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Form Your Company

by Roger Tower on September 27, 2018
Form Your Company

Starting a cannabis business in California can be complicated. Not only are there both local and state laws regulating the industry, but one needs to be aware of real estate limitations, background checks, the application process and the process of obtaining funding.

To help you better understand everything that is involved, here are seven crucial steps that you will need to complete to successfully start a cannabis business in California.

Type of Business

First, it is essential that you figure out what type of cannabis business you want. Ask yourself if you would prefer to start a manufacturing, cultivation, retail, delivery, distribution or transportation business.

Location, Location, Location

Once you know the kind of business you want to start, it is time to figure out where you want to be. Do your research and decide on the general area where you think there is high-enough demand and a low-enough barrier to entry.

Learn the Law

Now that you have chosen the general area in which your cannabis business will be located, research laws regulating the cannabis industry at the local level, including the licensing process and zoning codes. Nine out of 10 times, you will need to purchase or lease real estate in a specific area.

Complete Background Checks

During the first stage of the licensing process, known as the preliminary determination of eligibility, you will need to complete a background check to determine if you have ever had criminal charges filed against you.

Fund and Start Your Application

Procuring funding for and then starting an application is the next step. Depending on the city, the application can cost you anywhere from $50,000 to $100,000 This is because you will have to pay to license and consulting fees, as well as other various, unforeseen costs.

Play the Waiting Game

Next, you will have to play the waiting game. Up until this point, you have probably spent a few months looking for real estate. Now that you have submitted your application, you will spend three to 10 months to get through licensing approval. Depending on the city, you will either go through phases in which they request different information in each, or you will be asked for everything at once.

Start Building Your Business

Once you have received temporary approval, it is time to start building out your actual business. During this phase, the city’s planning department, police department, fire chief and possibly third-party consulting companies will be checking to ensure that your physical structure is up to code. Those performing these inspections will be scrupulous because they are not used to them and/or are new to the industry entirely. If your business requires office space, warehouse space or a cultivation center, this process will take even longer.

The Final Step

Once you get approved and get your CUP, business permit, and license, you are finally good to go!

Starting, maintaining and completing the process of establishing a cannabis business in California can be long, complicated and expensive. Our professionals at WeCann can help guide you through it. Get in touch with us here, and let’s work on helping you succeed.