Applicants reward the appliance course of as simple, and studies point out that you could obtain your license in 90 days. Missouri and Alaska currently have no capital requirements. www.cannabisbusinesstimes.com is using a security service for protection against online attacks. Likely to be your single largest expense. In Illinois, applying for early approval of a recreational cannabis business license will cost current medical dispensary license holders a whopping $30,000. The LAX route begins June 30, offering daily flights with starting fares of $199 each way. Looking to be the next marijuana millionaire? The laws around cannabis businesses vary dramatically by state, as do taxes, the availability of licenses, market demand, and community support. 17. When you find adequate space for your dispensary, you can expect to pay the average price for renting a commercial property in the city you choose as your business location. This amount covers the annual advertising fee, renting fee, license application fees, yearly staffing, and security. 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. The state of California has a 15% excise tax rate and a 7.25% plus local retail sales tax rate, so a significant part of the sales money will go to the state government in tax returns. You may need functional additions as well such as expanding available parking or ensuring handicap accessibility. If the state does not allow growing, quality products will cost around $1,500 per pound. Start a business here early and enjoy the low tax rates and high income. In both Missouri and Michigan, youll pay a non-refundable $6000. Additionally, you should count in the costs of stocking your store, installing a surveillance and security system, wages, and other operational expenses. If we add the fact that Massachusetts 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. It takes about six months to process licenses. Here are the best US states for starting a marijuana dispensary, store or other business. We looked at each states excise tax rates and sales tax rates to find those that leave businesses the most money after tax. Claim My Dispensary List a Delivery Service List a Cannabis Brand List a Cannabis Event. 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. Outside of LV, Mesquite and Reno are attractive locations with fast-growing populations. Delivery services are growing fast, and you can also become a grower or produce products like CBD and THC oil. , it might be a good idea to calculate the approximate sum you will need for your startup costs. Oregon. This is dramatically lower than any other state on our list, except Washington. 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. Studies have shown that up to 90% of dispensaries have reported having good to significant revenue in the past year, with an average 12% profit margin after tax and an average of 2 million in sales annually. Legal retail sales of cannabis didnt start before November 2018, even though voters legalized cannabis in 2016. 1. Then, youd probably like to know the cheapest state to open a dispensary in, especially if you are flexible about your company location. Cannabis laws vary from state to state, and the product is still illegal at the federal level. For application fees, $5,000 is a good general estimate, though these fees can vary drastically from state to state. (Video) Josh Heinrichs visits the cheapest medical cannabis state in the USA! Data was then analyzed and weighted based on each categorys importance. What is the cheapest state to open a dispensary? For a retail location, the license application cost is $4,500 plus $2,500 due to the local government (due at the time of application). After your initial hardware investment, youll likely pay a monthly fee for dispensary software. Your company's by-laws. The software price for opening a dispensary is $1,500, and should you get authorized, the annual license price is $10,000. Fit Small Business content and reviews are editorially independent. As youd imagine, there are plenty of opportunities to start a marijuana business in Colorado. 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. 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. If you are seeking a dispensary license in Nevada, it can be expensive. Of course, everyone's budget is different, and there are a lot of variables when it comes to capital requirements. How much does it cost to start a dispensary in Michigan? Growing can also be profitable, although getting a cultivation license can be more difficult. Washington-London starts June 1 with up to six weekly flights, and Boston-London kicks off Sept. 2 with . Applying to become a cannabis business will cost you $6,000, just over the nations average of $5,000. What is the cheapest state to open a dispensary? Its important to note that cannabis is still in its infancy in the U.S. and laws are rapidly changing. The sole fact that you are thinking about starting your own cannabis business shows that you are passionate about the industry. Running a marijuana business in Oregon is generally cheaper than in neighboring Washington. How much does it cost to open a small dispensary in Colorado? While these are important factors, it is still difficult to quantify marijuana use due to lack of available data. becoming more and more lenient, the profits will only grow higher. Thats why we assembled this definitive list of the most weed business-friendly states in 2019. How hard is it to open a dispensary in Arizona? According to Marijuana Business Daily, the booming industry saw retail sales hit $9.7 billion in 2018 from $6.6 billion in 2017, and thats slated to double by 2022. A dispensary in Colorado should be making as much as $10 million annually when located in an urban area, and not less than $3 million annually when in a rural setting. One of Americas biggest marijuana states, Washington marijuana businesses have also reached the $1 billion mark in sales, making this a very attractive choice of location for entrepreneurs. Be the first to rate this post. How much is a dispensary license in New York? Oklahoma is one of the cheaper states to open a dispensary in. Guaranteed delivery within 24 - 48 hours! Starting a marijuana business in Michigan right now can be tricky. You can also get licensing for growing and manufacturing cannabis products. The upper end includes states like New Jersey, where it costs $20,000 to apply for a license to open a dispensary. Design a basic work schedule for your budtenders, administrative support, and security personnel, and count up the hours. This cost varies from state to state, and the application fees are partially refundable in some states if your application is unsuccessful. 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. Please enable JavaScript on your browser and try again. Legal sales started in January 2014 when the first retail stores opened their doors to customers. The industry is still young and cannabis stores are in high demand, so its a perfect time to pounce. Previously considered the car capital of the world, Michigan is now going green as the nation's third-best state for opening a cannabis business. As a result, there are a wide variety of permits and licenses required to open a dispensary and great variance between locations. The sole fact that you are thinking about starting your own cannabis business shows that you are passionate about the industry. , and if you get approved, the annual license fee is $10,000. Marijuana sales have already racked up $106 million and theyre projected to grow to $457 million in 2018. Step-by-step blueprint that shows you how to go from idea to launch in 30 days. Menu and widgets Higher Leaf is your one-stop cannabis store for . The more business allowed, the more favorable the ranking. Paying six total employees an average wage of $20 works out to almost exactly $250k annually. Missouri: Cost to Open a Dispensary in Missouri, Now lets take a look at the major categories of dispensary startup costs for the average dispensary, along with some very basic estimates -. You can expect to pay 10% retail excise tax and 6% state sales tax in Michigan, which is lower than many other states. Here's something you might not have known before: the first state to decriminalize possession of small amounts of marijuana was Oregon in 1973. . Grow Site Fee The grow site registration fee is $200. 10 our list. Retail stores and medical dispensaries perform particularly well. If we were to approximate, opening a marijuana dispensary in the US can cost anywhere from $150,000 to $2 million. 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. Of course, wherever you plan to start your cannabis dispensary, dont forget to insure your business. and a 15% retail sales tax. 16. 1. Please enable cookies on your browser and try again. Massachusetts has a 10.75% excise tax rate and a 6.25% retail sales tax, with a local option of an additional 3% excise tax. New York is doubling the amount of recreational weed dispensary licenses awarded throughout the . 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. 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. Facebook 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. Their 10.75% excise tax is offset by having an average per gram sales price on the nations higher side at $10.18. Nevada requires $250k, and Michigan $300K in total capital, while Illinois looks for applicants to have between $50k$100k. Massachusetts is another state you should consider when considering where to open your dispensary. How much does it cost to open a weed dispensary in Oregon? Theres also an excise tax of $335 per pound of flower and mature plants. With Maine already making $83.4 million in medical marijuana sales, its a state with a lot of potential for marijuana businesses. The cheapest dispensaries in Washington. They boast the nations lowest cost of entry with an application fee of $250the same as Oregon, which ranks number one on our list. Your monthly expenses will be around $50,000 too. The startup capital of a dispensary in Colorado ranges between $150,000 to around $2,000,000. 3. The demand for the product is still great, but the prices are going down because new dispensaries keep opening almost daily.