If your business operates as a corporation, you will benefit from limited liability as well. The personal assets of shareholders who have purchased stock are usually only responsible for their own stock investments. The corporation, since it is considered its own separate business entity apart from shareholders and owners, is legally responsible for itself. Debts, etc. do not fall onto the shoulders of individuals, but rather onto the corporation as a whole, separate entity. A corporation’s corporate veil can also be pierced, so you need to take in the same considerations as with an LLC when deciding which entity is right for your cannabis business.
Some counties and municipalities have permits just for the privilege of being a marijuana business. For example, the City of Kenmore charges $500 a year for their annual Marijuana Business License.
Is there a limit on the number of marijuana producer licenses the WSLCB can issue?
Originally, I-502 rules dictated that all financiers must be Washington residents, living in-state for at least three months. Legislative changes have relaxed somewhat since then. It’s possible to apply to the WSLCB to accept funds from an out-of-state financier. You’ll have to submit an Application for Additional Funding to the WSLCB and receive approval. Out-of-state financiers have to be US residents.
Your marijuana shop must meet the following security requirements, according to the I-502 rules:
What other permits does my marijuana business need?
Registered agents are required for any business entity registered with the Secretary of State. When you hire Northwest Registered Agent as your registered agent, it’s a flat rate yearly price of $125 a year. You’ll have an online account that tracks your report due dates and when your yearly service with us is up. Any documents we receive locally for you are uploaded into your account immediately for complete viewing. If or when you get served with a lawsuit, we can email up to 4 people and your attorney at the same time for real-time complete viewing of a lawsuit. You’ll receive annual report reminders as well. Our service is the same price every year, and there are no weird fees or cancellation fees.
“It will come down to the agreement between the owner and the tenant,” Eskridge said. “If you are an owner, you shouldn’t be concerned about your property value dropping with a history of marijuana cultivation. There is no stigma associated to marijuana compared to say a meth lab.”
“The bill sets down reasonable guard rails for home grows,” said a spokesperson for Kloba. “It establishes a small civil fine for growing cannabis that can be seen or smelled from the street to ensure that home growing does not become a nuisance or a target for theft.”
“If you are a grower and you are doing it because you love it, then of course, you grow your own,” Cihlar said. “If, however, you just like to smoke high quality herb and don’t like paying for it, but can, I would probably not bother.”
Legislation authorizing personal cannabis cultivation may be taken up again in 2022 or reintroduced in next biennium
“HB 1019 did not fit neatly into one of these four categories and was not considered a high enough priority to consider in a year where we are hearing less legislation as a result of the pandemic,” said a spokesperson for Kloba in an email.
In 2012, Washington Initiative 502 appeared on the general ballot to legalize licensed cultivation, testing and retail sales of cannabis products. Whatcom residents have spent over $249 million in dispensaries since 2014, according to 502Data for Whatcom County.
This story was originally written for another course at Western. Even though the reporter is not on The Front’s staff, it has gone through our editing process and meets our standards.
Perry Eskridge, a representative for the Whatcom County Association of Realtors, said cannabis planting will certainly be a focus point for future lease agreements if the bill comes to pass.
The intricacies and variables of growing high-quality produce remain trade secrets, but Cihlar said if cannabis amateurs want to try it, they need to be prepared for investment of their time and resources.