Selling Cannabis Could be Controversial. Is it for You?
On its own, marijuana itself represents a bit of controversy. Therefore, one can only imagine views concerning selling cannabis. And, no, we’re not talking about street sales. However, with the possibility of recreational use becoming legal, New Jersey will likely open some new dispensaries. Could this represent a prospective business opportunity for you?
Currently, there are six medical marijuana dispensaries in the state. Last month, new medical conditions were added that increased the number of people signing up for MMJ cards. Surprisingly, the state’s current alternative care facilities aren’t necessarily in a big hurry to expand.
The reason? With the legalization of recreational cannabis, there’s a chance that other companies may take away business. In fact, there are even concerns that the state won’t cap the allowable number of MMJ dispensaries.
In the meantime, if and when weed becomes legal for recreational use, a great number of questions need answers. Without question, legal advice is critical for anyone considering the legal sale of cannabis.
Opening a Cannabis Business
Right now, the laws regarding setting up shop to sell recreational marijuana are still a work in progress. Of course, there will be a licensing procedure that some are comparing to obtaining a liquor license. Among other things, this implies a limit on the number of available licenses. Some local communities have also issued mandates forbidding dispensaries in their towns.
The pending bills regarding marijuana legalization are S830, introduced by Senator Nick Scutari and bill A3581 brought to the floor by Assemblyman Reed Gusciora. For starters, the proposals call for three separate classes of licensees as follows:
- Class 1 Marijuana Producer-Processor license, or
- Class 2 Marijuana Retailer license; or
- Class 3 Marijuana Transportation license.
If you are thinking about any type of cannabis business, you will need to know which license applies to your company. Meanwhile, there are a host of other legal issues. Lawful recreational marijuana sales would be allowable to those over the age of 21.
If the laws pass, it would not be illegal for properly licensed cannabis enterprises to do everything from selling paraphernalia, cultivating plants, or offering weed for sale. These are just some of the ways that cannabis dispensaries may ultimately make money.
Cannabis Business Legal Advice
Rules and regulations are one thing as far as setting up shop as a cannabis retailer. For one, there is the issue of federal prohibition laws concerning any type of marijuana. In fact, many banks refuse to deal with dispensaries because federally protected banks can’t deal with “illegal” businesses. For some prospective cannabis business owners, this means looking for creative financing and an inability to take credit cards.
Every business needs guidance concerning corporate structure, including business formation and dissolution tools. Those in the cannabis business are no exception. Additionally, keeping up with compliance issues and potential litigation is critical to every company.
Are you interested in learning more about potentially obtaining a license for some aspect of a cannabis business? The Law Offices of Anthony Carbone can provide you with the information you need. Contact us to schedule an appointment.