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Marijuana Laws for Business Owners

Knowledgeable, Experienced Marijuana Lawyers in Michigan

If you’re an entrepreneur or investor looking to stake your claim in an emerging market, cannabis may be an attractive option. However, before you take the plunge, you should become acquainted with the state laws and regulations that make “cannabusinesses” possible in Michigan.

Whenever you start a new business, you need to find out what steps to take to establish the groundwork. In other words, you need to acquire the appropriate licenses, fill out the right paperwork, and make sure the legality of your business is firmly, properly established. However, doing this alone can be next to impossible. In order to ensure your business has everything it needs to survive and thrive, make sure you discuss your plans with our marijuana attorneys.

Why Choose Grewal Law?

When you work with our firm, you can rest easy knowing our team of marijuana lawyers has the experience necessary to help you. We are familiar with the local and state laws and we can work with you to ensure your business has its best chance.

Proper Licensing for Marijuana Businesses

Thanks to the enactment of the Medical Marijuana Facilities Licensing Act (MMFLA) and the Michigan Regulation and Taxation of Marijuana Act (MRTMA), Michigan has paved the way for entrepreneurs to pursue medical and recreational cannabis businesses. However, because Michigan’s recreational marijuana law, the MRTMA is so new, many potential businesses may be better off seeking a commercial license for medical marijuana first. before seeking a recreational marijuana commercial license.

If you are interested in obtaining a medical marijuana business license, make sure you know the specifics. Medical marijuana business licenses are broken down as follows:

1. Growers, based on marijuana plant count

a. Class A – 500 plants

b. Class B – 1,000 plants

c. Class C – 1,500 plants

2. Processors

3. Provisioning Centers, (also called dispensaries)

4. Secured Transporters

5. Safety Compliance Facilities

Due to the MMFLA, there is now a highly regulated supply chain for the commercial medical marijuana industry in Michigan. Each one of the five facilities, the grower, processor, dispensary, transporter, and the safety compliance facility, plays an essential role.

All marijuana plants and products are tracked and monitored through a statewide monitoring system to ensure patient safety and to prevent theft or diversion of product to the black market. As a result, the MMFLA has facilitated tremendous opportunities for entrepreneurs looking to start marijuana businesses.

Starting a Marijuana Business in Michigan

In order to obtain the correct licensing in accordance with the MMFLA, and to maintain a respected, lawful business, you need the help of an experienced marijuana lawyer. If you are ready to figure out the next step, our firm is here to provide the guidance and legal advisement you need.

Consider the Expense

The licensing process can be expensive. The Michigan Department of Licensing and Regulatory Affairs (LARA) has established the Bureau of Marijuana Regulation (BMR) to handle all matters related to commercial marijuana business licensing.

The BMR has established two different categories of fees at the state level:

  1. First, there is a $6,000 application fee for all applicants.
  2. Second, there is an annual regulatory assessment fee. These fees are currently set as follows:
    1. Growers: Class A - $10,000, Class B - $66,000, Class C - $66,000
    2. Processors - $66,000
    3. Provisioning Centers - $66,000
    4. Secured Transporters - $66,000
    5. Safety Compliance Facilities - $0
  3. The BMR has also established capitalization requirements for all potential applicants. According to the BMR, all applicants must submit CPA-attested financial statements to meet the following capitalization requirements:
    1. Growers:
      1. Class A - $150,000 ($37,500 in liquid assets)
      2. Class B - $300,000 ($75,000 in liquid assets)
      3. Class C - $500,000 ($125,000 in liquid assets)
    2. Processors - $300,000 ($75,000 in liquid assets)
    3. Provisioning Centers - $300,000 ($75,000 in liquid assets)
    4. Secure Transporter - $200,000 ($50,000 in liquid assets)
    5. Safety Compliance Facility - $200,000 ($50,000 in liquid assets)
  4. In addition to the requirements above, applicants will also have to pay a licensing fee to the local municipality where their business will be located. This fee cannot exceed $5,000 annually.

Be Prepared for the Background Check

Each investor who owns at least 10% of the applying business will have to disclose a comprehensive set of documents as part of the background investigation. These documents typically span several hundred to several thousand pages, depending on the investor and their financial history.

These required documents include:

  1. Tax Returns
  2. Bank Statements
  3. Loan Statements
  4. Criminal Records
  5. Commercial Licensing Documents

The Application Process Takes Time

The application process can be quite intensive overall. In order to protect their interests and get through the process quickly, applicants will need a team of professionals on their side. When you work with a professional attorney and other marijuana legal experts, it can help ensure you meet the rigorous and stringent licensing standards established by the state and local government. Most applicants will require the services of an attorney, an architect, a CPA, a commercial real estate agent, and licensed contractors.

Ready To Get Started? Call Us at (888) 211-5798

Our marijuana law attorneys at Grewal Law PLLC have been assisting entrepreneurs pursue licensure across the state of Michigan for years. We have extensive experience working with hopeful businesses and we have the legal knowledge necessary to protect your interests and investments.

If you are interested in pursuing a marijuana business, contact our marijuana law attorneys at Grewal Law PLLC today.

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