Last week I made a post about some of the edibes I have been making for other people and at the end of the post I made a comment about the added cash income this little side biz was giving us.
Well my husband took it one step further over the weekend and mentioned I should check into opening a business; an edible business, as he had heard form someone at his work that if you have certain cannabis related businesses, that you're allowed up to 100 plants on site.
So this had me curious...
How does someone start a cannabis business in my state?
First it depends on the business. Will it be a dispensary (medical or recreational)? An edibles cafe?
Next... where will it be? Depending on the municipality you want to have this cannabis business, you will need to get approval from the city or municipality officials or board of commissioners. And not only that, but even if that particular city allows cannabis related businesses, you will have to pay a fee (up to $5,000) to apply.
Also, on the topic of fees... my state a non-refundable application fee...
The nonrefundable application fee, which must be submitted before an application will be processed, will be $6000
You also have to have an insurance policy that covers at a minimum of $100,000.
Right now the cost is up to a minimum of $111,000.
Building Up The Cost
There are three different types of licensing in my state:
LARA is currently determining the annual regulatory assessment for fiscal year 2018 for each of the five license categories authorized by MMFLA. Grower A licenses are capped, by statute, at $10,000. Grower B-C, Processor, Transporter, and Provisioning Center licenses will be dependent on the number of total licenses subject to assessment and could be as low as $10,000 or as high as $66,000. The exact amounts of the regulatory assessments are not available at this time
Wait... There's more....
More as in another $500,000 to the state licensing.
By statute, the assessment must also provide $500,000 annually to LARA for licensing substance abuse disorder programs in addition to five percent of the other state departments’ costs to the Michigan Department of Health and Human Services for substance abuse-related expenses.
Now we're at a minimum of $611,000! Plus the level and category of the a growers' license!
The state just keep racking up the dollar signs here.
And let's not forget the liability and insurance... oh Lord, I'm trembling!
I just can't even start to assume the cost for insurance.
Will my license expire and how often will I have to renew my license?
Yes, a license will be issued for 1-year period and will need to be renewed annually
Every Year? Good Lord!
So I am thinking a minimum of $650,000 per year is what will be needed to have a cannabis related business in my state. Yeah, the state will be raking in the money for the fees and licensing.