On January 22, 2016, the State adopted final cannabis industry regulations, which began enforcement on February 21, 2016. After confirming your name is free to use, visit your. more Niles stories. Whats the best tax status for your business? In addition to the states affordability, Michigan has plenty for entrepreneurs with a passion for the outdoors: sandy dunes, lush forests, and. 2020 State of Oregon. If you have a physical address in Michigan, you can be your own registered agent, however, hiring a professional is inexpensive ($50-$200 a year) and will ensure that your forms are filled out and filed correctly. See also: How to Start an Edible Business in Michigan. Taking into account the effects of 280E when structuring your business is highly recommended and can be the difference between turning a profit or suffering a loss. You will use this number to establish bank accounts, unemployment accounts and tax accounts with the state and federal governments. Find out which licenses or permits youll need to run your business in the state. You could develop an app such as WeedMaps, you could manufacture smoking accessories such as dab rigs, or provide some other product or service. (2021, January 11). Whether you intend to run a day care service out of your house or build a small manufacturing facility, you need insurance for your company. 1. A great business plan should chart the path of your company from infancy to success while being able to attract investors to provide financing. Step 4: Decide How Your Mushroom Farm will be Designed. It will help you stay organized and on task, while also serving as a "resume" of sorts when seeking additional investors. Completely fill in all the blanks and if you do not understand any part of what it is asking you, see legal counsel. Another common mistake is to assume that your business will be profitable from day 1. Use the State License Search hosted by the Michigan government to find out whether youll need one or more special licenses, permits, or certifications to operate your business legally in the state. found in a recent study. The filing fee varies depending on the municipality. In truth, it wasnt all that much of a change, I just changed the type of clients I was going after but was still doing pretty much the same work. To form a corporation in Michigan, you must file Articles of Incorporation. We'd love to hear from you, please enter your comments. Start a mushroom farm by following these 10 steps: Plan your Mushroom Farm. With this article, hopefully you now understand the path you will need to go down to start a legal cannabis company in Michigan. You should also consider general business liability insurance. You can apply online for your EIN through the IRS website, or fill out and mail this form. STEP 3: Register for taxes. A(n) Marijuana Edibles business doing business under an assumed business name in San Diego County i.e. A certain percentage of an advertising platforms target audience must be under the age of 21. These include, a loan from the U.S. Small Business Administration. Later on, you might want to take advantage of their registered agent services, domain name registration, or annual report filing. The first step to starting your Michigan startup is finding the right business idea. Your business plan ought to include the following sections: Every business needs money to get off the ground. Your financial situation is unique and the products and services we review may not be right for your circumstances. For plant-touching companies, the biggest obstacle and biggest bottleneck in opening a licensed cannabis business in Michigan is finding cannabis real estate, getting it licensed, and getting it built out and properly equipped, especially when it comes to cultivation facilities and dispensaries. https://www.thompsoncoburn.com/docs/default-source/blog-documents/ranking-of-state-cannabis-regulations.pdf, California Department of Public Health. What you do need is good branding concept, and most importantly, the work ethic and marketing budget to build that brand into a household name. No matter what type of business you form, buying insurance coverage to protect yourself in the case of property damage or legal action is a good idea. But the business opportunities the Michigan cannabis industry presents are especially attractive not because its an easy business to get into, but because its can be quite difficult. Register your business with the California Secretary of State. (2020, January 3) Maine Cannabis Regulations: License Applications, Forms, Links and Other Resources. After confirming your name is free to use, visit your local county clerks office to fill out, notarize, and submit an assumed name certificate. For example, a restaurant will need a liquor license, and a pawn shop will need a resellers license. But generally, all states require what is listed below: *Again, this can differ state by state. 2020 Maine Recreational Business Licensing Process for Marijuana Establishments. Youll need to file official documents to establish your business. Oftentimes, the most successful companies are defined by their ability to overcome the inevitable obstacles that operating in the cannabis space can present. Under the MMFLA and MRTMA, whether and where you can locate your cannabis business is up to each individual municipality. For plant-touching companies, you will at a minimum need a cannabis business attorney and accountant who specializes in cannabis. Google Workspace helps with email addresses, team collaboration, productivity, and more. ). One of the biggest obstacles in starting a licensed cannabis business is obtaining enough money to get off the ground. The persons and entities that must be included in the application are defined by the regulations. You may want to consult with an attorney to help decide which entity works best for your business. Many municipalities cap the number of licenses they allow for specific facility types, and there may be a limited window to apply for these limited number of municipal licenses. Edibles Outperform Cannabis Industry Growth in 2020 on COVID-Spurred Sales Surge. The bakery supplies edibles to about 400 dispensaries in Colorado. Built for small business owners, entrepreneurs, and freelancers. As a plant-touching operation, you'll need a cannabis facility under the MMFLA and MRTMA. Complete our online form and we will contact you. If you have questions, have a business or real estate attorney read through and advise you on the agreement. After settling on an entity, you can register your business with the state of Michigan. Initially, it was announced that for the first 24 months, applications would only be accepted from currently licensed medical marijuana operators. Northwest can help. The form of business entity you choose will affect many factors going forward. The cost of sourcing materials yourself vs. buying from other retailers will be heavily impacted by the cost of starting up cultivation or extraction operations in your area, so consider that when planning. There are numerous cannabis attorneys with criminal law backgrounds instead of business law backgrounds. This also has the advantage of making it easier to raise capital, since growing companies with a good operational history are much more attractive to investors than pie-in-the-sky start-ups. That means that anyone who can pass the states background check and obtain a municipally licensed property can receive an MMFLA or MRTMA cannabis license. A statewide organization dedicated to assisting Michigan small business owners through free consultation and other educational services. The MMFLA, on the other hand, allow for the licensing of medical marijuana businesses and allows dispensaries to sell to any registered patient, including out-of-state patients in some cases. Her work has appeared on Business.com, Business News Daily, FitSmallBusiness.com, CentsibleMoney.com, and Kin Insurance. Michigan Medical Marihuana Act Caregivers, Cannabis Merger and Acquisition Attorneys, Michigan cannabis license under the MMFLA or MRTMA, lawyer with experience in negotiating cannabis licensing and white label deals, safety testing labs, secure transporters, and microbusinesses, for property to locate your cannabis facility, purchase property with a municipal cannabis license or existing cannabis business, tie up the property with a purchase agreement or contingent lease while you obtain your municipal license, Step 2 or Part 2 cannabis facility licensing step, maintaining compliance with the ever-changing regulations and guidance applicable to the Michigan cannabis industry, ancillary businesses still have to be careful, insurance is also widely available for cannabis businesses, obtain financing from a private, non-bank institutional lender, Private lending is also available to cannabis businesses. to see that your businesss name is available for use in the state. Regulations for licensing any type of cannabis business may vary, but here were going to focus on obtaining a processing license. It takes you from hiring a lawyer who specializes in Michigan's cannabis laws & regulations to help . Have your business plan made and all your finances in a row before applying. If you havent already done so, this is the time to secure a location for your business. If you have a high volume business, you may be better off with a bank that charges a higher monthly maintenance fee but no deposit fees, or vice versa. Dont be afraid of this sort of competition, just be prepared. You need a state license to do business. Between January 2020 and January 2022, Michigan saw a 24% small business revenue increase compared to 6.9% for the rest of the country. 2407 N. Grand River Ave. This is also the time to decide how to structure your cannabis business. An overview of your business and why it will be successful, Explain the advantages of your business and the problems it solves, Provide research on your industry, target market, and potential competitors, Detail the nuts and bolts of your business; how its structured and who will run it, Explain your strategy for attracting customers, The money youll need in the next five years to grow your business and how youll spend it, Data and balance sheets providing a financial forecast for your business. Where do you start? Check here for more information on filing fees. https://www.michigan.gov/mra/0,9306,7-386-83994-454561--,00.html, 475B.090. Now you should obtain a Federal Employer Identification Number (EIN), which is like a social security number for a business and allows you to open bank accounts, handle payroll, and file taxes.