Is Your Cannabis Business Compliant? 5 Things You Need to Know
You know your cannabis business needs to be compliant…..
You know it’s crucial to making sure your company is in good standing…
And you know it’s something that can’t be taken lightly…
But you may also be wondering - what does compliance actually involve?
Compliance is a tricky issue in the cannabis industry.
There’s no one size fits all here.
What makes a cannabis business compliant in one region does not necessarily make it in another. In fact, compliance varies by state and local levels.
Understanding how to protect your business is vital.
You don’t want to lose everything you and your team worked so hard for.
Maintaining compliance will help you keep your cannabis business in operation for years to come.
Keep reading for five of the most important things you need to know about cannabis compliance.
#1. Licensing is the Life or Death of Your Cannabis Business
There’s no skirting around it, your business needs a license.
Any cannabis company, big or small, needs a license in order to operate.
Obtaining and understanding the rules of what it takes to have a license are crucial for any company.
Keep in mind that the type of license you need depends on the nature of your business, what you’re selling, where you are located, and what regions you plan on operating in.
#2. You’re 100% Responsible for Making Sure Your Cannabiz is Compliant
How do you make sure your cannabis company is compliant?
You take personal responsibility.
As a business owner, liability falls on your shoulders.
Knowing the local and state laws is important. This is everything from mandatory workers compensation in California to understanding how to hire, train, and pay employees.
But it doesn’t stop there.
Having efficient and compliant employees are essential to any cannabis company.
This cannot be stressed enough.
#3. Tracking Systems are Crucial for Cannabis Compliance, Cleanliness, and Quality
If you are running a physical cannabis operation, let's say a dispensary, for example, you need to be extra vigilant with compliance.
Understanding how to keep your manufacturing and distribution company fully compliant with state laws prevents any problems like cross contamination or mold on flower.
Implementing programs like the Track and Trace System (METRC) can help you ensure the flow of cannabis is being handled accurately.
Note: This is NOT an affiliate post for METRC. We get 0% commission for this recommendation. We just think they have a handy system and want to share it with you!
#4. Staying Current with Your Cannabiz Tax Returns is Critical
Did you know that if you sell cannabis products you must file and pay quarterly sales tax returns to the State’s Department of Revenue or Tax and Fee Administration?
Staying compliant and up to date with all of your tax returns is critical.
Cannabis companies are audited more frequently than in any other industry.
You cannot afford to put your business at unnecessary risk.
#5. It is Better to Be Cautious than Regretful
The most important thing you need to keep in mind when it comes to compliance is to be alert.
And err on the side of caution.
Operating in the cannabis industry is risky.
There are still companies that are being targeted, even when they have all of their ducks in a row.
This is why it is so important to keep good records and do your due diligence.
This way, should you run into trouble, you at least have a proven track record of your business’s actions.
Compliance is single-handedly one of the biggest issues facing cannabis entrepreneurs today.
There are numerous requirements, ongoing changes, and only so many hours in a day. And maintaining compliance is too important to leave to chance.
But you don’t have to do it all alone….
Hiring an experienced cannabis accountant can help you save time, money, and resources.
Your workable hours are limited. You need to be focused on business building rather than the ins and outs of maintaining compliance.
Her services include:
- Cannabis Business Startup and Consultations
- All taxes from local cannabis taxes to Corporate business returns
- Cannabis Bookkeeping
- Cannabis Sales Tax
- Cannabis Payroll
- And more!
Get in touch with Alison by messaging firstname.lastname@example.org