Steps To Follow When Starting Cannabis Delivery Business In California

In 1995, the law recognizing cannabis as a legal business was voted in California. After the creation of the law, cannabis business was legalized for medicinal purposes. Currently, 29 states have legalized cannabis business for both purposes. The future of the industry looks bright as it is expected that cannabis may surpass manufacturing in terms of generation of income to the country. If you intend to start a cannabis business in California, there are key steps that you need to follow. This article will describe the steps as follows:

  • Business name-the first step before to take before establishing your cannabis delivery business is to choose a business name. You are expected to decide the kind of business entity that you want to set. This would be sole proprietorship, general partnership, or a corporation limited company.
  • Register business with the secretary of state-this is a requirement for all business entities except sole proprietorship and general partnership. The registration fee is around $150. You are required to submit basic information about the business like its name, address and where it is situated.
  • Filing of a fictitious name-this is a requirement when the owner of the cannabis business wants to operate under a different name from the one that is filed with the secretary of state. This procedure is undertaken at the county where the business is found.
  • Proof of permission– this proof is needed by the state before offering you the license. The owner of the cannabis business needs to get authorization from either county or municipality where the business will be situated.
  • Seller?s permit and Tax permit– in California, the law requires that those who engage in cannabis business should have a seller?s permit or cannabis tax permit before they start the venture.
  • Get a state license-the law requires that all cannabis business should have a state license before they start operating. As your state license is being processed, you are issued with a temporary license which can last for around four months.
  • Employee obligations-if the business will have employees, it must register to be issued with federal Employer Identification Number. Another state agency that you need to register with is Employment Development Department which requires that you submit unemployment insurance and report new employees.
  • Tax obligation-any cannabis business must ensure that it adheres to all tax requirements like paying federal taxes, and payroll taxes.
  • Registration of trademarks and business marks-if you wish, you can register your business logos and slogans with the state to differentiate your business and products from other businesses.