How to open a Cannabis business in California


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Many business owners saw a new opportunity when recreational marijuana was legalized in California. But, unlike other businesses, you must follow strict regulations in order to adhere to the state’s rules.

The California Secretaryof State’s outline important steps needed to start a Cannabis-related business.

1. Choose the Type and Name of the Business

It is important to choose the right entity that will tax your business. In order to ensure that their business name is not used, they will need to create it.

2. Register Your Business

To the Secretary Of State’s office, proper documentation and associated fees must have been submitted . The type of business you are interested in registering will affect how you should do it.

3. Proper licenses, permits or other authorizations must be obtained

The state does not require you to register your business. Additional licenses, permits, authorizations, or other authorizations will also be required by the city, county and state.

4. Additional Paperwork or Registration Information

To ensure compliance, and employee safety, the IRS requires that business owners file paperwork. This includes:

  • Internal Revenue Service
  • Franchise Tax Board
  • Employment Development Department
  • California Department of Tax and Fee Administration
  • California State Board of Equalization

Even after all required documentation and registrations have been submitted, a business applicant can still be denied.

How Purdy & Bailey LLP Could Help

Purdy & Bailey LLP is a team with over 50 years of collective experience. We have assisted many business owners in getting their business started. There are very few options for errors when you’re looking to open a hemp business. It will be easier to get your cannabis business started by working with experienced and knowledgeable cannabis business formation lawyers.


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