Looking for Michigan cannabis license information? This guide will give you a full education of everything you should know about marijuana business licenses in MI.
The first Michigan recreational dispensary opened just a few years after the state was ranked the third largest market for cannabis in the United States. The only two states that had it beat were California and Colorado.
Like other states offering dual licensing, prospective applicants, as well as out-of-state licensees, require a high level of political know-how to navigate the legal barriers to entry and the challenging aspects of the Midwest market.
The initiative of 2018 to allow recreational marijuana (the Michigan Regulation and Taxation of Marijuana Act) was passed and sales of recreational marijuana began in December of 2019. With the legalization of recreational marijuana, new types of licenses were introduced into the budding market.
The Marijuana Regulation Agency estimated that sales of all kinds totaled at beyond $950 million in 2020 and total sales of medical and recreational marijuana reached $1 billion by 2021.
Licensing Requirements, Timelines, and Selection for Marijuana Business Licenses in Michigan
The MRA is responsible for regulating the state’s adult-use marijuana establishments and licensees’ conformity to the Michigan Regulation and Taxation of Marihuana Act (MRTMA). Applying for a Marijuana License Application Process involves a two-step procedure.
The first step of the process involves prequalifying for Major Application (MA) and Supplemental Applicants (SA). Then, step two permits processing completion and approval.
Co-Location and Vertical Integrated licensees, depending on the rules of the municipality. According to 1300.06(a)(1), the most amount of sites that can be used for Marihuana Retailers and Medical Marihuana Provisioning Centers will be limited to 28. One location cannot be both a Marihuana Retailer and Medical marihuana Provisioning Center.
Keep in mind that applications aren’t currently being considered to apply for Adult Use Retail Stores or New Provisioning Centers currently. But the Provisioning Centers operating at this point are allowed to add Adult Retail when applications are being accepted.
Michigan Cannabis License Solutions
The skilled team at Northstar is ready to help you obtain your Michigan Cannabis License and structure your operation. We’re here to help you through the Michigan Cannabis License application process without delaying your business’s activities.
We’ll guide you along your journey to obtain Michigan marijuana licensing for your operation in Michigan. Schedule your complimentary consultation with one of our experts to take the first step in getting your Michigan cannabis license now.
Marijuana Business License Michigan Cannabis License Types
Michigan Medical Licenses
The medical license categories that are currently available to work with medical marijuana in Michigan include:
- Grower
- Processors
- Retail Stores
- Secure Transporters
- Testing Facilities
Keep in mind that the state has added an Excess Marijuana Grower license to handle large grow licenses to allow mega-growers to produce for both recreational and medical use.
Michigan Adult Use Licenses
Six categories have been added to Michigan’s cannabis licenses that allow businesses to work with recreational marijuana:
- Michigan Cannabis Class A Grower License
- Michigan Cannabis Marijuana Microbusiness License
- Michigan Cannabis Designated Consumption Establishment License
- Michigan Cannabis Marijuana Event Organizer License
- Michigan Cannabis Temporary Marijuana Event License
- Michigan Cannabis Marijuana Testing Facility License
Michigan Cannabusiness Climate
Most of the state has accepted the legalization of cannabis for recreational and medical use. However, there are a few exceptions. Regardless, the licensing of all cannabis-related businesses is progressing at a steady rate.
In a comprehensive state study, the state ranked upper-middle for its hospitable environment for cannabis operations. Michigan has actually earned many awards for its accommodating cannabis business environment.
The fact of the matter is that the Wolverine State offers an impressive and diverse workforce, a welcoming business environment, and a reasonable cost of living alongside global resources to support the supply chain. These include the availability of capital and other business resources.
Marijuana Business License Michigan Financial Requirements
The most common requirement for many jurisdictions’ Michigan Cannabis License application is to have at least a certain amount of liquid cash available. This ensures applicants have the necessary financial capacity to get through to the Michigan Cannabis License process over the first 2 to 5 years of operating.
In accordance with state law, which is designed to ensure that companies will be successful, medical marijuana applicants need to show that they have assets that range from between $150,000 and $500,000. This number is determined in accordance with the license the applicant is applying for; however, equally important to note is that the recreational market does not have capitalization demands.
Michigan Cannabis License Application fees for various types of licenses tend to range from $1,000 to as high as $40,000. Important to note is that the Michigan Cannabis License fee cost directly relates to the Michigan Cannabis License type. Thus, the bigger grower and processor licensees pay $40,000, while smaller companies only have to pay $1,000.
Michigan Cannabis Real Estate & Zoning
The consideration of local and regional zones in relation to proximity to specific types of businesses, schools, or other areas that are prohibited must be analyzed in accordance with local and municipal guidelines in mind. Owning real property is typically an essential qualification for licensing before submitting an application.
Michigan Cannabis Business Licensing FAQ
How much does it cost to get a grower’s license in Michigan?
Choosing a Class A Grower’s License for Cannabis in Michigan will only set you back $4,000 initially. Although, if you go for any of the other choices, be prepared to spend up to $40,000. Just remember that these licenses need to be renewed yearly and it costs nearly as much as getting the license itself. For those who are looking into becoming either Class B Growers or Microbusiness operators, your initial fee is significantly less at only $8,000.
How much does a dispensary license cost in Michigan?
After you receive approval for a license, the first licensure fee for an adult-use marijuana retailer is $25,000. Annual renewal fees usually cost between $30,000 to $50,000 and depend on gross sales compared to other licensees.
How do you become a licensed grower in Michigan?
Michigan growers must have an employee who is a registered primary caregiver and has, at minimum, two years of experience. The licensee also is not allowed to become or maintain the status of a registered primary caregiver.
How many plants can you grow with a growers license in Michigan?
Michigan’s marijuana laws are now some of the most permissive in the country. Under recent legislation, people 21 years or older may cultivate a maximum of 12 cannabis plants at once inside their homes.
How much does a micro grow license cost in Michigan?
What are the costs of starting a cannabis microbusiness in Michigan? Michigan allows applications for marijuana microbusiness licensure. However, the person applying has to pay a $6,000 application fee. If a license is given, the successful applicant must pay a regulatory fee of $8,000.
Who is responsible for cannabis regulation In Michigan?
Michigan marijuana regulation licensing, and enforcement are managed by the state’s appointed Cannabis Regulatory Agency (CRA), which was originally called the Marihuana Regulatory Agency (MRA).
What’s the deadline for processing adult-use cannabis facility licenses?
Michigan permits licenses for the majority of licensing types, but it’s important to note that this is on a rolling basis. The cannabis regulatory agency must accept an adult-use establishment license within 90 days after it receives a completed application.
Can cannabis-related products be shipped to municipalities that do not permit cannabis-related businesses to operate within their area?
Yes, although municipalities are able to prohibit cannabis-related businesses from operating within their boundaries, they’re unable to prohibit companies from transporting cannabis within their boundaries.
The number of Microbusiness Licenses could a licensee own?
Licensees currently can have only one microbusiness license at one time. Beginning January 1, 2023, this policy could be changed.
Closing on Michigan Cannabis License Acquisition
Obtaining a Michigan cannabis license is essential for legal marijuana businesses to operate in The Great Lake State. While the process may seem daunting, understanding the qualifications, requirements, and process is the first step in getting your business up and running legally.
We’ve successfully helped many ganjapreneurs determine and acquire the cannabis license they need to open and operate their business in Michigan. Contact us now to speak with one of our experts about how we’ll help you acquire your license and prepare your cannabis business for success.
