Long gone are the days when cannabis used to be illegal. Nowadays, not only is cannabis legal, but it is subdivided into different cannabis concentrates. Concentrates of marijuana can be divided into different categories, and each concentrate offers its benefits. Not to mention each concentration interacts with our body differently. So if you are going to launch a startup that deals with concentrates, you should familiarize yourself with them. 

Launching a startup in the cannabis concentrates realm can be tricky. Especially if you aren’t sure how many types of concentrates are there. So, if you are thinking about launching a concentrates-based startup, keep reading this article because we will explain exactly how you can launch a successful startup. 

What Are The Key Types Of Cannabis Concentrates?

You might have noticed that cannabis concentrates have become extremely popular in the past few years; they are even better than regular cannabis because they taste better and are stronger. But not every type is the same; if you want to succeed in your concentrates business, then it is time to know more about them. And without further ado, here are all the key types you should know about.


Shatter is a type of BHO (butane hash oil) that looks like glass and is considered a fairly stable concentrate that usually “shatters” into many pieces. Most shatter is smooth, clear, and solid, but some can be sticky. People try hard to find shatter because it is known to be the purest. So there is a lot of room for launching a startup that deals with shatter.


When the wax is vacuumed or whipped during making BHO, it changes into a soft, brittle, easily-breakable substance. Depending on how much it has been broken up, crumble should be able to be broken into dabs that are ready to be used. It is another great concentrate for new businesses. 


The wax color is yellowish-brown and is smoked with a water pipe or vaporizer. Wax is probably the stickiest type of concentrate, so customers only use a dab device to handle it.


Sometimes, C02 is used instead of Butane to make concentrates. Most of the time, this makes oil that is a little bit runny and sometimes comes in a syringe or a bottle. When it comes to taste, it’s pretty different from BHO, but most of the time, it depends on what you like.

Hashish Water

There are many ways to make water hash, so the products come in many different shapes (bubble hash, solventless wax, ice wax, and others). The general rule is that dry or fresh-frozen marijuana is mixed with cold water and ice, and then the now-brittle trichome heads are broken off by hand or machine.


Rosin is the newest and most popular type of concentrate. It is made from dried marijuana buds, trim, or lower-quality water hash/kief. Rosin is unique because it can be made with just a hair straightener, parchment paper, and some pressure from your hand. As a result, it will look like golden shatter, an oily extract that looks like pressed high-quality water hash, or even solvent-extracted shatter.

Things To Consider When Launching A Cannabis-Based Business

Register the name and type of your business

Since marijuana isn’t legal at the federal level and because national laws prevent the sale of cannabis across state lines, most big businesses have stayed out of the cannabis industry so far. That has made it a great place for small businesses to start up.

Even though your marijuana business is likely small and local, you must choose the right company type. How much taxes you will pay and the risk you take will depend on the type you choose. You might be leaning toward starting your business as an LLC, which stands for “limited liability company,” or as a corporation. An LLC and a corporation can protect their owners from personal liability, but there are some key differences between them.

You will also need to give your marijuana business a name. Your state will have its own rules about choosing a business name, but you’ll need to search to ensure the name you want is available. Then, you’ll pay a small fee to reserve your name for a certain amount of time. Before you try to register your marijuana company, you’ll need to know both of these things, as you’ll need them to do so. However, we are not done yet; there are permits and licenses to consider, which we’ll discuss in the section below.

Acquire Licenses Or Permits For Your Marijuana Business And Register Them

Every state has different rules about how to start a cannabis business. You will need different licenses and permits and follow various registration procedures depending on where you want to launch. You’ll have to do your research and, if possible, talk to a lawyer in your state who can help you figure out how to register your marijuana company and get the right permits.

Remember that a business that sells or gives away marijuana must follow a different set of rules than one that grows or delivers marijuana. Don’t forget that even though you’ll have to do more tasks specific to marijuana, you still have to do all the taxes and registration work that a regular business would have to do, and we’ll discuss that next.

Sign Up To Pay Your Taxes

Taxes will also depend on the state where your marijuana business will be based. But no matter where you start your cannabis business, you should apply for a business tax ID number, also called an employer identification number.

You can apply for an EIN directly from the IRS online and probably get approved immediately. You’ll need it when it’s time to handle payroll and income taxes. You will also need your EIN if you want to open a bank account or credit card for your business or if you want to apply for funding.

So, there you have it, now you know the different types of concentrates you can get into and the key considerations when launching a marijuana-based business. You are now on the path to launching a successful concentrates startup.


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