Educate yourself on state laws to ensure your CBD business is compliant.
In a nutshell, cannabis with a THC concentration of less than 0.3% is legal nationwide. In 2019, the governor of Texas signed a bill amending the Texas Agriculture Code and the Health & Safety Code, regulating the growth of industrial hemp and the sale of consumable products, like CBD oil, cosmetics and food.
However, Texas can be tricky at times; regulations tend to change. For instance, in 2020, smokable CBD products like dry flower and vaping oils were abruptly banned. Fast forward to 2021, a court ruled they can legally be sold, as long as they aren’t produced in the state. The takeaway here is to consistently keep an eye out for changes!
Do I need a license to start a CBD business?
Absolutely. Here’s a glance at some requirements outlined in the Consumable Hemp Program set forth by the Department of State Health Services (DSHS), the state agency responsible for controlling hemp manufacturers, retailers and distributors:
1. DSHS Retail Hemp Registration: For companies that sell consumable hemp products, and don’t make any changes, such as “adding a company name to the hemp product or its packaging.” This also applies to businesses selling CBD online.
2. DSHS Consumable Hemp Product License: For businesses that manufacture CBD products, repackage/relabel, sell wholesale, or, white label/private label products manufactured by another business.
For more information, visit the DSHS website.
Now, if you plan on growing your own hemp, there’s a laundry list of requirements, including a producer license, a crop permit and lab testing. Check out this informative guide!
How much it costs to launch a CBD business in Texas
Some estimate that an initial investment can range anywhere from $23,550 to $71,700. Expenses include inventory, marketing and permits, the latter of which is quite affordable: The DSHS Retail Hemp Registration costs $155 per location, while a DSHS Consumable Hemp Product License is $258 per facility. Both must be renewed on an annual basis.
But keep in mind, every business is different! For example, if you're going to operate as a CBD manufacturer, you’ll likely need more financing than retailers.
Start your CBD business with oHHo
It’s no secret that launching a CBD business is an extensive process. If you’d rather take it slow, consider joining oHHo’s Community Builder collective. You can earn cash and rewards, access educational resources, and network with fellow entrepreneurs. Apply here!