ALBANY, N.Y. ( NEWS10) New York state regulators approved an additional 150 cannabis dispensary licenses on Thursday. What is required to open a dispensary in NY? Good staff is the lifeline of your business. However, you should beware of the market oversaturation in Michigan, as there are currently around 500 retail dispensaries in the state. 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. 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. You can expect your application fee to be as low as. How much is a dispensary license in Colorado? The demand for the product is still great, but the prices are going down because new dispensaries keep opening almost daily. 13. In Illinois, applying for early approval of a recreational . 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. And when you also know that cannabis sales in the U.S. reached $26.5 . 26. Without advertising income, we can't keep making this site awesome for you. California marijuana businesses have made $2.75 billion in legal and recreational cannabis sales. Retail stores and medical dispensaries perform particularly well. While the application fee is only $300, this cost is based on each patient serviced with the limitation of up to five patients per cultivator. California California is one of the most successful legal US states, with the most prominent cannabis business growth. 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. Their 10.75% excise tax is offset by having an average per gram sales price on the nations higher side at $10.18. Application fees, registration and licensing fees, and required capital can set you back anywhere from a couple hundred to over a million dollars. What is the easiest state to open a dispensary? At least $500,000 in liquid capital (View all application fees here) Control of a dispensary location. The sum varies from state to state, and you should check your state and local regulations to know what to expect in your area. How much will it cost to open a dispensary in Virginia? Additionally, consider contracting the services of a lawyer who will ensure that you comply with state and local laws. Ongoing expenses like salaries and lease or mortgage payments average around $30,000 to $50,000 per month. The simple average (non-volume weighted) price decreased $7 to $1,271 per pound, with 68% of transactions (one standard deviation) in the $556 to $1,987 per pound range. How much does it cost to start a dispensary? The estimated up-front cost of opening a dispensary in Missouri is between $85,000 and $150,000. Theres plenty of options for those looking to get into the industry. Claim My Dispensary List a Delivery Service List a Cannabis Brand List a Cannabis Event. 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. Cannabis for recreational use officially became legal in California in 2016, and the sales began in January 2018. . Where is it cheapest to open a dispensary? 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. The medical marijuana industry in Arizona is enormous, generating $406.7 million in sales. Massachusetts is still a good option for a dispensary because of the higher than average retail price of cannabis. This cost varies from state to state, and the application fees are partially refundable in some states if your application is unsuccessful. All of these places are worthwhile choices so look into them and choose whats right for your business. 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. Licenses for CBD products containing less than 0.3% THC are not needed, according to VA state law. But even with taxes, it still pays off to run a cannabis dispensary in California as the industry is flourishing because of the large market potential. Unlike their weed-clogged neighbor to the south, California, Oregon is an affordable state to start and run a cannabis 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. Enter your email below to get the latest Cannabis marketing tips, guides and information on how to grow your cannabusiness: Copyright 2023 Marijuana SEO. We looked at each states excise tax rates and sales tax rates to find those that leave businesses the most money after tax. California cannabis businesses banked $5.21 billion in taxable sales in 2021. 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 industry is still young and cannabis stores are in high demand, so its a perfect time to pounce. Easily $50k-$100k on an annual basis for the rental of an average sized facility in a moderately competitive market. 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. 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. Location is a key factor in business success and picking the right state can improve the local SEO for your marijuana business. Applicants praise the application process as straightforward, and reports indicate that you can receive your license in 90 days. 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. The legal environment is favorable and there are plenty of opportunities for market entry. But when it comes to starting any business, location is key and you need to pick the best place to start a cannabusiness. 30. Thats why having an experienced budtender is absolutely essential for your dispensary. Then, youd probably like to know the cheapest state to open a dispensary in, especially if you are flexible about your company location. You should also consider the market conditions in all the states where cannabis is legal, product sales prices, taxes, and other factors that might influence your decision. Great! All content and materials are for general informational purposes only. Generally, a dispensary should not make less than $500,000 annually. How much is a dispensary license in New York? It will be in a building at 234 Talcottville Road that was . Some states require that you have secured the property for your dispensary even before applying for a license. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Please enable JavaScript on your browser and try again. 5214F Diamond Heights Blvd Beans arent the only things getting baked in Boston. In short, Colorado still has big ganja opportunity. Closes at: 11:55 PM. In Illinois, applying for early approval of a recreational cannabis business license will cost current medical dispensary license holders a whopping $30,000. Running a marijuana business in Oregon is generally cheaper than in neighboring Washington. This is dramatically lower than any other state on our list, except Washington. Permitting and licensing fees are usually somewhat higher than application fees, and there can be a variety of other supplemental fees as well. The cheapest dispensaries in Washington. How much does it cost to open a dispensary in Florida? But when it comes to starting any business, location is key and you need to pick the best place to start a, 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. Theres always been a buzz around Oregon. 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. Partner with in-house experts who bring years of experience supporting cannabis. 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. Before applying for a loan to open your dispensary, it might be a good idea to calculate the approximate sum you will need for your startup costs. The weed-centric state of Washington would rank higher if applications for cannabis businesses were currentlyopen. The costs of running a business, including real estate and licensing, are also a bit higher. Massachusetts is another state you should consider when considering where to open your dispensary. Laws and regulations in Kansas City. Despite your somewhat limited options compared to traditional businesses, it is still easy to spend $25k$100k or more annually on these activities. For application fees, $5,000 is a good general estimate, though these fees can vary drastically from state to state. | Grow America Builders Interview, (Video) Marijuana vending machine : a first in Canada - the fifth estate. We may make money when you click on links to our partners. When compared to Oregon, Colorado also has higher taxes. 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. Its the highest of any US state, and the figures are set to grow exponentially. When compared to Oregon, Colorado also has higher taxes. How much does it cost to open a dispensary in Ohio? Applications for retailer licenses are currently on hold, but you can take over a licensed business. 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. Application & Dispensary Licensing Costs: $5,000 - $30,000. Starting a marijuana business in Michigan right now can be tricky. 9. (Video) How to Start a Cannabis Dispensary Business | Legally. Your email address will not be published. If youre looking to start a marijuana business in the US, the time is now. Though the costs associated with starting a cannabis business are average with a $5,000 application fee, applications are not openat this time. NEW! Oklahoma is one of the cheaper states to open a dispensary in. 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. While these are important factors, it is still difficult to quantify marijuana use due to lack of available data. Missouri cannabis laws to know. becoming more and more lenient, the profits will only grow higher. How much does a dispensary owner make in Oklahoma? In California, expect to pay around $250,000 up-front to open your dispensary. Medicinal marijuana dispensaries have a 2.9% state sales tax on most of their goods and services. To open a dispensary in New York, you should be eligible for a conditional adult-use retail license. 19. How much does it cost to get a growers license in Oregon? Massachusetts upholds its revolutionary history in the 21st century as it takes the sixth spot on our list for opening a cannabis business. 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. Even with a 15% excise tax, plus a sales tax on recreational use, this tax-heavy state remains rich with cannabis business opportunities. 7. Your monthly expenses will be around $50,000 too. Other times this is because servicing your dispensary will require specialized knowledge above and beyond what a normal professional might know; for example, youll want legal and financial advisors that have cannabis-specific expertise. The best states for opening a cannabis business are also those with lower tax rates that help safeguard a healthy profit margin. How Much Does it Cost to Open a Dispensary: 1. 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. Then expect to spend between $80,000 to around $150,000 to get your operations going. Get started here. Its a more relaxed location than some of the top marijuana states, but its definitely one worth looking into. Navigate complex regulations to comply with strict rules of the cannabis industry. Location within Health Service Area. 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. 1. It has a standard Marijuana Dispensary license fee of $2,500. 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. Here is a great guide on the dos and donts of cannabis retail marketing. Dispensary licensing is currently available for Arizona residents. You can find Alaska marijuana business licensing applications and fees online. In the state, dispensary license application fees are a non-refundable $25,000 per location or a $5,000 non-refundable fee for social equity applicants. Massachusetts is the latest state to legalize recreational marijuana. STATEN ISLAND, N.Y. - Staten Island will soon have six legal recreational weed dispensaries. What Are the Costs When Opening a Cannabis Dispensary? There have been serious efforts to legalize recreational marijuana in Arizona. 14. , which is well below the national average of $326.06. No votes so far! The upper end includes states like New Jersey, where it costs $20,000 to apply for a license to open a dispensary. Some states offer better market conditions, others offer lower tax rates, and some offer more flexible licensing options. 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. Aside from a considerable consumer base, all things cannabis perform well here. . Add in some decent insurance policies, and you can easily spend $50k or more on various professional services, depending on your size and scale. Paying six total employees an average wage of $20 works out to almost exactly $250k annually. Marijuana sales have already racked up $106 million and theyre projected to grow to $457 million in 2018. The service requires full cookie support in order to view this website. With discounts for both veterans (15%) and seniors (10%), Diem Cannabis also offers birthday discounts at 10% off to join in on your celebration. It won't be easy, but then nothing worth doing ever is. It takes about six months to process licenses. Nevadas marijuana sales taxes mimic Colorados, with 15% excise tax and 15% sales tax. Investing in cannabis insurance means investing in a financial safety net for your business, as cannabis business insurance costs are far lower than the cost of having to deal with unfortunate events or lawsuits alone. However, it comes in at a strong No. Oregon is one of the best states to open a dispensary. The registration cost to become a dispensary in Arizona is $5000, with the renewal cost being $1000. 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. Chapter 1: Getting Started (8 Questions to Ask Before Opening a Dispensary), Chapter 3: The Licensing & Application Process, Chapter 7: Finding the Ideal Dispensary Location, Chapter 9: Designing Your Dispensary and Retail Experience, Chapter 10: Choosing the Right Dispensary Technology, Chapter 11: Creating a Dispensary Security Plan (Security Issues), Chapter 12: Sourcing Your Cannabis Flower. 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. are far lower than the cost of having to deal with unfortunate events or lawsuits alone. How much is a grow license in Virginia? While ZipRecruiter is seeing salaries as high as $83,416 and as low as $17,513, the majority of salaries within the Dispensary jobs category currently range between $26,729 (25th percentile) to $49,312 (75th percentile) with top earners (90th percentile) making $69,590 annually in Oklahoma. 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. Lets say you want to open a cannabis dispensary. How much will it cost to open a dispensary in Virginia? Knowing how risky it is to run a cannabis business while the legal environment is still so complex, you should strongly consider buying adequate cannabis dispensary insurance for your company. All Right Reserved. How much is a dispensary license in New York? What Is the Cheapest State to Open a Dispensary? The Official Site of Philip T. Rivera. Initial permit fee: $60,000, along with the application and other required documentation. 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. However, you should beware of the market oversaturation in Michigan, as there are currently, around 500 retail dispensaries in the state. The application fee for an Industrial Hemp Grower Registration is $150. Fortunately, cannabis has been decriminalized, meaning possession of 10 grams of flower or less is a misdemeanor punishable by a $500 fine. But weedpreneurs should take heartdemand for cannabis in all forms boosted 2018 state revenue to $1.56 billion. 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. Luckily, this business is so lucrative that most people will start making a lot of money from the get-go. Those who know Maine as a nanny state (i.e., tax-heavy) wont be surprised to hear that its not cheap to run a cannabis business here. Retail stores and medical dispensaries perform particularly well. How much does it cost to start a dispensary in Michigan? www.cannabisbusinesstimes.com is using a security service for protection against online attacks. You can find the Michigan Medical Marihuana Facility License Application online if youre looking to open a dispensary. Ongoing expenses will also be high and should be estimated at close to $100,000 a month. We also looked at application costs, the average cost per gram for marijuana, taxes, and market sizes. How much does it cost to open a dispensary in NY? This price consists of a $3500 registration fee as well as a $500 non-refundable application fee. Factors like population, demand, competition, taxes, and tourism should all come into consideration. If you want a lucrative marijuana state outside the main three, Nevada is a good bet. Oregon. Maine, the self-proclaimed vacationland state, may soon be synonymous with more than lobster and picturesque New England summers. 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. Your licensing fee for a medical marijuna dispensary in Oklahoma will be around $2,500. Other options are starting a medical cannabis dispensary or a marijuana delivery service. . Michigan Medical Marihuana Facility License Application, Factors like population, demand, competition, taxes, and tourism should all come into consideration. Then, you'd probably like to know the cheapest state to open a dispensary in, especially if you are flexible about your company location. 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. Ranking on our list was determined by overall impediments to business success;therefore, the lower the total score, the higher the ranking. Nevada also has a 15% excise tax on wholesale marijuana and a 10% excise tax on retail for both recreational and medical cannabis. 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. Void . banked $5.21 billion in taxable sales in 2021, 15% excise tax rate and a 7.25% plus local retail sales tax rate. Outside of LV, Mesquite and Reno are attractive locations with fast-growing populations. How much does it cost to open a small dispensary in Colorado? How hard is it to open a dispensary in Arizona? Recreational sales are also legal in D.C. and Illinois has a growing medical marijuana industry. There are other states that make good places to start a marijuana business. When you add the costs of security, surveillance system, and the potential remodeling, these property-related costs should be similar to those in Oregon. Application & Dispensary Licensing Costs: Retail Innovation Labs LLC Trading as Cova Software. She has also founded a number of successful startups, including OpenOnion under the Google Tech Entrepreneurs Program, which was later acquired under the name Whisper. Dispensaries. We looked high and low across all the legal states and concluded that the answer might not be all that simple and that there might be more than one option for you. Cannabis for recreational use officially became legal in California in 2016, and the sales began in January 2018. Additionally, the tax climate is good and there is a strong demand for cannabis products. Even though Colorado legalized marijuana for medicinal purposes in 2000, it wasnt before November 2012 that cannabis was legal for recreational use for adults over 21. Starting a Business | Data-Driven Reports. How much will it cost to open a dispensary in Virginia? The state's cannabis board requires a much lower than average licensing fee of $2,500 to get started. 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 also has the second-largest population in our top 10, offering a ripe market for new cannabis providers. 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. Can anyone open a dispensary in Florida? If you need to adapt the space to your needs, you can expect to invest additional funds before you are ready to take customers. . 10 our list. 15. 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