How To Start A Marijuana Dispensary In California?


There is no doubt, medical and recreational marijuana is growing is in high demand across the nation, especially in California. As the industry continues to expand, state officials are seeking new dispensaries, cultivators, and growers. If you have what it takes to build a successful weed dispensary in the State of California, you should not hesitate because if you do, other investors will be you to the table. It is a fact, states with legal recreational and/or medical marijuana laws are limiting the number of active dispensaries. Do not hesitate too long because the number of new marijuana dispensary licenses being approved each year is limited to only a few. Below, you will discover a list of tips to help jumpstart your effort of becoming the next California weed dispensary.

Establish A Business Plan 

The first step to opening a marijuana dispensary in California is establishing a business plan. While this may appear to be a minor step in the process, it could be the difference between success and failure in the marijuana industry. Your business plan must include a budget, which should not exceed more than a few hundred thousand dollars unless you want to take your marijuana dispensary to the next level.

Most upstart marijuana dispensaries start out with at least $20,000 in funding. However, this is not always enough to get such a business off the ground. To have enough money on-hand, you will need funding for various expenses, including initial inventory, business license, supplies, mortgage, utility deposits, and employee salary.

Apply For A Business License 

The next step is to apply for a business license with the State of California. This is a drawn-out process that can take up to 14 business days to receive a response. However, the COVID-19 has pushed back the business license process in California by several weeks or months. Know the rules and regulations, as well as potential coronavirus delay times before submitting your business license application to the State of California Bureau of Cannabis Control.

Form An LLC Or DBA 

You will need to decide whether to form an LLC or DBA legal entity. These are the most popular legal entities in the marijuana industry across the nation. However, there is also the option of forming a corporation, which offers nearly the same benefits in the marijuana industry.

The only way to ensure your upstart meets or exceeds the State of California marijuana laws is to get a registered agent involved in the process. This professional will ensure your upstart is in compliance with the California marijuana regulations and laws.

Apply For An EIN (IRS Tax Number) 

An Employer Identification Number (EIN) is a requirement for California marijuana dispensaries. The number is utilized by the US Internal Revenue Service (IRS) to identify your business as a taxable entity. California weed dispensaries may be required to pay both state and federal income taxes. You will need to register your upstart for applicable federal and state taxes. To do this, you will need to start with an EIN.

Applying for an EIN is a simple process that takes no more than 15 minutes via the US Internal Revenue Service official website. The IRS generally responds to EIN requests within 72 hours, no later than five business days.

Apply For A Resale Certificate 

Resale certificates “sales tax exemption certificates” are specifically designed to help California weed dispensaries legally resale cultivated cannabis and cannabis-based products. Resale certificate holders are permitted to purchase cannabis products without paying taxes.

Apply For A Certificate Of Occupancy 

Once you find a suitable building for your new weed dispensary, you must have it certified with the State of California. A Certificate of Occupancy is a legal document that proves the business meets or exceeds the local building codes.


We See The World From All Sides and Want YOU To Be Fully Informed
In fact, intentional disinformation is a disgraceful scourge in media today. So to assuage any possible errant incorrect information posted herein, we strongly encourage you to seek corroboration from other non-VT sources before forming an educated opinion.

About VT - Policies & Disclosures - Comment Policy
Due to the nature of uncensored content posted by VT's fully independent international writers, VT cannot guarantee absolute validity. All content is owned by the author exclusively. Expressed opinions are NOT necessarily the views of VT, other authors, affiliates, advertisers, sponsors, partners, or technicians. Some content may be satirical in nature. All images are the full responsibility of the article author and NOT VT.