Unlike other businesses, opening a dispensary requires aspiring entrepreneurs to consult with a skilled business lawyer. That’s because the marijuana industry is a heavily regulated sector, and the laws on its cultivation, manufacturing, and sale are ever-changing.
Besides the need to keep up with these regulations, these rules vary wildly from state to state. Without adequate knowledge about the complex cannabis laws, a business owner may face jail time or hefty penalties—even if it’s legal in the state where they’re operating a dispensary.
So, before raising funds and seeking out a location, hire a lawyer first to help you understand the intricacies of the business. And don’t forget to ask these pressing questions before opening a dispensary.
- What Are The Laws Applicable In My Area?
An increasing number of states have accepted medical marijuana use, but growers and sellers still have to be careful to avoid a brush up with the law. As mentioned, regulations concerning cannabis cultivation and selling differ from one jurisdiction to another.
A marijuana business attorney can discuss the key provisions of the city, county, and state cannabis laws. Don’t forget to check federal laws, too, as specific regulations from this level may apply to your location. Your legal counsel can show you the steps you have to take moving forward.
Consulting with a lawyer is vital for someone planning to open a dispensary, as there are various licensing rules and specific restrictions. In most areas, for instance, an entrepreneur isn’t allowed to open a dispensary near a school zone for obvious reasons.
The upside is that a dispensary can still operate and sell goods even if the state prohibits recreational marijuana use. That’s because these shops are allowed to sell cannabis to medical marijuana consumers in most cases. If you are buying online, it is important to choose the best online weed dispensary.
- Which Business Activities Should I Avoid?
Despite heavy regulations, the global cannabis industry is worth several billions of dollars. Thus, it’s not at all surprising that it attracts several enterprising individuals to get a share of this substantial profit.
Knowing which laws are applicable in your location isn’t enough. Ask your marijuana business attorney about unlawful business activities otherwise considered normal when operating an enterprise.
Generally speaking, restrictions depend on the type of activity you choose. If you’re planning to open a dispensary, screening customers is necessary. Asking for a medical marijuana card is essential before handing out your products.
Besides selling, there are other things you need to think about when opening a dispensary. For instance, in Reedley City, California, marijuana delivery is prohibited in and outside the city, with a few exceptions. And that’s not all. Most jurisdictions prohibit advertising in various channels, so you’d have to be creative in promoting your business.
If growing cannabis yourself, most states require that you should be a qualified grower with deep pockets to boot. That’s because most laws require a marijuana cultivator to know horticulture and buy all the pieces of equipment to grow multiple marijuana strains. Like those who sell cannabis, growers have to secure a state permit to increase the plant in residential or commercial districts.
- How Do I Get A License?
Several states may be more friendly to the cannabis sector, and they are keener on issuing permits and licenses to legally-qualified business owners. Some jurisdictions, however, are more closed up and impose prohibitive rules, particularly in terms of capital requirements.
With that being said, a cannabis business license application is exceptionally challenging, costly, and time-consuming in the majority of the states. Whether it’s a strategy to weed out less motivated entrepreneurs or not is anybody’s guess.
Regardless, most business entities should expect to pay up to USD$25,000 worth of non-refundable application and licensing costs. This is apart from the requirement to prove financial soundness, which, in Illinois, is set at USD$500,000. Additionally, most states are obliged to conduct thorough economic and security checks on prospects to minimize the risk of medical marijuana being sold illegally.
Anyone convicted and arrested for any criminal offense or misdemeanors concerning controlled substances and theft in the last 5 or 10 years, respectively, are disqualified from either working in the dispensary or opening a business related to the cannabis industry.
A simple and honest mistake can sabotage your pure intentions with these stringent rules. Thus, hiring a marijuana business attorney to experience a flawless application process is in a business owner’s best interest.
In Conclusion
A marijuana business lawyer isn’t only helpful before opening a dispensary but even after you’ve successfully opened one. Because the industry is heavily regulated, a dispensary is subject to regular inspections performed by members of the cannabis board. Keeping your business license active relies on how well you’re keeping your enterprise in line with the regulations.
A marijuana business attorney is updated with the new laws, so they’re able to assist you on the proper way to start and run your business. The same is true when inspectors find your business in violation of specific rules.
