New Mexico Cannabis Business Formation
The cannabis industry can be very profitable for the fortunate businesses that are able to obtain the necessary licenses to operate. At the same time, operating a cannabis business has significant legal and regulatory requirements and requires qualified legal counsel every step of the way. In addition, it’s critical that your business is set up correctly from the start. In order to obtain the licenses and start your business, you need extensive preparation, and the assistance of an attorney can maximize your chances of getting up and running as soon as possible.
The business formation process of your cannabis business actually consists of two different tracks. The first step involves readying your business entity to meet the requirements of the licensing process. This involves things such as executing corporate documents, leases, and real estate agreements. Your corporate documents are a vital part of your application. You must gather documents such as:
- Articles of incorporation
- Corporate bylaws
- Partnership agreements
- Certificates of good standing
The most important step of business formation is getting the state license to operate. This is a very competitive process that leaves no room for error. The state application process is very detailed, and when the state opens registration, there are numerous applicants for each available license.
What Types of Cannabis Businesses Can I Start?
Many people associate the cannabis business with growing the product. It takes both land and expertise to cultivate marijuana, and these businesses require extensive startup costs.
Of course, that is part of the industry, but there are numerous other ways that your company can participate in this growing field. Another profitable cannabis business is a retail location or a dispensary. There are strict licensing requirements, and you would need the startup costs for a retail space, but this part of the business can be lucrative.
Another profitable part of the cannabis field is the courier business. This work is attractive because it requires little in startup costs. Here, your business would bring cannabis to patients, caregivers, laboratories, qualifying producers, and manufacturers. Basically, your business would be transporting the products anywhere that they need to be brought.
In New Mexico, you can also enter the cannabis business through a laboratory that tests various products. You may also apply for a manufacturing business that makes products with cannabis. There is room to enter the industry in ancillary businesses that do not involve growing that can potentially be lucrative.
How Can a New Mexico Cannabis Lawyer Help Me?
The two most critical areas where a cannabis lawyer can assist your business are licensing and compliance. The application process in New Mexico can be exacting. Even though the application itself may seem short, that does not mean that it is simple by any stretch. Regulators will take a very close look at each application, so it is crucial to be fully prepared for the process and submit a flawless finished product. An attorney can assist you by reviewing your application and sharing knowledge that they have learned about the process.
Legal compliance is an area where businesses need to invest considerable resources. The cannabis industry is a relatively new one, and the regulatory landscape can change by the day. You need an attorney who knows the legal landscape and will stay abreast of changes as they occur and advise you as to how to respond.
In addition, regulated businesses may also face periodic compliance inspections to ensure that they are following the vast requirements to which cannabis businesses are subject. An attorney can help their client prepare for these inspections and deal with any results of the examinations.
Business License Requirements
The business licensing requirements depend on the license that you are seeking. Currently, New Mexico is accepting applications for laboratories, manufacturers, and couriers.
At the outset, there are two requirements to begin the application process. The applicant must submit their package electronically on a thumb drive. Each application must be accompanied by a check. The fees are as follows:
- $5,000 for a manufacturer
- $2,200 for a laboratory
- $1,500 for a courier
Each application contains a long list of information that the business must provide. Of course, regulators are looking for evidence that the applicant is a company in good standing and is incorporated.
Beyond that, there are a host of safety requirements that touch upon a number of areas. Not only is the state looking at the integrity and purity of the product, but the Department of Health is also critically looking at the people who are going to be involved in the operation. Part of what they want to know is that the business will be nowhere near a school or anyone under 18 years old and that no firearms will be used. The state will also look closely at the applicant's policies and procedures.
To learn about the tax responsibilities for Cannabis business owners, please refer to this resource.
Contact an Albuquerque, NM Cannabis Business Formation Lawyer
As you can see, if you are thinking of starting out in the cannabis industry, the advice and counsel of a lawyer is a must. The application is detailed, and an attorney can help you assemble the strongest package. Call the Albuquerque, NM cannabis lawyers at Legal Solutions of New Mexico at (505) 445-4444 or contact us online to schedule an initial consultation.