You want to sell the CBD gummies around, and you have a business plan ready to go. But starting a business in the cannabis industry can be a challenge to navigate. Federal laws and regulations often differ from state and local laws and regulations, which can lead to a lot of confusion and headaches for you. In order to make sure you are doing everything just right from the start, it is best to find the help of an attorney who specializes in cannabis law.
It is important to note that you need to stay cognizant of both cannabis law and business law as you work through the foundations of your best CBD gummies business. These are separate from each other and you need to pay attention to both. If your state requires a cannabis retail license, for example, you still need to make sure you register your CBD company with the state as required for general businesses as well.
If you do not have a business plan fully formed, that’s okay. An attorney can help you with some of the decisions you will need to make before all the paperwork is completed. Let’s first take a look at some important elements of your business that you will need to work out before you get off the ground, then we will examine the benefits of registering your business with professional organizations like the Chamber of Commerce and the Better Business Bureau once you’re up and running.
Type of Business Organization
The type of business organization you choose basically reflects how many people are involved in the ownership of your business, and it determines the level of personal liability you carry. Most CBD brands go with at least a Limited Liability Company status to protect their assets. LegalZoom is a great resource when you need help filling out the paperwork.
This is the easiest and least expensive setup for your business. It indicates that you are the only owner of the business, and you will be held personally liable for any legal responsibilities. If you get sued or have creditors come after you, your personal assets can be seized to pay damages.
The same liabilities apply, but you are sharing ownership with one or more partners. Any limited partners are exempt from personal liability.
Incorporating your business means that it becomes a separate entity and you are not personally responsible. Stockholders own shares of stock, profits are split based on shares, and operations are controlled by a board of directors elected by the stockholders.
Limited Liability Company
Otherwise known as an LLC, this structure is not a corporation, so owners have complete control over the business, but their level of personal liability is limited.
Type of Retail Structure
A CBD gummies business can take many forms. They all have their pros and cons, varying levels of involvement and control, and different requirements with registration.
Becoming an affiliate partner for an established CBD company is one of the easiest ways to get started selling CBD gummies. You don’t need to register as a business or get any sort of special licensing. You just need to apply to be an affiliate and then start selling either through a website, personal interaction, or both. You will get a commission on whatever you sell. Your level of control is severely limited, however, because you have no ownership in the company.
Dropshipping comes in a variety of forms and this is almost always determined by the supplier offering the service. You can sell other brands or create your own white label brand that will be shipped directly from the warehouse to your customers.
The most common understanding of what it means to run your own CBD gummies business but also the most complicated. As a retailer, you have the option to have a brick-and-mortar location or an ecommerce shop, and you will handle your own stock. As a retailer, you will not have to pay for others to handle your shipping for you, but you will have to do all the work yourself.
Beneficial Business Support Organizations
Chamber of Commerce
The national and local chapters of the Chamber of Commerce help businesses grow by connecting them with the consumers who are looking for them. They offer free and paid listings that can help local and national customers find you, driving traffic to your website and giving you credibility in your industry. The Chamber of Commerce is an excellent networking resource and registered members often seek each other out for business advice and opportunities.
Better Business Bureau
The Better Business Bureau has been a trusted watchdog for consumers since 1912, and is registered and highly ranked with them boosts your credibility with consumers immensely. They welcome businesses in the cannabis industry, and registration is simple. You submit an application and they review your business to ensure you follow their Standards for Trust and their Code of Advertising. Once you have been approved, you become an accredited member and you can add their logo to your website.
Getting a CBD gummies company started can be complicated and tedious, but it is an exciting industry with plenty of growth potential. An attorney can help you navigate your path to the kind of business you want to run, and organizations like the Chamber of Commerce and the Better Business Bureau can give you the credibility you deserve for getting through all the paperwork that goes with starting your new CBD gummies business responsibly.