michigan marijuana licensing Archives

people working on a marijuana microbusinessna microbusiness

Every day we hear from people who are interested in starting a marijuana microbusiness.

Yay, you! We want you to have a marijuana microbusiness, too, but we also don’t want you to get your hopes up without having some basic facts. This is a challenging industry, it’s very competitive and expensive. If you’re up for the challenge of starting a marijuana microbusiness, read on!

a stack of coins growing some seedlings to show how starting a marijuana microbusiness costs money

Microbusinesses are not that different than any other marijuana business in that you’ll need to locate in a city, township or village that has opted in for recreational marijuana and for the business you want to create. For instance, if you want to create a consumption lounge, you’ll need to find a municipality that has created zoning for a consumption lounge. Some places are only allowing specific kinds of adult-use/recreational licenses. You can’t have a microbusiness in your home unless you’re a marijuana consumption event planner.
There aren’t many places in Michigan welcoming to adult-use/recreational marijuana licenses of any sort, at least not yet. You’ve probably read articles about how most municipalities have opted-out. We believe this will change this year and next. We HIGHLY recommend if you desire a specific location, start meeting with and persuading the municipality of your choice to opt-in. Many municipalities opted-out to take a wait and see period—if yours is one that did that—it’s time to start building your case. There’s no guarantee of success when working with elected officials, but you need to start working on this angle if you have a specific area in mind.
Once you locate a municipality, you will need to find a property that meets the local zoning ordinance. This is easier said than done. Finding the right property in the right municipality for the right price will likely be the hardest part of starting up your Michigan microbusiness.
You’re going to need a lot of money. Just because this is a microbusiness application you’re seeking, that doesn’t mean micro-cash. For instance, just to have your application reviewed by the State, you’ll need to pay a non-refundable $6,000 application fee, and an annual assessment to $8,000. You’ll also need to locate a property that’s zoned for your business, and either purchase or lease that building. There are hundreds of items, small and large, that you’ll be paying for as you move forward. We recommend that you hire an accountant to help you keep track of your expenses. If you’re in a social equity community and qualify, you can save some money on some of the state fees.
Get your paperwork in order. You’ll need to create your business structure, determine if you’re want to be an LLC or a corporation, as well as determine the best tax status for your company. Make sure your partners are on board with the risk and the amount of time the start-up phase of this business will take. Starting a marijuana microbusiness takes a lot of time!
You also may want to consider getting prequalified under the MRTMA as many municipalities require pre-qualification in order to apply for a municipal license. This will also give you the certainty to start spending money since you won’t know for sure whether the state will allow you to own a marijuana microbusiness until you become prequalified.
The state microbusiness license, while less burdensome than a medical marijuana business license, still takes an effort to complete. You need to round up your tax paperwork from the last year, be ready to explain in a narrative form any missing paperwork or discrepancies; you’ll need to speak to any legal action against you and no matter how minor the misdemeanor or lawsuit, you need to address it. You’ll be going through a thorough background check and it’s best to explain and provide paperwork for anything that has happened in your background that involves law enforcement, recent litigation, or taxes. If you’re not good at this kind of detail work get some help.
You’ll need to secure and pay for local marijuana business permits and/or licenses. For the most part, that’s usually $5000.
At the same time you’re making an application for a marijuana microbusiness license you’ll need to have a business plan and a social equity plan completed. While the state does not require much for these plans, oftentimes a municipality will. A business plan is typically comprised of two parts: financial projections and a narrative. Business plans need to be completed with care and attention–not only for State or municipal review–but so that you will have a plan of attack and can hit the ground running.
As soon as you have a permit to get started with a building, you need to determine if your DBA is the actual name of your business, and if not, you can start working on what you want it to be. You’ll need to find a website URL and develop a strategic marketing communication plan to guide you as you get ready to launch.

Still ready to do this thing? GREAT! If you need help with anything microbusiness-related, give us a shout or even better, hop on over to our partner site Marijuana Microbusinesses and find out more.

cannabis and holidays, cannabis legalization, Michigan

December 29, 2017Roberta King

Looking at 2017’s Most Notable Marijuana News Events

It’s hard to say if this was a monumental year in marijuana news, but 2017 felt pretty good to us. There was a lot going on across the U.S. and in Michigan.

Here are our top ten most memorable news events in marijuana for the year.

10) California wildfires destroyed a significant amount of cannabis in Sonoma and Mendocino Counties. While all wildfires are heartbreaking and painful for individuals, families and communities, this year’s fire in California was especially tough on cannabis growers. Fires that broke out just before harvest time destroyed or damaged an estimated 34 cannabis farms and tragically the crop is uninsured due to federal regulations.

9) California, Nevada and Canada begin to implement adult-use legalization. After voting in November 2016 to end cannabis prohibition, both California and Nevada started working toward creating their legal environments. We love the “get it done” spirit in Nevada—it managed to open dispensaries less than eight months after the vote. Its larger sister state, California will end cannabis prohibition on January 1, 2018. Canadians from Nunavut to Saskatchewan will have access to cannabis starting in the coming summer, thanks to some hard work by the government in 2017.

8) Cheers to 360,000+ Michigan citizens who signed petitions for adult-use cannabis legalization. Volunteers and paid solicitors from MILegalize and the Coalition to Regulate Marijuana Like Alcohol secured 100,000 more signatures than required and validation of signatures is underway through the Board of Canvassers. We hope it will clear the board and go to voters in 2018. We expect the vote to be positive.

7) Jeff Sessions was appointed attorney general of the U.S. This is a dark mark on cannabis. The AG is a long-time hater of cannabis and will do what he can to ensure prohibition doesn’t end. The upside of this story is we have a dysfunctional Congress, he has a volatile boss and there are 29 states with some sort of marijuana laws on the books, which is going to make DEA intervention difficult. Public opinion is changing, too. A recent Gallup poll showed that 60 percent of Americans favor cannabis legalization.

6) Colorado marked its 5th year of adult use legalization and the sky didn’t fall. In speaking with the CBC, the head of Colorado’s Department of Public Health Dr. Larry Wolk said this: “The short answer is we have not seen much. We have not experienced any significant issues as a result of legalization. I think a lot of people think when you legalize you are going from zero to some high use number, but they forget that even when marijuana is not legal, one in four adults and one in five kids are probably using on a somewhat regular basis. What we’ve found since legalization is that those numbers haven’t really changed.”

5) The American Legion came out for cannabis. The venerable veterans organization is requesting further research regarding PTSD and traumatic brain injury and cannabis. Many veterans find cannabis to be a successful alternative to psychotropic drugs. Officials at the national American Legion are asking the federal government to allow Veterans Administration (VA) physicians to speak freely about medical marijuana to their patients. Presently, physicians are prohibited from talking about the plant as an option. The Legion with more than 14,000 posts nationwide has great potential to change public policy.

4) Northern Michigan University announced a marijuana major. Students will be able to major in medicinal plant chemistry at NMU, which offers America’s only bachelor’s degree in cannabis program. CH420 isn’t a slacker program though, it requires 120 credits of chemistry, biology, soils, genetics accounting and financial management classes. Its grads are bound to be in high demand. Way to go Wildcats!

3) Marijuana as a gateway out of opioid addiction. Opioid overdoses killed more 64,000 Americans in 2016 and that number is expected to increase this year. More and more research is leading the medical profession to look at marijuana as a gateway out of addiction to powerful painkillers. While more research needs to be done, marijuana shows promise in doing less harm and more good for patients with chronic pain. And you can’t overdose on marijuana.

2) Licensing for medical marijuana began in Michigan this year. It was a rough and tumble year in Lansing as LARA, the state’s regulating entity rolled out its rules on issuing licenses for people who want to grow, process, test, transport or provision medical marijuana. Dispensaries were threatened with closure by a state board, politicians stepped up to keep them open, liquid capital rates were set, municipalities opted in or out, and application materials were created. The licensing portal opened on December 15 and now we wait to see who will be first to show off their piece of legal paperwork.

1) Projections for cannabis job growth will exceed manufacturing by 2022. It’s an understatement to say that marijuana is a growth industry in that there are already 100,000 to 150,000 marijuana workers and about 90,000 people work in plant touching businesses. Cannabis and its ancillary businesses have created 43,000 full-time jobs in California, 23,000 in Colorado and 22,000 Washington. Michigan is the second largest medical marijuana state (next to California) and should have similar numbers for jobs when licenses are issued in this spring.

We look forward to the promise of a new year and all that it brings to cannabis-friendly people everywhere!

photo of a bowl with medical cannabis flowers and three well-rolled joints

cannabis and holidays, cannabis legalization, Michigan

December 22, 2017Roberta King

What’s on Your Cannabis Christmas Wish List? Here’s Ours.

Dear Santa,

Here’s our cannabis Christmas wish list for this year. We know it looks long. But seriously, we’re not bogarting—we’re asking for these things for the good of the world and all of humanity.

Thank you in advance for your kind consideration.

The (nice) Women of Canna Communication

Here’s what we want:

America to be more like Canada when it comes to marijuana. Imagine, a whole country (other than Uruguay at present) that doesn’t prohibit cannabis.
Just like Martha, Snoop and Anthony Bourdain, everyone should be able to be able to roll a good joint. It’s a skill anyone can master with a little practice.
People to stop calling cannabis a gateway drug. There’s no science to this myth, and truly, cannabis helps people get off of opioids.
Michigan citizens to come out in force in November 2018 and vote to end cannabis prohibition in our great state. We’ve been a medical marijuana state for nearly a decade, adult-use legalization is the natural next step.
The cannabis industry to stop objectifying women. Stop with the bikinis and boobs. Please. It doesn’t increase the seriousness of our cause.
Michigan to expand its criteria for medical marijuana qualification and include autism and PTSD. There’s research showing these conditions deserve inclusion.
All our clients to be successful in their endeavor to apply for a medical marijuana facility license.
More Michigan municipalities to be open to having marijuana businesses. Patients shouldn’t have to travel across the state for their medicine. There should be a provisioning center in every Michigan county.
All cities in Michigan decriminalize marijuana possession. There are far too many people in prison for marijuana charges, and more often than not, they’re people of color.
People to regard marijuana entrepreneurs as they do craft brewers. It wasn’t that long ago alcohol was prohibited and now it’s celebrated and brewers are vital to economic growth in some communities.
Small cannabis businesses to find a place in Michigan’s new medical marijuana licensing structure, so caregivers can continue to do what they do best.
Jeff Sessions to get with the science about marijuana and the people who use it. We are good people.
All the puns about marijuana to stop, or at least be limited to one per conversation.
Cannabis to be removed from Schedule I classification. This classification dates to the 1970s and the Nixon administration and was created to disrupt the lives of people of color and anti-war protestors.
Everyone who uses marijuana or supports people who do, to speak up about the power of the plant and how it has helped improve their health and happiness.

PS: Thanks to everyone who has supported Canna Communication in 2017. We look forward to a great 2018 with you.

cannabis flowers, soon to be legal in Michigan

Licensing, marijuana licensing

October 13, 2017November 7, 2017Roberta King

Nine Things to Know About Medical Marijuana Licensing in Michigan

It’s coming fast—the December 15 date when medical marijuana license applications begin to be accepted in Michigan. We’ve been reading all the documents, letters and notes and offer here some of the most important things to keep in mind if you are a cannabis entrepreneur. And as LARA often mentions, guidelines are subject to change.

1) Licensing will be in two phases—there will be a pre-application portion, which will allow people to move through making an application while securing a location for their enterprise. With many municipalities still finalizing opt-in ordinances, this two-part process makes sense. If all of your materials ready to go, you can apply and complete both phases at once.

2) In phase one, applicants will undergo a background check that is going to be rigorous. The background investigation includes, but is not limited to: a review of the applicant’s criminal and financial history, a review of previous compliance regarding regulation and taxation and a look at your business litigation history, if you have one. You’ll also consent to allow the state to do a background check—for which you’ll pay up to $8000. You’ll be fingerprinted and don’t forget that the State of Michigan wants its licensees to be of good moral character.

3) You’ll need to have a municipality to lined up your business before you can go very far in the process. This is a critical part of your start up business—not every city, village or township in Michigan is willing to change its ordinances to allow marijuana businesses, if you have a location already working through an ordinance, that’s great. If you don’t, finding a locale where businesses are welcome should be your primary task. And the upside is, there are lots of municipalities in Michigan and not all have made decisions on this topic.

4) You’ll need some serious start up capital for that license. The licenses—whether you are growing, testing, processing, transporting or provisioning will be priced on how many applications there are. The more applications, the less expensive it will be. Large scale growers should plan to give the State of Michigan between $8000 (many of applicants) and $57,000 (few applicants). Your municipality will also take no more than $5,000 of your money for it’s part of licensing. Small growers (Class A licenses) will pay no more than $10,000. Other fees are yet to be determined.

5) Recently released (within 10 years) felons need not apply. You won’t be considered for a license. People who have been convicted of a misdemeanor in the last five years are likely not to get a license if it is drug related or involves theft dishonesty or fraud.

6) Elected officials on the state level in Michigan (and any other state or federal government, for that matter) and Michigan State employees are ineligible to apply for a license. Indian tribe elected officials and employees may apply as well as precinct delegates.

7) For growers who want to go big—more than 1500 plants, you will be able to stack your Class C 1500 plant license. Apply (and pay for) multiple licenses. The state hasn’t said how many Class C licenses can be stacked, but this provision could allow for some very large operations.

8) The State of Michigan is allowing co-location of cannabis operations. That means a grower can also have a processing business and a provisioning center in the same location. It’s a great move for entrepreneurs who want to grow, make edibles and have a retail business. It will also be allow secure transportation. This complete package is very appealing and allows for better control of one’s business.

9) In phase two of the application process, after you’ve been background checked, every licensee will need to present plans for information technology, staffing, marketing, inventory, security and recordkeeping.

That marketing plan part—we’re here for you. Canna Communication has deep experience in creating strategic marketing plans. We are a communications firm dedicated solely to cannabis and are passionate about helping you grow your business!