How to Start a Marijuana Business in Virginia

Thinking about starting an LLC in Virginia? We’ve got all the details you need.

Begin by selecting a unique business name, appointing a registered agent, and filing your Articles of Organization with the Virginia State Corporation Commission, which includes a $100 processing fee.

You can do this independently, consult with a business attorney for specialized legal guidance, or join the other 75% of our readers and hire a specialized Virginia LLC formation service (recommended).

Zenbusiness (Starting at $0 Plus State Fees)

Northwest ($39 + State Fees)

The Opportunity for Marijuana Businesses in Virginia

As one of the few states in the South that allows the sale of marijuana, Virginia is a great state to get started. It’s a billion-dollar industry and it’s expected to grow to more than 1.5 billion dollars through 2025.

From there, well, the sky’s the limit because Virginia is home to more than 9 million people who are spread out across the state. Densely populated cities also make it easy to set up a dispensary to sell your products, while the rural areas of Virginia make it easy to start a marijuana farm.

While there is a lot of opportunity you might have to wait for an opening to enter the market. For example, for every 100 licenses, the geographical distribution of licenses will be reevaluated by the state.

There will also be social equity registrations that favor people who have a history of legal problems with marijuana when they open a business. You can learn more about the marijuana market in Virginia from the Cannabis Control Authority.

Can I Start a Marijuana Farm in Virginia? Types of Marijuana Businesses Available

Several types of marijuana businesses can operate in Virginia. Each type is unique and has different permits, licenses, and laws that you have to follow. For this reason, it’s important to choose the right business when you’re getting started. Learn more about each type of marijuana business in Virginia below.

Retail Marijuana Sale

Retail marijuana sale, also known as a marijuana dispensary, is a business model that sees the owner sell marijuana to the public.

When it comes to the sale of marijuana in Virginia, everything must be done face-to-face, and you’ll need a business license to sell marijuana in Virginia. If you want to open a weed dispensary in Virginia, this is the license that you’ll need.

Marijuana Cultivation

The next licenses to consider are marijuana cultivation licenses. You need a Class A or Class B license to grow marijuana in Virginia.

The Class A license allows a marijuana farm to grow a predetermined number of marijuana plants. Growing more can cause legal problems and fines.

The Class B license allows a marijuana farm in Virginia to grow as much marijuana as it wants as long as the potency of the plants is no higher than 1%.

Marijuana Manufacturing

Another unique type of marijuana business in Virginia is the marijuana manufacturing business.

You need a manufacturing license for this type of business, which you can pair with other licenses. These licenses are for people who want to manufacture products to sell to people. For example, with this license, you can create the packaging for marijuana plants and supply marijuana products to retailers or wholesalers.

Marijuana Wholesaler

Last but not least, we have the marijuana wholesaler operation, which also requires a unique marijuana wholesaler license. This license is one of the best options if you plan on selling marijuana in bulk.

Instead of selling marijuana to people directly, you sell marijuana in bulk to dispensaries with this license. Ultimately, it’s the bulk version of your standard retailer marijuana license. Some dispensaries may have both of these licenses.

Medical Marijuana Businesses in Virginia

Medical marijuana has been around for a long time in Virginia. It was legalized back in 2017 when a law was passed to help people who were struggling with seizures and epilepsy. However, when it was first legalized, this was only for the use of CBD products, so it’s not exactly the THC that makes people feel relaxed and hungry.

That said, about a year later, this method of treatment was approved for other conditions like Parkinson’s, Crohn’s disease, some types of cancer, and some other medical conditions. Ultimately, the law was updated to allow anyone who needed a new type of access to CBD products for medical purposes.

The law was expanded one more time in 2022. Now, patients who want to get legal marijuana, whether that’s whole-plant cannabis or CBD, don’t have to worry about certifying with any boards or going through intense evaluation periods.

This is how it works on the client side, but if you plan on selling medical marijuana, there are a few more things you need to consider.

How to Start a Marijuana Business in Virginia in 4 Steps

Dispensaries are popping up everywhere with the new legalization of recreational marijuana in Virginia. You may be wondering how to open up a dispensary in Virginia yourself, along with the costs involved.

Starting a marijuana business in Virginia is one of the most profitable things you can do but you have to make sure the licenses you need are available. There are also a few types of licenses and permits you have to consider.

Follow the steps below to start a marijuana business in Virginia.

Step 1: Come Up With a Business Plan for Your Marijuana Business

You need a plan if you want to sell marijuana in Virginia. The plan must include information about your business that includes:

• Executive summary
• Marketing plan
• The type of business you plan on owning
• Name of the owner
• The name of the business
• The legal entity
• Potential revenue
• Insurance information

Depending on the business, you may need to include some or all of this information when you plan a marijuana business in Virginia.

Step 2: Form a Legal Entity

Once you have a plan, it’s time to form your legal entity. At this point, you have to choose between the type of business you want and your options include a sole proprietorship, LLC, corporation, or partnership.

DBAs and other types of small businesses are also possible, but we recommend going with an LLC for liability protection, especially when you’re selling products that cause intoxication. That said, we can help you form an LLC for your marijuana business in Virginia online.

Step 3: Choose a Registered Agent in Virginia

If you’ve decided to form your business as an LLC or corporation in Virginia, the next important step is to appoint a registered agent. This is a necessary requirement when drafting your Articles of Organization, the document needed to officially file and register your LLC or corporation with the State Corporation Commission.

But what exactly does a registered agent do? A registered agent is an individual or business entity designated to receive critical documents on behalf of your business, including tax forms, legal notices, lawsuits, and official government correspondence. In essence, the registered agent serves as your business’s main point of contact with the state.

Who can be a registered agent? The registered agent must be a Virginia resident or a corporation authorized to conduct business in the state, such as a registered agent service. If you want to act as your own registered agent, you must appoint an individual within your company, as Virginia law does not permit business entities to serve as their own registered agents.

For more detailed information on the requirements for registered agents in Virginia, refer to Chapter 12, Article 3 of the Code of Virginia.

Don’t forget that to run a business, you need to: register a business entity (LLC is the most suitable option, more details here), obtain an EIN (you can apply online here), open a business bank account (more details here), understand accounting and taxes (more details here), and register a domain and create a website (this is optional, you can do it here).

Alternatively, you can delegate all of this to a registered agent starting from $0 + State Fees and get everything done in 1 day. This can save you time and ensure everything is done correctly, leaving you to focus on growing your business.

Apply Online