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How do I get a license to sell cannabis in California?

On Behalf of | May 9, 2022 | Uncategorized

Many people are slowly realizing that you can make good money selling recreational cannabis. People always knew you could make money doing it illegally, but now that the state permits you to do so legally, many new people may be looking to enter the industry.

Here are the steps you need to follow to avoid falling foul of the law:

Decide on your business structure and a name for your business

There are several choices of business entities available, and while the simplest might appeal, they may not provide the protection or tax advantages that more complex structures can offer.

Register with the Secretary of State and pay the relevant fee

You cannot do this as a sole trader, and you can choose whether to if you set up as General Partnership. It is obligatory for other types of entities.

Register the name you will trade under if it is not the official one you register under

If you set up your company as John Smith Trading but will market yourself as John’s Cannabis Heaven, you also need to register this.

Get your licenses

You need to get all relevant local licenses or permits before applying for a seller’s permit from the California Department of Tax and Fee Administration (CDTFA). Then you also need a cannabis tax permit from the CDTFA. Only when you have all those in place can you apply for any relevant state license.

Getting legal help from the outset reduces the chance you make an error that leaves you on the wrong side of California’s cannabis laws.

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