You’ll fill out a Statement of Registration first, then you have 90 days to fill out a Statement of Information form. [5] X Research source Sole proprietorships do not have to register. Pay $75 to register as an LLC and $105 to register as a corporation. You can incorporate as a nonprofit, but cannabis industry nonprofits are not tax exempt in California. [6] X Research source Go to https://www. sos. ca. gov/business-programs/bizfile/ to register.

For your edibles business, consider whether you plan to produce your own edibles or simply rebrand other people’s products and sell them. The state sees you as a “manufacturer” either way, but creating products vs. repackaging will affect the types of suppliers you pursue. [7] X Research source For instance, you’ll seek out co-packers if you plan to label and rebrand edibles, but you’ll purchase wholesale cannabis oil/plant products if you make the edibles yourself.

Certain cities/counties give priority application status and even grants to applicants who were negatively impacted by the War on Drugs and the criminalization of cannabis. [9] X Research source Cities supporting “equity applicants” (and potentially giving grants) include Humboldt County, Coachella, Rio Dell, Long Beach, Los Angeles, Oakland, Sacramento, the City and County of San Francisco, and San Jose. Apply for grants via your city’s website or search for your city’s “cannabis social equity program. " On average, it costs around $250,000 to start an edibles business legally and maintain it through the first year of operations. [10] X Research source

In the state of California, cannabis businesses can’t be in a private residence or require people to pass through a place that sells alcohol or tobacco. Remember that licensed businesses must comply with regulations that promote safety and product quality. [12] X Expert Source Jamie Corroon, ND, MPHMedical Director of the Center for Medical Cannabis Education Expert Interview. 10 March 2020.

You may also have to describe how you prepare and test your products to make sure they’re safe.

Local fees vary widely, but you can expect to pay thousands of dollars. For instance, total initial fees in the City of Santa Cruz are around $2,000 for a medical marijuana business whereas fees in the City/County of San Francisco are around $12,500.

There is no charge for a California seller’s permit or tax permit. [17] X Research source If you distribute cannabis, you’ll pay two cannabis taxes (from the cultivator and from the customer) to the CDTFA.

Pick Type 9 over Type 10 if local zoning laws make rent prohibitively high or don’t allow physical dispensaries at all. These permits typically cost upwards of $2,000. For instance, you’ll pay $2,500 for a Type 10 retailer license if your business has a gross revenue of $500,000 or less. [19] X Research source As your revenue increases, you’ll pay up to $96,600 for an annual license (for businesses with multi-million dollar revenue).

Medical-use designated edibles cannot contain more than 500 milligrams of THC per package. [21] X Research source Non-medical edibles cannot contain more than 100 milligrams of THC per package. [22] X Research source If you have an M-designation, you must clearly label your “Medical Use Only” products and can only sell them to customers with a medical marijuana license. Patients must be qualified by a healthcare professional per the state’s medical marijuana program, which requires an evaluation of the patient’s past medical history and current complaints. [23] X Expert Source Jamie Corroon, ND, MPHMedical Director of the Center for Medical Cannabis Education Expert Interview. 10 March 2020.

Your license is good for one year.