Starting a Cannabis Business: License Types
With the recent legalization of recreational cannabis in many states, entrepreneurs may want to start thinking about what kind of cannabis business they want to form.
One of the first (and most important) steps to do this is to obtain a business license. Let’s look at the state of New Mexico’s and what their Cannabis Control Division outlines specifically for some insight on what the recreational licensing process is like.
In New Mexico alone, there are 10 different kinds of business licenses for cannabis businesses:
Cannabis Manufacturer’s License
This license will allow for the manufacturing and packaging of cannabis products. Your products must be tested by a cannabis testing lab. This license will cost up to $2500 per year and $1000 per each additional licensed premise. This license application will be available on or before January 1, 2022.
Cannabis Producer’s License
The Cannabis Production allows for the growing and cultivation of cannabis plants. On this license you may sell cannabis products wholesale and transport unprocessed cannabis products to other cannabis establishments. Products must be tested by a cannabis testing lab. It will be available to apply for on or before September 1, 2021. The licensing fee will be $2500 per year and $1000 for each additional licensed premise.
Cannabis Courier License
With the courier license you may transport cannabis to patients, caregivers, and direct consumers. This license will be available starting on or before January 1, 2022. The fee is up to $1500 per year and $1000 for each additional licensed premise.
Cannabis Retail License
The retail license allows for the sale of cannabis products to qualified patients, caregivers, reciprocal participants, or directly to consumers. It will be available on or before starting January 1, 2022. The retail license costs $2500 per year and $1000 for each additional licensed premise.
Cannabis Consumption Area
A cannabis consumption area is an area where the consumption of cannabis will be allowed per the rules of the Cannabis Control Department. The fee will be up to $2500 per year. There is not set date for this license yet, but it will most likely be January 1, 2022.
Cannabis Research Laboratory
This license allows for a facility that produces or possesses all parts of the cannabis plant and cannabis products for the purpose of studying cannabis cultivation, characteristics, or uses. This license will be available no later than January 1, 2022. The fee is up to $2500 per year with $1000 for each additional licensed premise.
Cannabis Testing Laboratory
A cannabis testing lab collects, samples, and tests cannabis products as well as transports cannabis products for the purpose of testing. This license will be available on or before January 1, 2022. The fee is $2500 per year and $1000 for each additional licensed premise.
Cannabis Producer Microbusiness
This license is for a cannabis producer at a licensed location that possess at most 200 mature cannabis plant at one time. This license will be available by September 1, 2021. The licensing fee will be up to $1000 per year.
Vertically Integrated Cannabis Business
This license allows for the combination of multiple licenses. A licensee can act as any of the following: a cannabis retailer, courier, producer, and manufacturer. This is the most expensive at $7500 per year and $1000 for each licensed premise.
Integrated Cannabis Microbusiness
This license allows for the following: production of cannabis at a single licensed premises provided that the person shall not possess more than two hundred total mature cannabis plants at any one time; manufacture of cannabis products at a single licensed premises; sales and transportation of only cannabis products produced or manufactured by that person; operation of only one retail establishment; and couriering of cannabis products to qualified patients, primary caregivers, reciprocal participants or directly to consumers. This license will be $2500 per year with $50 for every additional licensed premise.
Thinking of starting a CBD based business? Set up your business correctly from the start. L4SB knows the Cannabis Business. Reach out to L4SB today for a consultation.