Starting a Cannabis Business in Colorado: Legal Advice

If you are interested in a cannabis business, Colorado MED is the body you will need to interact with. It is the body that issues licenses for such businesses. Depending on what kind of activity is contemplated, several types of documents are provided, particularly for:

Retail sales
Cultivation
Production
Testing

It is important to understand the process so that you don’t miss an important point and lose your chance for approval.

Steps in obtaining approval

First, you need to notify the regulatory authority that you plan to start such a business. Filing an application is preceded by the following steps:

Thinking through the structure of the business: how your store will work, whether it will function online or offline and other points.
Developing a detailed business plan: it should specify exactly what you will do, which market is the target market, as well as a marketing strategy and financial calculations.
Decide on the type of license: this will determine what requirements will be imposed on you and whether you can meet them.
Obtaining local jurisdictions: local authorities must certify that the business is not violating current laws. Also, Colorado has zoning regulations that must be adhered to. After that, the local jurisdiction already authorizes further progress.
Filing an application: at this stage, a special form is filled out. The application is submitted to the MED along with other documentation, which includes the previously mentioned business plan, as well as: safety measures, financial statements and other data.

Once the application is submitted, you will receive instructions on what to do next. Typically, the next steps are as follows.

Verification of the business owner

The business owner will be verified by the appropriate authority to see if he or she is allowed to engage in such activities. The first thing that is checked is the person’s background information. The basic requirements are:

Be over 21 years of age
Have no prior criminal record
Have no problems with the law other than a criminal record

Other individuals who may be associated with the business will also be subject to a similar check. Any criminal or suspicious history can play against and make it impossible to obtain a license.

If all has gone well at this stage, the process continues.

Public Announcement

This denotes the procedure of notifying the public and interested parties of your intention to open such a business.

This is an important part of the process and is needed to ensure that the process is transparent. Public involvement is an important consideration in Colorado.

MED or local government inspections

These are mandatory to ensure that all regulations are followed. At this stage, as with any other, it is a good idea to consult with a lawyer for cannabis applicationa, as a professional in this field can help you get it right and avoid mistakes.

If everything goes well, the application is approved and the business license is issued.

What costs can you expect?

As for obtaining a license – the amount depends primarily on its type. Expenses may include such fees:

For submitting an application
For the renewal of the license (this procedure is carried out every year, since the controlling body needs to know that all the rules continue to be observed);
For making changes to the document, for example, if the activity expands and now it is relevant not only to sell, but also to grow the plant.

It is important to note that spending on the realization of the business, as well as on compliance with the law, is a separate item of expenditure.

Conclusions

Obtaining a license for private activity in the field of cannabis is a rather long process, in which the owner needs to pass many checks and correctly pass each stage. It is important to stay up to date with all changes in regulations and requirements, as the cannabis industry is fickle. For up-to-date information in this area, consult a lawyer or contact MED directly.