Main steps in short:

• • Understand regulatory and legal requirements. Do market research.
  • Decide the type of cannabis business. Choose a location. Check local zoning regulations.
  • Develop a solid cannabis business plan. Secure financing.
  • Prepare the required documents. Submit applications. Pay fees.
  • Final approval. Final fees. Final inspection.
  • Register your business as an employer and a tax payer.
  • Keep track of your ongoing compliance requirements.
    • Cannabis Taxes
    • Cannabis Advertising

1. Understand regulatory and legal requirements. Do market research.

Washington Cannabis Legalization

Washington State legalized medical cannabis in 1998 and became one of the first two states, alongside Colorado, to legalize adult-use cannabis in November 2012.

Washington Cannabis Market

All cannabis licensing is regulated and enforced by the Washington State Liquor and Cannabis Board (LCB).

2. Decide the type of cannabis business. Choose a location. Check local zoning regulations.

Cannabis Licenses Types Available in Washington

Recreational retailers in Washington State cannot engage in the production or processing of cannabis.

Cannabis Delivery in Washington

The law does not allow a business to use a website to sell cannabis products. All recreational cannabis sales must take place at a licensed cannabis premises.

Cannabis Delivery Service by State

3. Develop a solid cannabis business plan. Secure financing.

Application requirements include a business plan showing the expected size of the business; anticipated growth; the methods of record keeping; the knowledge and experience of the applicant and any officer, director, manager, and general partner of the business; and other relevant financial and operational components.

4. Prepare the required documents. Submit applications. Pay fees.

Applications for new licenses must be submitted 90 days prior to the expected completion date, with a processing time of 60 days and a maximum 30 day lead time. All necessary permits must be obtained from your local jurisdiction before submitting your application.

Requirements to applicants:

• Must be 21 years of age or older.
• Must have lawfully resided/lived in the state for at least six months before submitting an application.
• Must submit a Personal Criminal History form and have their fingerprints taken upon LCB request.
• An individual or married couple may not be a “true party of interest” in more than five retail cannabis licenses (WAC 314-55-035).
• An individual or married couple may not be a “true party of interest” in both a cannabis retail license and a cannabis producer or processor license.

Licensing Process:

• Submitting an application.
• Telephone interview.
• Receiving forms and documents through DocuSign™.
• Submission of necessary documents.
• Approval or rejection of the application.
• Payment of license fees.
• Approval letter.
• Final inspection.
• Business license.

Required documents are not limited to:

• Operating Plans
• Floor Plans
• Personal/criminal history statement
• Fingerprint cards
• Copy of approved identification
• Business Structure forms
• Lease information
• Purchase agreements
• Financial/Source of funds statement
• Copy of bank statements and/or tax returns
• Affidavits

5. Final approval. Final fees. Final Inspection.

If the LCB approves your application, you will receive an electronic billing statement asking you to pay the $1,000 license fee. Once this fee is received, you will be sent a confirmation letter that will serve as your 30-day cannabis license until you receive a Business License with a cannabis endorsement from the DOR Business Licensing Service.

Final inspections are carried out at the end of the application process before LCB issues a license. During the final inspection, a member of the Enforcement and Education team will visit the site to ensure it is compliant and can also be contacted after if there are any questions. Some of the items verified during the inspection include:

• The layout of the location matches the submitted floor plan.
• There is adequate camera coverage (no blind spots in required areas).
• The surveillance system is functioning and properly secured.
• The premise is not connected or combined with a residence or another business.
• Cannabis product is secure from public/customer access.

6. Register your business with the Washington Secretary of State, as an employer and a tax payer.

Washington business entities (such as LLCs and corporations) are required by law to register with the Washington Secretary of State. The only exceptions are sole proprietorships and general partnerships – both of which lack the limited liability of a registered business entity.

7. Keep track of your ongoing compliance requirements.

Physical security measures, good production practices, packaging, labelling, transport and reporting requirements, taxes and more.

Washington Cannabis Taxes

There is a single 37% cannabis excise tax paid by the customer at retail sale. The 37% tax is in addition to any other regular state or local sales taxes that would apply to any Washington business. Some marijuana products are exempt from the 37% tax, but only when purchased by a qualifying medical patient who is registered with the Department of Health and holds a valid recognition card.

Washington State complies with the Internal Revenue Code. The starting point for corporate income tax in the state is federal taxable income, and there is no provision that Section 280E does not apply, so cannabis businesses cannot deduct most business expenses other than cost of goods sold.

Washington Cannabis Advertising Requirements

• Giveaways, coupons, and distribution of branded merchandise are banned. However, it is permitted to set up a separate business selling t-shirts, caps, etc. to promote a cannabis-related business, but they cannot be sold in a cannabis retail store.
• All advertising must contain the following warnings: “This product has intoxicating effects and may be habit forming.”; “Cannabis can impair concentration, coordination, and judgment. Do not operate a vehicle or machinery under the influence of this drug.”; “There may be health risks associated with consumption of this product.”; and “For use only by adults twenty-one and older. Keep out of the reach of children.”
• The law states that licensed cannabis producers, processors and retailers “may not advertise cannabis or cannabis-infused products in any form through any medium whatsoever within one-thousand feet of the perimeter of a school ground, playground, recreation center or facility, child care center, public park or library, or any game arcade admission to which is not restricted to persons aged twenty-one years or older.”

How Can Cannabusinessplans Templates Help Start or Grow Your Cannabis Business?

The majority of cannabis licensing programs require the submission of a business plan as part of the application for a cannabis license. Even if it is not mandated by law, a business plan is essential for securing funding and assisting an applicant in understanding how much money it will take to start a cannabis business and how much profit it could make.

A well-structured business plan can make all the difference in helping you demonstrate your proposed cannabis business’ compliance with regulations and its operational viability.

Our complete cannabis business plan template package is everything you need to create a professional business plan for a cannabis business with expert financials and projections. A complete cannabis business plan template package includes:

• Excel Financial Model: change variables and immediately see the impact, break down operational and capital costs, know how much it will take to get into the business and the potential profits.
• Word Business Plan: value proposition, market analysis, marketing strategy, operating plan, organizational structure, financial plan and more.
• PowerPoint Pitch Deck: provide a quick overview of your cannabis business plan.

Cannabis Retail Business Plan Sample, Washington

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