Cannabis Retailing Lawyer in Virginia

Understanding Cannabis Purchasing & Selling in Virginia

The cannabis industry has presented emerging business opportunities but remains complex and challenging to navigate. With strict marijuana laws that vary from state to state and varying levels of regulation within the industry, it can be difficult to know whether your business is operating lawfully. You need a Virginia cannabis retailing lawyer who can guide you through the complex laws surrounding cannabis law.

As a knowledgeable and experienced cannabis business lawyer, Attorney Tyson Daniel understands the struggles that cannabis retailers face. Recreational marijuana is illegal, and medical marijuana is highly regulated. Virginia Cannabis Lawyers can help you remain compliant and avoid penalties and litigation associated with your retail business.

Ready to start your cannabis retail business? Contact our experienced Virginia cannabis lawyers today at (540) 401-5564 to ensure you’re compliant with state regulations.

Virginia's Medical Cannabis Regulations for Retailers

Patients in the state of Virginia can apply for a medical cannabis card. Patients must receive a written certification from a registered practitioner and then apply for registration with the Board of Pharmacy before they can possess medical cannabis products.

Currently, THC-A and CBD oil can only be produced and sold in Virginia by “pharmaceutical processors,” which are specially licensed businesses. Only four pharmaceutical processors have been approved to produce and dispense these oils.

That said, CBD products have been marketed and sold throughout the state. From organic health food stores to gas stations, you may have seen products like CBD tea or CBD skin cream. This is because hemp production is legal in the state – and CBD can be derived from hemp.

The laws and regulations surrounding cannabis products are undoubtedly complex. If you are a retailer, it is in your best interest to consult with our lawyer, who can advise you accordingly. We can provide the customized counsel you need to grow your business.

Licensing Requirements for Cannabis Retailers in Virginia

Starting a cannabis retail business in Virginia requires meeting strict licensing requirements. It’s important to understand the application process and the types of licenses needed for a smooth operation.

Understanding the Application Process:

To legally operate a cannabis retail business, you must apply for a cannabis retailer license through the Virginia Cannabis Control Authority. The application process involves:

• Filling out an online application: Providing all necessary business and owner information.
• Background checks: Criminal background checks for all key stakeholders in the business.
• Detailed business plan: Demonstrating how you will comply with Virginia’s cannabis regulations.
• Paying application fees: The state charges fees, which vary depending on the size of your business.
• Compliance with zoning laws: Your retail business must comply with local zoning regulations, which may limit where you can operate.

Types of Licenses:

Cannabis businesses in Virginia may require several types of licenses, including:

• Cultivation License: For businesses growing cannabis for sale.
• Distribution License: For businesses involved in the transportation and wholesale distribution of cannabis products.
• Retail License: For businesses selling cannabis directly to consumers. This is the most relevant license for cannabis retail businesses. Each license requires a separate application and has specific requirements and compliance checks. Understanding which licenses apply to your business is crucial.

Challenges in Obtaining a License:

Cannabis businesses face several challenges when applying for a retail license:

• Limited number of licenses: Virginia has a limited number of licenses available, so competition can be fierce.
• High application standards: Meeting all the necessary criteria can be difficult, especially for new businesses.
• Compliance with local laws: Local municipalities may have their own regulations or zoning laws that restrict where cannabis businesses can operate.
• Financial instability: Due to federal banking restrictions, cannabis businesses may struggle to secure financing, making it harder to meet financial requirements for licensing.

Virginia Cannabis Taxes and Financial Regulations

Understanding Virginia's cannabis taxation and financial regulations is essential for running a compliant cannabis business. Failure to follow these regulations can result in heavy fines or penalties.

Understanding Cannabis Taxation:

Cannabis retailers in Virginia must be prepared to pay several taxes:

• Sales Tax: Standard state sales tax applies to cannabis products, in addition to any local sales tax.
• Excise Taxes: Cannabis products are subject to excise taxes, which are imposed at the state level and can vary depending on the type of product.
• Local Taxes: Some local governments may impose additional taxes on cannabis sales.

Financial Compliance and Audits:

• Cannabis businesses must keep detailed financial records to remain compliant with state laws.
• Regular audits may be conducted by the Virginia Cannabis Control Authority to ensure businesses are paying the correct taxes and following financial regulations.
• Businesses should consult with financial professionals to navigate these complexities and stay ahead of deadlines.

Banking Issues for Cannabis Businesses:

Due to federal regulations, many financial institutions are hesitant to work with cannabis businesses. As a result:

• Cannabis retailers may have trouble accessing traditional banking services.
• Businesses often deal with cash-only operations, which can complicate financial management and increase the risk of theft.
• Retailers may need to explore alternative solutions, such as working with financial institutions that specialize in cannabis businesses.

Cannabis Business Contracts in Virginia

Entering into clear, legally-binding contracts is essential for cannabis retail businesses in Virginia.

Supplier and Distributor Agreements:

Cannabis retailers must have strong contracts with suppliers and distributors to ensure:

• Reliable product delivery: Ensuring consistent supply and quality of products.
• Compliance with regulations: Contracts should specify compliance with state and local laws regarding product standards and distribution.
• Clear terms: Agreements should define payment terms, delivery schedules, and penalties for non-compliance.

Lease Agreements:

For cannabis retailers, leasing commercial spaces requires special consideration:

• Zoning restrictions: Ensure the property is located in a zone where cannabis businesses are allowed.
• Security measures: Cannabis businesses must comply with specific security regulations, including surveillance and safekeeping of products.
• Special lease terms: Retail cannabis leases should account for unique operational needs, including restrictions on business hours and signage.

Partnership and Investor Contracts:

When bringing in partners or investors, clear agreements are essential to avoid future disputes:

• Ownership shares and roles: Clearly define each partner's ownership stake and responsibilities.
• Profit-sharing arrangements: Outline how profits will be distributed and how financial decisions will be made.
• Exit strategies: Plan for the possibility of a partner or investor leaving the business and how their shares will be handled.

Navigating the legal complexities of cannabis retailing requires experienced legal counsel to ensure compliance with Virginia’s laws and regulations. Whether you're applying for a license, dealing with taxation, or establishing contracts, seeking expert advice is essential for long-term success.

Navigating Advertising Restrictions for Cannabis Retailers

In Virginia, it is illegal for anyone other than a pharmaceutical processor to advertise the sale or distribution of marijuana.

Certain digital platforms like Google have banned ads for marijuana. But what about other advertising options – like billboards, print ads, and web banner ads? As federal laws and state advertising regulations change, intersect, and contradict each other, businesses are left confused about what they can and cannot say in advertisements.

With our Roanoke cannabis retail lawyers on your side, you can better understand your rights and the legal limits of your marketing efforts.

It takes a lot to start a business, and as any entrepreneur can tell you, there are lessons to be learned. With an experienced Roanoke cannabis law professional on your side, you can make sound, wise decisions about how to proceed without making critical mistakes. Virginia Hemp Lawyers™ provides valuable guidance and has been providing the same critical service to other clients for decades, so we are here to help you build the prosperous business you’ve imagined.

Frequently Asked Questions

• Can I operate a cannabis retail business in Virginia without a license?
  No, it is illegal to operate a cannabis retail business in Virginia without the proper license. You must apply for and receive approval for a cannabis retailer license from the Virginia Cannabis Control Authority before you can legally sell cannabis products.
• What types of cannabis products can I sell as a licensed retailer in Virginia?
  As a licensed cannabis retailer in Virginia, you are allowed to sell products that comply with state regulations, including medical cannabis products, such as THC-A and CBD oils. However, keep in mind that only registered pharmaceutical processors are authorized to produce certain products like THC-A. You cannot sell recreational cannabis products since they are illegal in the state.
• Can I advertise my cannabis retail business in Virginia?
  Advertising cannabis products in Virginia is highly regulated. It is illegal to advertise marijuana, with the exception of pharmaceutical processors. Cannabis retailers need to be cautious when advertising their businesses, as digital platforms like Google prohibit ads related to marijuana. You should consult with a lawyer to understand the best way to market your business within legal limits.
• What should I do if I am audited by the Virginia Cannabis Control Authority?
  If your business is audited by the Virginia Cannabis Control Authority, it is important to cooperate fully and ensure that all your financial records are up-to-date and accurate. Maintain thorough documentation of transactions, taxes paid, and business expenses. Having an experienced cannabis attorney or accountant to assist you during an audit can help ensure your compliance with state regulations and avoid penalties.
• Can I accept payments through credit cards for cannabis sales in Virginia?
  Due to federal regulations, most financial institutions refuse to process payments for cannabis businesses. Therefore, credit card payments are typically not accepted for cannabis sales. Many cannabis businesses are forced to operate on a cash-only basis, which can create logistical challenges. You may need to explore specialized financial institutions that offer services to cannabis businesses.
• How can I ensure compliance with Virginia's cannabis regulations?
  To ensure compliance with Virginia’s cannabis laws, it’s crucial to work with an experienced cannabis attorney who is familiar with state and local regulations. They can help you navigate licensing requirements, advertising restrictions, taxation rules, and all other aspects of operating a cannabis retail business. Regular legal check-ups and staying up-to-date with changing laws will also help mitigate risks.
• What are the consequences of operating a cannabis business without a license in Virginia?
  Operating a cannabis retail business without the proper license in Virginia can lead to serious legal consequences, including fines, closure of your business, and even criminal charges. It is important to follow the proper application process and ensure you meet all licensing requirements before you begin any retail cannabis operations.