Open a CannaBusiness in California’s Adult Use Market
It is a historical and exciting time in California! Sales of adult-use cannabis began on Monday, January 1. Adults over the age of 21 can buy up to an ounce of marijuana and grow as many as six plants at home without a doctor’s letter. California has issued temporary licenses to over 40 dispensaries, which allows them to sell adult use (non-medical) cannabis, and people like you want to get in on the business action.
The biggest question on many entrepreneurial minds : What types of licenses are available and how do you apply for them? Below are the types of cannabis business licenses available, and a link to get started on your California cannabis business license application.
Types of Cannabis Business Licenses
Retailer
A Retailer license can sell cannabis goods to customers at its premises or by delivery. A retailer must have a licensed physical location (premises) where commercial cannabis activities are conducted. A Retailer-Non-Storefront license sells and delivers cannabis goods to customers, but must have a licensed premise, that is not open to the public. To apply for a Retailer Non-Storefront, please go back to the apply for a license page and select Type 9- Retailer Non-Storefront. For more information, please review the Bureau of Cannabis Control Laws and Regulations.
Retailer (non-storefront)
A Retailer-Non-Storefront license sells and delivers cannabis goods to customers, but must have a licensed premise, that is not open to the public. If you wish to sell cannabis goods to customers at your premises and by delivery, please go back to the apply for a license page and select Type 10 -Retailer.
Distributor
A Distributor acts as an intermediary party, storing product from cannabis cultivators and manufacturers in a secure warehouse facility and distributing to retailers.
Distributor Transport Only
A Distributor transport only acts as a intermediary party, transporting product from cultivators and manufacturers directly to retailers.
Microbusiness
A small version of any of the following operations: Retailer, Retailer non-storefront, distributor, distributor transport only, Level 1 Manufacturer, Cultivation (less than 10K square feet).
Testing Laboratory
Analyzes key components of cannabis and cannabis products using specified scientific processes and procedures in a laboratory setting.
Image Source | Leafly
Additional License Submission Info
Mandatory Submission
Submission of the requested information is mandatory unless otherwise noted on the application. The Bureau of Cannabis Control (Bureau) will use the provided information to determine qualification for licensure, per section 26051.5 of the Business and Professions Code and the Information Practices Act. Failure to provide any of the requested information will result in the application being deemed incomplete by the Bureau. The Bureau will also use this information to enforce licensing standards set by law and regulation, update and maintain current licensee information, and for mailing purposes.
California State Tax Obligation
Pursuant to Business and Professions Code section 31(e), the California Department of Tax and Fee Administration and the Franchise Tax Board may share taxpayer information with the Bureau. A licensee or applicant must pay its state tax obligation; an applicant’s license may be suspended if the state tax obligation is not paid.
Premises Location
Business and Professions Code section 26054(b) provides that a licensed premises “shall not be within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center that is in existence at the time the license is issued, unless a licensing authority or a local jurisdiction specifies a different radius.” The Bureau will determine as to whether the proposed premises is located in an area as described in the application.
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