how to start a marijuana growing business in colorado

How to start a marijuana growing business in colorado

Transporter: These businesses transport marijuana between licensed cannabis companies (such as from a grower to a dispensary). You can transport both medical and recreational cannabis in Colorado, but you will need a separate license for each.

Google your city or municipality name and “cannabis regulations” or “marijuana laws” (here’s info on Denver). If your city or municipality’s website doesn’t have information about cannabis, check recent local news coverage or contact your city clerk, city manager, or town hall.

Infused product manufacturing: Cannabis manufacturers produce items like edibles, capsules, and oils, then wholesale them to dispensaries.

Do you need a cannabis business plan in Colorado?

Inventory tracking system: Medical marijuana centers, grow operations, and testing facilities have to use an inventory tracking system that identifies, weighs, and tracks cannabis, including post-harvest waste. Plus, at least one medical marijuana business owner must be trained in administering the tracking system.

Criminal record: Cannabis business license applicants must be of “good moral character,” can only receive investment from people also of “good moral character,” and can only employ people whose (lack of) criminal history confirms they’re of “good moral character.” Applicants also cannot have been convicted of a felony in the past five years. (See page 44 here.)

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Local governments may forbid cannabis companies or certain locations, so check city and county regulations.

Before submitting any applications to the MED, a prospective cannabis business should have already:

Adults 21 and older are permitted to grow up to six cannabis plants for their own personal use in Colorado. Growing cannabis commercially, on the other hand, requires either a Medical or Recreational Marijuana Cultivation Facility license as well as a license from a local licensing authority. The first step is to complete the MED Regulated Marijuana Business License Application.

Choosing a Name

Even if counties and municipalities decide to opt-in, they are still given discretion on how to implement marijuana policies. For example, while the state allows marijuana stores to be open until midnight, Denver requires theirs to close by 10 pm. Similarly, Colorado allowed recreational marijuana delivery services to apply for licenses starting January 2, 2021; but Denver has restricted access to these licenses to Social Equity Applicants until 2024.

Dispensaries are divided into two types, a retail or recreational dispensary, where customers at least assuming they at least 21 years old, and having a valid form of government ID like a driver’s license or a passport, can purchase marijuana and a medical dispensary, where customers require medical marijuana card to make purchases. While medical cards can technically be acquired by individuals over 18 but below 21, it is important to note that businesses selling both medical and recreational marijuana at a single location cannot sell to anyone younger than 21 at that location.

Marijuana Transporter

Unlike the recreational marijuana market, which has been around for less than a decade, medical marijuana has been legal since 2000. Despite being older, operating a medical marijuana dispensary is still a vibrant business opportunity. Getting started requires a Medical Marijuana Store license as well as a license from a local licensing authority. First, you need to complete the MED Regulated Marijuana Business License Application.

How to start a marijuana growing business in colorado

The Medical Marijuana Business License Application form is used to apply for all of the above license types – you will need to fill out an application form for each license you want to get.

Hours: 8:00 – 11:00 AM and 1:00 – 4:00 PM, Monday – Friday.

Amendment 64, s.16 to the Colorado Constitution defines industrial hemp as “a plant of the genus Cannabis and any part of the plant, whether growing or not, containing a delta-9 tetrahydrocannabinol (THC) concentration of no more than three-tenths of one percent (0.3%) on a dry weight basis.” Any cannabis plant with THC over 0.3% is considered to be marijuana and not “industrial hemp.” Keep in mind that this is simply a regulatory distinction and is NOT a botanic one.

State fees:

Team: “Lone Wolves” are not taken seriously in this business. Any successful operation has a well-rounded team of financial experts, horticulturalists, and business managers who understand how to manage their facilities and employees. You need to demonstrate that your team knows how and is motivated to stay compliant with state regulations.

The Colorado Department of Agriculture, not the Marijuana Enforcement Division (MED) is the government division that registers and inspects industrial hemp cultivation, meaning there is a different set of rules to abide by. However, recent legislation passed that was designed to make the cultivation and harvest of industrial hemp easier.

Costs at a Glance

Once all applications have been filled out and all necessary fees are paid, you will need an appointment with the Marijuana Enforcement Division. You’ll need to bring copies of all documentation, every part-owner of the potential business, and personal identification (such as a drivers’ license or passport) for all parties under the application.

The first step to getting a marijuana business license is completing relevant applications. Which ones you need will depend on what type of marijuana business you intend to open.