Becoming a legal producer of medical marijuana in California.

[roddrumon]

So... this is a big topic that includes location, licensing, taxes, and i'm sure some sort of permit or something.
Does anyone know how to become a legit grow operation. I mean totally legit (except of course in the eyes of federal law).
I mean to legally grow and wholesale sell to dispensaries and pay taxes to be completely compliant with all the applicable laws.

Can anybody send me in the right direction in figuring out how to do this?

[budlover13]

So... this is a big topic that includes location, licensing, taxes, and i'm sure some sort of permit or something.
Does anyone know how to become a legit grow operation. I mean totally legit (except of course in the eyes of federal law).
I mean to legally grow and wholesale sell to dispensaries and pay taxes to be completely compliant with all the applicable laws.

Can anybody send me in the right direction in figuring out how to do this?

I'm right there with you. I'm trying to put together a business proposal right now and need all the info I can get.:jointsmile:

[butchi]

contact Jerome Handley Attorney @800 517 5166 tell him Butch said to call he will hook u up legit.

Butch

[roddrumon]

contact Jerome Handley Attorney @800 517 5166 tell him Butch said to call he will hook u up legit.

Butch

Well, i've sent the email, now i'm awaiting the reply. thanks butch. i'll post whatever info i gather.

[roddrumon]

they responded to my email, rather quickly, and i can get a consultation with the attorney, but unfortunately i'm in New York right now...
Also, i'm so sure about spending the $$ to talk with a lawyer just yet, there doesn't seem to be any guarantee that what I want to do (going totally legit) is even possible.

???

[Groundup]

i'm sitting down with one tomarrow,i'll let you know,but so far you need to know investors or your snorked!

[roddrumon]

i'm not worried about investors. With the economy in California today i could buy a home and setup a grow for what i've got in the bank, but alas i'm in New York.

Anyway, about the law, don't go to a lawyer and waste your money. Just sit down with the new laws and take some time to understand them. All the answers are there. And yes, i'm definitively sure that I could grow as much mj as I want and transport it, almost wherever i want, without fear of getting messed up by the cops.

The federal courts are starting to throw out federal cases of mj violations that are not in violation of the state they originate from... meaning - its becoming nationally medicinalized folks!

[bluesteve]

Something you guys need to think about. The IRS IS NOT allowing any tax deductions for expenses incurred in the production of medical Cannabis, but they do expect to be paid tax on your income from doing so, which means that if it cost you $10,000.00 to produce a commercial crop, & then you sold it for $20,000.00, you would have to pay income tax on all $20,000.00 that you took in, where in any other business, you'd only be taxed on $10,000.00 of the $20,000.00 you took in. In other words, you're going to be taxed on everything, not just your actual profit! This can make making money on this venture VERY difficult until things change in DC, & with the IRS. And it will be a far different reaction from DC, I believe, if Ca passes their Prop 19 to legalize for recreational use. Don't get too excited just yet!

In California, I can sell to my local dispensary, but by CA law, I'm only allowed to charge as much as it cost me to produce the crop. No profit is allowed--by law. But we all know that they're not able to build the $20,000,000.00 grow facility in Oakland CA, that the Oakland city council has approved, & for which property has been acquired, because they weren't making a profit all these years. That $20,000,000.00 didn't magically appear out of no where!

I don't know how they hide it, but they do. Don't know what other states are allowing as to growing for dispensaries, but in CA, the guys who started all this seem to be the only ones who can really operate at any level they wish to. In a recent conversation with someone who runs a dispensary in CA, regarding the prop 19 legalization measure on the ballot out here, he told me that they (the guys in Oakland & their politician friends in Sacramento) already have decided who will be allowed to run coffee shops, stores to sell over the counter, & who will be allowed to grow commercially for the new recreational industry, and this guy is in a position to know. So, if you live in CA, don't get your hopes up, as they will probably be dashed. I have 108 acres and would like to be in this business, but I'm running into problems already! Big money is already in control of our Cannabis industry. Expect to see prices rise to as much as $800.00 @ ounce, or more, for the best quality, once the taxes and regulatory fees kick in. We may finally be getting what we've been wishing for since the 60s, but not in the way we always thought we would. Personally, I always thought that if it ever became legal it would finally be reasonably priced, believing that the only reason it wasn't was because of the huge risk all those who made it available to you, took. Guess I was dreaming, eh?

But, I'm not giving up on this, and if it turns out that I'm not allowed to grow commercially in CA, if the new law passes, then I may well challenge that new law in court on the basis of restraint of trade. Cannabis is a plant, and I've been a commercial farmer for 27 years. As such, I should be able to grow any crop that is legal.

And lastly, this new law says that you'll be able to grow in an area 5 feet square. It also says that you're only allowed to posses one ounce of dried processed cannabis. How many of you have ever grown a plant that produced only a single ounce. Not that it's impossible for this to happen, but it is usually by a mistake, and as soon as you were to harvest you plant from that 5 x 5 area, you'd be in violation of the legal limit for possession! And the one ounce limit means no more buying quarter pounds to save money. They want you to have to come to them for that ounce and pay them that big ounce price!

[Stomper420]

Yea but Homie still lives down the street selling it at ol skewl prices which is better quality in my eyes:thumbsup:

[budlover13]

Yea but Homie still lives down the street selling it at ol skewl prices which is better quality in my eyes:thumbsup:

And if you want to purchase your cannabis from them, you have no idea where your money is going. Street crime? Gangs? Heaven forbid, terrorists? This is one of the reasons that I've started my own grow. I like the variety the collective offers, but I'd rather produce my own.:smokin:

[OhNoYaDont]

This whole thing is going EXACTLY the way Prohibition went. Wanna know what's going to happen? Read your history. There is NOTHING new under the sun, my son.

Do you know how NASCAR started? Prohibition.
Do you know that people went to prison for years, decades for making something that is legal now?
One of the most famous (infamous) bootleggers of all time (Al Capone) went to jail for life - for income tax evasion.
Another one became fabulously wealthy and founded a political dynasty that lasted for a half century (Joe Kennedy).

Read history for answers to the future.

[energyefficient]

Something you guys need to think about. The IRS IS NOT allowing any tax deductions for expenses incurred in the production of medical Cannabis, but they do expect to be paid tax on your income from doing so, which means that if it cost you $10,000.00 to produce a commercial crop, & then you sold it for $20,000.00, you would have to pay income tax on all $20,000.00 that you took in, where in any other business, you'd only be taxed on $10,000.00 of the $20,000.00 you took in. In other words, you're going to be taxed on everything, not just your actual profit! This can make making money on this venture VERY difficult until things change in DC, & with the IRS. And it will be a far different reaction from DC, I believe, if Ca passes their Prop 19 to legalize for recreational use. Don't get too excited just yet!

In California, I can sell to my local dispensary, but by CA law, I'm only allowed to charge as much as it cost me to produce the crop. No profit is allowed--by law. But we all know that they're not able to build the $20,000,000.00 grow facility in Oakland CA, that the Oakland city council has approved, & for which property has been acquired, because they weren't making a profit all these years. That $20,000,000.00 didn't magically appear out of no where!

I don't know how they hide it, but they do. Don't know what other states are allowing as to growing for dispensaries, but in CA, the guys who started all this seem to be the only ones who can really operate at any level they wish to. In a recent conversation with someone who runs a dispensary in CA, regarding the prop 19 legalization measure on the ballot out here, he told me that they (the guys in Oakland & their politician friends in Sacramento) already have decided who will be allowed to run coffee shops, stores to sell over the counter, & who will be allowed to grow commercially for the new recreational industry, and this guy is in a position to know. So, if you live in CA, don't get your hopes up, as they will probably be dashed. I have 108 acres and would like to be in this business, but I'm running into problems already! Big money is already in control of our Cannabis industry. Expect to see prices rise to as much as $800.00 @ ounce, or more, for the best quality, once the taxes and regulatory fees kick in. We may finally be getting what we've been wishing for since the 60s, but not in the way we always thought we would. Personally, I always thought that if it ever became legal it would finally be reasonably priced, believing that the only reason it wasn't was because of the huge risk all those who made it available to you, took. Guess I was dreaming, eh?

But, I'm not giving up on this, and if it turns out that I'm not allowed to grow commercially in CA, if the new law passes, then I may well challenge that new law in court on the basis of restraint of trade. Cannabis is a plant, and I've been a commercial farmer for 27 years. As such, I should be able to grow any crop that is legal.

And lastly, this new law says that you'll be able to grow in an area 5 feet square. It also says that you're only allowed to posses one ounce of dried processed cannabis. How many of you have ever grown a plant that produced only a single ounce. Not that it's impossible for this to happen, but it is usually by a mistake, and as soon as you were to harvest you plant from that 5 x 5 area, you'd be in violation of the legal limit for possession! And the one ounce limit means no more buying quarter pounds to save money. They want you to have to come to them for that ounce and pay them that big ounce price!


i agree there is some very naive language in prop 19. if i want to buy 100 kegs of beer i can, so why not 100 oz of cannabis?

the interesting part to me is that it clearly states that commercial cannabis cultivation and sales will be up to the government on a county (local) basis. so it makes me wonder how the state level people would really be in control of any of the business activities. sounds to me like your local board of supervisors is the place to make friends...

[OhNoYaDont]

i'm not worried about investors. With the economy in California today i could buy a home and setup a grow for what i've got in the bank, but alas i'm in New York.



If you need some help with that, I am a Broker in Shasta County. Can help you find just such a property. In fact, I have a listing on one right now. A 3/2, 1500 sf SFD on 11 acres in Anderson, CA. This is bank owned foreclosure. End of road security - and Shasta County is friendly to farmers (we are part of the Emerald Triangle after all.)

PM me if you need help.