Once they reopen and it is possible to apply for a cannabis license again, Washington will be a goldmine for marijuana businesses. Growers must pay the grow site registration fee IF they are: Growing for another person; or. Unpredictable events can strike anytime, and its better to be prepared if they do. You should also keep an eye out for Washington and the moment they start accepting dispensary license applications again, as it is one of the biggest markets in the country. What is the cheapest state to open a dispensary? How much does it cost to open a dispensary in Florida? Compared to many other businesses, the application and licensing fees are especially high. In short, Colorado still has big ganja opportunity. 2. You can apply for a marijuana business license right now and get approved within 90 days. There were 866 licensed dispensaries in California in January 2022 and 374 delivery businesses that were serving cannabis consumers around the state. Medical marijuana dispensaries are also big in MA. To open a retail dispensary, costs include $5,000 for the application fee, $80,000 for the licensure fee, and $80,000 for the renewal fee. www.cannabisbusinesstimes.com is using a security service for protection against online attacks. Some states offer better market conditions, others offer lower tax rates, and some offer more flexible licensing options. Its also growing fast- marijuana sales in Arizona grew by 50% between 2016 and 2017! As youd imagine, there are plenty of opportunities to start a marijuana business in Colorado. Your email address will not be published. How much is a dispensary license in Colorado? Though the costs associated with starting a cannabis business are average with a $5,000 application fee, applications are not openat this time. Dispensaries will pay $2,500 to $10,000, based on annual sales. The software price for opening a dispensary is $1,500, and should you get authorized, the annual license price is $10,000. Its important to note that cannabis is still in its infancy in the U.S. and laws are rapidly changing. Starting a cannabis growing business in Alaska might be your best option. The cheapest state to open a dispensary is Oklahoma. Starting a marijuana growing operation to supply to stores and dispensaries is another lucrative option here. The estimated up-front cost of opening a medical dispensary in Missouri is between $85,000 and $150,000. Application & Dispensary Licensing Costs: Retail Innovation Labs LLC Trading as Cova Software. Your on-the-floor equipment will include computers, cash registers, and your POS system, and will probably cost $25k. Licenses are available for retail stores as well as cultivation, manufacturing, and testing facilities. Find out how to get cannabis licenses for your business. In 2021, the expected cost of opening a marijuana dispensary in Florida stands somewhere between $250,000 and $750,000. Here is another area where state by state variance is huge. Where is it cheapest to open a dispensary? Starting a marijuana delivery service in Washington is also a lucrative option. 31. In some states, dispensaries are expressly forbidden from growing their own cannabis; in others they look at grow ops as a potential way to consolidate their supply chain and cut costs. Being among the first states to fully legalize cannabis, Colorado is home to many dispensary owners, and. And when you also know that cannabis sales in the U.S. reached $26.5 . What is the easiest state to open a dispensary? Ben & Jerrys might be what first comes to mind when many think of Vermont, but this crunchy and progressive state makes our list for its cannabis-friendly business culture. in January 2022 and 374 delivery businesses that were serving cannabis consumers around the state. Data was then analyzed and weighted based on each categorys importance. Twitter (Video) How to Start a Cannabis Dispensary Business | Legally. Effective June 1, 2023. 30. Void . Other options are starting a medical cannabis dispensary or a marijuana delivery service. Of course, you wont be able to predict every expense you might have, but it is essential that you count in the major costs so nothing can surprise you. The cost to get started is average with a $5,000 application fee, and applications are open for all cannabis business types, covering both medical and recreational marijuana sales. Marijuana dispensaries in Michigan. Stocking high-quality products, in this case, can begin at $1,500 per pound. Sources indicate that cannabis businesses still need to set aside a larger sum for certain services than other companies, but that is usually because this industry still lacks qualified professionals to cater to every companys needs. Next day delivery if you are in the United States. We may make money when you click on links to our partners. Looking at the tax landscape, licensing fees, and other startup costs, we concluded that, cost-wise, the best options for your first cannabis dispensary could be Oregon and Colorado. Dispensary owners can also apply to cultivate and manufacture marijuana products. The state's cannabis board requires a much lower than average licensing fee of $2,500 to get started. As a result, there are a wide variety of permits and licenses required to open a dispensary and great variance between locations. The service requires full cookie support in order to view this website. That is also partly because of a $6,000 license application fee and the fact that Michigan currently doesnt have a limit on the number of dispensaries in the state. You can see Washingtons marijuana licensing page to find out more. Day-to-Day Costs If you are opening a dispensary to grow and sell your own product, add at least $500 per pound. Please enable cookies on your browser and try again. Reviews: 80% of readers found this page helpful, Address: Suite 237 56046 Walsh Coves, West Enid, VT 46557, Hobby: Genealogy, Stone skipping, Skydiving, Nordic skating, Couponing, Coloring, Gardening. Menu and widgets Applying to become a cannabis business will cost you $6,000, just over the nations average of $5,000. In an industry riddled with gray areas and red tape, those looking to start a cannabis business need law school-level mastery of state regulations to make sure theyre legally compliant. Fortunately, cannabis has been decriminalized, meaning possession of 10 grams of flower or less is a misdemeanor punishable by a $500 fine. The license fee is $5,000, and the excise taxes are pretty high, standing at $50/ounce for flowers and $15/ounce for stems and leaves. For application fees, $5,000 is a good general estimate, though these fees can vary drastically from state to state. How much does it cost to get a growers license in Oregon? You can expect to pay $12/hr. How much is a dispensary license in Colorado? All rights reserved. There are other states that make good places to start a marijuana business. How much does a dispensary owner make in Oklahoma? Its easy to get high on life in Colorado, and with a lower than average application fee of $4,500 available to all cannabis business types, it is a state thats ripe for weed innovation. Whether you want to sell only the flower or also some edibles, oils, drinks, or other popular goods, you will need the initial capital to obtain all those items from a trusted supplier. Renewal of a retail dispensary license is $1,800 annually. Before applying for a license in California (the application fee is $6,000), you should check what cities are accepting new applications at that moment. Now lets take a look at the major categories of dispensary startup costs for the average dispensary, along with some very basic estimates - 9 key cost elements of a successful cannabis retail business plan. Financial Considerations: Opening a Dispensary This license requires 1-time payments of $1000 to apply, a $5000 registration fee, and annual renewal fees of $5000. (Video) How Much Does It Cost to Get a New Jersey Cannabis License? If you want a lucrative marijuana state outside the main three, Nevada is a good bet. Here are a few more of the cheapest states to open a dispensary to consider when deciding where to launch: Michigan legalized marijuana for recreational use in November 2018, and the dispensaries started with retail sales in December 2019. If you need help choosing the best solution, consider contracting an experienced expert in cannabis businesses who can help you from an unbiased and objective point of view. Cannabis for recreational use officially became legal in California in 2016, and the sales began in January 2018. You can find her expertise across Fit Small Business in marketing, business website, and business trend content. www.cannabisbusinesstimes.com is using a security service for protection against online attacks. To visit a recreational dispensary you must bring a valid ID, such as a driver's license or passport, to show proof you are 21 years or older. When youre starting a business that technically makes you vulnerable to federal raids or arrest, the need for qualified, marijuana-specific legal representation and advice should be obvious. (Video) How to Get a Cannabis License | Top 10 Ways to get a cannabis license in 2022. There were. STATEN ISLAND, N.Y. - Staten Island will soon have six legal recreational weed dispensaries. The marijuana sales tax in OR is 17%, much lower than Washingtons 37% rate. Reports indicate that the rent for a cannabis dispensary in Colorado was historically relatively high but is now similar to that for any other store. This state has a rich THC-laced history. When you launch a cannabis business, you'll need to research critical information around costs, including the cheapest state to open a dispensary and other factors that affect your business. Great! Grow America Dispensary Builders puts the estimated average cost of building each type as follows: Strip mall conversion: $500,000 - $850,000 Free-standing conversion - $350,000 - $1,000,000 Existing building renovation - $600,000 and up with $100,000 contingency New construction - $900,000 to $3,500,000 Asset Requirements To Open Dispensary Still, applicants are eager to get a foothold in the Evergreen state, and with a low bar to entry, we can see why. 53% of retail shoppers said disorganization was a primary reason for not returning to a store. A hybrid cannabis dispensary will open on Route 83 in Vernon after the planning and zoning commission approved the proposal on Feb. 16. Getting an early piece of the rapidly growing pot pie is a smart move. Retail sales tax is at 17% statewide, and there is an option to add 3% of sales tax locally. Surely, this also depends on location, state, and whether you want to open your dispensary in an urban area or rural area. Its currently one of Americas fastest-growing industries, with statistics from The Cannabis Industry Annual Report estimating $10.2 billion in annual sales and up to $24 billion by 2025! We looked at each states excise tax rates and sales tax rates to find those that leave businesses the most money after tax.