Who is licensed to sell marijuana?

There are a series of strict requirements for any business that wants to sell marijuana. The cannabis industry has some fairly strict regulations that all commercial entities must abide by. 

Requirements for Selling Marijuana 

Anyone who wants to sell marijuana must first satisfy a number of legal requirements. 

Established Businesses 

Only established businesses that are incorporated or an LLC can sell cannabis products with THC in them. You must go through the proper channels to obtain a business license as well. 

Tax ID Number 

A tax ID number is also required by the federal government for the purpose of collecting taxes. 

Sales Tax Permit 

You also need to obtain a sales tax permit. This applies to selling products online. Any business that collects any taxes needs to get one. 

Obtaining a Business License for Selling Marijuana 

The requirements for becoming licensed to sell marijuana are different depending on the state and specific area. Some states accept any number of licenses, while others only allow for a certain number per applicant. 

The department that issues these licenses also varies from state to state. Sometimes it is the Secretary of State, but more often than not it is a local agency. It could be the Department of Agriculture or Department of Finance. 

Types of Licenses 

It is important to keep in mind that there are different licenses for each type of marijuana business. 

Growing 

Those who grow or cultivate marijuana need to present a detailed business plan and prove that they are knowledgeable about this type of work. 

Retail 

If you want to sell marijuana directly to consumers, you will need to obtain a license for doing so. Some states require these businesses to have a certain level of security. There are also sometimes restrictions on pricing as well as the quantity of marijuana that can be sold. These businesses are tightly regulated. 

Investors 

Each state has different requirements and regulations for those who want to invest in a marijuana business. You will have to satisfy all of these requirements before you can start investing. 

Edibles 

Those who want to make marijuana edibles and sell to distribution companies also have to be licensed. You will need to operate out of a commercial space, which means that you can’t make these products in your own kitchen. 

Employee Licensing 

Even those who work for a company that sells or deals in marijuana needs to be licensed. For example, Nevada requires these employees to obtain a “registered agent card”. A state and federal background check is often required. 

Local Regulations 

It is also worth considering that some areas within a state where marijuana is legal have their own requirements for licensing. You may have to get a license from the city that you want to set up your business in. 

Is it Difficult to get a License to Sell Marijuana? 

The fact is that some states and cities are more lenient and permissive than others when it comes to giving out these licenses. You will need to go through a series of steps to complete this process, and it can be quite lengthy. Anyone who wants to open a marijuana dispensary needs to be prepared to tackle multiple hurdles. There is a chance that you won’t be able to obtain such a license, depending on your state and city’s regulations. 

Final Thoughts 

While a marijuana business can be very lucrative, obtaining the necessary licenses and permits can be tricky. It is important that you look into the laws and regulations of your state and city if you want to start such a business.