Payments · Online Pharmacy6 min readUpdated November 2, 2026

Who Can Own an Online Pharmacy, and Which Licenses Do You Need?

Who can own an online pharmacy in the US, the state, nonresident and DEA licenses to stack, and how processors check them before approval.

Nick Bonnassies, CMO at Tagada · checked against 12 sources

Article summary

TL;DR

In most states you don't have to be a pharmacist to own a pharmacy, but a licensed pharmacist must be in charge and the state board checks the owners. North Dakota requires pharmacist majority ownership. An online pharmacy then needs a home-state license, one for each state it ships to, and a modified DEA registration to sell controlled substances online.

Federal law ties online pharmacies to state licensing "in each State from which it, and in each State to which it" delivers controlled substances.
California runs criminal background checks on "beneficial owners and individuals with management and control"; nonresident pharmacies need a California-licensed pharmacist-in-charge from July 1, 2026.
North Dakota requires pharmacist ownership: a corporation qualifies only if licensed pharmacists own the majority of its stock.
Selling controlled substances online requires a modification of the pharmacy's DEA registration.
LegitScript asks for "All relevant healthcare licenses" and a list of affiliates; its application fee is $975 per site (January 2026).

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On this page

This guide is part of our hub on online pharmacy payment processing. The general guide, for any business: how to get a merchant account approved. If you sell prescription treatment as a brand, Tagada Rx puts storefront, doctors, pharmacy and payments in one stack, by application.

Who can own an online pharmacy

The usual US model separates ownership from practice. An investor or a company owns the pharmacy; a licensed pharmacist runs it as pharmacist-in-charge. The board of pharmacy licenses the business and vets the people behind it.

State	Ownership rule	What the board checks
California	License issued to "an individual, a firm, association, partnership" and other entities	Criminal background checks on beneficial owners and managers; a pharmacist-in-charge for day-to-day operations (California Board of Pharmacy)2
North Dakota	Permit only for a pharmacist, a partnership of pharmacists, or a corporation or LLC majority-owned by pharmacists "actively and regularly employed" in the pharmacy	Ownership itself (N.D. Cent. Code § 43-15-35)3

North Dakota's rule has narrow exceptions, such as hospital pharmacies serving only their own patients and permits held since July 1, 19633. A December 2025 fact check by Gigafact describes it as the only comprehensive pharmacist-ownership requirement of its kind among states11. We haven't verified how each state applies its ownership rules to out-of-state pharmacies: ask the board.

Fig. 1Who owns, who runs, who checks

Online pharmacyLicensed by the state board

OwnerAn investor or a company; pharmacists only in North Dakota
Pharmacist-in-chargeA licensed pharmacist who runs the pharmacy
Board of pharmacyLicenses the business and vets the people behind it

Ownership and practice are two different roles.

California State Board of Pharmacy; N.D. Cent. Code § 43-15-35.

Watch out

A pharmacist named on paper who doesn't run the pharmacy is not a pharmacist-in-charge. Boards license people with real control, and processors read the same documents.

The licenses you need, in order

There's no federal pharmacy license. You stack state and federal authorizations, starting at home.

Home-state pharmacy license. Issued by the board where the pharmacy operates. The FDA's test for a safe online pharmacy is a license "by the state board of pharmacy in your state and the state where the pharmacy is operating"6.
Nonresident licenses in each state you ship to. California, for one, requires a valid license in the resident state plus its own nonresident license for pharmacies that ship to its residents2.
DEA registration, if you dispense controlled substances. To do it online, a registered pharmacy must request a modification of its registration4, and a valid prescription is required5.
Accreditation, which is not a license but which payments and ads rely on: NABP's Digital Pharmacy Accreditation requires licensure "in all jurisdictions in which you are conducting business"7; LegitScript certification checks all licenses8.

Fig. 2The license stack, and who checks each layer

Home-state licenseState board · checked by the acquirer and LegitScript
Nonresident licensesEach state you ship to · acquirer and LegitScript
DEA modificationControlled substances online · LegitScript
NABP or LegitScriptAccreditation · acquirers, Google, Meta, TikTok

Start at home, then add a layer per need.

FDA BeSafeRx; California State Board of Pharmacy; 21 CFR § 1301.19; NABP; LegitScript.

For controlled substances, the pharmacy's homepage must also carry a compliance statement and details such as its DEA address and pharmacist-in-charge1. Which state rules apply where: is it legal to sell prescription drugs online?.

What each license unlocks for payments

Your merchant account depends on these licenses. Card networks put the burden on the acquirer, which passes it to you.

Document	Issued by	Who asks for it in the payment chain
Home-state and nonresident licenses	State boards of pharmacy	The acquirer, to verify legality; LegitScript (Mastercard, LegitScript)9 8
Pharmacist-in-charge license	State board	LegitScript (licenses of the people)8
DEA registration, online modification	DEA	LegitScript, for controlled substances4 8
Proof of licenses, business model	You	Stripe, during its added review (Stripe)10
NABP or LegitScript accreditation	NABP, LegitScript	Acquirers, Google, Meta, TikTok7 8

Mastercard requires the acquirer to verify that a pharmacy selling prescription medicines remotely complies with all applicable laws. Verification "may include [...] a written opinion from independent, reputable, and qualified legal counsel or accreditation by a recognized third party", checked again at least every 12 months9. The full list of network rules: online pharmacy merchant account compliance.

Tagada follows Visa and Mastercard rules and the laws that apply to payments.

How processors check ownership

Underwriting looks at the same people the board looks at.

Owners and affiliates
LegitScript asks for "Business registration information for all jurisdictions" and a list of affiliates8.
Partners
Fulfillment pharmacies "are typically required to hold LegitScript certification or equivalent accreditation"8.
Restricted category
Stripe asks for "proof of relevant licences or more details about your business model" before supporting a restricted business, and online pharmacies are on that list10.
Cost of the check
LegitScript charges $975 per site to apply, then $2,150 a year per site once approved (January 2026)8.

$975

LegitScript application fee per site (January 2026)

$2,150

LegitScript yearly fee per site once approved

12 months

Maximum gap between Mastercard acquirer re-checks of a remote pharmacy

A brand that doesn't hold the licenses itself can partner with a licensed pharmacy that dispenses. The processor will then ask who the merchant is and who dispenses. Choosing between accreditations: NABP .pharmacy or LegitScript. Opening the account: how to get an online pharmacy merchant account approved.

How Tagada helps

A licensed pharmacy and clinicians behind your brand

If you're a brand rather than a pharmacy, Tagada Rx gives you a telehealth stack with storefront, doctors, pharmacy and payments 12. It is open by application to a selected group of brands.

Licensed pharmacy: "Pharmacy routing to a licensed US pharmacy"12.
Clinicians: "US-licensed clinicians, licensed in the patient's state"12.
Payments and LegitScript included, with the card captured only once a doctor approves12.
US patients only12.

Each file is reviewed: "We reply to every application." Details on the Tagada Rx page.

Apply to Tagada Rx

Updated on November 2, 2026

Nick Bonnassies

CMO at Tagada

CMO at Tagada. Before Tagada, Nick built direct-to-consumer brands that generated over $115M in sales, raised over $25M in crowdfunding and sold two of them. He also works as a fractional CMO on marketing operations and AI systems.

Frequently asked questions

Can a non-pharmacist own an online pharmacy?

In most states, yes, as long as a licensed pharmacist is in charge and the owners pass the board's checks. California vets beneficial owners. North Dakota is the main exception: pharmacists must own the majority of the pharmacy. Check each state you plan to license in.

Do I need a pharmacy license in every state I ship to?

In practice, yes. Federal law ties online pharmacies selling controlled substances to licensing in each state they ship from and to, and states such as California require a nonresident license for pharmacies shipping to their residents. The FDA's consumer test asks for licenses in both states.

How do I check an online pharmacy's license?

Search the state board of pharmacy's license lookup for each state the pharmacy ships from and to. The FDA's BeSafeRx program links to the boards' databases and says that if a pharmacy isn't listed, "you should not use that pharmacy".

Do I need a DEA registration to run an online pharmacy?

Only to dispense controlled substances. A registered pharmacy then requests a modification of its registration to dispense them online, and each order needs a valid prescription. A pharmacy that never dispenses controlled substances doesn't need this modification.

Is LegitScript certification a license?

No. It's a private certification that checks your licenses, owners and partners. Card networks, Google and Meta rely on it or on NABP, but neither replaces a state license.

Sources

Checked November 2, 2026

Tagada Rx

Licenses in order before the processor asks

Tagada Rx runs the stack behind your brand. Open by selection: every application is reviewed, and we reply to each one.

Apply to Tagada Rx

01Tell us about your brand
02We review every application
03Go live under your brand after review