Obtain a Dispensary License in Minnesota: Step-by-Step Process

By Thomas Howard. He has over 10 years of experience in corporate and cannabis laws nationwide.

Minnesota’s cannabis industry, though different from Ohio’s, presents unique opportunities for entrepreneurs and investors. This guide offers a detailed overview of the process to obtain a cannabis license in Minnesota, catering to the needs of prospective licensees.

Minnesota has its own unique journey in cannabis legislation, moving from restrictive laws to a more open medical cannabis program. This section will delve into Minnesota’s legislative history regarding cannabis, highlighting key developments that have influenced its current framework. The most recent update about adult-use cannabis legalization was the HF100 Bill, which was passed through the MN House of Representatives and barely passed out of the Senate by a vote of 34-33 on April 28, 2023.

Minnesota has not legalized recreational marijuana. The focus here is on medical marijuana, under a program that is more restrictive compared to some other states. This section will cover:

A step-by-step guide.

The Cannabis Management Board will be responsible for issuing and regulating these licenses, which can range from a cannabis cultivator to a medical cannabis retailer. With so many options, businesses looking to enter the cannabis industry in Minnesota have plenty of opportunities. The Cannabis Management Board would be in charge of approval of all licenses under the bill. Under Sec. 10. The office shall issue the following types of cannabis business licenses:

Opening a dispensary in Minnesota requires a significant investment, and the exact cost may vary depending on a variety of factors, such as the location, size, and scope of the business. However, there are some general expenses to consider when planning to open a dispensary in Minnesota in 2023.

Firstly, applicants must submit an application fee for a cannabis retailer license. In addition to the application fee, there are costs associated with complying with the regulations set forth by the state, such as security requirements, background checks, and record-keeping obligations.

Moreover, the cost of leasing or buying a suitable property for the dispensary is another significant expense. Applicants must provide documentation showing legal possession of the premises where the business will operate, and this may require a substantial upfront investment.

There are also costs associated with hiring and training staff, marketing the business, and purchasing inventory. While the state allows the sale of immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabinoid products, and hemp-derived consumer products, these products must be obtained from licensed Minnesota cannabis cultivators, cannabis manufacturers, cannabis microbusinesses, or cannabis wholesalers.

Overall, the cost of opening a dispensary in Minnesota in 2023 may range from hundreds of thousands to millions of dollars, depending on the size and scope of the business. It is important to carefully consider all expenses and ensure that the business plan is financially viable before proceeding with the application process.

You’ll need to have a clear understanding of the dispensaries in Minnesota before you can start the process of opening one. Dispensaries are highly regulated, so you’ll need to be prepared to jump through a few hoops.

Minnesota is making strides to overhaul current prohibitions and legalize adult-use cannabis. If you’re passionate about cannabis and helping others access it safely, we recommend you to keep fighting for legalization and be patient. You can also check the Department of Public Health of Minnesota webpage to learn more about new regulations for medical marijuana businesses.

If you’re looking to open a dispensary in Minnesota, it’s important to understand that marijuana is still illegal under federal law. This means that even if you’re compliant with state laws, your dispensary could still be subject to federal prosecution. It also means that banking services and other financial institutions may not want to do business with a cannabis-related company, so keep this in mind when setting up your dispensary. Additionally, the state requires dispensaries to obtain a state license before opening their doors, which can be quite an expensive process. With these factors in mind, make sure you’re well informed before starting out on this path.

If you are looking to open a dispensary in Minnesota in 2023, there are certain requirements and regulations that you need to be aware of. Firstly, you need to obtain a license from the Minnesota Office of Medical Cannabis (OMC) and comply with the rules and regulations outlined in the Minnesota Medical Cannabis Act. But that is not really possible as they are not giving out any more licenses, so you will have to wait for the Adult Use licenses that are coming soon. 

As for the business entity, you have several options to choose from, including sole proprietorship, partnership, limited liability company (LLC), and corporation. Each has its advantages and disadvantages, and the best choice for you depends on your specific situation and goals.

Sole proprietorship: This is the simplest form of business entity, where you are the sole owner of the dispensary. You have complete control over the business, but you are personally responsible for all debts and liabilities.

Partnership: If you plan to open a dispensary with one or more partners, you can form a partnership. There are two types of partnerships: general and limited. In a general partnership, all partners are equally responsible for the debts and liabilities of the business. In a limited partnership, there is at least one general partner who has unlimited liability and one or more limited partners who have limited liability.

Limited Liability Company (LLC): An LLC is a hybrid business entity, combining the liability protection of a corporation with the tax benefits of a partnership. As an owner of an LLC, you are not personally liable for the debts and liabilities of the business, and your personal assets are protected.

Yes, there are licensing requirements to open a dispensary in Minnesota in 2023. Under the Minnesota Cannabis Regulation Act, individuals or businesses seeking to obtain or renew a license for a cannabis business, including a dispensary, must submit a comprehensive application that includes a variety of information, such as the applicant’s name, address, and date of birth, ownership and control disclosure, and proof of legal possession of the site where it will build the dispensary.

Additionally, applicants must provide a diagram of the premises, including a security drawing, and a copy of the security plan. They must also submit a copy of their business plan, which must include the expected size of the business, anticipated growth, methods of record-keeping, environmental plan, and other relevant financial and operational components.

Furthermore, applicants must provide certification that they will comply with the requirements of the Minnesota Cannabis Regulation Act related to the ownership and operation of a cannabis business. They must also identify one or more controlling persons or managerial employees as agents who will be responsible for dealing with the office on all matters.

Additionally, applicants must file and update as necessary a disclosure of ownership and control, which must include information on the management structure, ownership, and control of the applicant or license holder, as well as a statement from the applicant and any officers, directors, managers, and general partners indicating whether they have previously held or currently hold an ownership interest in a cannabis business in Minnesota or any other state or territory of the United States, or any other country.

Finally, before becoming operational, the regulators will visit your dispensary. For medical marijuana dispensaries, the Minnesota Department of Health would need to review and approve any healthcare practitioner that wanted to operate a medical cannabis dispensary. The adult use regulations will be slightly different, but studying what the state did for the medical regulations sheds clues on how it will regulate the plant.

This is where the fun begins! At minimum, you’ll get to choose your location, design your store, and stock it with all of the products you want to sell. Keep in mind that dispensaries will be highly regulated, so you’ll need to make sure you follow all of the rules and regulations. But if you do it right, you’ll be able to open your doors and start serving your community in no time. Watch out for tax issues related to cannabis dispensaries and call us to help you out.

Tom Howard, Cannabis Industry Lawyer and Consultant has practiced commercial law since 2008 when he graduated law school and got his Series 7 & 66 Securities licenses. He pivoted to practicing litigation for financial institutions before helping cannabis teams form, capitalized and get licensed. He has concentrated in cannabis business since Illinois legalized in 2019. He won licenses for clients in Illinois, Connecticut, New Jersey, New Mexico, Massachusetts, Missouri and has gotten into lotteries in Ohio, Maryland and Maine. He became a Certified Ganjier in 2021. He chairs the ISBA’s section council for Cannabis Law in 2023.