Cannabis, whose local name is Marijauna is cultivated legally in the USA for many years. It is a developing industry not only in the U.S. but also in various other countries as well. In 1996, the cultivation of Marijuana became legal in California for use in the medical field. The residents of California were allowed to transport cannabis for medical purposes.
However, before you get into this business, you need to apply for its license. This article will tell you about all the information you need to know before getting into this industry. You can also get in touch with Green Growth CPAs to directly talk to the experts who can guide you with this process.
Getting a license to grow Marijauna is a bit complicated process. It is because the requirements to obtain the permit are different for every state. It also depends upon the category of your business. It can vary, ranging from cultivation to retail. Let us quickly learn all are the requirements you need to meet to get the Marijuana cultivation License.
WHAT ARE THE BASIC LEGAL REQUIREMENTS?
No matter which business you are going to start, some requirements are applicable for all the companies. Just go through them once to avoid any complications later on.
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TAX ID NUMBER:
It is also known as the employer identification number (EIN). This number is identified by the IRS, which deals with tax collection in the U.S. If you are going to start any business, make sure that you have a tax id number of your own.
FORMATION OF LLC:
Whenever you plan to do any startup, make sure to form an LLC. It means a limited liability company, wherein the owners can protect their assets. Under this business structure, the owners are not responsible for the company’s debts.
FILING DBA:
The complete form of DBA is Doing Business As. By filing DBA, you can register your new business name that is different from the name of its owner. It can be handled by both the state or the local jurisdiction.
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GENERAL LICENSE FOR BUSINESS:
To operate a startup in any city or country, it is essential to have its license. However, this is a general license, and it does not include the permit required for the cultivation of cannabis.
STEPS TO GET A CANNABIS CULTIVATION LICENSE IN CALIFORNIA
Cultivation of Cannabis is a booming industry in Los Angeles, so many people nowadays are trying to explore this field. However, for anyone who wants to start a business in this specific area, they need to get permission. Below are some of the steps you should follow to get the license for growing Marijuana.
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Developing a work plan:
Even if you are beginning from scratch or developing an existing enterprise, you need to make a work plan that contains all the necessary steps to get the permit. In California, one must agree with other government agencies before one receives the final authority permission.
Make a work plan that includes your goals and procedure mentioned clearly. The essential element that you must be careful about is the capital or the acquired property. A well-planned work plan containing all the critical requirements to get a permit will surely help.
Construction of the site:
Once you have made your work plan, it is time for you to construct the site where you can carry plantation, processing, harvesting, and curing of the Marijauna. Make the whole layout of its production process. The structure must also include the time required to grow and harvest Marijuana.
Getting approval of state agencies:
After your site gets ready, it’s time for you to get the approval of legal state agencies. Some of the state agencies you can check out are SWRCB, DTFA, CDFW, Calfire, and SOS. You must take the complete documentation if you are seeking a warranty from these agencies.
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Seeking Local approvals:
Once you get the green signal from state agencies, you can head towards securing approval from a local agency. Whenever you begin the cultivation, you must submit the business proposal, which contains the layout as well. To secure land permission, immediately go to the L.A. Planning Department.
However, keep in mind that the local agencies will provide you CUP ( conditional use permit). CUP is used for the Public hearing process, where your license can be approved or denied. Seeking the approval of a local agency is a very time-consuming and costly process. So, you must be prepared for it if you are planning to start a cannabis industry.
Obtaining state cannabis license:
After following all the above steps, move on to the final stage of obtaining a state cannabis license. It allows you to produce Marijuana and trade in it. Some of the documents you need to submit to get the final permit are: business operating plan, premises plan, property agreement, security plan, business formation (LLC), local approvals, and surety bond.
TO SUM UP
It is very tricky and complicated to get a license for the cultivation of Marijuana. You need to have a lot of time, money, and patience to fulfill its requirements. Make sure to develop a work plan before you go to any agency to get the approval. The agencies need to see every document before you get a permit.
