In order to obtain a license in compliance with the state’s Adult Use of Marijuana law passed in 2016, you must apply through the Cannabis Control Commission.
The following state’s licensing programs show the range of different approaches to the regulation of marijuana businessesВ and yourВ marijuana industryВ business plan:
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The type of licensing and documentation your cannabis business requires will depend on both the location of your operation and the sort of business you are conducting. For example, someone growing and marketing marijuana to retail businesses may require different licensing and permits than someone operating a dispensary.В ProspectiveВ business ownersВ can expect to create anВ executive summary,В cannabisВ businessВ plan,В marketing plan,В financial plan,В business modelВ andВ real estateВ plan for anyВ cannabis companyВ or cultivation. See FindLaw’s Marijuana and Other Highly Regulated Businesses section to learn more.
Many states and localities have restricted the number of dispensaries and cultivators or limit their size. Common barriers to starting a marijuana business include high application fees, strict regulations, and stringent financial reporting and management requirements.
Created byВ FindLaw’s team of legal writers and editors | Last updated October 18, 2019
The state’s Department of Health is responsible for the Medical Use of Marijuana Program. In order to operate a Registered Marijuana Dispensary (RMD), an applicant must apply for an RMD Certificate of Registration. The application process requires that an applicant first file an application of intent.
An ever-increasing number of states have passedВ legislation for theВ legalizationВ ofВ marijuana for medical uses and some states have even legalized the herb’s recreational use. State laws determine who may cultivate or sell marijuana and under what conditions they may do so. At the outset, it should be noted that the cultivation and sale of marijuana are still considered federal crimes, and whatever efforts are made to comply with state and local laws will not prevent you from being prosecuted under federal law. Regardless, those starting a marijuana business can avoid most serious problems by closely following state and local rules.
A guide to marijuana business requirements, including each state's licensing and permit requirements and procedures. Learn more at FindLaw's section on Marijuana and Other Highly Regulated Businesses.
The new arrangement was that Darren had two weeks to pay back the price of the quarter pound, which was easy, he tells me, since he and his friend were the only dealers selling any exotic strands in their area. About a month or two after that, another old friend texted with an offer to front an entire pound, which was about the size of a bed pillow. The friend also didn’t care about when he would be paid back.
Darren’s been dealing for three years now, and he’s moving a pound or two every week and a half. The guy above him, he says, is moving anywhere from 20 to 50 pounds a week, but still doesn’t consider himself a kingpin, or even big-time.
The unbridled optimism, though, made me a little weary. If everyone followed Miller’s example, wouldn’t all those new businesses and all that VC cash create a marijuana bubble? And what about when a couple of companies make it huge and become the Mercedes or Starbucks of weed?
When you’re in high school and college, selling weed seems like a dream job on par with race car driver or pirate. The access to drugs ups your social cache, you make your own hours, and you can get high whenever you want. I assume that pretty much everyone between the ages of 15 and 25 has dealt drugs, or seriously considered it, or at least fantasized about the ways they would avoid the cops while raking in that sweet, sweet drug cash. I would sell only to trusted classmates and refuse to talk business over phone or computer except by way of an elaborate code that might fool cops and parents. All in all, a perfect plan.
Obviously, having a backer to the tune of $1.5 million helps. What I learned from talking to Franciosi is that much like the illegal weed industry, the legal one seems to run on Monopoly money. While it’s called “putting it on the arm” in the former, it’s called “venture capital” in the latter.
This article originally appeared on VICE US
Nevertheless, even in hindsight, the weed merchants of my youth appear to have gotten off scot-free. As far as I know, no one I ever bought from got arrested, or even suspended. In my mind, selling weed would have enabled me to save more money than I did through my grunt labor at Panera Bread, Firehouse Subs, Pollo Tropical, and a litany of other fast food restaurants.
Brian tells me that he knew quite a few people who had been robbed, which highlighted one of the big downsides to selling weed illegally. The thought of that looming risk, coupled with his comment about big timers having connects with Cali, though, made me wonder about the other side of the weed business—the legitimate side. Was it easier to make money selling weed the legal way?
This sort of friendliness is incredible to me, but one of the big things I learned from Darren is that most of the weed world seems to operate around credit. As he explained, though, “Why would you run off with a pound that would sell for $2,000, when the potential in the long run is worth so much more?”
When I was growing up, drug dealers always seemed to have cushy jobs that were a license to print money. But what are the actual economics behind the legal and illegal sides of the marijuana industry?