You needed to stay in compliance and good standing with your local city ordinance until Jan 1st 2018, when California began accepting state applications.
Frequently Asked Questions
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There are over 500+ cities/counties in California that currently have medical cannabis regulations. Several are now voting on recreational cannabis regulations as well. This is something that is actively being tracked by several cannabis companies.
With each local municipality having different requirements, each municipality will then have the fee structure independent of others. You can find more information on their city council websites.
Each local city has set a specific number of licenses for each vertical integration. Pulling up the city website and looking into the medical cannabis application limit, will allow you to see what the cap is for each license type.
Being compliant is an on-going task and requires several things involving both local laws and business operations compliance. Having the business structured properly, knowing your city and county ordinances, having a licensed facility in the county you are currently operating out of, and standardized plans are just a few of the ways to currently be in compliance with the state of California.
In cities that have placed a moratorium or an outright ban on cannabis activities, you will need to cease all cannabis business activities. The cities/counties have the say on whether or not they want cannabis activity in their area. –This was a direct result of MCRSA and giving the rights to the cities or counties to specify if they will allow this type of activity. This could change as more local municipalities come online with allowing cannabis activity, as well as the state regulations, becoming more fine-tuned since January 1st, 2018.
Yes, when your business entity gets filed, you register with the Board of Equalization. This gives your company an EIN number (tax ID) and you are required to file taxes yearly as well you will have a yearly fee with the Franchise Tax Board. Recommendation is to find a CPA that is familiar with cannabis tax codes and 280E.
Since there is no federal bank currently that will openly take cannabis business money, this becomes a very grey area. It has thus far been a strictly cash business. Safes, cash management systems, daily cash drops as well as neatly kept accounting books are very important in this business. Some banks (credit unions, Bank of America) will allow for a licensed cannabis to bank with them its just a matter a finding those establishments.
There are several groups and associations as well as events that allow for networking for cannabis business operators. Look to your local meet up groups, cannabis events, cannabis associations to being this process.
This is still being sorted out as to vertical integration with current laws. Right now, the licenses that cannot be combined are testing, distribution, and transporter.