California Cannabis Microbusiness Licensing 10 Facts You Should Know
A California cannabis microbusiness license will allow you to grow, package, and sell product.
Before you have a microbusiness license, you will need to secure a location. Then you will have to get approval. Depending on where you start your business or open up a new one, the less amount of people, the less amount of licenses.
Remember you must be aware of local and federal laws. This means you will need to track everything, including cannabis waste, to make sure you do not lose your license.
Here are 10 facts you need to know if you want to get a microbusiness cannabis license in California (in no particular order):
- The Adult Use of Marijuana Act (AUMA) allows cannabis companies to hold at least 3 licenses under a microbusiness license in California.
- You must have at least 3 out of the 4 licenses to get a microbusiness license.
- For example, this means you can produce crops, package product, and transport marijuana all under one license.
- Licenses you can have under a microbusiness include: cultivation, manufacturing, distributing (including retail delivery) and/or a store.
- License fees range from $5,000 to $120,000.
- $5,000: Revenue Up to $500,000
- $15,000: Revenue between $.5 million to $1.5 million
- $42,000: Revenue between $1.5 million to $4.5 million
- $120,000: Revenue greater than $4.5 million
- It is easier to get a delivery-only license than a distribution license.
- There are 19 different license types in California.
- If you are a large grower of cannabis, you are prohibited from the microbusiness option.
- You are still need to have a security plan for all licenses. This means you will need to have armed guards and 24 hour video coverage.
- Zoning can be an issue. Many California cannabis businesses struggle finding a location. Before getting your license, you will need to secure the location.
- Growers can get a transport-only license easier than a distribution license.
- As a grower, you are allowed to grow up to 10,000 square feet of cannabis.
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Sources:
https://restislaw.com/cannabis-microbusiness-licence/
