setting up a cannabis business

What you should know before setting up a cannabis business in California

setting up a cannabis businessSetting up cannabis business in California is very different from any other business enterprise. However, if the legal requirements for setting up a cannabis business are well understood and followed properly, the business may have few similarities with other business enterprises. Due to the legal climate currently being experienced at the federal, state and local levels on the use of cannabis, it is imperative to not only understand but also comply with applicable rules, regulations and laws that have been set at different levels to the broadest extent possible some of which can be found on 420 College website. The law in California regarding the setting-up and operating a cannabis business require that such a business should be organized and be operated as collectives or cooperatives.

This means that a cannabis business in California is required by law to obtain all local government permits and the state and follow the rules laid down regarding the operation and reporting of the activities the business conducts. For such a business to operate fully compliant in California, it is required to name all operational manuals and business plans.  A strict security and safety plan is also required to obtain a cannabis business permit in California.

For medical cannabis patients, have a list of members that are qualified patients who have a valid recommendation from a physician stating that their use of marijuana is beneficial for the treatment of serious medical conditions. In addition to this, if the business has caregivers, it must assure that the caregivers are members of the group and must assume responsibility for the health, housing and safety of the patients. It should be noted that there is a difference between setting up a >marijuana business in California for profit and non-profit.  It is no longer required to have an established non-profit to operate a cannabis business in California.

This is followed strictly especially if the business is set-up as a corporation. The specific purposes for such corporations are to give the necessary means of coordinating and facilitating transactions between the patient members in their group or caregiver members. It should also be understood that the production and the provision of cannabinoids can only be performed by the qualified members of the corporation.


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  1. Cannabis business basics
  2. How to start a dispensary.
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  4. How to legally grow cannabis.

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Author

George

Founder & CEO of 420 College.

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