HOW TO START A CANNABIS BUSINESS IN MICHIGAN

Since the recreational use of marijuana was legalized in Michigan in 2018, enterprising individuals across the state have become interested in joining this lucrative industry. In order to start your own “cannabusiness,” you must undergo significant legal legwork in order to establish your company legally.

First off, until December 6, 2021, those seeking to operate a recreational cannabis business will have to obtain licensing on the medical side. Once that has been completed, applicants may apply for an adult-use marijuana establishment license.

The Michigan Regulation and Taxation of Marijuana Act (MRTMA) requires that only the following applications for licensure may be accepted until December 6, 2021:

· Those who wish to apply for a class A grower or a microbusiness license must be a resident of Michigan.

· Those who wish to apply for a class B or class C grower, a processor, a retailer, or a secure transporter license must first hold a medical marijuana facility license.

After December 6, 2021, the Michigan residency requirement and the medical marijuana facility requirements will cease, and anyone may apply for an adult-use marijuana establishment license.

Michigan law has also created a path for licensure for those interested in cultivating industrial hemp—a variety of the cannabis plant that contains less than 0.3% THC. This is widely cultivated as a primary source for cannabidiol (CBD).

If you are interested in starting a medical marijuana business, an adult-use recreational marijuana business, or a cultivation business, be sure to consultant attorney first for best advice.