California, Massachusetts, Colorado, and Washington were among the initial states to pass legislation legalizing medical marijuana. A number of states have gone further to authorize or decriminalize the recreational use of cannabis. State laws determine who can sell or cultivate the herb, and the conditions for doing so. The type of documents and licensing needed to start a marijuana business is contingent on both the type of business you will be performing and the location of your operations.
Before you get your marijuana business off the ground, check on the existing licensing requirements with both the local and state governments. The marijuana industry is heavily regulated, look at having a sit-down with a seasoned business law attorney to get guidance on how to get your company through the red tape. Effective legal guidance will assist you adhere to the laws in your jurisdiction and avoid running amiss of federal laws.
Starting A Marijuana Provisioning Center (Dispensary)
Aspiring business owners looking to venture into the cannabis field put too much emphasis on the industry’s massive growth or its potential. They forget about the licensing concerns facing the industry, which leads to a great deal of aggravation. The cannabis industry unquestionably has opportunity; more opportunities keep opening up as more states sanction the recreational use of the herb. By 2019, profits from marijuana retail stores and dispensaries is predicted to reach $6.5-$ 8 billion.
With such figures, one would think that commencing and running a prosperous marijuana business is easy or assured. However, that’s not the case. It’s no simpler than running any other type of retail store or small business. There are various compliance and licensing issues distinct to the cannabis industry you might want to consider before you make any economic commitments.
You want to get the required licensing to get your business fully operational. It’s a time-consuming process, not to mention that some of these licenses cost money to attain. So, what licenses do you need to begin your marijuana business? Well, that varies widely depending on the place of your company. Here are a number of tips to really help you make the process of licensing your medical marijuana business much easier.
General Provisioning Center (Dispensary) Licensing Requirements
The cannabis industry presents a lot of business opportunities for attracted persons. You can choose to open a medical marijuana Provisioning Center (Dispensary) or start growing the herb. Whichever you opt for, you will be required to meet the licensing requirements for that particular function based on your state’s marijuana laws. There are several standard criteria for eligibility to start a marijuana business, these are:
Safety regulations compliance.
Complete business strategy with a summary of business, cost, and property ownership licenses.
The business must be located 500-1000 away from the closest church, school, and other restricted areas (fluctuates across states).
License holders, investors, and owners must not have any felony convictions.
These are standard requirements, standard across all states that have legalized or decriminalized the use of cannabis. Various other requirements are specific to states. Work with someone with a greater understanding of the legislation in your state, a lawyer, for example.
Accessibility of License
In some states, obtaining a license for your medical marijuana Provisioning Center (Dispensary) is as easy as filling the application documents and pay the required fee. Nevertheless, some states have stringent licensing requirements that limit the number of marijuana businesses within the state. In these states, you can apply for a medical marijuana Provisioning Center (Dispensary) license only to be advised that all they have sold out.
In Massachusetts, for instance, licenses for recreational dispensaries were provided to established medical marijuana dispensaries. The only criteria for these businesses was to complete an application for the license. Then at the beginning of July this year, the remaining licenses– after the recognized dispensaries have been issued– will be issued to other applicants on a lottery basis. As a result, it’s vital to bear in mind that a medical marijuana Provisioning Center (Dispensary) license may not consistently be accessible.
As we mentioned earlier in the article, starting a medical marijuana business has several special expenses that one should consider before making certain important decisions. For example, obtaining a license costs a lot of money, depending on the state you are in. For example, in Colorado, a medical marijuana Provisioning Center (Dispensary) license can cost you up to $15,000.
Each district has its own criteria when it comes to matters to do with businesses in the cannabis sector. In some states, all matters to do with medical marijuana are overseen by the state government to start such business. If you are intending on starting a marijuana business, talk to a business law attorney in your state before you do so.