How to Start a Hemp or CBD Business in North Dakota: Agriculture Commissioner License up to $350, the Delta-8 Ban and No Food or Supplement Marketing

If you want to grow, process or sell hemp or CBD products in North Dakota, start by understanding how the state classifies them. Hemp is regulated as an agricultural crop by the Department of Agriculture, not as a general consumer product you can simply register and open. The hemp license North Dakota growers and processors need comes from the Agriculture Commissioner, and it must be in place before you buy seed or clones. Retail sales follow separate rules, and those rules are stricter than many national sellers suggest.

This guide walks through the steps in order, the fees the state publishes, and the mistakes that cause new operators the most trouble.

Disclaimer: This article is informational only. It is not legal or tax advice. Hemp law is changing at both the state and federal level, and the rules described here may change before you act on them. Consult a qualified attorney who handles agricultural and business law, and a CPA for tax questions, before you invest in a hemp or CBD business.

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Materials and Information You Need Before You Start

Gather these items before you file anything:

A legal description of the land you plan to use, if you intend to grow hemp. The license application asks for it.
A $40 check fee for the criminal history check that applies to the license process.
The license fee. The department lists $100, $200, $300 or $350 for growers depending on the number of grower lots, and $200 for processors.
Funds for lab testing. The state sets a testing fee of up to $125.
Articles of Organization if you form an LLC, filed through the Secretary of State's FirstStop portal for $135.
A North Dakota registered agent with a physical address in the state, required for LLCs and corporations.
A sales and use tax permit from the Office of State Tax Commissioner, if you will make taxable retail sales.
A certificate of analysis (COA) for every product batch you sell.
A label plan that shows total THC content for each finished product.

Step 1: Choose Your Hemp Activity

North Dakota law treats growing, processing and retail sales as separate activities. Decide which one your business will perform first, because the license you need depends on it. Many new operators start with one activity and add others later, but each addition may require its own approval. Ask the Department of Agriculture which license or licenses cover your plan before you spend money on land, equipment or product inventory.

Step 2: Decide Whether to Form an Entity

North Dakota does not issue a general statewide business license. Forming an LLC is a filing with the Secretary of State, not a license, and it does not replace the hemp license. Still, most hemp operators form an LLC to separate personal and business liability. Here is how the filing works:

Check the name. The name must include "limited liability company," "LLC" or "L.L.C." It must be distinguishable from every other registered name in the Secretary of State's records. It also may not imply a purpose the company is not organized for, so avoid words that suggest medical or therapeutic uses.
File Articles of Organization. File through FirstStop at https://firststop.sos.nd.gov/ for $135. The Secretary of State publishes no guaranteed turnaround time, so call Business Services at (701) 328-2900 for current timing.
Appoint a registered agent. Your agent must be an individual residing in North Dakota, or a registered business with a North Dakota office. Get the agent's approval before you name them, and never list your own company as its own agent.
Calendar the annual report. Business LLCs file the $50 annual report by November 15 each year. Farming or ranching LLCs are due April 15 instead. Confirm which deadline applies to you with the Secretary of State.

If you will sell under a name other than your legal name, register a trade name with the Secretary of State for $25. Trade names are filed with the state, not with a county.

Step 3: Get the Hemp License North Dakota Requires

The Agriculture Commissioner license is the core approval for growing or processing hemp. It is governed by NDCC 4.1-18.1. Work through the application in this order:

Prepare the land description. Growers must identify the land where the hemp will be planted. Have exact location details ready.
Complete the criminal history check. The $40 check fee applies. The department will deny an application from anyone with a controlled-substance felony in the last 10 years, so review your own record before you apply.
Submit the application and fee. Send it to the Department of Agriculture. The fee depends on your activity, as shown in the table below.
Wait for approval before buying seed or clones. Planting material acquired before you hold the license can put your operation out of compliance.
Calendar the renewal. The license expires December 31 each year, so plan renewal and fee payment well before year end.

License category	Fee listed by the Department of Agriculture (as of 2026)
Grower, 1 lot	$100
Grower, 2 lots	$200
Grower, 3 lots	$300
Grower, 4 or more lots	$350
Processor	$200

The statute caps the license fee at $350. Confirm the current schedule with the Department of Agriculture at 701-226-8804 or [email protected] before you budget, because department figures can change.

Step 4: Set Up Lab Testing and the 0.3% THC Limit

Retail hemp products must stay within a 0.3% total THC limit. The limit counts THCa, the acidic precursor to THC that is present in raw hemp. Because THCa converts to THC when heated, most THCa flower and most delta-9-only edibles or drinks are not legal to sell in North Dakota, even if the label shows a low delta-9 number.

Build testing into your production schedule:

Send each batch to a lab for analysis. The state testing fee is up to $125.
Keep the certificate of analysis for every batch and make it available to the Department of Agriculture on request.
Do not sell a batch until the results confirm total THC within the limit.

Step 5: Get a Sales Tax Permit If You Sell at Retail

If your business makes taxable sales, apply for a sales and use tax permit through ND TAP at https://tap.tax.nd.gov/?Link=Application. Apply about 30 days before you open for business. The state sales tax rate is 5%, and cities and counties may add their own taxes. North Dakota has no franchise tax. Ask the Office of State Tax Commissioner at https://www.tax.nd.gov/ whether your specific products are taxable, and have a CPA confirm your filing schedule.

Step 6: Label Products and Follow the Marketing Rules

This is where most hemp and CBD businesses get into trouble. North Dakota draws three firm lines.

Only allowed products may be sold. Products must meet the THC limit, carry a certificate of analysis, and show total THC on the label.
Some products are banned outright. These include delta-8, THC-O, HHC, THCP, other chemically derived cannabinoids, and vapes made from hemp extract. Delta-8 products are not legal to sell in North Dakota.
Non-FDA-approved hemp products may not be sold as dietary supplements, food or beverages, and may not be marketed with medical claims.

The table below shows how common product plans map to these rules. Treat it as a starting point, not a legal opinion.

Product or claim	Status under the rules described here
Delta-8 gummies, carts or any chemically derived cannabinoid	Banned. Do not sell.
Hemp vape made from hemp extract	Banned. Do not sell.
THCa flower with total THC over 0.3%	Not legal to sell.
CBD tincture or capsule sold as a dietary supplement	Not allowed if the product is not FDA-approved. Do not sell it as a supplement.
CBD beverage or food item not FDA-approved	Not allowed as food or beverage.
Product labeled with a COA and total THC, within the limit, with no medical claims	May be permitted. Confirm with the Department of Agriculture before you sell.

Your marketing must also avoid medical language. Do not say a product treats, cures, prevents or relieves any condition, on your label, website, social media or in-store signage. Customers may ask about health effects, so train staff to avoid those answers.

Step 7: Confirm the Federal Changes Before Printing Labels

A federal redefinition of hemp is scheduled to start in November 2026. That timing falls right after you will likely be finalizing labels and inventory. Call the Department of Agriculture at 701-226-8804 or email [email protected] before you print packaging. The department reviews labels and certificates of analysis, so ask for its review of your draft labels early. Do not assume that a label approved last year will still meet the rules next year.

Step 8: Plan for Employees, Insurance and Penalties

Workers' compensation in North Dakota is a state monopoly administered by WorkForce Safety and Insurance (WSI). If you hire employees, you must work with WSI for coverage. Keep your annual reports, license renewal and tax filings on a shared calendar so no deadline slips.

Violations carry a civil penalty of up to $5,000 per violation. One mislabeled batch can therefore create several violations, so verify each product before it reaches a customer.

Common Mistakes to Avoid

Buying seed or clones before the license is issued. Acquire planting material only after approval.
Counting only delta-9 THC. The 0.3% limit includes THCa, so a low delta-9 number does not make a product legal.
Selling delta-8 because other states allow it. North Dakota bans it, and the penalty risk falls on you as the seller.
Marketing CBD as a supplement or food. Non-FDA-approved products may not be sold that way.
Using health language in marketing or branding. Medical claims are prohibited, including in product names and social media posts.
Skipping the certificate of analysis. Every batch needs one, and labels must show total THC.
Choosing an LLC name that implies a medical purpose. A name must not imply a purpose the company is not organized for.
Missing the December 31 license expiration or the November 15 annual report. Add both dates to your calendar the day you receive your approvals.

What Results to Expect

A licensed, compliant operation may be able to sell approved products to adult customers in North Dakota, build a customer base around lab-verified quality, and keep a clear record for regulators. These outcomes are possible, not guaranteed. Results depend on your product mix, your local market, your costs and how carefully you follow the rules.

Because most hemp products have not been approved by the FDA, assume that you cannot make health or medical promises. A business plan built on sales of supplements, food or medical-style CBD products is likely to fail under North Dakota rules, even if those products sell well in other states.

Where to Get Help

Department of Agriculture: 701-226-8804 or [email protected], for licensing, labels and certificates of analysis.
Secretary of State: https://www.sos.nd.gov/, for entity filings, trade names and annual reports.
Office of State Tax Commissioner: https://www.tax.nd.gov/, for sales tax questions.
North Dakota Small Business Development Centers: https://und.edu/ndsbdc/index.html, hosted by the University of North Dakota, for free business planning support.
U.S. Small Business Administration, North Dakota district: https://www.sba.gov/district/north-dakota.

Before you sign a lease, buy equipment or order inventory, meet with an attorney who handles agricultural law and a CPA who works with cannabis or hemp operators. That review costs far less than correcting a licensing problem or responding to a penalty.