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Licenses

The Green Rush is in full swing in the Centennial State. Since recreational legalization, pot sales have generated $6 billion in revenue. As a result, many people are applying to open a marijuana business.

Applying to become a licensed marijuana business is a time consuming and labor-intensive process. You will be required to provide in-depth personal information, pay fees and undergo a criminal background check. To better your chances of having an application approved, it’s advised you go through the process under the guise of an experienced marijuana business attorney.

Marijuana Business Formation Attorney in Colorado Springs, CO

You may be tempted to go through the licensing process on your own. But keep in mind, one simple mistake or a forgotten piece of information can result in your license being denied. Clifton Black at Law Offices of Clifton Black, P.C. specializes in establishing marijuana businesses. He will be with you through the entire process and ensure everything complies with state and local laws.

Call (719) 328-1616 to schedule a time to speak with Mr. Black. He will answer any questions you have and advise you on the best course of action.  Law Offices of Clifton Black, P.C. assist clients with marijuana business formation in areas such as El Paso County, Pueblo County, Fermont County and Teller County.


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Types of Retail Marijuana Business Licenses

Retail marijuana is a booming business in Colorado. In January 2019 alone, retail marijuana sales generated nearly $1 million, according to the Colorado Department of Revenue. With numbers like this, it’s no surprise people are lining up to open their own retail marijuana business.

You will need to apply for a retail marijuana business license to legally operate in Colorado. There are six different types of retail marijuana licenses, and the one you apply for will depend on the cannabis business you wish to operate.

Listed below is a brief description of the different types of retail marijuana business licenses in Colorado:

  • Retail marijuana store: This license is required to operate a cannabis business that sells retail marijuana to buyers over 21. Laws and regulations governing a retail marijuana store can be found in section 44-12-402 of the Colorado Revised Statutes.
  • Retail marijuana cultivation: A retail marijuana cultivation license allows an individual to grow the plant for retail sale and distribution. The plants can only be distributed to retail cannabis dispensaries, retail marijuana product licensees and other cannabis cultivation facilities. A full list of rules for a retail cultivation facility can be found in section 44-12-403 of the revised statutes.
  • Retail marijuana product manufacture: This marijuana license is necessary to operate a facility manufacturing cannabis-infused products such as concentrates and edibles. Retail cannabis product manufacturers are required to abide by a slew of regulations. A complete list can be found in section 44-12-404 of the revised statutes.
  • Retail marijuana testing facility: A cannabis testing license is issued to an individual who performs test and research on retail marijuana and industrial hemp. An individual with this license is barred from having any interest in other marijuana businesses such as a retail store or manufacturing facility. Read through section 44-12-405 of the Colorado Revised Statutes to learn more about the guidelines of a testing facility license.
  • Retail marijuana transporter: This cannabis license is necessary to provide temporary storage and transportation services for retail marijuana and other retail products. A retail transporter license is valid for two years and allows contracts with multiple licensed retail marijuana businesses. A complete list of regulations can be found in section 44-12-406 of the revised statutes.
  • Retail marijuana business operator: A business operator license is necessary for an individual to operates a marijuana business on behalf of the owner, and who may receive a portion of the profits as compensation. The law governing this license can be found in section 44-12-407 of the revised statutes.

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Types of Medical Marijuana Business Licenses

Medical marijuana is what started the cannabis movement in Colorado. For nearly 20 years, Colorado’s medical marijuana industry has been allowing qualified patients to seek relief from conditions such as cancer, PTSD and glaucoma. Like the retail marijuana industry, the medical marijuana sector is heavily regulated.

There are seven different types of medical marijuana business licenses. Which one you apply for will depend on the type of business you wish to run. Listed below is a brief description of each medical marijuana business license:

  • Medical marijuana center: This license is required to operate a medical marijuana dispensary that sells cannabis to registered patients. Owners of a medical marijuana dispensary must also operate at least one medical marijuana cultivation facility and produce at minimum 70% of all on-hand inventory. A full list of regulations can be found in section 44-11-402 of the Colorado Revised Statutes.
  • Medical marijuana optional premises cultivation: An optional premise cultivation (OPC) license is needed to grow and harvest medical marijuana. An OPC is required to be affiliated with either a medical marijuana center or an infused product manufacturer. Read more about OPC regulations in section 44-11-403 of the revised statutes.
  • Medical marijuana-infused product manufacturer: This license is issued to individuals who wish to produce medical marijuana-infused products. With this license, you are also authorized to wholesale products to licensed medicinal marijuana dispensaries. You can read through all the regulations for a medical cannabis infused product manufacturer license in section 44-11-404 of the revised statutes.
  • Medical marijuana testing facility: This license allows a facility to conduct potency and contaminants tests and research on medical marijuana on behalf of medical marijuana licensed facilities. Anyone with interest in any medical marijuana business will not be eligible for this license. Additional regulations can be found in section 44-11-404 of the Colorado Revised Statutes. 
  • Medical marijuana transporter: A medical marijuana transporter license is issued to an individual to provide distribution, storage and logistics of medical marijuana and medical marijuana-infused product. Read a complete list of regulations in section 44-11-406 of the revised statutes.
  • Medical marijuana operator: This license is required for anyone who provides a professional service to one or more licensed medical marijuana businesses. More information on this license can be found in section 44-11-407 of the Colorado Revised Statutes.
  • Medical marijuana research and development facility or cultivation: A research and development facility or cultivation license is needed in ordered to grow, cultivate, possess and transfer marijuana for research purposes. More information can be found in section 44-11-408.

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Things to Keep in Mind When Starting a Marijuana Business

There is more to opening a marijuana business than applying for a license and finding real estate. The first step in a successful marijuana business startup is contacting a cannabis business formation attorney. They can walk you through the process and ensure all the necessary steps are taken.

Listed below are a few things to keep in mind when starting a marijuana business:

  • Check the County Ordinance of the county where you wish to open the business. Some counties, such as El Paso County, do not allow retail marijuana sales or cultivation.
  • Colorado is a dual license state. This means you will be required to apply for a state and local license before opening the cannabis business.
  • Not everyone is eligible to open a marijuana business. Anyone subject to a discharge from a felony conviction is barred from applying to open a cannabis business. Depending on the offense, you may be able to apply after a certain time has passed.
  • Starting a marijuana business is not cheap. State license application fees can cost nearly $5,000 depending on the license. In addition to this, you will also be required to pay local fees costing up to $2,500.
  • The marijuana sector is heavily regulated in Colorado to preserve the integrity of the industry. You will be required to comply with stringent rules and regulations. Failing to do so can result in fines and the revocation of a business license.
  • Marijuana possession, consumption and distribution are still a violation of federal law. Federal law enforcement can crack down on marijuana in the state, even though it’s legal. This can result in a legal pot business being shut down.

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Additional Resources for Marijuana Business Licenses

Medical Marijuana Business License | Marijuana Enforcement Division – Visit the official website of the Colorado Marijuana Enforcement Division to learn more about licenses for medicinal cannabis businesses. You can find out what an application packet must include, the labor and employment requirements and local authority licensing.

Retail Marijuana Business License | Marijuana Enforcement Division – Follow the link provided to find more information about applying for a retail marijuana business license. You can find additional information about state tax licensing, required fingerprints and where the application should be delivered.


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Marijuana Business License Lawyer in Colorado Springs, CO 

Are you applying for a marijuana business license? Are you unsure of what the next step should be? If this is the case, then you have come to the right place. Applying for a marijuana business license is a daunting process, but with the help of Law Offices of Clifton Black, P.C., it doesn’t have to be.

Clifton Black will assist you in every aspect of the marijuana business formation process.  Call (719) 328-1616 to schedule a time to speak with him more about your marijuana business plans. Law Offices of Clifton Black, P.C. assist clients in Colorado Springs, Pueblo, Woodland Park and Cañon City.


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Law Offices of Clifton Black, P.C.