As cannabis marketing experts, we’re more than a little familiar with the process for planting a cannabis business in Michigan.
It’s considerably more involved than just setting up shop and putting out a plaque.
Yet, we’re always surprised when we meet entrepreneurs who believe starting a cannabis business is simple. So if you’re considering doing so, you’ll need to know the step process to getting going.
Planting a Cannabis Business in Michigan?
If you live in a Michigan community where there’s a dispensary and/or production facility on nearly every corner, it may seem that getting a cannabis company up and running is a piece of cake.
While it’s not brain surgery, there are five distinct steps you need to take to get started. And this covers everything from dispensaries and production facilities, to processors, transporters, and testers.
Register Your Business in Michigan
If you haven’t heard of LARA, you’re going to soon become very familiar with this name. An acronym for Department of Licensing And Regulatory Affairs, these are the folks with whom you first need to register an entity.
You’ll need to complete an application for a marijuana license to establish your business with LARA. From there, you’ll begin the application process for your specific business (i.e. dispensary, processor, etc,). In addition, you will also need a state license, city land use approval, and any necessary building permits.
Finally, it’s crucial that you renew your registration every year BEFORE the existing registration expires.
Attain Local Cannabis Licenses and Permits
There are a ton of hoops to jump through on the state level. Yet, they’re not enough on their own. You’ll also need to get municipal approval. This is a separate application process. Because different municipalities have different requirements, you should strongly consider hiring a professional to assist you with this step.
Score Your Cannabis State License
While steps one and two don’t necessarily need to be done in that order, they are both necessary before you attempt step three.
For any cannabis business to operate in Michigan, you must have a state license. To get your cannabis state license, some municipalities require proof of your state application before they’ll even take a look at your local application.
What Will Your Tax Obligation Be?
In case you haven’t heard, cannabis business in Michigan (and elsewhere) have to pay an excise tax. You will need to disclose this tax when applying for your IRS Employer Identification Number (EIN).
What’s more, depending on the specific cannabis business you’re operating, taxes will be levied differently. So do your research and seek the help of a qualified accountant to determine what your liability will be.
Prepare to Pay Fees EVERY YEAR
Running a cannabis business means dealing with ongoing business registration requirements. Licensing, registration, and compliance
The list of licensing, registration, and compliance responsibilities never end for cannabis business owners. Be prepared to pay fees for yearly renewals and to be aware of exactly when to file the paperwork for said fees. While you’ll receive reminders from the state and municipality, enlisting the services of a professional to assist with this is highly recommended.
You’ve Got This!
The above five steps for planting a cannabis business in Michigan are just a collective launching point.
Once you establish your business, you’ll also need to have the best cannabis marketing and public relations on your side. Especially given the highly saturated nature of the market in Michigan.
So contact us today to find out how we can help. We’ve been in the business since the beginning and we know exactly how to get you noticed.