When you open a business for the first time, you go into it with an understanding there will be specific codes and regulations you must follow. You’ll need a tax license. You need a bank account.
But when you open a cannabis business, things get a little murkier. While there are certain laws you’ll have to navigate, depending on which state you’re in, it’s important to ensure everything is set up correctly to reduce your risk.
Luckily, you can take steps to keep your business on track. To avoid compliance issues as you’re building for the future, focus on keeping your business on track.
Business documentation
It may seem like an endless supply of paperwork, but it’s essential to ensure you have all the documentation necessary for proper setup. This includes cannabis licenses, financial information, and point of sale records. Also keep things like operating agreements and EINs on hand to stay in compliance with your bank, as well as your local and state government.
If you handle medical marijuana, HIPAA laws may apply. If that’s the case, keeping proper documentation ensures you stay in compliance with federal regulations, and handle all personal health information correctly.
Stay up to date with new laws and regs
While each new year can bring in new laws and regulations, for the cannabis industry, it can be even greater. Because each state sets its own rules, you must stay in touch with any changes made each year. By making yourself aware of the practices for all phases of this business, you’ll avoid the risk of fines or legal action. You can also build a stronger relationship with all levels of the supply chain, from production to government, and even customers. If you can present yourself as a reputable company, customers are more likely to stay with you for the long term.
Surround yourself with information and resources that can help ensure you stay up to date at all times. Newsletters offer you a chance to keep a pulse on the industry – sign up for resources like:
You can also look for resources in your own community. Individual states often have resources to keep you in touch with others in your local community. Try the National Cannabis Industry Association on the national level, or look for an association within your specific state.
The bottom line
Because so much is changing within this industry, it’s important to keep your finger on the pulse of what makes you a healthy, productive company. With so much changing, get your resources set up to help you start and grow your business. Whether you have hopes to stay small, or turn it into a multi-state organization, the stronger you make your core business systems, the more compliant you’ll be with both law enforcement and the government.
For IT Strategy, Security and Compliance, or Help Desk Services, reach out to us at Cannabis Technology Partners 360-450-4759.
