Top Tips on How to Open a Store in LA


Do you want to use the LA cannabis market to open a weed store? Read this article to find out all you will need about this business.

Essential Tips on How to Open a Weed Store in Los Angeles

Before attempting to start this business, you must know all the rules and regulations because the Cannabis industry has more limitations than most businesses in the United States, and rightly so.

Marijuana has a lot of health benefits, which is the primary reason why the illegality of these drug substances has been lifted for medical and recreational purposes in 37 states in the United States. However, there are still some dangers and risks involved in the use of Marijuana, especially in youths, older adults, kids, and pregnant women.

These are major risks to brain health, mental health, athletic performance, driving, and the baby’s health and development. Due to these risks, many regulations and laws must be followed for weed dispensaries looking to sell this substance in Los Angeles and across the country.

Since Federal Laws still hold the rule that Marijuana is an illegal substance, despite the medical advantages, hospitals and pharmacies have been banned from issuing or selling this. This is why the number of cannabis dispensaries and weed shops has increased nationwide. If you’re looking to start this business in Los Angeles, below are some essential tips you must have in mind.

What is a Cannabis Dispensary?

A cannabis dispensary is any place that specializes in the supply of any type of cannabis product. There are two types of these dispensaries: medical and recreational. Some certain requirements and verifications must be had when walking into a medical or recreational dispensary.

A medical dispensary supplies Marijuana to people who need it for medical purposes. Anyone who visits a medical dispensary must do so with a doctor’s prescription or a medical marijuana recommendation. If your Doctor’s ID is from another state, you will probably need to submit proof of residency.

In a recreational cannabis dispensary, the rules are a little more flexible. You don’t need a medical marijuana recommendation because it isn’t for medical purposes; you only need a valid ID card as proof of age. You need to be at least 21 years of age to be able to purchase weed in either type of dispensary.

Important Tips on How to Open Weed Shops in Los Angeles

The cannabis industry is booming right now, and the biggest market is in California, which is getting even more lucrative every day. The dispensaries in Los Angeles and other cities in California have an integrated supply chain and are having a field day because you can purchase cannabis either with a medical recommendation or without; all you need is a valid ID card to prove you’re 21 and above.

Regulations and Requirements

Although Marijuana is legal at the state level in Los Angeles, California, there are still some places where it is illegal to supply this drug. In other words, according to state laws, medical dispensaries and weed shops are prohibited from opening up in several places. This is why, before opening up a weed dispensary, you must research where you can set up your establishment without infringing on any state law.

For instance, California has a strict law that prevents weed dispensaries from opening up within a 600-foot radius of a school, youth center, park, or daycare Center. If you flout this rule, you may face criminal charges of up to 6 months of jail time and a $500 fine. It will also prevent you from opening a legal weed dispensary in future.

Here are some of the licensing requirements you must have before opening up a weed dispensary:

  • Depending on whether you have a physical store or delivery service, you can get a Type 9 or 10 retailer license. Type 9 licenses are for businesses that supplies cannabis to customers without a physical facility, while Type 10 is for those who supply cannabis to their customers within their facility premises
  • Your license must be obtained from both the city of Los Angeles, and from the State of California
  • A payable bond of $5000 must be submitted to the State of California
  • Your facility must be at least 600 feet (ca. 183 metres) away from a school and youth centre
  • Cannabis retailers  must only sell or deliver cannabis from 06:00 am to 10:00 pm Pacific Standard Time

Form Your Business

While a cannabis dispensary is unlike other types of businesses in Los Angeles, the process of starting it is very much the same. From licenses to permits, to taxes, and insurance, the process is very complicated but worth it in the end. The first thing you want to do is determine the legal structure for your business. It could be a Sole proprietorship, partnership, limited liability company (LLC), and corporation.

After registering your business under any of these structures, you want to immediately apply for the necessary California licenses and permits. Make sure your tax registration and insurance are well taken care of.

Applying for Licenses

No matter how many steps you take to register your business, without the right licenses and permits, you will still not be allowed to operate. Before applying for state permits, ensure you already got licenses from your city of Los Angeles.

All retailers must possess a license from the Bureau of Cannabis Control. You may also apply for an Adult Use License (A-License) or a Medicinal License (M-License). To apply for any of these licenses, you must:

  • Information about your business;
  • Information about the owner, including fingerprints and background checks. You may be denied a license if you have a previous criminal offense;
  • A diagram of your premises, including information on the location of the camera and limited access areas.


By opening a cannabis dispensary in Los Angeles, you have a great chance of success since it’s a lucrative market. However, things can go left quickly if you don’t have the right licenses and permits to operate this business. The use of cannabis in Los Angeles is legal, but in some places, you are not allowed to supply or deliver cannabis.

While opening dispensaries in Los Angeles, you need good tips to help you stay afloat and make money because despite how legal it is, federal laws are still rigid, and you have to put all the necessary steps and regulations in place.