With the legalization of marijuana for recreational use in 11 states of the USA so far, and for medicinal use in many more, the cannabis industry has undergone a massive boom in the last couple of years. What does the cannabis industry in the USA look like now, and if you want to get into what can be a very lucrative industry, what do you need to do?
How the Cannabis Industry Looks
let’s start with an example: since Colorado legalized the growth and sale of marijuana, in 2014, the state has seen regulated industry sales of more than $6billion. Remember, that’s just in one state! It is predicted that sales in Colorado will reach $60billion by 2026, so there is a clear indication that this is a business worth getting into.
However, it is one that is heavily regulated, so there is plenty you need to know. The first thing you need to do is decide what area of the marijuana business you want to be involved in, as there is a wide choice: do you want to become a grower, or perhaps open a marijuana dispensary? The business also includes retailers who act as an online store for vaporizer and other cannabis products, or you could get into delivery.
You will need to look at having a business plan prepared once you have decided on your proposed line of business, and this will include your proposed costs and income, what your business intends to do, and it should be enough to convince any potential investors of your worth in the industry. You will also need a name, which is a simple case of finding one that is not in use and registering it, and deciding whether you want to operate as an LLC or a corporation. It’s worth talking to a business adviser about the differences, as there are both tax and liability issues involved.
Regulation and the Law
It’s worth knowing that while marijuana has been legalized for recreational and medicinal use in many states, in federal law marijuana is still an illegal substance. This quirk in the law means your marijuana business will not be able to claim some of the tax credits and deductions available for many other small businesses, and you will also find that the tax levels you are required to pay are high.
However, the sheer amount of money involved in marijuana – and the potential and projected growth – makes it worth looking at very closely if you want to start a business. Once you decide to go ahead, you will need to begin the process of registering your marijuana business and applying for the relevant and necessary permits and licenses.
This is where you really need the help of a legal professional, as it can be complex for the layman and more than any other part of the business, this has to absolutely correct and legal. Without the permits – and they may differ between states so again, take legal advice – you cannot operate in whatever area of the marijuana industry you are looking to enter.
Do Your Homework
The above may make it sound like there’s a lot of hard work in setting up a marijuana business, but that’s the same with any start-up. There are websites where you can get advice on every aspect of the marijuana business, and we recommend you take a good amount of time looking into ever area.
Don’t let what we have written put you off; marijuana is very much an industry of the future, and it could be that now is the time to get on board to reap the rewards of future growth.
