Getting a cannabis Business License – A Primer

Establishing your own cannabis business can be quite a challenge. That said, it is far from impossible. It just takes some serious planning, thought, research, and perseverance. However, that does not mean jumping in without any sort of preparation. After all, that’s the whole point right? So, what are the things you need to consider?

cannabis business


First off, there are three basic but critical pieces of legislation that you need to address in order to start your own business in the adult cannabis sector: The federal tax identification number (or “PTIN”), business license, and local permits. Although these three pieces of legislation may seem fairly self-explanatory, they are not. That is because each one carries its own set of important (and frequently difficult-to-accomplish) requirements. And, even if they’re not technically hard-core legal requirements, you still need them in order to fully operate a business in California.


The first thing you need to do is get a copy of yourPTIN. You can get a free copy at the California Treasury Department’s web site. On a side note, one of the most commonly asked questions about obtaining a license in California is whether or not you need to have a valid California business license (BK). If you do not have a BK, you will not be able to obtain a business license for an adult-use cannabis in California.

After you obtain your PTIN, however, it is time to move onto business licensing. Business licensing requirements vary greatly in each locale. This can vary by county, city, town, or even individual city, so do some research and get all the information that you can before you apply for a license. In general, there are two types of licensing requirements that businesses face in California:

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