Knowing the steps to start a marijuana dispensary is essential

On Behalf of | Feb 15, 2022 | Business Law |

If you’re an entrepreneur in California, you may be interested in opening a marijuana dispensary. Doing so can provide a lucrative business opportunity. However, to get started, it’s essential to follow specific steps. This action will ensure you stay within legal guidelines and regulations.

Licensing and retail type

Retail licenses are available for two types of use. The first is an A-License, which allows for recreational adult use. The second type is an M-License, allowing for medicinal use. The state also enables you to utilize retail sales when operating a marijuana business. One is for a storefront business, and the other is delivery only.

Initially, a nonrefundable application fee of $1000 will need to be paid to start your marijuana dispensary. Licenses are renewed annually and based on your estimated gross annual revenue. The minimum fee to get started is $2500, which is based on an estimated $500,000 or less gross revenue.

Banking and taxes

Operating a marijuana dispensary using traditional banking methods can be challenging. Some institutions don’t allow the use of a checking account with a marijuana business, forcing you to use cash. For this reason, it may be essential to utilize a safe and take other security measures. Taxes will need to be paid on the gross income you make. Unfortunately, several deductions cannot be used as marijuana is still considered illegal by the federal government.

Sourcing your products

Shipping marijuana across state lines is illegal. All of the raw materials and products you sell will need to be sourced within the state. Contacting a grower is essential to ensure you continue to have the products required for a top-notch customer experience.

Getting started with a marijuana dispensary business can be fairly straightforward. Ensuring you follow specific guidelines is critical to being in compliance with all pertinent laws.