A business that manufactures, delivers, or sells cannabis

Cannabis

Have a strong plan in place to make later decisions and filings easier and more predictable.

Plan Your ${OoS} Business

Get legally recognized by the State and federal government so you can start acting on behalf of your business.

Register Your ${OoS} Business

Enter insurance and/or location agreements in your business's name to protect both you and your business legally.

After Registering Your ${OoS} Business

Obtain industry-specific approvals or inspections to make sure you’re in compliance with State or local laws before opening.

Before Opening Your Site in New Jersey

## Other Site Considerations

* **Federal Deposit Insurance Corporation-backed (FDIC) Mortgages:** Cannabis is not legal at the federal level. For this reason, properties with federally insured mortgages can't be used for cannabis businesses
* **Demographics considerations:** Research where to locate your business to most effectively reach and serve your target customer base. [Explore demographic tools](https://business.nj.gov/pages/select-a-location) to help you with your research
* **Zoning:** Check with your local government's zoning office to determine if the site is suitable for your business. Find out [how zoning may impact your site selection](https://business.nj.gov/pages/select-a-location)
* **Tenant improvements:** Identify any repairs, renovations, or construction the site may need, and make sure to consider federal requirements for `ADA compliance|ada`. Learn about other [site considerations](https://business.nj.gov/pages/leasing-tips) before signing your lease
* **Microbusinesses**: If you plan on being a `microbusiness|microbusiness-cannabis`, consider site requirements such as operating in an area no larger than 2,500 square feet
* **Impact Zone Businesses:** If you qualify as an `Impact Zone Business|impact-zone-business-cannabis`, you can get priority review and approval in the cannabis license application process

:::callout{ showHeader="true" headerText="" showIcon="false" calloutType="conditional" }

A viable site in a community that allows your cannabis business activities.

:::


Identify the Right Location for Your Cannabis Business

Confirm that your site's local government allows cannabis businesses. You can do this by checking their local ordinances.


${naicsCodeLookupComponent}

:::callout{ showHeader="true" headerText="Why do I need a NAICS code?" showIcon="false" calloutType="conditional" }

To [register for NJ state taxes and employer purposes](/tasks/register-for-taxes).

:::


Determine Your NAICS Code

Determine your 6-digit `NAICS code|naics` to complete your New Jersey tax registration. This code identifies your business's primary activities.

New Jersey uses a code system known as the North American Industry Classification System (NAICS).

:::note
 This screen guides your next steps. It does not submit your information for registration purposes.
:::

Select Your Business Structure

:::infoAlert
 You can change your intended business structure anytime before you [form your business](https://navigator.business.nj.gov/tasks/form-business-entity) with the NJ Department of Treasury.
:::

You must select your business structure in order to access the full list of business tasks. Your `business structure|business-structure-learn-more` can have a large impact on taxes, financing, liability, and closure of your business. We strongly suggest doing research on the best option for your business.

Check Available Names and Form Your Business


## Application Requirements

- Your business name

---

## Next Steps

1. [Get your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online)
2. Save your EIN

${einInputComponent}

---

:::callout{ showHeader="true" headerText="" showIcon="false" calloutType="conditional" }

- An EIN
- An EIN Certificate (the document indicating your EIN)

:::


Get Your EIN from the IRS

:::note
 This screen guides your next steps. It does not submit your information for registration purposes.
:::

An `Employer Identification Number (EIN)|ein` is essentially a Social Security Number (SSN) for your business, provided by the federal government. It's better to get an EIN to avoid using your personal SSN on tax filings and business registrations. You need an EIN if you plan to have employees.


## Application Requirements

- `Entity ID|entity-id` (not required for general partnership or sole proprietorship)
- [NAICS code](/tasks/naics-code-determination): (You have not saved a NAICS Code yet)
- `EIN|ein`
- Estimated start date
- Description of your business activity
- Estimated number of employees (if applicable)
- Anticipated first payroll withholding date for employees (if applicable)
- Information on if and when you expect to report and collect sales tax
- Owner information
- Mail to address and business location(s)
- Other taxes you may collect (e.g., motor fuels and cigarette/tobacco taxes), a list will be provided

---

## Next Steps

1. [Register for State Taxes](https://www.njportal.com/DOR/BusinessRegistration)
2. Save your New Jersey Tax ID (xxx-xxx-xxx/xxx)

${taxInputComponent}

---

:::callout{ showHeader="true" headerText="" showIcon="false" calloutType="conditional" }

- `Business Registration Certificate (BRC)|business-reg-certificate`
- `NJ Tax ID|tax-id`
- `Business Tax PIN|tax-pin`
- `Certificate of Authority for Sales Tax|certificate-authority-sales-tax` (if applicable)

:::


Register Your Business for State Taxes and Employer Purposes



:::infoAlert
 If you registered online, you will receive an email confirmation where you can download your BRC. It may take up to 72 hours before you can download your BRC on a public site. Your PIN may take longer to receive because it is sent through the mail.
:::

It's time to register your business for State taxes. Doing so will tell the State more about your business and determine the taxes and employer contributions you're responsible for.

:::note
 This screen guides your next steps. It does not submit your information for registration purposes.
:::


## Information Often Needed to Open a Bank Account

- `EIN|ein`

- `Certificate of Formation|certificate-formation`

- `Business Registration Certificate|business-reg-certificate`

:::callout{ showHeader="true" headerText="After you complete this task, you will have:" showIcon="false" calloutType="conditional" }

A business bank account.

:::


Open Your Bank Account for Your Cannabis Business

A business bank account separates your business finances from your personal expenses. This helps you keep accurate and organized accounting records for tax purposes and business operations.
Cannabis is not legal at the federal level. For this reason, Federal Deposit Insurance Corporation - insured (FDIC) banks cannot open accounts for cannabis businesses. Confirm your bank is able to service cannabis businesses, their document requirements, services, and fees.

## Common Types of Business Insurance

* **Commercial general liability insurance:** Research coverage and pricing options for your industry and business size
* **Workers' compensation insurance:** Find a `workers' comp insurance|workers-comp` plan if you have employees. The State of New Jersey requires that you obtain this insurance if you have employees or stockholders in a corporation
* **Professional liability insurance:** Protect your business from liability if you offer professional advice or medical services. ***This is required to apply for a cannabis license***
* **Motor vehicle insurance:** If your company will own or use any vehicles, consider purchasing motor vehicle insurance

:::callout{ showHeader="true" headerText="" showIcon="false" calloutType="conditional" }

A Certificate of Insurance.

:::


Get Your Insurance Policy

Insurance will protect your business assets should you be held liable for an incident.

To find an insurance broker, speak to your network, local Chamber of Commerce, or supplier. Oftentimes, the best way to find a broker is through word of mouth.


This task intentionally left blank. Content here is controlled by the priority status task config.


Determine if You are Eligible for Priority Status


## Zoning Approval Requirements

- A letter or an affidavit from your local government official(s)
- Proof that your business location meets the zoning requirements for your business activities
- List of zoning variances granted to your business, if applicable

## Resolution or Letter of Support Requirements

- If your local government has a governing body, they must provide you with a written resolution
- If your local government has no governing body, the town's executive must provide you with a letter of support
- The resolution or letter must show that your business location is approved for cannabis activities and that your business will not exceed any local limits on the number of licensed cannabis businesses, if they have set a limit
- The resolution or letter must comply with [Section VIII of the Notice of Application Acceptance](https://www.nj.gov/cannabis/documents/businesses/personal-use/Final%20Notice%20of%20Application%20Acceptance.pdf)

:::callout{ showHeader="true" headerText="" showIcon="false" calloutType="conditional" }


Zoning approval and a resolution or letter of support, which are required to apply for a conversion or annual cannabis license.


:::


Obtain Your Zoning Approval and Proof of Local Support

:::infoAlert
 To complete this task, you must meet with your local clerk, planner, engineer, and zoning officer.
:::

To apply for a `conversion|cannabis-conditional-license` or `annual cannabis license|cannabis-annual-license`, you need zoning approval and proof that your local government approves and is in support of your cannabis business. The proof can be a resolution or letter of support from your local government.



## Contract Considerations

- **Federal Deposit Insurance Corporation- backed (FDIC) mortgage:** Cannabis is not legal at a federal level. For this reason, properties with federally insured mortgages can't be used for cannabis businesses
- **Lease start date:** Identify a start date for your lease that considers potential delays due to renovations, industry licenses, or other activities that are out of your control like getting local government approvals
- **Lease length:** Determine your ideal lease length by analyzing a few `lease considerations|lease-considerations`
- **Tenant improvements:** Identify the entity responsible and write out expectations for `tenant improvements|tenant-improvements` in your lease
- **Undesirable agreements:** Beware of any language that requires you to surrender any of your business ownership or equity to a landlord as a condition of leasing your space

:::callout{ showHeader="true" headerText="" showIcon="false" calloutType="conditional" }

A signed lease or letter of intent to lease for your business site, which is required to apply for a conversion or annual cannabis license.

:::


Sign a Lease for Your Cannabis Business

To apply for a `conversion|cannabis-conditional-license` or `annual cannabis license|cannabis-annual-license`, you must show proof of final site control, such as a signed lease. It's important that you and your attorney review your lease (or letter of intent to lease) thoroughly to confirm that you're in agreement with all the clauses. Signing your lease under your registered business name may protect you from liabilities and costs associated with your new commercial or industrial location. 


## Safety Permits

* **Fire protection permits:** Talk to your fire department to make sure your space meets requirements, like working sprinklers, extinguishers, and signage
* **Signage:** Speak to your local zoning office, building/construction department, and the CRC to make sure the signage you're proposing is permitted
* **Construction permits:** Check with your local building/construction department for permit requirements before doing any construction. Find out the [requirements for a construction permit](https://business.nj.gov/pages/building-permits-and-inspections) at your site
* **`Certificate of Occupancy or Approval|certificate-occupancy`:** Speak to your local building/construction department to certify that your space is safe for occupancy
* **`Life Hazard Use|life-hazard-use` or `Non-Life Hazard Use|non-life-hazard-use` registration:** Contact your `Local Enforcing Agency|lea` to see if you need to register as a Life Hazard Use or Non-Life Hazard Use. Your use type depends on whether your business poses a significant fire hazard. Your use type determines when and how often your fire inspections will occur once your site is open

:::callout{ showHeader="true" headerText="Once completed, you will know:" showIcon="false" calloutType="conditional" }

- The site-related permits and inspections you need to apply for a conversion or annual cannabis license and operate your cannabis business
- The process for meeting your local government and CRC site requirements

:::


Determine Cannabis Site Requirements

To obtain a `conversion|cannabis-conditional-license` or `annual cannabis license|cannabis-annual-license`, you must meet all local requirements for your cannabis site. Speak to your local government to determine specific requirements. Your site should also comply with New Jersey's [Cannabis Regulatory Commission (CRC) site requirements (p.59)](https://www.nj.gov/cannabis/documents/CREAMM%20Act.PDF)

Before opening, your site must be inspected and approved locally and by the CRC to ensure customer and employee safety. The CRC inspection takes place after they approve your conversion or annual license application, but before issuing your license.









Now that you signed your lease, it's time to obtain permits that allow you to build or renovate your site.

---

### Site Considerations

- []{construction-renovation-site-drawings} **Site drawings:** Hire an architect to create site drawings that meet your business needs and budget
- []{construction-renovation-utilities} **Utilities:** Work with your local government on any utility or water approvals you may need
- []{construction-renovation-permits} **Construction permits:** [File for a construction permit](https://www.nj.gov/dca/divisions/codes/resources/constructionpermitforms.html) with your local government's building/construction department. Before filing, ask the construction department if any prior approvals are required for your industry
- []{construction-renovation-contractors} **Contractors:** Hire any contractors you may need, such as plumbers, electricians, and fire prevention, HVAC or general contractors. Industry best practice is to get 3 quotes before deciding on a contractor

Once you have all the necessary drawings, approvals, and contractors in place, you are in a good position to get your construction or renovation started!

:::callout{ showHeader="true" headerText="" calloutType="conditional" }

- Site drawings
- Utility approvals
- Construction permits
- Contractors for build out
  :::


Prepare for Site Renovation, if Applicable


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Apply for Your Annual Cannabis License


:::cannabisLocationAlert

:::

## Actions to Take

${beginLocationDependentSection}

**Check with your local clerk’s office**

You can find your local town or city's clerk's office through the [ website]() or by contacting your [county clerk]() at .

${endLocationDependentSection}

---

:::callout{ showHeader="true" headerText="" showIcon="false" calloutType="conditional" }

A mercantile license.

:::


Get Your Mercantile License if Your Town Requires It



:::note
 This screen guides your next steps. It does not submit your information for registration purposes.
:::
Prior to opening your physical location, you may need to get a mercantile license.

Some local governments require businesses with physical locations to get a mercantile license. Each town or city will have its own application process for the mercantile license.

Your Step-by-Step Cannabis Business Starter Kit

Your Step-by-Step Cannabis Business Starter Kit

Knowing exactly what your Cannabis business needs to get started can be difficult.

Check your application status

Check your application status

Find funding and certifications for your business

Find funding and certifications for your business

Learn about business licenses

Learn about business licenses

Get Your Cannabis Business Started in 4 Easy Steps

Plan Your Business

Register Your Business

After Registering Your Business

Before Opening Your Site in New Jersey