Michigan’s adult-use medical cannabis market opened late last year and the business license application process is still relatively new. There may be some knots to work out, but it’s a must for anyone who wants to operate a recreational or medical-use cannabis business in the state. The application process might appear complicated at first, but it’s actually quite streamlined.
If your business performs any commercialized activities involving legalized cannabis, you need a Michigan cannabis business license. This includes:
- Growing cannabis or hemp
- Storing cannabis or cannabis-related products
- Manufacturing cannabis products
- Transporting anything containing cannabis
- Selling anything containing cannabis
- Testing cannabis products
- Delivering cannabis products to consumers
Failing to follow the proper steps and procedures during the licensing process can result in a rejection of your application. And operating unlicensed is a recipe for disaster. With Michigan officials cracking down on unlicensed cannabis businesses, it’s a risk that will result in catastrophic damages to your business and your life.
Understanding the cannabis license process is critical for a successful application. In this article, I’ll outline the basic information you need to know to apply for a cannabis business license in Michigan. Keep reading to learn more.
Michigan Cannabis License Types
There are a few core umbrellas under which each Michigan marijuana license falls.
Here they are —
Medical Marijuana Facilities
This license is regulated by the Cannabis Regulatory Agency. Any Michigan marijuana facility will fall under this jurisdiction, which has been established in collaboration with the Medical Marihuana Facilities Licensing Act.
Renewals can be done online as well.
This includes manufacturers, dispensaries, event planners, and other associated businesses. Like with medical cannabis, businesses can apply for an adult-use cannabis license online or on paper, depending on your preferences.
Hemp processors must also apply for business licenses in the state of Michigan. The application process for these businesses is different from adult-use and medical cannabis and can be completed on paper for both industrial and nonindustrial processors.
Michigan Marijuana License Social Equity Initiative
Michgan’s Social Equity Program aims to increase diversity and equity in the state’s cannabis industry. This is accomplished with a fee reduction model that lessens the applicant’s licensing fees based on their eligibility for the program.
Those who qualify for the program include:
- Business owners who have been impacted by prohibition
- Mission-driven businesses supporting impacted communities
How to Get a Michigan Weed License
The process for applying for a marijuana business license in Michigan differs based on the type of business you have.
Most businesses can apply online, where the process is quick and easy.
How Much Does a Michigan Cannabis License Cost?
The cost of a Michigan cannabis business license varies depending on the size and category of your business.
The application and licensing fees are as follows:
- Application fee: $3000 non-refundable fee to qualify for the application
- Initial licensure fee: between $1,000 and $24,000 depending on the size and type of business
- Renewal fees: between $1,000 and $24,000 depending on the size and type of business
Get Your Cannabis Business License in Michigan
The key to a successful Michigan cannabis business license application is preparedness. Before you apply for your license, ensure your business is compliant with federal, municipal, and state regulations.
You must enter the application with an understanding of what type of business license you’re applying for and whether or not you meet certain requirements for prioritization.
Once you’re ready, complete the pre-application checklist:
- Ensure compliance with all regulations
- Prepare a solid business plan
- Select a business structure
- Obtain tax ID numbers
- Select and register your business name
- Open a business account with a Michigan bank
- Get insured and create a plan for remaining insured
- Research local commercial spaces
- Gather documentation to prove eligibility for application priority
- Gather documentation to prove compliance
Streamline the Cannabis Licensing Application Process With Qredible®
Once you’ve obtained your license, you can validate it on your Qredible® profile. Qredible is the industry’s only digital registry of validated and verified legalized cannabis, CBD, and hemp companies. Qredible can also assist you by finding a qualified attorney in the state through our community of professionals.
Qredible makes it easy to prove your compliance and gain trust with investors, retailers, and consumers by demonstrating the validity of your license. It also makes the pre-application process simple with a series of tools and functionalities designed to ensure compliance and quality assurance.
At Qredible, we’re working hard to ensure trustworthy businesses outperform their corner-cutting competitors. To learn more about how we can support your team, set up a discovery call.