The legal cannabis industry is growing by the billions of dollars in the US thanks to all the new laws in most of the states. In fact, this industry is predicted to hit $47.3 billion by the year 2027. That’s almost $40 billion more in just under a decade. That being said, it’s completely understandable that you might want to cash in on some of the profit. But just because you live in a state that allows marijuana distribution doesn’t mean you don’t have to jump through hoops to start your business. There are several key professionals you should speak to that will help you out along your journey.
A cannabis attorney
Before you do anything else, it’s important to schedule a meeting with a law firm like McAllister Garfield that specialize in cannabis law. Each state has very different regulations regarding the product and how it’s distributed. For example, California allows both recreational and medicinal marijuana, but Utah allows only medicinal. That doesn’t mean you can’t have some type of cannabis business in states like Utah, but the laws are much stricter and you will be closely monitored by the government. One such business you could open in these states is a dispensary, but you will have to work closely with state agencies and your attorney to make sure you stay within the law.
A government official
Obtaining a business license for a cannabis business is not usually the same as it is for other entities. This is even true in states where marijuana distribution and growing is legal. In Colorado, for example, you can apply for a business license on the state’s website, but you will likely also have additional requirements to meet and forms to fill for each specific type of cannabis business. You’ll also have to obtain specific city permits, and possibly some with the county. While there is a lot of information on the websites, it’s still highly recommended that you speak to a government official in person. You might speak to someone with your state department as well as someone with the city.
A dispensary owner
If you are not specifically operating a dispensary yourself, it’s important to get as much information as possible from who you might do business with. Many individuals work with business owners to provide wholesale product, but this all depends on their particular licensing and entity type. So, before you decide that you’ll source your product anywhere, find out where you can get the best prices and customer service. It’s also a good idea to network with other cannabis business owners right from the beginning, as most people are willing to help others by sharing information about where they get their product and who has the best quality in the area.
Handling money for a business is much different than handling it for yourself. This is especially true in the cannabis industry where the laws are so different in every state. Technically, marijuana is still a federally illegal substance. And until all the states catch up with the more lenient statutes, the taxes in this industry are going to remain fairly complicated. So before you make your first dime, it’s best to employ some type of CFO advisory service. Such experts can help you navigate some of these tricky issues and keep you above-board in your operations. You’ll also need to check with them before you decide which type of entity your business will be. The most common is sole proprietorship or LLC (limited liability corporation).
Working in the marijuana industry can seem lucrative, and it can be. Just be sure to consult with the experts to ensure you are legally in the clear.