How to Obtain a Cannabis Microbusiness License in California

January 2, 2023

Cannabis Microbusiness License

At Manzuri Law, our California attorneys have helped our clients procure or maintain over 200 local and state cannabis business licenses, including those who hold a microbusiness licenses in the state.

To pursue and obtain a California microbusiness license, the licensee must engage in at least three of the following cannabis business activities:

  • Cultivation – up to 10,000 total square feet.
  • Manufacturing – use of non-volatile solvents, mechanical extraction, or infusion.
  • Distribution or distribution transport-only.
  • Retail – storefront or non-storefront.

California cannabis microbusiness licenses are issued by the Department of Cannabis Control (DCC) after a robust application process is completed and approved. In addition, the cannabis business owner(s) must receive local approvals from the city and county in which their microbusiness is located.

Next, because a microbusiness requires at least three types of cannabis operations, the company must also comply with all regulations adopted by the California Department of Food and Agriculture (CDFA), the California Department of Public Health (CDPH), and other state and local agencies governing the activities they are involved in.

This is where our California cannabis lawyers shine. We offer end-to-end legal solutions for licensing and compliance to streamline the process, so our clients can begin operations sooner.

What Will I Need to Apply for a Cannabis Microbusiness License in California?

In California, cannabis microbusinesses require multiple application attachments, since the applicant is operating in at least three distinct types of businesses. That documentation may include delivery procedures, proof of commercial general liability insurance for distributors, and/or cultivation plans to name a few.

Additional documentation that cannabis microbusiness licensing applicants must supply:

  • Business Organizational Structure and Formation Documents.
  • Business Contact Information.
  • Social Security Number/Individual Taxpayer Identification Number/Federal Employer Identification Number.
  • Limited Waiver of Sovereign Immunity (If Applicable).
  • Compliance with the California Environmental Quality Act.
  • Seller’s Permit issued by the California Department of Tax and Fee Administration (CDTFA). If the applicant has not yet received a seller’s permit, it shall attest that they are applying for one.
  • Premises Location.
  • Evidence of the Legal Right to Occupy and Use the Proposed Premises Location.
  • Premises Diagram Form(s).
  • Financial Information Form.
  • Transportation Procedures.
  • Inventory Procedures.
  • Non-Laboratory Quality Control Procedures.
  • Security Procedures.

In addition, there is a non-refundable application fee of $1,000, proof of surety bond for $5,000 payable to the State of California, and the licensing fee, which will vary by the company’s estimated gross annual revenue.

Once the application is approved and the license fee is received, the license number will be issued to the applicant. Applicants may not conduct any cannabis activity until a license is issued by the DCC.

Need Help Pursuing a California Cannabis Microbusiness License?

Contact one of our California cannabis law firm specialists today by phone at 310-912-2960  or online to discuss your microbusiness goals, so we can help you understand and meet the criteria necessary to move forward successfully. You do not have to engage in this lengthy and complicated process alone. We can help. Contact us now to learn how.

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