How to Legally Sell Cannabis

Are you looking to get into the cannabis industry but don’t know where to start? Check out this blog post to learn how to legally sell cannabis.

Checkout this video:


Selling cannabis legally can be a daunting task, but it is possible with the right information. In order to sell cannabis legally, you must first obtain a license from the state in which you plan to operate. Once you have obtained a license, you must comply with all state and local laws regarding the sale of cannabis.

The first step in selling cannabis legally is to obtain a license from the state in which you plan to operate. Each state has different requirements for licensing, so it is important to research the requirements in your target state. Once you have obtained a license, you must then comply with all state and local laws regarding the sale of cannabis. These laws vary from state to state, but they generally require that you maintain a specific inventory of product, post signs informing customers of your compliance with state law, and submit regular reports detailing your sales.

In addition to complying with state and local laws, it is also important to consider the federal laws governing cannabis sales. Although selling cannabis is legal in some states, it is still illegal under federal law. As such, it is important to consult with an attorney prior to beginning any type of cannabis business venture.

The Legality of Cannabis

There are many gray areas when it comes to the legalities of cannabis. However, there are some things that are black and white. In order to sell cannabis, it must be done in a legal manner. This means that the cannabis must be grown in a legal manner, and it must be sold in a legal manner. Let’s take a closer look at the legalities of growing and selling cannabis.

Federal vs. state law

In the United States, the use and possession of cannabis is illegal under federal law for any purpose, by way of the Controlled Substances Act of 1970. However, a growing number of states, territories, and the District of Columbia have enacted their own laws legalizing the plant’s medical and/or recreational use.

As of October 2018, 33 states plus Washington D.C. have legalized medical cannabis to some extent: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Maine, Maryland, Massachusetts Michigan , Minnesota , Mississippi , Missouri , Montana , Nebraska , Nevada , New Hampshire , New Jersey , New Mexico , New York , North Dakota , Ohio , Oklahoma , Oregon , Pennsylvania Rhode Island South Carolina South Dakota Tennessee Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming . Additionally 10 states have legalized both recreational and medical cannabis: Alaska (recreational only), California (medical only), Colorado (recreational and medical), Maine (recreational only), Massachusetts (recreational and medical), Michigan (recreational only), Nevada (recreational and medical), Oregon (recreational and medical), Vermont (medical only), Washington state (recreational and medical).

This means that in 23 states it is still a crime to possess or use cannabis for any purpose unless you are part of a very limited group of people who have been able to qualify for a state-issued medical marijuana card. Even in these states possession or use outside the confines of a state-sanctioned program remains a crime under federal law.

The Justice Department has stated that they are not going to actively pursue people who are in compliance with state laws surrounding cannabis; however they reserve the right to do so if they deem it necessary. This hands-off approach may change under the current administration; so it’s important to stay up-to-date on the latest news if you are involved in the cannabis industry in any capacity.

The Cole Memo

The Cole Memo is a document released by the US Department of Justice in 2013 that provided guidance on how to enforce federal laws in states that had legalized cannabis. The memo is named after its author, then-Deputy Attorney General James M. Cole.

The Cole Memo did not change any federal laws, but it did offer some protection for state-legal businesses by establishing priorities for enforcement. These priorities included preventing the distribution of cannabis to minors, preventing revenue from the sale of cannabis from going to criminal enterprises, and preventing the diversion of cannabis from states where it is legal to states where it is not.

In January 2018, Attorney General Jeff Sessions rescinded the Cole Memo, leaving state-legal businesses vulnerable to federal prosecution. This has created a great deal of uncertainty for the cannabis industry, and many businesses are struggling to stay afloat.

How to Legally Sell Cannabis

In order to legally sell cannabis, you must obtain a license from the state in which you plan to operate. Each state has different requirements for obtaining a cannabis license, so be sure to research the requirements for your state. Once you have obtained your license, you will need to find a location for your cannabis business. Once you have found a location, you will need to build out your grow room or retail space.

Get a license

In order to legally sell cannabis, you must obtain a license from the state in which you intend to operate. There are a limited number of licenses available, and the application process can be competitive. The requirements vary from state to state, but in general, you will need to demonstrate that your business will be compliant with all local laws and regulations. You will also need to provide proof of financial responsibility and undergo a background check. Once you have been licensed, you will need to comply with all license requirements, which may include regular inspections and reporting.

Comply with state and local regulations

In order to operate a cannabis business, you must first comply with state and local regulations. This includes obtaining the necessary licenses and permits, as well as following all zoning laws. Additionally, you will need to develop a business plan and obtain funding. Once you have all of this in place, you can begin to sell cannabis legally.

Pay taxes

In order to legally sell cannabis, you must first obtain a license from the state in which you intend to operate. Once you have been licensed, you will be required to pay taxes on your sales in accordance with state and local laws. Depending on the jurisdiction, you may also be required to obtain a special license from the city or county in which you intend to sell.

In addition to paying taxes, you will also be required to comply with all other applicable laws and regulations, including those pertaining to zoning, signage, and security. Failure to comply with any of these requirements could result in the revocation of your license.


By following the steps outlined in this guide, you can legall sell cannabis in Canada. However, it is important to keep in mind that the cannabis industry is highly regulated, so make sure to familiarize yourself with the rules and regulations before setting up your business.

If you have any questions about how to legally sell cannabis, feel free to contact a lawyer or accountant for help.

Scroll to Top