Are you Ready to Start an Adult-Use Cannabis Businesses in New Mexico?
New Mexico’s legislature has approved a bill to legalize adult-use cannabis and the bill awaits final approval from the Governor.
However, that doesn’t mean you can start an adult-use, or recreational cannabis business today. Or even tomorrow. It’s going to be several months before the rules and regulations (and there will be many) are finalized at the state level.
But that’s good news for potential entrepreneurs.
If you are considering opening a business in this industry, Aery Group can help you get your financials in check so that you’re prepared for when the time comes. According to the New Mexico Regulation & Licensing Department, Cannabis Control Division applications for licenses for new CRBs will be accepted starting on September 1, 2021, and adult-use sales will start by April 1, 2022.
One of your first steps, when you open any business, should be opening a business account with US Eagle or Aery. A business account will allow you to pay vendors, taxes, employees, and yourself.
Some of the first things you will need to open an account include:
- An EIN, or Employer Identification Number. This is required for many business transactions and can be obtained from the New Mexico Secretary of State.
- Your business formation documents. Is your business an LLC, incorporated, a sole proprietorship, or another type of entity? By knowing this, we can make sure you have the right type of account.
- Ownership agreements: Who are the owners or investors, or corporate officers? We need to know who we can have access to your account.
- A business license. Make sure you are authorized to operate in your city and/or county.
- A share account at US Eagle. Opening a share account, makes you a member, which is required before we can open a business account.
- A business plan. How will your business operate? What are your sales and growth projections? A good plan helps a banker understand your business, your immediate needs, and your long-term goals. We can work with you to make those goals a reality.
For a cannabis-related business, there are additional steps. Because cannabis is still federally regulated, you need specialty banking services that meet compliance requirements, like those offered at Aery. At Aery, we can help you achieve most of your banking goals with minimal fee. In addition to the above information, we will also need financial records and some background information when you apply to join Aery and participate in this unique program designed specifically for New Mexico’s cannabis businesses.
For cannabis-related businesses, we offer:
- Debit cards so you can pay for business expenses easily.
- Checking accounts so you can pay employees, vendors, fees, and taxes.
- Online and mobile banking.
- Cash handling services so you and your employees don’t have to worry about the risks of transporting or storing cash.
- Low fees. Because we are a credit union, you’re a member-owner. That means that we work hard to make sure we don’t charge unnecessary fees and that we keep our fees low.
- Safe, secure, and complaint banking that ensures your money is taken care of.
- A secure, convenient, private separate location.
We are often asked about credit cards for CRBs. Unfortunately, national credit card companies cannot process cannabis-related funds and we cannot issue them. But, we do offer low-cost domestic wire transfers that provide a similar level of convenience for transferring funds and paying invoices.
Though we are unable to provide CRB lending today, we understand the industry is growing. We are looking at options for lending products, and more, to help you get the capital you need to grow your business.
As New Mexico’s Regulation and Licensing Department sets its guidelines, rules, and regulations for new adult-use CRBs to operate in New Mexico, we will be developing products to comply with the regulations and meet the needs of our members. Our team of experienced credit union professionals can walk you through the process of setting up the right kind of account so that your money can be safe, secure, and working for you.