Green Is The New Gold: What You Should Know Before Starting A Weed Business
Just a few years ago dabbling in the “weed business” was an illegal faux pas. Now the rules have changed and people are cashing in on the benefits of medicinal marijuana in 28 states. Celebrities like Method Man, Whoopi Goldberg, and the Marley family have seen success with this. As a matter of fact, Bethenney Frankel is even getting a slice of the cannabis cake with her diet-conscious Skinnygirl Weed. If you’re interested in going green, here are some pointers to help you get started.
- What state are you in? The last thing you want to do is start a marijuana business in a state that has not approved its sale. Visit greenzip.com to see if you’re in the right place for business.
- Transportation. After a company makes a sale, cannabis can’t simply be shipped to the buyer. In New York, for example, only the patient or a certified caretaker can transport medicinal marijuana. Legislators are still worried about the drug falling into the hands of the wrong people.
- Upfront costs. The general cost of the application fee to start a marijuana business is $5,000 and non-refundable. You also have to pay for a license and those prices vary significantly by state.
- Uncle Sam wants his money. Marijuana entrepreneurs can expect to be audited and the taxes will be sky high… no pun intended. Also, these entrepreneurs are technically selling a Schedule I drug, which is illegal under federal law, so they’re unable to write off their business expenses.
- Growing ain’t easy. Individuals who want to grow their own weed in addition to opening a dispensary have a more difficult process to endure because of the separate startup fees. Growers have to pay for an application fee and a license that is to be renewed annually. Some states, like Nevada, charge cultivators a yearly growing fee, which can be costly.
- You will face scrutiny. No matter how sincere or passionate you are about this business, there will be people who despise it and label it a cop out for those who just want to get high. Ignore them.