Project Description

marijuana on a table - business basics of cannabis

DISCLAIMER: This In Brief section offers a series of business, real estate, employment, estate planning and tax bulletins prepared by the attorneys at Fauver, Large, Archbald & Spray, LLP. This is not exhaustive, nor is it legal advice. You should discuss your particular situation with us or with your own attorney. Our legal representation is only undertaken through a written engagement letter and not by the distribution or use of this information.

The Business Basics of Cannabis Licensing

The complexities of cannabis law can be overwhelming. From the varying regulations that change as you encounter different cities and states to the ranging legal licenses that are required in order to operate your business. We hope to provide some clarity on the subject.


Whether you are operating as a distributor, retailer, or both – it is crucial that you obtain the correct licensing for your cannabis company. A failure to do so could put you at a massive setback and can prove to be costly as it will impact your day-to-day operations and in turn affect the bottom line. With that said here is a short list of different licensing types:

  • Cultivation Licenses
  • Manufacturing License Types
  • Distribution Licenses
  • Testing Laboratory Licenses
  • Retail Licenses
  • Micro Business Licenses
  • Event Licenses

The DCC (Department of Cannabis Control) issues these licenses based on the type of cannabis activity your business will operate under and if your business falls under more than one of these categories, you may need multiple licenses. Understand the type of license you need so that you can better set your business up for success.