Cannabis Business Formation in San Diego

Understanding Federal Law and Marijuana

The U.S. government still lists marijuana, like heroin, as a Schedule 1 Controlled Substance. This means the government could legally enforce the law by arresting people who have possessed, cultivated, or distributed cannabis. However, the Department of Justice (DOJ) issued a guidance memo to prosecutors stating that medical marijuana cases are not a priority. The current presidential administration has made noises about cracking down on recreational marijuana use. 

Its federal illegality also means you will have fewer federal protections. The U.S. government, for example, oversees bankruptcy cases. If you need to declare bankruptcy, you wouldn’t be protected under federal bankruptcy laws. You also can’t deduct business expenses from your revenues for federal tax purposes. Our San Diego marijuana lawyers will help you through every step of the California cannabis business formation.

Educate Yourself on Cannabis Strains and Effects

If you didn’t know there are different marijuana strains, it’s time to get educated. Scientists have been working on adapting different types of cannabis to maximize analgesic effects and minimize psychedelic qualities. Certain strains, such as many in the Sativa category, are more likely to fill you with energy, while Indica strains can put you to sleep. Being knowledgeable about the many different flavors and effects will make you a more trusted seller.

What Kind of Marijuana Business Should I Start?

Now that California has passed Proposition 64, you will be able to receive a license to start your cannabis business in January 2018. However, receiving a license to start your marijuana enterprise is only the beginning. In order to effectively manage your new business, you will need to consider the following:

Starting a Marijuana Dispensary or Collective

Most people looking to get into the marijuana industry are hoping to do so in a retail setting, running what is most commonly known as a dispensary or collective. These are stores that generate income by supplying legal consumers with cannabis-based goods and commodities. Generally speaking, dispensaries produce a greater profit than any other type of marijuana business, although they are the most risky and challenging to start from scratch. However, while dispensaries are perhaps the most well-known type of cannabis business, there are other avenues you can take when looking to turn a profit in the marijuana industry.

Launching a Marijuana Cultivation Business

You could also start a marijuana business that focuses on cultivation. In a cannabis cultivation business, you stock the shelves of dispensaries and other marijuana businesses. In order to effectively run a cultivation business, you would need to have significant agricultural, especially considering the hefty financial investment that a cultivation business requires on the front end.

Creating a Cannabis-Infused Product Business

Creating and selling cannabis-infused products could also generate significant revenue for business owners and investors. Many individuals and marijuana dispensaries purchase cannabis-infused products such as cannabis-infused beer, oils, baked goods, candy, and more.

Understanding the San Diego Cannabis Landscape

Starting a cannabis business in San Diego comes with its own set of challenges that are unique to our vibrant community. With the city's diverse population and a growing acceptance of cannabis, local entrepreneurs must navigate not only the legal landscape but also the cultural nuances that come with it. The City of San Diego has established regulations that govern cannabis businesses, and understanding these local laws is crucial for success.

At Purdy & Bailey, LLP, we understand that starting and running a cannabis business can feel overwhelming, particularly for first-time entrepreneurs. From navigating complex permitting processes to fostering strong community relationships, the challenges can be significant. We recognize these challenges and can help you overcome them. Our team is well-versed in the local regulations and can guide you through the intricacies of starting your cannabis business in San Diego.

In addition, we understand that each neighborhood, from Pacific Beach to North Park, has its own unique characteristics and community expectations. By tailoring our approach to your specific location, we can help you build a business that not only complies with the law but also resonates with the local community.

Don’t let the complexities of starting a cannabis business in San Diego hold you back. Reach out to our team for a confidential consultation and let us help you pave the way for your success in this exciting industry.

Get Your Cannabis Business Off the Ground with Our Help

Helping countless businesses in San Diego, the legal team at Purdy & Bailey, LLP has a track record of success. Our San Diego cannabis business formation lawyers provide invaluable advice for businesses and personalized attention for each and every client's needs. Why venture into the cannabis industry in California alone? We are committed to helping you and your business succeed in the long run. “On target. On time. First pass.”

Call our San Diego cannabis attorneys to receive a courtesy confidential consultation at (858) 360-7080.