Selling recreational cannabis is big business in California. If you want to make a share of the profits, the obvious option is to open a cannabis business.
Since the state legally allows the sale of the product, it is important to follow the proper steps when establishing a business.
Determine your business name and structure
You can choose from several business structures when establishing your cannabis business. While opening as a sole proprietor may seem simple, it may not provide the tax advantages or protection of other structures. Reviewing all the options is best before deciding.
Register your business
The next step is registering with the Secretary of State and paying the required fee. If you open as a sole trader, this is not offered, and you can decide if you want to if you open a general partnership. All other entities are required to take this step.
Register your trading name
If you are not using the name you registered under, you must register what your business will be called. For example, if you establish your business as “Your Name Trading” but plan to market it as “Your Name Cannabis Cabin,” you must register it.
Secure the necessary licenses
Before applying for your seller’s permit, you must secure the proper local permits and licenses. These include the CDTFA (California Department of Tax and Fee Administration), and you must apply for a cannabis tax permit. Once these are acquired, you can apply for the state license needed.
Establishing your cannabis business
Establishing a cannabis business legally requires you to take the right steps and follow all legal processes. Be sure to do this properly to avoid issues in the future.