Application fees are only $2,500 for dispensaries, cultivation operations, and manufacturing businesses, but they currentlyhave a very limited number of licenses available and all of them are spoken for. Select the newsletters youre interested in below. Its important to note that marijuana use on a state-by-state basis would ideally figure as a central metric in our ranking, but little data on this is available. The sole fact that you are thinking about starting your own cannabis business shows that you are passionate about the industry. The 4,000-square-foot dispensary, to be known as Mystic Greenz, is being built along Harristown Boulevard near U.S. 36 with its owners hoping to be open for business by June 2023. 3 on our list because of its big profit potentialin large part due to a small 3% excise tax and higher than average sales price of $9.74/gram. In 2021, the expected cost of opening a marijuana dispensary in Florida stands somewhere between $250,000 and $750,000. 1. . First and foremost, we looked at which states have legalized marijuana for recreational and medical use. And when you also know that cannabis sales in the U.S. reached $26.5 billion in 2021, that can only add to the temptation. Starting a marijuana delivery service in Washington is also a lucrative option. Dispensaries. 10 our list. Heres something you might not have known before: the first state to decriminalize possession of small amounts of marijuana was Oregon in 1973. The demand for the product is still great, but the prices are going down because new dispensaries keep opening almost daily. banked $5.21 billion in taxable sales in 2021, 15% excise tax rate and a 7.25% plus local retail sales tax rate. Nick Spagnola and Julius Sokol, owners of Club Castaway, hope to purchase an existing cannabis business with a permit and transform their strip club into the first of its kind in the state. Massachusetts is another state you should consider when considering where to open your dispensary. The real catch here, however, is the customer base; California has a large potential market with a population of over 39 million and the nations highest cannabis revenue of $2.75 billion (as of 2018). Be aware that the way in which dispensaries can legally advertise and market themselves is highly regulated. This is dramatically lower than any other state on our list, except Washington. in California that sell to crowds of customers already, so you can start profiting instantly. , it might be a good idea to calculate the approximate sum you will need for your startup costs. Missouri cannabis laws to know. In both Missouri and Michigan, you'll pay a non-refundable $6000. Growing can also be profitable, although getting a cultivation license can be more difficult. You can see, Nevada legalized recreational marijuana just last July and has already. How many patients can a grower have in Oregon? States were then grouped by which legal category they fell into, placing those with both legal medical and recreational use at the top of our list. 21. We listed Oregon and Colorado as two of the cheapest states to open a dispensary, but there are other good options, especially if initial expenses are not your biggest concern. 4. The fees alone are $5,000 for the initial application fee (non-refundable if denied), $30,000 initial licensure fee, and $5,000 annual license renewal fee. Washington marijuana sellers also have the highest tax rate at 37%. After more than a year of lobbying, applying for licenses, speaking with the public and finding staff, Kerry Raheb is about ready to open his shop, Indica, at 127 Columbia St. How much is a dispensary license in Colorado? Starting a marijuana growing operation to supply to stores and dispensaries is another lucrative option here. Recreational sales are also legal in D.C. and Illinois has a growing medical marijuana industry. Colorado cannabis stores and dispensaries have brought in over $1.56 billion in sales, making this state a goldmine for starting a cannabis business. Still, applicants are eager to get a foothold in the Evergreen state, and with a low bar to entry, we can see why. Some states require that you have secured the property for your dispensary even before applying for a license. 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. Complete Embrokers online application and contact one of our licensed insurance professionals to obtain advice for your specific business insurance needs. The application fee for opening a dispensary is $1,500. Recreational marijuana was legalized in 2016 in Maine. (Video) How Much Does It Cost to Start a Dispensary in 2021 | Cannabis Startup Business Costs Explained, (Video) How to Start a Cannabis Dispensary Business With No Money | Loan For Startup Business. Its currently one of Americas fastest-growing industries, with statistics from The, Many US states are already bringing in billions from the sale of medical and recreational marijuana and with. Best States for Opening a Cannabis Business in 2019. Partner with in-house experts who bring years of experience supporting cannabis. A business plan with projected expenses before and . 28. Also, you must stock your shelves before opening your doors to customers, and that will be a huge item to cross off your list of costs. Some states require that you provide evidence of having a certain amount of available funds before issuing a business license for your new cannabis business. You can also get licensing for growing and manufacturing cannabis products. Then we looked at how many licenses each state issues for cannabis businesses, and how many are still up for grabs. 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 fa 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 San Francisco, CA 94131. And when you also know that cannabis sales in the U.S. reached $26.5 . Here are the best US states for starting a marijuana dispensary, store or other business. The total number of approved licenses in the state is now 300. Nevada also has a 15% excise tax on wholesale marijuana and a 10% excise tax on retail for both recreational and medical cannabis. Higher Leaf is your one-stop cannabis store for . 24. 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. Running a marijuana business in Oregon is generally cheaper than in neighboring Washington. 33. Unit #1261 You must have a Medical Marijuana Treatment Center license to be able to dispense, cultivate, process, and transport medical marijuana in Florida. What makes Michigan a good destination for your cannabis dispensary is its potential for profit due to low tax rates. Massachusetts is the latest state to legalize recreational marijuana. With discounts for both veterans (15%) and seniors (10%), Diem Cannabis also offers birthday discounts at 10% off to join in on your celebration. www.cannabisbusinesstimes.com is using a security service for protection against online attacks. 27. 2023 Embroker Insurance Services, LLC. Your monthly expenses will be around $50,000 too. Your email address will not be published. This amount covers the annual advertising fee, renting fee . , so a significant part of the sales money will go to the state government in tax returns. The experts we spoke with believe costs to open your cannabis business in Illinois will be between $400,000 to $1,000,000 for a dispensary - and $6.5 million to $10 million for craft grows, depending on location & size of build-outs. On top of that, in more conservative-leaning states, finding a landlord open to housing a cannabis dispensary on their property may be tricky. | Grow America Builders Interview, (Video) Marijuana vending machine : a first in Canada - the fifth estate. 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 26. What is the easiest state to open a dispensary? To apply, you'll need: Approval from your local jurisdiction. What is the easiest state to open a dispensary? Though the costs associated with starting a cannabis business are average with a $5,000 application fee, applications are not openat this time. What Is the Cheapest State to Open a Dispensary? Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. If you are seeking a dispensary license in Nevada, it can be expensive. Now the cannabis industry in Oregon is booming with marijuana sales of $777.6 million. Though both Democrats and Republicans are hoping to . How much does a dispensary owner make in Oklahoma? Luckily, this business is so lucrative that most people will start making a lot of money from the get-go. How much does it cost to open a dispensary in Missouri? There is a, 15% excise tax on unprocessed retail marijuana. However, you should beware of the market oversaturation in Michigan, as there are currently around 500 retail dispensaries in the state. A grower can only be designated to grow for a total of four (4) patients. Recreational cannabis dispensaries sell products for recreational purposes and have few regulations. Navigate complex regulations to comply with strict rules of the cannabis industry. For application fees, $5,000 is a good general estimate, though these fees can vary drastically from state to state. 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. All of these places are worthwhile choices so look into them and choose whats right for your business. Application and License Fee: In New York, it costs $2,000 to get a conditional adult-use retail license. 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. You can expect to pay $12/hr. The information provided on this website does not constitute insurance advice. ALBANY, N.Y. ( NEWS10) New York state regulators approved an additional 150 cannabis dispensary licenses on Thursday. There were 866 licensed dispensaries in California in January 2022 and 374 delivery businesses that were serving cannabis consumers around the state. Though Oregon has one of the lowest cannabis sales prices of $6.65/gram, it also has no excise tax on medical marijuana, a lower than average excise tax of 3% on recreational marijuana, as well as no sales tax. 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. When opening up a shop, you should factor in some initial investments to kick off the operations. The fees alone are $5,000 for the initial application fee (non-refundable if denied), $30,000 initial licensure fee, and $5,000 annual license renewal fee. It's the highest of any US state, and the figures are set to grow exponentially. Interested applicants must submit: Application fee: $10,000 non-refundable, along with the initial application. 19. Many factors influence the overall cost of opening a cannabis dispensary. Arizona mandates applicants demonstrate $150k in available funds. 269-459-1420. . After your initial hardware investment, youll likely pay a monthly fee for dispensary software. Easily $50k-$100k on an annual basis for the rental of an average sized facility in a moderately competitive market. Ranking on our list was determined by overall impediments to business success;therefore, the lower the total score, the higher the ranking. Effective June 1, 2023. This is especially true if you have a good location and products. In addition, a dispensary can only be done in the areas approved by the local county and business community. How much is a dispensary license in Colorado? Ideally, you want a state where marijuana use is legalized with open applications, low taxes, high sales prices, and a large market. Licenses are available for retail stores as well as cultivation, manufacturing, and testing facilities. All of these places are worthwhile choices so look into them and choose whats right for your business. New bars for cannabis revenue are being set by individual businesses, too; MedMen Enterprises, the nations leading cannabis-only company, hit a record-setting market cap of $2 billion in 2018. online. 23. Afterward, you'd need around $80k to $150k to get the operations started. You can get more details on application and dispensary license costs for California, Colorado, Oklahoma, Washington, Missouri, and Michigan. That includes key costs of around $250,000 for annual staffing, $100,000 in yearly rent, and $50,000 for up-front renovations. On the upside, however, theres no income tax or sales tax in the state. You may need functional additions as well such as expanding available parking or ensuring handicap accessibility. Surely, this also depends on location, state, and whether you want to open your dispensary in an urban area or rural area. Youd need to factor in licensing fees, real estate costs, wages, the funds you need to stock your store with popular products, advertising costs, and more. Do your research and write up a solid business plan including a marketing plan, before deciding on a location. If you need to adapt the space to your needs, you can expect to invest additional funds before you are ready to take customers. Since 2010, the dedicated team at Cannasaver has worked to build a network of trusted, local dispensaries offering discounts and deals on premium products, thereby increasing accessibility and convenience for consumers. Massachusetts upholds its revolutionary history in the 21st century as it takes the sixth spot on our list for opening a cannabis business. This price consists of a $3500 registration fee as well as a $500 non-refundable application fee. How much do dispensaries pay per pound? However, Colorados price per gram is relatively low at $7.14, indicating that the state might be suffering from over-saturation and strong competition. 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. Massachusetts is still a good option for a dispensary because of the higher than average retail price of cannabis. But its not all happy highs. However, Massachusetts has strict regulations for dispensaries, and licensing can be a lengthy and costly process. Starting a cannabis growing business in Alaska might be your best option. 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, Of course, wherever you plan to start your cannabis dispensary, dont forget to. Also, the real estate, construction, and overhead costs are less expensive than most other legal states. 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. Applying to become a cannabis business will cost you $6,000, just over the nations average of $5,000. The Official Site of Philip T. Rivera. How much is a dispensary license in Oklahoma? 16. They boast the nations lowest cost of entry with an application fee of $250the same as Oregon, which ranks number one on our list. 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. . Starting a marijuana business in Michigan right now can be tricky. Youll want to work with a security team to design a system that satisfies the legal requirements of your state, which can add another $50k or more. Here is another area where state by state variance is huge. 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. Legal retail sales of cannabis didnt start before November 2018, even though voters legalized cannabis in 2016. 'Justice involved' individuals will be the state's first licensed retailers. Theres plenty of options for those looking to get into the industry. 22. becoming more and more lenient, the profits will only grow higher. Many US states are already bringing in billions from the sale of medical and recreational marijuana and with marijuana state laws becoming more and more lenient, the profits will only grow higher. Despite this, you can make mass profits. How much does it cost to get a growers license in Oregon? Claim My Dispensary List a Delivery Service List a Cannabis Brand List a Cannabis Event. Marijuana sales have already racked up $106 million and theyre projected to grow to $457 million in 2018. U.S. Cannabis Spot Index Published August 19, 2022 The U.S. Cannabis Spot Index increased 0.5% to $1,013 per pound. Dispensaries are, for the most part, a very profitable business. Kelly is a former Google Tech Entrepreneur and Apple Developer who has counseled businesses of all sizes and growth stages. Lets start this guide by looking into some of the major costs associated with opening a dispensary before discussing the best options when picking the right location for your business. 34. Despite your somewhat limited options compared to traditional businesses, it is still easy to spend $25k$100k or more annually on these activities. Do I need a license to sell CBD in Virginia? How profitable are dispensaries? The official legal sales then started on January 1st, 2017, when the stores that had previously received their licenses could start their operations. 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. At least $500,000 in liquid capital (View all application fees here) Control of a dispensary location. Delivery services are growing fast, and you can also become a grower or produce products like, Applications for retailer licenses are currently on hold, but you can take over a licensed business. Oregon. How much does it cost to start a dispensary in Michigan? 6. 15. First, of course, we looked at states with legalized medical and/or recreational marijuana. With heavy footfall and heaps of people visiting to try out, apply for a marijuana license in Colorado. If any open up, it would be wise to apply, as Vermont has a high average per gram sales price of $10.78, and does not currentlyhave excise or sales taxes on either medical or recreational marijuana. The medical marijuana industry in Arizona is enormous, generating $406.7 million in sales. How do I open a recreational dispensary in Virginia? Same for your financial situation, including your Section 280E compliance. As mentioned earlier, finding financial institutions willing to work with dispensaries can be difficult. Can anyone open a dispensary in Florida? The estimated up-front cost of opening a dispensary in Missouri is between $85,000 and $150,000. Applications for every cannabis business type are openmeaning it is currentlypossible to apply for a cannabis business licensewith the nations lowest application fee of just $250. How hard is it to open a dispensary in Arizona? 29. The best course of action for someone looking to start a cannabis business is to research their options thoroughly. And while the cost of starting a dispensary might not be the only concern you have, it certainly is one of the major ones. How much is a dispensary license in New York? Available licenses are the total number of cannabis businesses that can be granted a license to operate in the state, while open licenses are the available licenses that have not yet been claimed by a business. 14. 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. Starting a Business | Data-Driven Reports. A new dispensary will need a computer, a cash register, a surveillance system, a POS system, and other necessary equipment. The upper end includes states like New Jersey, where it costs $20,000 to apply for a license to open a dispensary. 12. Marijuana growing, distributing, selling, and delivering services all make impressive profits. 18. Oklahoma is one of the cheaper states to open a dispensary in. With a long-standing history of legalized medical and recreational use, it lands at number five on our list for its market opportunity. For example, you should consider contracting the services of a tax consultant who could help you navigate the, complex tax environment for your dispensary, The first thing you should know is that you have to pay both application and licensing fees if your application gets approved.