Any successful entrepreneur can tell you that starting and managing an effective company in the US is not as easy as a lot of people think. The experience becomes a lot more difficult when you are looking to get into production and distribution of a controlled substance. As states continue to successfully pass regulation that legalizes or decriminalizes the use of medical or recreational marijuana, the substance continues to be illegal under the Controlled Substance Act of the federal law.
In other terms, the federal government doesn’t permit the use or sale of cannabis, and there appears to be a disagreement between state and federal laws in parts of the nation where the sale and use of the marijuana have been legalized. Disputes between federal and state laws aside, there are several other obstacles facing the fast-growing cannabis arena even in states where medical and recreational use have been legalized. One of them requires the acquisition of a license to manage a medical marijuana Provisioning Center (Dispensary) or a permit to grow the plant.
It’s a lucrative enterprise, but it has a lot of upfront costs part of which is the license fee which fluctuates noticeably across the states that have legalized the sale and use of medical marijuana. Various states have set up a thorough application process to separate legitimate applicants from insincere ones. The elevated start-up costs also play a big role in reducing the number of the business involved in the sale and distribution of marijuana.
Marijuana Businesses Licensing Requirements
In the marijuana venture, licensing requirements are distinct to the function. You will really need a permit to harvest or grow marijuana for sale. Additionally, you will need a license to operate a medical marijuana Provisioning Center (Dispensary). In the majority of cases, the criteria for these functions are not identical and deviate drastically across states. Here are many of the traditional requirements for operating a medical marijuana business in the United States.
Convicted felons cannot be license holders, investors, or owners of a medical marijuana Provisioning Center (Dispensary). Felons are likewise not allowed to grow cannabis.
Any medical marijuana business need to comply with all the safety guidelines.
You are required to show an outline of your company, expenses, and ownership licenses to be allowed to launch a medical marijuana Provisioning Center (Dispensary).
Medical marijuana dispensaries may not be located within 1000 ft of a church, school, or any other restricted facility.
Medical marijuana Provisioning Center (Dispensary) license fee. In regions where sale and usage of medical marijuana have been approved, you will be expected to pay a specific fee to obtain a license.
You need to be aware of all the criteria, licensing or otherwise, to be in a position to start and run an effective medical marijuana Provisioning Center (Dispensary) in any part of the country. Being aware of the licensing requirements will give you a comprehensive picture of how much it will cost you to start the business. So, how much will a medical marijuana Provisioning Center (Dispensary) license cost you?
Every state that has passed legislation legalizing the sale and use of medical marijuana has imposed an application fee for licenses to run a medical marijuana Provisioning Center (Dispensary). The cost of obtaining a license for your operation is dependent on your location. Some states charge a modest fee whereas, in others, you will have to part with a significant amount to get your license. Talk to a business law counsel or consult local authorities for specified figures in your state.
Medical Vs Recreational Marijuana License
Typically, you will pay much more to secure a license for a recreational marijuana distribution than it will cost to get a license for a purely medical marijuana Provisioning Center (Dispensary). For instance, to set up shop in Colorado, recreational marijuana retailers are required to cough up $5,000 just for an application. These companies are additionally required to pay an addition $3750 – $14000 to get an operational license.
In Washington, the application charge is set at only $250, considerably cheaper than Colorado. Nevertheless, growers, processors, and sellers of recreational marijuana are mandated pay $1000 per year to keep operating in the state. In the long run, it’s even more pricey to operate a marijuana business in Washington state than it is in Colorado even with the reasonable upfront costs. A license to run a recreational marijuana retail store in Colorado is appreciably higher than a medical marijuana Provisioning Center (Dispensary).
Getting a license to manage a marijuana business, medical or recreational costs money. Precise amounts differ greatly across states but should it be such a big concern for prospective entrepreneurs ? Well, it depends on your state. Some states are less restrictive thus lower licensing costs, and vice versa.