California Microbusiness Licenses – “Craft Canna Business”

A microbusiness model might be a good way to build a local brand that can grow into something larger, similar to some of the craft breweries found in California.

California is the home of more than 850 microbreweries and contributed $7.288 billion to the state’s economy in 2015.  The local IPAs or Porters have replaced the brand name beers.  The explosion of microbreweries can be linked to several different causes, but one that might continue into the cannabis industry is the desire to support sustainable and local businesses.  One way to capitalize on this preference in the California cannabis industry is create a cannabis microbusiness, pursuant to MAUCRSA.  

A microbusiness license is a license that permits cannabis cultivation on an area up to 10,000 sq. ft. and allows the business to act as a licensed distributor, level 1 manufacture (use of non-volatile solvents only), and retailer.  Therefore, a microbusiness would be a fully integrated operation with the ability to grow, produce, transport, and sell your cannabis at one location.  This sustainable model would market very similarly to those California craft breweries.

There are some practical hurdles you would have to overcome to get a microbusiness license.  First of all, a lot of California cities and counties prohibit any commercial cultivation in their locality.  Therefore, you will be limited where your business can operate.  Secondly, you will need to ensure you are complaint with multiple sets of regulations.  You will need to follow both state and local regulations regarding cultivation, distribution, manufacturing, and retail; however, that can be accomplished with a good business and operating plan.

If you are able to find a location and locality that will allow you to operate a microbusiness, you are well on your way to opening your business.  First, you secure that location.  Second, you will need to apply for a local permit.  Each county and city has their own ordinance that regulates cannabis permits.  You will have to check with your specific locality, or call an attorney who specializes in cannabis law.  After securing your local permit you will need to apply for your state license.

A microbusiness model might be a good way to build a local brand that can grow into something larger, similar to some of the craft breweries found in California.