How to Start CBD Business in Ohio

Ohio is the 25th state that has legalized marijuana for medicinal use. In this way, Ohio has open doors to the cannabis market in the year 2016. Which has allowed Ohio people to treat specific conditions with prescription marijuana. Out of 50 states in the US 33 have regularized the use of medical cannabis but are not among 11 states which have legalized cannabis for recreational use. You may know that CBD extracted from hemp is legal in Ohio which means that you can see a lot of stores and retailers selling the CBD products.

Hemp and Marijuana both are derived from cannabis but the difference is hemp contains a lesser amount of THC than marijuana. Marijuana produces psychoactive effects. CBD derived from marijuana is still illegal and subject to strict regulations because it comes under the Schedule 1 controlled substance list.

In this article, we take a look at the CBD laws, regulations, and requirements for CBD business in Ohio.

CBD Laws in Ohio

CBD derived from hemp is not toxic but many associate it with the cannabis plant. CBD products made from using industrial hemp contain THC less than 0.3%. The possession of 100gm of CBD is illegal and causes you penalties including a $150 fine and possession of 100-200gm is punishable with a fine of $250 and 30 days of imprisonment.

The use of recreational cannabis is still illegal in Ohio. There was a push to legalize marijuana in 2015 but it was not accepted by the Federal. In the year 2016, a bill was passed which legalized the use of medical cannabis and allowed to start state medical marijuana programs.

According to these programs, adults of age 21 are eligible for medical marijuana for one qualifying condition but smoking of CBD is not legal. Various support was given to CBD product for research and recently Federal laws related to cannabis have changed leading to form state own regulations for CBD.

In the year 2019, the Ohio Senate passed a bill SB 57 that legalized the purchase, sale, and possession of hemp and its related products. As an outcome of hemp legalization, the Ohio State Board of Pharmacy clarifies that CBD oil can be sold outside of licensed medical marijuana dispensaries. 

CBD Business in Ohio

If you are planning to step into the US market of Cannabis then you must know what Ohio State has legalized for you

  • Hemp and its derived products are now legal which means you can start a business in these products as they are not considered drugs or are not under marijuana definition.

  • Procession, sale, and purchase of these CBD derived from hemp are legal.

  • Can be given to students on request same as for homeopathic remedy as per board policies

  • The CBD products should contain no more than 0.3% of THC which is the legal quantity

CBD Business License

For conducting CBD business in Ohio you will need a license for the CBD and its CBD products sale and hemp cultivation as per the Ohio Law.

  • The department of Agriculture in Ohio will deal with licensing including application, processing, and its fees

  • You can start a business in CBD infused dietary supplements or any edible product but make sure that the product contains CBD only from hemp. 

  • To sell CBD or hemp products you don't need a license

As per the Ohio Department of Agriculture if you wish to start a business in the manufacturing of CBD products including CBD oil then you will require to have a license. The manufacturing facility will be checked and inspected by the department.

How to Get a Hemp Licence in Ohio

Ohio hemp program is for starting a CBD business in Ohio. This program is for growers and processors of industrial hemp.

Cultivation Licence

  • Cultivation of hemp is for those who work to cultivate, harvest, process, storing, and transporting to the first sale point.  

  • If you want to grow the hemp then you must obtain a cultivation license from the Ohio department of agriculture.  

  • For this, you need to submit an application containing some personal information, business entity, and area location for cultivation, outdoor and indoor acres. 

  • The license fee is $100 and an additional $500 for each growing location is required.

  • Individual and business entities must also submit criminal records with the application.

  • The license is valid for 3 years.

Processor Licence

  • Processing licenses are for those who form hemp products from hemp.

  • If a grower wishes to sell the hemp products also then he needs to have the processor license as well.

  • When applying for the license application then apart from providing business and personal details, it is necessary to provide information about the hemp products that will be produced. 

  • An amount of $500 is required for each processing site and if processing raw floral parts of hemp them $3000 fee is required for each processing site. 

  • A background check is a must for the applicant.

  • The license is valid for 3 years.

Author - Noah Nicholls

Noah Nicholls is a full-time Writer, Traveler, and Marketing Expert who is Currently Working for CBD-Boxes. Noah Nicholls writing relates to a range of subjects such as CBD and health.


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