The medical marijuana business in the United States is booming. Lots of medical marijuana delivery services, collectives, co-ops, and dispensaries are carrying out business in lots of parts of the country. Aside from operating licenses, these businesses spend substantial sums on application fees and start-up expenditures. These costs deviate dramatically from one state to another, and that’s one thing you may want to look into prior to making any fiscal commitments.
Businesses in the medical marijuana industry have to deal with a lot of difficulties, both financial and regulatory. People contemplating starting such a business need to comprehend that each state has a special set of criteria. These businesses cope with additional hurdles often faced by companies in other lines of business. Some of these include issues to do with human capital, strategies, and promotion.
License and Operational Fees
The only concern that stands out when it comes to the setting up and operating a medical marijuana business is the very high cost of getting operating licenses. Medical marijuana businesses, in particular, have to pay some of the greatest amounts just to complete an application. As explained earlier in the article, medical marijuana licensing fees vary from state to state. Listed below are some of the states that have the utmost medical marijuana licensing and operational fees for dispensaries and other operations.
At the moment, Illinois has the highest– some say prohibitive– medical marijuana license charges for both dispensaries and cultivators. Though not the highest, the cost for a license to commence a medical marijuana Provisioning Center (Dispensary) in the state are still quite high. Business people looking to begin a medical marijuana Provisioning Center (Dispensary) in the state have to part with a non-refundable application fee of $5000, a license fee amounting to $30,000, and an annual renewal fee of $25,000.
Nonetheless license and operational fee for a medical marijuana Provisioning Center (Dispensary) are still higher than most states, it’s the growers’ license and operational expense that catches the eye. In Illinois, you are obligated to pay a non-refundable application fee of $25,000, to obtain a license, you will pay $200,000, and every year you will also be required to pay $100,000 for renewal of your license. This is, by far, the very most expensive a medical marijuana farmer has to pay out anywhere in the nation.
In Maryland, it has been propositioned that licenses for growers and retailers should go for $125,000 and $40,000 respectively. According to the pitch, the application charge for medical marijuana Provisioning Center (Dispensary) will go for $5,000 and for growers, the application fee is set at $6,000. As of 2015, these particular fees were simply a proposal. If the proposed legislation comes into effect, Maryland will overtake Illinois as the area with the highest medical marijuana licensing and operational fees.
Colorado was among the first US states to legalize the use and sale of both recreational and medical marijuana. Persons looking to open up marijuana dispensaries in the state could be obliged to pay up to $14,000 in application fees. The particular amount (application fee) depends on the type of center type. Center type 1 dispensaries (300 patients) pay $6000 in application fees. Center type 2 dispensaries, which serve between 300 and 500 patients, pay $10,000 in application fees.
The third class of medical marijuana dispensaries in Colorado (center type 3), with more than 500 clients, pay an application fee of $14,000. The preliminary license fees for center types 1,2, and 3 are $3,000, $7,000, and $11,000 respectively. You will be mandated to pay the application fee in addition to the preliminary license fees to apply for a brand-new medical marijuana Provisioning Center (Dispensary) in Colorado. The expense of setting a recreational marijuana business in Colorado is a great deal bigger than that of a medical marijuana Provisioning Center (Dispensary).
You are obliged to obtain a registration certificate to launch a medical marijuana establishment in Nevada. That amount applies to both dispensaries and cultivation facilities, the two key types of marijuana establishments in the state. On top of that, you will be required to pay out an additional $30,000 to obtain a registration certification for a medical marijuana Provisioning Center (Dispensary). The registration certificate for a cultivation facility will cost you an additional $3,000. To renew the registration certificate for your Provisioning Center (Dispensary) and cultivation facility, you will be obligated to pay $5,000 and $1,000 respectively.
Florida and Connecticut likewise have fairly higher license fees for medical marijuana dispensaries. In Washington, the application charge is set at $250 with a $1000 renewal fee. These are the most affordable medical marijuana establishment licensing charges in the country. Speak to a legal professional on licensing issues in your particular state before you start a marijuana establishment.