How To Make Sure Your Business Is Legal

As the legalization of cannabis in different states widened, many CBD products have evolved and become one of the most popular products in some countries, especially in the United States.

However, many people are still worried about entering this industry. The main factor is its legality. Countries that legalized cannabis are serious about implementing the laws on selling medical marijuana. Hence, every business person should know the rules, regulations, and laws on how to sell this product to avoid imprisonment.

Keep reading this article to ensure your cannabis business is legal.

See What Other Popular Cannabis Businesses are Doing

Before entering the cannabis business, observe the people doing this business and ask them how they started and managed their businesses. Look at popular businesses and shops like The Joint Cannabis to understand the trends and how this industry works. This way, you can gather information not only on how to run this field but also on the laws the state is implementing. Alternatively, join some cannabis business organizations that can guide and give you ideas before entering this industry.

Contact Legal Professionals

If you are not familiar with the laws about cannabis, it is always best to seek assistance from a lawyer who has expertise in cannabis. Every step you make when going to this business should be consulted by a legal professional like, for example. Remember that every state is very strict in implementing the laws of selling and using cannabis, so have some legal advice to avoid serious violations that may lead to jail.

Make Sure You Have All The Licenses & Permits

Just like other businesses, licenses and permits are needed for you to operate this business. The only difference is that you need a certification from the state that allows you to sell or operate a cannabis business.

This certification might take a long time before you can have it because you need first to undergo some training, seminar, and orientation since this product is strictly monitored by federal law.

After you completed all the necessary requirements, you can now start your own business.

Obtain A Federal Tax ID

Federal Tax ID is very important in this business so you must obtain it first before you start your business.

In the United States, there is what they called the 280E tax code which is classified as a controlled substance.  This tax code includes marijuana that has an effective tax rate that is 3x higher than any other business so you must consider this before you proceed in this business.

Follow Regulations

We all know that cannabis is technically illegal so you must know first the do’s and do not’s of operating this business. There are some regulations in this industry that you should follow upon selling cannabis products such as:

* Do not sell it to minors

* Do not sell it to criminal enterprises

* Always look for doctors’ prescription

* Farms and factories should be 1000 feet away from public places

* Do not plant Marijuana on public lands

These are some of the regulations that you should follow in order to run your business smoothly.


Cannabis is a good source of income in all states where it is legal. As the demand for this business arises, many people are getting interested in this industry. But before you proceed, make sure that what you are doing is legal, allowed by the state, and has advice from cannabis professionals.

Keep in mind that cannabis is technically illegal so you should always follow the rules and regulations for selling and usage of medical Marijuana. This way, you can gain a lot of profit legally and avoid serious violations and imprisonment to continue growing your business.

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