Do You Need a License to Sell Vitamins and Supplements?

Most sellers do not need a license to sell supplements. However, the dietary supplement industry still has regulations that all sellers should understand. These include business formation, tax reporting, state or local permits, FDA regulations for manufacturing and labeling, and health claim restrictions.

When selling supplements online, there is a significant difference between being allowed to sell dietary supplements on a platform and being ready to scale a sustainable business. Payment processors, online marketplaces, and advertising platforms scrutinize dietary supplement products due to numerous regulations governing safety and quality standards.

Working with a specialized payment processor like Adaptiv Payments can both ensure compliance with product safety regulations and protect your cash flow through consistent processing.

Supplement Licensing Requirements Explained

The average supplement merchant does not need a license to sell supplements. This confusion often arises because people use "license" to mean different things and don't clarify the distinction between supplement manufacturers, importers, and those creating their own specially formulated nutritional supplements.

Special Supplement-Selling License

You may need a specialized license if your product contains ingredients that are regulated by the Controlled Substances Act, a federal law that may apply to some herbal supplements. Some states also require a seller's or reseller's license.

General Business License or Registration

Whether you're selling from a brick-and-mortar store or online, selling supplements requires a general license or registration so that you can collect taxes from your customers.

Dietary Supplement Manufacturing license

A dietary supplement manufacturer is treated separately from a company making regular supplement sales. These companies are subject to stricter federal regulations and require a license.

What Business Registrations and Permits Might You Need?

While selling vitamins online does not require a license, there are other permits, licenses, and registrations that may be confused for a "supplement license."

In most cases, you will need to form a business entity, such as an LLC or corporation. Registering for an EIN is crucial to collecting federal sales tax. Local authorities may also require state tax registration and a resale or sales tax setup.

State and local business license requirements vary widely, making it crucial that you check with your state's Secretary of State or Department of Revenue.

Banks and payment processors will expect documentation proving that you produce high-quality supplements, including Certificates of Analysis from third-party laboratories. They may also need proof that you adhere to FDA guidelines about ingredients. Like any business, you will need to provide bank statements, processing history, profit and loss statements, and personal IDs for your principal owners.

When Are the Rules Stricter?

While not every company in the supplement market needs a license, some must adhere to strict regulatory frameworks. A company that manufactures its own products must follow manufacturing regulations.

FDA regulatory standards are meant to ensure that sellers do not use dangerous or defective ingredients. Imported, new, or risky ingredients may be subject to greater scrutiny and may require certain disclaimers.

Strong health or performance claims, such as claiming users can lose weight or improve mental health conditions, must be reviewed by regulatory agencies and backed up by research.

Lastly, some channels will require deeper documentation. For example, they may need third-party testing certificates and more information about your manufacturing facilities to ensure that every level of the process meets all relevant FDA regulations.

Are Supplement Manufacturers Subject to Licensing?

Yes. The Dietary Supplement Health and Education Act (DSHEA) of 1994 requires manufacturers of vitamins, minerals, herbs, amino acids, and botanicals to be licensed for public health safety. This law also prohibited the FDA from preapproving supplements.

FDA Food Facility Registration

The Bioterrorism Act of 2002 identified supplement manufacturers as potential sources of food-related illnesses, so registration ensures that the Food and Drug Administration can trace outbreaks.

Good Manufacturing Practices (GMP) Certification

Good Manufacturing Practices (GMP) certification ensures that facilities producing dietary supplement products are hygienic, safe, and use well-maintained equipment.

ISO Certification

ISO Certification is valuable for consumer safety, as it demonstrates that the manufacturer exceeds basic safety standards. Relevant ones for the dietary supplement industry include ISO 22000 (Food Safety Management System) and ISO 9001 (Quality Management System).

Recordkeeping, Batch Controls, and Dietary Ingredient Quality Documentation

Manufacturers must keep records of each batch produced, including its recipient, for at least one year beyond the product's shelf life or two years if there is no shelf life.

There are several types of records, including Master Manufacturing Records (MMR), that serve as a "recipe" for each formulation. These are accompanied by Batch Production Records (BPR), which are a step-by-step documentation for every batch.

Each batch must have a unique ID for traceability and process controls that ensure a uniform product with no cross-contamination. Dietary ingredients must be tested to prevent misidentification or contamination. Manufacturers must ensure that all suppliers meet FDA standards, and a Certificate of Analysis must be produced for every batch.

Contract Manufacturers

Many of the most successful supplement brands use contract manufacturers because this reduces their operational burden while ensuring they receive consistently produced, quality products. Manufacturing requires significantly higher levels of responsibility than simple resale or selling private-label supplements.

While the right contract manufacturer can reduce operational costs while you establish your brand, you still have legal responsibilities for the products sold under your brand name.

How Do Food and Drug Administration (FDA) Approval and Federal Trade Commission (FTC) Rules Affect Supplement Sellers?

3d rendering of FDA and a supplement bottle side by side

Credit: Adaptiv Payments

The FDA regulates supplements to reduce the risk of mislabeling, adulteration, and dangerous ingredients. However, the FDA does not preapprove supplements. Products that use a new dietary ingredient may need to be FDA-approved within 30 days of entering the market.

Your labels must include a disclaimer that states, "These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease."

There is a difference between structure or function claims and disease claims. While you can say that a product promotes relaxation or may aid in weight loss, you cannot say that a product cures insomnia or treats obesity.

The FTC requires advertising to be accurate and substantiated. For example, if you make a weight loss claim, then there must be reasonable evidence, like a double-blind study, that supports the claim.

Claim language can impose significant risk if there is no clear evidence behind it. Supplement sellers should consider working with a legal advisor who can check their claims before labeling.

Why Marketplace Policies Matter Even More Than Licensing for Many Sellers

Many health companies that sell online find they face more challenges from private platforms than regulatory bodies. Each platform has its own documentation requirements, restrictions, and oversight process.

While you can sell supplements on Shopify, supplement businesses are at high risk of sudden account termination, especially if using Shopify Payments. If you are approved, expect a careful claim review and evidence of FDA compliance.

You may not be able to sell vitamins on Facebook Marketplace, as Marketplace has a policy against ingestible products. However, you can advertise your supplements on Facebook and other social media platforms, but your products will face greater scrutiny than those in low-risk categories.

A better option is to start an online supplement store with a specialized supplement merchant account. The manual underwriting process prevents sudden account terminations and offers you valuable tools like fraud protection.

What Payment Processors Look for in Supplement Businesses

Adaptiv Payments offers merchant accounts for businesses in high-risk industries using a thorough underwriting process that ensures compliance before opening an account. This ensures smooth cash flow, reduces the risk of sudden account termination, and protects your banking relationships.

Factors we consider during the underwriting process include:

• Business registration and supporting documents
• Clear website policies
• Transparent product pages and ingredients
• FDA-compliant claims
• Clear fulfillment and shipping timelines
• Refund policies and customer support
• Supplier credentials and licenses
• Expected chargeback exposure

If you use subscription billing, we will also consider your continuity language and rebill clarity.

Our goal is to make you payments-ready through advanced fraud protection, seamless payment gateways, easy integration, and multi-currency support. Contact us today to learn more about our services and receive a free quote.