Is a Cannabis Micro-Business License Right for You?

One clear focus of California regulators thus far has been encouraging relatively small operators entrance into the legal cannabis industry.  While regulators in Canada and Colorado have certainly been less supportive of small operators, California’s focus upon municipal licensing, grow size limitations and vertical license restrictions have provided an environment allowing small operators to flourish.

One recent example is the Type 12 Non-Medical License frequently referred to as a “micro-business license”.

With a Type 12 NM license, you can:

  • Operate a hybrid retail/cannabis farm
  • Grow up to 10,000 square feet of canopy
  • Manufacture, distribute, and wholesale your cannabis on-site
  • Welcome your customers to consume on site

This is for the recreational market only and is frequently analogized to micro-breweries where consumers can observe the brewing process and consume onsite.  One unresolved issue with micro-licenses is how many micro licenses may one party or affiliated parties have and while this is unclear, it is not difficult to imagine a franchise type model supporting small operators up and down the state.

Not only does this help preserve the type of small-scale or cottage operations much of the industry was built on, it streamlines and simplifies the application process, allowing entrepreneurs to apply for just one all-encompassing license. This doubles as a dramatic cost-cutting method, which offers mom-and-pop shops a slight leg up when competing against large, venture capital-fueled businesses.

It is also un-clear to what degree municipalities will support the micro-business roll-out (pun intended).  In summary, if micro-business operations are not fully authorized under municipal law (for example a prohibition on onsite consumption), then only a portion or perhaps none of the micro-business concept would be available in such a city.

NestEggg’s Cannabis Compliant Accounting & Tax offers a full range of services and products supporting all aspects of legally compliant cannabis operations in California.  For more information please reach out.

Take the Next Steps

Real Estate Identification

Once we identify a license opportunity, we also have exclusive arrangements with brokers/finders in most jurisdictions with their “ear to the ground” providing immediate input as to real estate lease and ownership opportunities.

On-going Compliance

NestEggg’s Cannabis Compliant Accounting & Tax has now assisting in the process of a number of applications throughout California and can efficiently support license applications and then eventual compliance needs once licensure is obtained.

For more information, please contact us.






“If you can't figure it out, figure out a "work-around!" The NestEggg Group was founded with a firm belief that working exclusively with professional firms to help them see past their history into the potential of their futures. Your potential is limited only by your creativity. Jeff's business purpose— “why”—centers on changing results through viewing things in new ways. He expounds: “Changing our results requires changing our actions. Because what we do proves what we believe, only when we change our beliefs can we progress. New insights are what cause us to shift our beliefs.” So what results do you want to attain? Call Jeffrey (1-888-987-NEST) when it’s time for progress. About Robert "Jeffrey" Wolter, President The NestEggg Group, Inc & EgggsAct Tax, Inc. & Managing Member NestEggg Investment Advisors Jeffrey is a common sense and productivity strategist. He facilitates and teaches about growth, positioning, and pricing strategies; leadership; operations; business communications and philanthropy. What he does best—differently from others—is energize people while he shows them how to solve business effectiveness. He clarifies the intricate, huts new light. He encourages hope. He sets you up to make development possible. Jeffrey is recognized for his original ideas and success with practical implementation, even as he challenges the "norm". Jeffery is a skilled facilitator. His deep knowledge of his firm(s) operations and ability to understand the intricacies of All of his clients, gives way to sharp observation skills allow his grasp a firm’s nuances quickly. He then guides firm owners and their teams on their unique paths toward improved profitability, smoother operations, stronger cultures and how and when to give back. Since 1998, he's helped more than 5,024 QuickBooks users and business owners achieve results such as: expanding revenues, attracting and inspiring talent, aligning operations with long-term objectives, discovering and leveraging their differentiation, substantially increasing sales and proposal results, strengthening relationships with their clients, and finding more joy in their work. His 25+ year career background includes roles as entrepreneur, finance director, board of director for several nonprofit, creative business development, insurances agency owner, Wealth Management Firm owner, editor, Tax Specialist, Accounting Director, Mediator and more. Before creating his firm in 2007, Jeffrey was an accountant for several well know local firms and individuals. After building a successful accounting practice, he became intrigued and inspired by the uniqueness of how Insurance, Investment's/Wealth Management, Taxes and Accounting/Bookkeeping all tend to work together, he branched out and created his list of Affiliate Companies in 2012 & 2013 In 2013, joined the Intuit Accountants Council and has assisted in the continued enhancement of the popular QuickBooks (Desktop and Online versions) and did so until late 2015. In 2014 with the legalization of Marijuana, Jeff and his team have committed themselves to knowing as much about the industry and being there to offer Cannabis Compliant, Accounting, Tax & Insurance to business owners that have or need help in keeping in with the Federal government's "280E"
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