What Licenses Are Needed to Start Cannabis Business
Daniel Tan | April 22, 2022 | 0 Comments

What Licenses Are Needed to Start Cannabis Business

How To Start A Legal Cannabis Business

Starting a marijuana business is challenging for those unfamiliar with the legal requirements. Consulting a professional cannabis business attorney helps one know the types of licenses needed for the operations. Having the required certifications saves the owners from possible hefty legal fines.

Apart from licensing, other factors determine if one fits in the marijuana industry. Cost, criminal record, location, and business partnerships are determinants. Meeting all the requirements makes it easy to open and operate a cannabis dispensary smoothly and successfully.

Licensing Needed to Start a Cannabis Business

Licensing in marijuana businesses depends on the activities carried out. Business owners must have the proper training and comply with safety regulations to get the certifications. Many people have heard about marijuana business licenses but are still unfamiliar with the required types of permits.

The following is a detailed discussion of the licenses needed to open a medical marijuana dispensary.

Cultivation Licenses

The licenses are a requirement for people who grow marijuana. Federal governments in the United States regulate cannabis cultivation. Failing to comply with the set legal requirements makes marijuana farming a criminal activity.

There are several types of cannabis cultivation licenses. Common options are:

  •    Specialty cottage
  •    Specialty
  •    Nursery
  •    Processor
  •    Small, medium, and large-sized cultivation permits

The major factors determining the cannabis farming license are the number of cannabis plants grown and the used production or lighting.

There is a guide to help cannabis cultivators get licensed. The first step is having a clear vision plan for the business. A clear marijuana business strategy is key for profitability and success in the long run. Through a realistic vision plan, one can start a cannabis business aligning with the market to achieve the set goals.

Obtaining the proper state approvals also eases the process of getting a cultivation license. Compliance with all the regulations is necessary to protect the permits.

Manufacturing Licenses

Manufacturing licenses are for people that make various cannabis products. Cannabis products include CBD oils, vape juices, edibles, tinctures, and concentrates.

Several parameters determine whether one gets a marijuana manufacturing license or not. One of them is the operations carried out during manufacturing. The considered activities include production, handling, labeling, and storing.
Chemicals used during the manufacturing process are also determinants.

Recommended chemicals must be safe for human beings and the environment. State governments conduct environmental assessments to prevent potential negative impacts during the manufacturing process.

There are four types of cannabis manufacturing licenses: type 7, 6, N, P, and S. Type 7 and 6 licenses allow manufacturers to do several things, including mechanical extractions, infusion methods, and volatile and non-volatile solvents.

Distribution Licenses

The licenses are for people who transport cannabis from the farms or manufacturing to warehouses and stores for distribution purposes. Distribution licenses protect one from possible traffic law issues.

There are two types of distribution licenses: type 11 and type 13 distributor. Type 11 distributor has added advantages. The distributor can store the cannabis products, test them, and even move them to retailers. Type 13 only allows transportation from cultivation to premises where distribution takes place.

There are other types of licenses for cannabis businesses: lab testing licensing, retail, and cannabis event licenses.

Hire a Cannabis Business Attorney

Acquiring a cannabis business license is a complex process for anyone intending to venture into the marijuana industry. The only way to avoid the headache of getting licensed is by working with a professional cannabis business attorney. Marijuana lawyers understand all the legal requirements for starting a related business.

The attorneys guide their clients from the start to the end when the license gets approved. With professional legal help, creating a business plan, selecting a suitable location, and running operations will not be challenging. One should choose an experienced, reputable, and licensed cannabis business lawyer.

Daniel Tan

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