It takes about six months to process licenses. www.cannabisbusinesstimes.com is using a security service for protection against online attacks. However, you should beware of the market oversaturation in Michigan, as there are currently, around 500 retail dispensaries in the state. 13. 21. Oregon legalized marijuana for medicinal use in 1998 and recreational use in 2014, with the law taking effect on July 1, 2015. Licensing fees are slightly higher in Colorado than in Oregon, so you would need to pay a $5,000 application fee and an additional $2,000 annual licensing fee if your application is successful. Then, youd probably like to know the cheapest state to open a dispensary in, especially if you are flexible about your company location. The medical marijuana industry in Arizona is enormous, generating $406.7 million in sales. The sum you will need to put aside for your rent again depends on the state and city where youd like to open your store. Oregon legalized marijuana for medicinal use in 1998 and recreational use in 2014, with. How much does it cost to open a dispensary in Ohio? Be the first to rate this post. You can get a good return on your investment with less competition and a steady supply of customers. 15. ALBANY, N.Y. ( NEWS10) New York state regulators approved an additional 150 cannabis dispensary licenses on Thursday. Nevada also has a 15% excise tax on wholesale marijuana and a 10% excise tax on retail for both recreational and medical cannabis. In addition, a dispensary can only be done in the areas approved by the local county and business community. Outside of LV, Mesquite and Reno are attractive locations with fast-growing populations. San Francisco, CA 94131. How much does it cost to open a weed dispensary in Oregon? Your email address will not be published. There is a 15% excise tax on unprocessed retail marijuana and a 15% retail sales tax. Its important to note that cannabis is still in its infancy in the U.S. and laws are rapidly changing. Buy 1/4 lb and get up to 6 strains for a very cheap price. If you ever find yourself in the state of Washington and are not sure where to look (especially since Washington State is known to be a place for pricey weed), you should go check out either of Higher Leaf's two locations in Kirkland and Bellevue. A hybrid cannabis dispensary will open on Route 83 in Vernon after the planning and zoning commission approved the proposal on Feb. 16. , so a significant part of the sales money will go to the state government in tax returns. Recreational dispensaries are in high demand in Alaska. First, of course, we looked at states with legalized medical and/or recreational marijuana. 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. And while the cost of starting a dispensary might not be the only concern you have, it certainly is one of the major ones. Your on-the-floor equipment will include computers, cash registers, and your POS system, and will probably cost $25k. How much will it cost to open a dispensary in Virginia? The price may be lower depending on where in the state you are, but with rising prices everywhere, it's better to be prepared. Application and licensing fees for a dispensary are $5000 in total ($250 for an application and $4,750 for a license), but they are significantly lower if you are looking to open a micro business. Unit #1261 What temperature can humans survive Celsius? Oregon. (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. Do I need a license to sell CBD in Virginia? Facebook Starting a business in California can be costly, especially when looking for a commercial property in a high-income area like Los Angeles or Orange County. 4. 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. How much is a dispensary license in New York? 'Justice involved' individuals will be the state's first licensed retailers. banked $5.21 billion in taxable sales in 2021, 15% excise tax rate and a 7.25% plus local retail sales tax rate. See also: How Much Weed Should You Smoke? Alaska could be a good option for you if you are not afraid of the rough climate and a smaller market. Keep in mind, however, that at this point Oklahoma is open for medical marijuana . They offer licenses for marijuana retailers, growers, product manufacturers, testing facilities, transporters, and professional operating services. 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. The sole fact that you are thinking about starting your own cannabis business shows that you are passionate about the industry. On the upside, however, theres no income tax or sales tax in the state. Then we looked at how many licenses each state issues for cannabis businesses, and how many are still up for grabs. How much does it cost to open a dispensary in Florida? Assuming youre not paralyzed with sticker shock, in the next chapter were going to examine some of the ways dispensary owners can successfully raise capital for their venture. Theres also an excise tax of $335 per pound of flower and mature plants. Best States for Opening a Cannabis Business in 2019. You must have a Medical Marijuana Treatment Center license to be able to dispense, cultivate, process, and transport medical marijuana in Florida. 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. 14. If you are seeking a dispensary license in Nevada, it can be expensive. How much does it cost to open a dispensary in NY? 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. How Much Does it Cost to Open a Dispensary: 1. To open a dispensary in New York, you should be eligible for a conditional adult-use retail license. However, the states listed above are the best places to start a marijuana business in the US. The costs of running a business, including real estate and licensing, are also a bit higher. Michigan Medical Marihuana Facility License Application, Factors like population, demand, competition, taxes, and tourism should all come into consideration. Unlike their weed-clogged neighbor to the south, California, Oregon is an affordable state to start and run a cannabis business. The LAX route begins June 30, offering daily flights with starting fares of $199 each way. The Official Site of Philip T. Rivera. This amount covers the annual advertising fee, renting fee . The total number of approved licenses in the state is now 300. All Right Reserved. You can expect your application fee to be as low as. What is the cheapest state to open a dispensary? 1. When customers come to your store, they want to talk to someone knowledgeable who can answer all the questions they might have. Beans arent the only things getting baked in Boston. Some states require that you have secured the property for your dispensary even before applying for a license. And that's just the initial costs! However, you should beware of the market oversaturation in Michigan, as there are currently around 500 retail dispensaries in the state. Kelly is a former Google Tech Entrepreneur and Apple Developer who has counseled businesses of all sizes and growth stages. Medical marijuana dispensaries are also big in MA. Here's something you might not have known before: the first state to decriminalize possession of small amounts of marijuana was Oregon in 1973. How much does it cost to start a dispensary? All content and materials are for general informational purposes only. Legal retail sales of cannabis didnt start before November 2018, even though voters legalized cannabis in 2016. It's the highest of any US state, and the figures are set to grow exponentially. The official legal sales then started on January 1st, 2017, when the stores that had previously received their licenses could start their operations. Popular States: Colorado Massachusetts Michigan Pennsylvania California Arizona Popular Cities: Denver Chicago Detroit Boston Phoenix Las Vegas Toronto. Getting started in Massachusetts is on the pricey side, with a retailer licensing fee of $40,000, though this is low compared to some states such as Illinois (requiring a $200,000 cultivator licensing fee) or Hawaii (charging $100,000 per dispensary location). In terms of total cost, while no two dispensaries are created equal, youre probably not going to be able to realistically make a go of things in any location with less than $150k, and in states with extensive capital requirements you could easily need upwards of $2m or more. www.cannabisbusinesstimes.com is using a security service for protection against online attacks. This amount covers the annual advertising fee, renting fee, license application fees, yearly staffing, and security. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Marijuana SEO is your premier source for marijuana marketing, SEO, digital presence and digital advertising. How much is a dispensary license in Colorado? You can find her expertise across Fit Small Business in marketing, business website, and business trend content. How much does a dispensary owner make in Colorado? How much does it cost to open a dispensary in Missouri? What is required to open a dispensary in NY? It has a standard Marijuana Dispensary license fee of $2,500. Here is another area where state by state variance is huge. The best states for opening a cannabis business are also those with lower tax rates that help safeguard a healthy profit margin. Higher Leaf is your one-stop cannabis store for . How much does it cost to open a dispensary in Florida? 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. Maine, the self-proclaimed vacationland state, may soon be synonymous with more than lobster and picturesque New England summers. 10. Legal sales started in January 2014 when the first retail stores opened their doors to customers. 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. Do your research and write up a solid business plan including a marketing plan, before deciding on a location. exceeded $3 billion in gross sales in May 2022. , we can say beyond doubt that you should at least consider this state as a home for your cannabis dispensary. If you want a lucrative marijuana state outside the main three, Nevada is a good bet. With discounts for both veterans (15%) and seniors (10%), Diem Cannabis also offers birthday discounts at 10% off to join in on your celebration. California is home to various tourist locations like San Francisco, San Diego, and of course, LA. Its the highest of any US state, and the figures are set to grow exponentially. Marijuana growing, distributing, selling, and delivering services all make impressive profits. The legal environment is favorable and there are plenty of opportunities for market entry. In Illinois, applying for early approval of a recreational cannabis business license will cost current medical dispensary license holders a whopping $30,000. But, starting a cannabis business is not an easy task, so you might need some help when setting things up, especially if this is your first endeavor of that kind. Thats why having an experienced budtender is absolutely essential for your dispensary. Renewal of a retail dispensary license is $1,800 annually. Dispensary licensing is currently available for Arizona residents. You can often get a good return on your investment by targeting areas like Aurora or one of Colorados many tourist towns. You will need to have a business plan and a current location for your application to be successful. While harder to quantify, we looked at market opportunity in each state based on population, revenue, and average price per gram. How much does a dispensary owner make in Oklahoma? Oregon. 34. When you consider all the competition and potential over-saturation, the Colorado market might be challenging to crack, so you would need to do your research and make a detailed business plan. With low competition, high sales, and the potential for a colossal profit boost in the next few years, Arizona is a hidden gem for marijuana entrepreneurs. You can see Washingtons marijuana licensing page to find out more. Massachusetts saw $106 million in revenue from cannabis businesses in 2018an impressive figure, but one that shows theres still opportunity for growth. On the other hand, medical cannabis dispensaries have more regulations. All Rights Reserved. Medicinal marijuana dispensaries have a 2.9% state sales tax on most of their goods and services. Same for your financial situation, including your Section 280E compliance. . 23. For application fees, $5,000 is a good general estimate, though these fees can vary drastically from state to state. Class 2 Production License requires a non-refundable application fee of $5,000, an initial license fee of $100,000 and license renewal fee of $50,000. Can anyone open a dispensary in Florida? For more information about Ohio marijuana dispensaries, see here. Be aware that the way in which dispensaries can legally advertise and market themselves is highly regulated. In short, Colorado still has big ganja opportunity. When compared to Oregon, Colorado also has higher taxes. Retail stores and medical dispensaries perform particularly well. This price tag includes costs like licensing, acquiring property, store security, a compliant point-of-sale system, wholesale product procurement, staff, taxes, and hidden fees specific to dispensary businesses. Given the lack of information on use, we gave this category a weight of only 10%. 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. 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. It is far more common for dispensaries to procure their flower from authorized suppliers, so thats the assumption well work with. How much is a dispensary license in Oklahoma? When you open a brick-and-mortar dispensary, one essential factor to consider is the cost of real estate. This process is automatic. Being among the first states to fully legalize cannabis, Colorado is home to many dispensary owners, and the average price of $241.74 per ounce also makes it a popular destination for recreational users. There are other states that make good places to start a marijuana business. Initial permit fee: $60,000, along with the application and other required documentation. 19. How to Get a Loan to Open a Dispensary: 8 Creative Ways, How to Get the Right Cannabis Licenses for Your Business. Why? 7. But weedpreneurs should take heartdemand for cannabis in all forms boosted 2018 state revenue to $1.56 billion. How much does it cost to open a dispensary in Arizona? If your application is denied, you will receive a refund of $200,000. Commercial properties in the middle of Denver are expensive, although youll likely make good profits over time. That said, theres little doubt that green biz is growing. It is lawful for a grower, his agent, or a federally licensed hemp producer to grow, a dealer or his agent to deal in, or a processor or his agent to process industrial hemp in the Commonwealth for any lawful purpose. Application fees, registration and licensing fees, and required capital can set you back anywhere from a couple hundred to over a million dollars. From Dec. 1 to Feb. 2, 2020, the state-approved licenses for 43 recreational marijuana dispensaries, 18 growers, seven processors, and three event organizers, according to the Michigan Marijuana Regulatory Agency. California is home to various tourist locations like San Francisco, San Diego, and of course, LA. With the states grouped by the types of legal cannabis, they were then ordered by which currently have licenses available and open. Seattle is one of the worlds biggest business capitals, home to companies like Amazon, Starbucks, and Weedly. 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. The average cost of an ounce of marijuana for recreational use in Oregon is $210.75, which is well below the national average of $326.06. The cheapest dispensaries in Washington. was only made available a few months ago. What makes Michigan a good destination for your cannabis dispensary is its potential for profit due to low tax rates. Dazed, with a location in Holyoke, plans to open an adult-use retail shop at the Magic Lantern, 399 Wilbraham St., in the fall. becoming more and more lenient, the profits will only grow higher. Licencing fees are usually higher, and you should check your state requirements when applying for one. The demand for the product is still great, but the prices are going down because new dispensaries keep opening almost daily. Guaranteed delivery within 24 - 48 hours! Here is a great guide on the dos and donts of cannabis retail marketing. 5. Starting a Business | Data-Driven Reports. Ongoing expenses will also be high and should be estimated at close to $100,000 a month. In Washington, the fee is only $250. The challenge is bigger when we know that the legal environment around the cannabis industry is still complex, and different laws are applicable in each state. Washington marijuana sellers also have the highest tax rate at 37%. The sole fact that you are thinking about starting your own cannabis business shows that you are passionate about the industry. Fast forwarding to the present time, Oregon is still a good option and one of the cheapest states to open a dispensary. 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. With a long-standing history of legalized medical and recreational use, it lands at number five on our list for its market opportunity. Luckily, you can find plenty of. What Are the Costs When Opening a Cannabis Dispensary? Now the cannabis industry in Oregon is booming with marijuana sales of $777.6 million. 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. The licensing fee for medical marijuana dispensaries in Florida is $60,830 much higher than other states in the US. When you consider all the competition and potential over-saturation, the Colorado market might be challenging to crack, so you would need to do your research and make a detailed business plan. Applying to become a cannabis business will cost you $6,000, just over the nations average of $5,000. Afterward, you'd need around $80k to $150k to get the operations started. 28. Growing can also be profitable, although getting a cultivation license can be more difficult. The laws around cannabis businesses vary dramatically by state, as do taxes, the availability of licenses, market demand, and community support. Running a marijuana business in Oregon is generally cheaper than in neighboring Washington. Your licensing fee for a medical marijuna dispensary in Oklahoma will be around $2,500. In fact, the sale of marijuana for recreational use started July 1st, so now is the perfect time to get involved! 30. Menu and widgets When you complete your research, put all your options in one place, weigh them, and decide on the best course of action. The industry is still young and cannabis stores are in high demand, so its a perfect time to pounce. Where is it cheapest to open a dispensary? How do I know how much I made on Robinhood? Growers must pay the grow site registration fee IF they are: Growing for another person; or. Heres something you might not have known before: the first state to decriminalize possession of small amounts of marijuana was, . Then expect to spend between $80,000 to around $150,000 to get your operations going. 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. It is also important that you have a store manager to make sure everything is running smoothly. How much do dispensaries pay per pound? As youd imagine, there are plenty of opportunities to start a marijuana business in Colorado. Unpredictable events can strike anytime, and its better to be prepared if they do. Fees for the application and registration: At the time that you submit your online application, you will be required to pay a charge of $4000.