How to Start a CBD Business in Colorado


Colorado was the first place in the United States to legalize marijuana for adult use, way back in 2012. This means, in Colorado, all forms of pot and THC are sold legally and regulated by the government. But, what about CBD? THC’s non-psychoactive cousin?

CBD is also legal in Colorado, as well as across all 50 states. In fact, CBD is growing to be a big business in and out of the state of Colorado. In 2022 it is estimated that almost $2 billion will be spent on CBD products alone. Now is a great time to start working in the CBD industry. So, let’s discuss exactly how you can start your own CBD business in Colorado.

Why CBD?

As previously mentioned, CBD is enjoying quite the sales boom at the moment. There are countless benefits to CBD, making it become a household name for people from all walks of life. Anxiety and stress reduction are two of the biggest reported benefits of CBD that make it attractive. But, people also shop for its ability to help them sleep, reduce tremors, and even cure pain.


If CBD is becoming such a big household name, surely now is the time to start selling? Yes, definitely! Especially if you are passionate about CBD yourself. Let’s get into a bit more detail on how you could start your very own CBD-based business in Colorado. 

Colorado Suppliers

If you’re going to sell CBD, you’ll need to find reliable suppliers. As Colorado is a market leader in hemp and marijuana production, you’ll be able to find a wholesale cbd program with no problems at all. The state has some of the best growers and suppliers in the country, so you should look local for your CBD supply.


When it comes to growers and wholesalers, they are just like you. They have a passion for the product, use it themselves, and create the best products they possibly can. Finding a supplier like this is key, as you want to share this story with your customers, too. In this day and age, people are reverting to shopping locally and wanting to understand where their products come from, so finding a local supplier of the highest quality is essential. 

Do I Need a License? 

A common question people wonder when looking into CBD businesses is whether they need a license. Actually, as a reseller, you don’t. You can set up your business in Colorado with just standard business licenses – more on that later. Growers, however, do need to register with the CDA industrial hemp program, so you need to check at the source to ensure you’re selling legal products.

Legality Of CBD

Speaking of legality – it is important to make sure your products are meeting the required State and Federal laws. For CBD to be legal, it must contain no more than 0.3% of the psychoactive cannabidiol, THC. This would make it a controlled and illegal substance. So, again, it’s important to make sure you know that you are buying products that have been rigorously tested and meet all federal requirements. This is where working with a local supplier you trust would be a further benefit.


Registering A Business

Finding a local supplier is fun and very exciting. And, although you don’t need a CBD selling license, it’s still important to register your business properly. For a CBD resale business, it is recommended to register your business as a limited liability company, or LLC. This separates you from the business, leaving the liability of the business debts and expenses out of your personal financial situation.

You’ll also need a resale license. This isn’t specific to CBD but is instead a requirement for any business reselling wholesale products. These licenses are easy to apply for and only cost between $4-16 in Colorado.

Business Planning

Obviously, it’s not as easy as buying some CBD then selling it on, you do need a plan! Before you start to buy your stock and build your brand, you need to create a proper business plan, as any other business would. Plan your funding, your wages, how you will reinvest profits, and what products you plan to sell. 

A key question is also where you plan to sell. Online is appealing to many sellers, as it requires no premises, few or no staff, and fewer expenses. However, it’s always worth considering selling face-to-face as well. Does your town or city have space for a high street CBD seller? If you think it does, you could find yourself operating a great shop, hugely popular with locals.

Choose (And Know All About) Your Products

When people come to buy your CBD products – online or not – they will likely have some questions. “How does it work? Where’s it from? Is this product right for me?” There is only one best way to answer these questions and that is to have used all the products yourself. Whether you want to stick with oils or branch out into edibles and topical creams, you should know all about them yourself. Selling with a passion and a knowledge of your products is the best way to gain consumer trust and build rapport.

Promotional Work 

Again, whether online or off, you’ll need to do some promotional work. If you have a small store, you may want to flyer the local area. Speak to other businesses and offer local’s deals. These sorts of things will cement your place on the high street and make you a fixture of your city. 

If you’re mostly going to be selling online, you could consider using targeted adverts on social media. It actually doesn’t cost much money at all to promote your business to people who are specifically interested in CBD on Instagram. Whether online or offline, you should definitely have a strong presence on social media anyway.


Following all these steps will help you ensure that you are opening a CBD business legally and professionally, as well as helping you sell your products right. Remember, great local supply, good backstory, and passion for the products will help you go a long way in this business. If you do open up your own CBD company – best of luck!

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