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how to start growing weed in michigan

That means you’re going to want to be growing indoors, or outside in a shed or grow house. Keep in mind this is Michigan — the weather changes rapidly.

According to the new Michigan law, a person who is at least 21 years old is allowed no more than 2.5 ounces of marijuana within his or her place of residence unless any excess marijuana is stored in a container or area equipped with locks “or other functioning security devices that restrict access to the contents of the container or area.”

Growing marijuana in Michigan compared to other states

DETROIT – As of Dec. 6, 2018 it is legal to grow your own marijuana in the state of Michigan.

If you’re looking to grow some plants at your house for you, then you’re looking for the Class A license.

But how much can you grow and where can you grow it?

Legal adults in Michigan are allowed to grow up to 12 marijuana plants inside their residence. That’s according to the proposal language that was approved.

Let’s be honest, if it was easy to start a legal cannabis business in Michigan, everyone would do it. But the business opportunities the Michigan cannabis industry presents are especially attractive not because it’s an easy business to get into, but because it’s can be quite difficult. The stakes are high, and the competition can be fierce. There are likely hundreds of companies vying to be the next Weedmaps, and we’ve seen situations where there are dozens of cannabis companies going after only a handful of available municipal licenses.

It’s a common misconception that the cannabis industry is an all cash business. Every single cannabis company I represent, including both plant-touching and non-plant touching, has a bank account and access to most insurance products. There are now at least 5 Michigan banks and credit unions that will openly bank licensed, plant-touching cannabis businesses. Even more will bank ancillary cannabis companies, though ancillary businesses still have to be careful. Similar to banking, insurance is also widely available for cannabis businesses. As the registered agent on dozens of prequalified or licensed cannabis businesses, my mailbox is absolutely inundated with insurance agents offering insurance to cannabis businesses.

While potentially the most lucrative, plant-touching cannabis businesses are expensive to start-up and require you to go through an extensive and time-consuming licensing process, as outlined below as well as here.

Step 7: Execute!

The very first decision you will have to make is what exactly you want to do in the industry. Do you want to start a commercial cultivation facility? Do you want to open a dispensary? Or do you want to simply take your existing business or skill set and pivot it to helping other cannabis companies? Here, we will divide up industry opportunities into three different tracks—branding and licensing, ancillary businesses, and plant-touching.

This is also the time to decide how to structure your cannabis business. When drafting an operating agreement or setting up a corporation’s bylaws, you will need to decide how the business will actually be run. In deciding this, you will need to be prepared to answer a lot of questions. For example, will you need to bring on investors? Are you splitting up responsibilities within the company with your team? If you have partners, how are major decisions going to be made? What’s the best tax status for your business?

Don’t be afraid of this sort of competition, just be prepared. The market is big enough for there to be numerous profitable and successful companies in your niche, whether that’s cultivation, branded products, or professional services. The big winners are not always the ones who are first to market. Oftentimes, the most successful companies are defined by their ability to overcome the inevitable obstacles that operating in the cannabis space can present. We will go through several common obstacles faced by cannabis businesses below.

Step 8: Overcoming Obstacles on Your Road to Success

Now that you have gone through the process to legally start up a cannabis business in Michigan, you need to execute on your business plan. If you are properly funded and have a rock-star team of employees, consultants and / or partners, you are set up for success. However, as many business owners can attest (including myself), running a business is not as easy or as sexy as it looks. For plant touching companies, maintaining compliance with the ever-changing regulations and guidance applicable to the Michigan cannabis industry is tough.

Many municipalities “cap” the number of licenses they allow for specific facility types, and there may be a limited window to apply for these limited number of municipal licenses. Most municipalities will cap the number of dispensary (also referred to “provisioning center” and “retailer”) licenses they allow, though some also cap the number of growers, processers, and other license types. Thus, even if you find a property in a municipality that allows cannabis and is properly zoned, you also need to make sure the municipality is actually accepting applications for your license type.