Michigan Commercial Grow License Cost

November 12, 2021 Uncategorized

Considering starting a commercial grow in Michigan? Then you’re likely wondering about Michigan commercial grow license cost.

The cost of commercial cannabis grow licenses in Michigan varies. But this all depends on the size of your commercial grow.

Keep reading to learn more about the different types of commercial grow licenses in Michigan and what it costs to get started.

Looking for assistance scaling your grow in Michigan? Contact us now to speak with an expert Michigan cannabis CPA and get started today.

Michigan Commercial Grow License 2021 Insight

Michigan passed the Michigan Regulation and Taxation of Marijuana Act after the initiative appeared on the November 2018 ballot to end prohibition in the state. Through this initiative, adults 21 years of age and older could possess up to 2.5 ounces and grow up to a dozen plants at home. This set a way for commercial cannabis cultivation grow licenses to be issued.

As a result, many companies have been working hard to get their application ready so they will have the earliest chance at getting a license to cultivate commercial marijuana in Michigan. But for those that haven’t started the process, you’re likely wondering what’s involved.

Here’s the insight you need:

Michigan Growers License Application

Michigan’s cannabis law incorporates qualifications for those applying for a commercial grow license. Applicants must meet several strict conditions to make this happen.

The MMFLA and the Administrative Emergency Rules outline that some offenses automatically disqualify applicants from submitting a Michigan growers license application. With this in mind, all applicants are required to disclose all prior criminal history to the board. If they do not, they risk being denied.

For applicants who fail to disclose their criminal history, denial is inevitable. This is actually one of the most common situations that result in application denial.

Applicants must provide information regarding the location of the operation and the type of license they’d like to obtain. At this stage in the process, you’ll need to submit a business plan that meets specific demands. Cookie-cutter models you might find on the internet will not usually suffice.

For your business plan, you’ll need to show your understanding and plan for pre- and post-licensing compliance. You’ll also need to show your understanding of the applicable Administrative Emergency Rules.

Keep in mind that the location of your building is essential to include as the Medical Marihuana Facilities Licensing Act states that the Department of Licensing and Regulatory Affairs is only allowed to issue licenses to applicants if the municipality has already authorized marijuana facilities and complies with Section 205 of the MMFLA.

Love this article? Make sure to check out our other post about cannabis accounting in Michigan before you leave!

Class A Grow License Michigan Cost

If you plan to obtain a Class A Grow License in Michigan, be prepared to spend at least $4,000 for the license alone. Other grow licenses are significantly more costly, but all of these licenses require annual renewal with an identical fee.

Michigan Class B Grow License Cost

For anyone looking into Michigan Class B Grow License cost, you’ll have to pay $8,000 in license fees. This is the same as those who obtain a Microbusiness license.

Michigan Class C Grower License Requirements

As a Class C Grower in Michigan, you can grow up to 2,000 plants. You can also stack up to five Class C licenses, but you’ll need to be currently licensed under the MMFLA.

For an MMFLA grower class C license, you’ll know how many excess marijuana plants you can have. If you base this number on the medical marijuana plant count, as a licensee, you’re allowed to expand your operation in 2,000 plant increments under the excess marijuana grow license until you reach what’s permitted on the medical side of your operation.

Michigan Commercial Grow License Cost FAQ

How much does a grow license cost in Michigan?

The license fees in Michigan start at $4,000 for a class A growers license. But they can be as costly as $40,000. These licenses also must be renewed each year, which is comparable in price.

How much does a Class A growers license cost in Michigan?

A Class A Growers License costs $4,000. Other options are more expensive, but as with all grow licenses in Michigan, you should expect to renew your license annually for a comparable fee. Class B Growers and Microbusinesses pay significantly more ($8,000) for their licenses. They must also renew their licenses annually for a similar fee.

How many plants can you grow in Michigan with a commercial license?

Having a commercial license to grow cannabis in Michigan gives you the ability to cultivate up to 10,000 plants under the state’s adult-use laws and rules.

How do I become a Class A grower in Michigan?

To apply for your Class A Grower License in Michigan, you’ll need to have a minimum of $150,000 in business capital. This can also include a minimum of 25% in liquid assets that you can convert into cash or stocks, CDs, and bonds.

Concluding on Michigan Commercial Grow License Cost

Planning to become a commercial cannabis cultivator in Michigan? We wish you luck on your journey!

If you need assistance structuring or scaling your Michigan grow operation, contact us now to speak with one of our experts. Our financial services help budding entrepreneurs in this growing space, and we’re eager to work with Michigan growers!