Anyone thinking of making it big in the medical marijuana industry or hemp industry might want to consider more than just business skill or acumen when deciding the potential for a new startup. First there are a myriad of obstacles and hurdles for these entrepreneurs that most other retailers never worry about.
Legal cannabis sales in the U.S. last year reached $6.7 billion, a growth of 30 percent, according to an ArcView Group market research report outlined by the International Business Times. The growth is faster than the dot-com boom of 2000. Everyone wants to take a piece of the medical marijuana and hemp CBD pie.
Medical Marijuana and hemp products are becoming mainstream America. Big tobacco companies are chomping at the bit for a federally legal medical marijuana program so they can launch Marlboro Green with CBDs and THC. Everybody wants to get in on the Billion-dollar piece of the medical marijuana (THC) or hemp (CBD) pie.
So, if you are an entrepreneur seeking wealth and fame as the next big startup in the cannabis or hemp industry what should you know? What should you do first? First understand the legal consequences of retailing THC or CBD in your State. Most successful startup businesses will need a combination of legal and accounting advice.
The federal government seeks to limit the true economic potential of medical marijuana and hemp products by prohibiting federal banking systems from allowing business checking or merchant accounts for any business who is involved with marijuana (THC) or hemp (CBD) retail.
As a start-up business, it is always good advice to seek out experts in legal and accounting matters. It is even more important when a business retails medical marijuana or hemp. Just because your State is legal for marijuana or hemp, does not mean you can start an online shop and start selling THC or CBD products to the world.
We verify all hemp and CBD or hemp oil products are from a licensed United States 100% pure organic source. All hemp retail suppliers must obtain hemp oil, hemp CBD, and other raw hemp ingredients after submission to a lab for verification of quality, purity, and CBD concentration. Our suppliers hold the proper licensing by their State Department of Agriculture. Our supplier is registered for the commercial sale and transport of hemp (CBD) products throughout all 50 United States. We promote both our supplier’s line of hemp products and our own branded line of hemp products, but rest assured both lines are from 100% Pure Organic sources.
Don’t be fooled. Some hemp CBD retailers may be unaware of the regulations imposed on hemp oil and hemp CBD products. They may not insist on using 100% pure organic hemp oil for their product line. They may take short cuts by cutting their hemp products with ingredients like lemon seed oil, for example, to gain profit on the margin for hemp retail products.
Surely the public does not wish to have such fillers and unknown ingredients in their hemp oil products.
It is important to always insist on obtaining a certified lab report as to the product’s content and THC percentage levels. Hemp CBD products in the United States for retail at the national level are legal, but it is advisable to check with each State regarding any specific laws or regulations imposed on hemp CBD or hemp oil products. Some States will allow for a percentage of THC within the hemp product being retailed. There are differences between what the federal law permits and what the many state narcotics laws permit. The State of Texas has a zero tolerance for THC, not even 0.001%. When considering a purchase of hemp CBD or hemp oil first verify the manufacturer is properly registered with the FDA.
FDA Code per 21 U.S.C. §350d, the Registration of Food Facilities (a) Registration.
The FDA has determined that products containing CBD cannot be sold or misrepresented as a dietary supplement and are excluded from the dietary supplement definition in the Federal Food, Drug, and Cosmetic Act.
For more information, see the September 30, 2015 Q&A, “FDA and Marijuana: Questions and Answers.”
The FDA has also ruled that claims of health benefits, medicine, medical effects cannot be labeled or advertised and in fact a disclaimer must be applied on all packaging, marketing, and advertisements.
So if you are interested in retailing hemp oil or hemp CBD, you may wish to first seek legal counsel, and accounting advice on how you may qualify or NOT qualify for a Merchant Account because you retail hemp or CBD products.
If a business cannot obtain a merchant account, the business cannot process credit cards or debit cards. This is how the federal government limits the true economic potential of both the cannabis and hemp industries by not allowing cooperation within federal banking systems. It becomes mighty hard to operate as a business when the business cannot have a banking account or a merchant account.