How To Start A Medical Marijuana Dispensary

First I would ask why you want to open a dispensary?  If part of your answer is the reward of helping people then go ahead.  The day to day operations with customers will be the most rewarding, then the money. If you do it solely for the money, Karma will come back and kick you. Now let’s talk about the deets.

There are currently thirteen states who have legalized the medicinal use of marijuana. Each one of these thirteen states has different laws surrounding the purchase and distribution of marijuana. First you want to do all of your own research, but here is a quick break down of most states’ processes. Second you want to follow all state laws and don’t antagonize the feds who might still want to bust you, even though it is legal under state law.

  1. Get legal!This is just common sense plain and simple.
    • Business Acumen. This can be a long process, for example, Marijuana dealers in Arizona and New Mexico must go through the state to obtain a license. They must also acquire tax stamps showing that they have paid the state tax requirements on all sales of marijuana. Enjoy the Process :-).
    • Become a Patient. If you’re going to be in this field, your going to be around it so get yourself covered by Visiting a doctor, it’s easy. If you can, call around first to find one that will write you a script that will cover you for possessing more then the generally accepted legal limit if it’s possible. For example, if you live in California, you’re allowed to possess up to 6 mature and 12 immature plants in general but if a doctor recommends more then you’re allowed to possess more but never have more then 99 plants or 5 pounds because it brings federal charges.
  2. Incorporate. There’s a specific order of steps you need to follow. You need to create a collective as a non-profit corporation first, before you can get your licenses and permits. It’s recommended you form a collective and not a cooperative. legalzoom.com or hire a lawyer to make sure the paper work is right so their are no questions on liability.
  3. Sign a lease. You need to do this one last step before you can file for any licenses and permits. Why? The sellers permit and business license requires an address for your location; it’s no good anywhere else.
  4. Obtain a License. Ok, your finally ready to file for licenses and permits. Don’t skip this step, medical marijuana transactions are taxable by law. Usually, An annual fee of $100 is required to become licensed to sell marijuana.
  5. Pay Taxes. Tax stamps are $10 per every ounce you sell, don’t cut corners on this, pay your taxes, you will still be making money. All fees are payable to the Department of Revenue
  6. Open up for business!Don’t skimp out on security, it’s improtant. At least one security camera is required. Follow the law and keep a low profile, no matter what you do it’s still a risk in this business, but it is good to know that you are helping people. Good luck!
    • Security. Watch your parking lot. Not enough people do and it leads to trouble. People loiter, roll up and sell bud to their friends and it makes you a target

 

For more information check out our Business Plans for Dispensaries at http://theweedbusiness.com/business-plans

{ 697 comments… add one }
  • awad samhan August 22, 2012, 4:08 pm

    i live in illinois and i have a money to start a bussiness and i have a inc already open and i will like to get more info and i would do what ever it takes to start a marujana liscense so i could sell it

  • Clinton August 6, 2012, 1:38 pm

    I’m in California. I like. To help people and I was looking at opening collective I just want to know where to start

  • pumpkin July 27, 2012, 5:21 am

    Okay here my deal hopefully someone can help… I live in MA a few years ago it was decriminalized and this November dispensaries r on the ballot. IF it gets voted for and I’m confident it will be I’ll be allowed to do this. My question is are there steps and can or should take now to make the process easier and be able to open soon after it passes. Ma is very liberal and decriminalizing was a breeze but at the same time it still may not pass in which case all was done for not so I don’t want to count my chickens before they hatch but maybe there are things like paperwork or something I can get a start on if anyone can help me please do.

  • Christina July 9, 2012, 10:42 am

    This website is WAY outdated!!!! 13 states?????? Try 17 and counting. And, we have to worry about bad karma if we profit from a dispensary???? Gimme a frikken break, even the BIBLE says GOD wants you to be successful, what should we do, give it all away and sing KUMBAYA??????? Profit is not evil, its the WANT of money thats the root to all evil, money can do alot of good . Why have a site that doesnt give any real assistance, doesnt have up to date information, and condemns you for wanting to actually profit from something apparently EVERYONE ELSE IS. Ive even read ppl complaining about prices,….listen, if “street prices” are $60-90 a quarter ounce, and shop prices are higher,….spend what you want to spend for yourself, and dont worry about what others are doing. I personally spend $90/oz,….but know of a dispensary that offered $3k./ lb to buy it. Now you know they are going to have to mark it up, to stay in business. So,…where does someone get REAL answers to their questions,(?) becuz it certainly isnt here……

  • Daniel June 18, 2012, 3:32 pm

    Hello,
    I am interested in opening up a brick/mortor spot in so’cal area – please provide me with tips, equipment, etc, to start my business!

  • reece May 14, 2012, 6:17 pm

    how can i go about opening the first dispensary in florida i live in california i have my medical card but i want to open a dispens out here is it possible to do that

    • Green Ninja May 17, 2012, 9:34 pm

      You can’t unless they pass legislation! That’s the short of it.

  • austyn May 5, 2012, 10:58 pm

    thanks for the info. Whats a estimate on how munch it would cost to start? and is it a good idea to grow some in a open area? if i can afford it to save some money. even if its not going to grow as munch as i need?.please email me dog_Scape2@yahoo.com

  • elba January 19, 2012, 2:36 am

    Anyone who can give inf. to opending an dispensal email me,,,,,,,,,,,,,,,Am_able69@hotmail.com

  • elba January 19, 2012, 2:29 am

    I live in Worcester Ma,Help me ,,,,,,,,,,,,,,theres so many people that nees a dispenser in Ma,What can I do to hepl so we can open an dispenser have in Ma,,,,,,,,,,,,,I take to much med.s for my kidney ,my fryabromyagia,,,,,,,,,,,,,my cronic back pain ,I hate taking so much meds ……….but let me tell when I smoke I feel younger.I can clean my house I can walk for hr.s but when I dont smoke its so hard to do anything all sometimes I spend days in bed with pain..I been like this for ovetr 30 years,,help me help others in my conditionnnnnnnnnnn

  • maxwell January 16, 2012, 12:36 am

    Hi im from PDX Oregon, I Have My card and im my own grower.
    Oregon doesn’t have that many Dispensary’s and the few we do have are still black market prices. I want to open a nice DISPENSARY that’s different. With more reasonable pricing.

    Any advise on how to get starter.??

  • tim January 3, 2012, 2:11 pm

    Tim from new york any one with helpful info! !!! Feel free to contact L7tspence@gmail.com

  • tim January 3, 2012, 2:05 pm

    I am a new yorker,unfortunatley legislation is slow and been defeated once! Are there any preliminary steps one can take to get the hypothetical ball rolling? Store front,licensing, permits? What types of permits are needed : farming,retail, pharmaceutical? Being from New York any advice will help!!

  • Felix December 23, 2011, 11:39 pm

    I would love to get into this business. i dont know much. im 19 haha. but i’d work.

  • cindy December 3, 2011, 11:01 pm

    I live on the Oregon coast and the closest is 100 miles round trip to the nearest dispenary we have alot of elderly people. We’re thinking of opening one. But need more info,education and possibly someone to oversee it. We have a building handicapped acessable, non-profit status etc. Need HELP

  • Tdemich December 2, 2011, 3:32 am

    Ehab, im also married to a women from Ukraine and would like to do exactly what you wrote about. I live in the states and would like to find a partner to open a shop. Let me know if your interested.

    Best regards,

    Tdemich

  • Barry November 12, 2011, 6:36 pm

    I am happy to hear everyone is able to grow or purchase from dispensaries. What about the guys that can produce the every best but have been hit by the law. Nothing is better than cannabis sativa sex starved female plants….the females always win?? I would love to participate in this but a little gun shy being that I have a criminal record because of it…long story…anyway good luck everyone!! I am looking into contributing to this any way I can….

  • gomez November 9, 2011, 3:17 am

    Does any body have one near San Diego or have made one

  • Ehab November 8, 2011, 6:56 pm

    Hi, I’m a 31 yr old Sudanese father, married to a Ukranian, living now in Egypt. I was brough up in the United Arab Emirates. I want to go to the USA to plant and smoke my own cannabis and sell to the needy coz it really helps people. I have been smoking cannabis since 11. Can a Sudanese open a dispensary in the US? Please help me coz I wanna do the right thing in the right country. The Arab world didn’t understand yet the benefits of this plant. Maybe I can educate and guide the educated Arabs in the USA that it is beneficial. I want to be the first Arab to help in the legalization of this great herb. First I need the right way and that is through the USA. Please help me make this world a better place. I am not a rich guy but I hope on becoming rich through my love for cannabis and my education as a Marketing graduate. May I send you my cv so you can read it. I need help, may you guide me please? Thank you.

  • Aaron November 6, 2011, 8:30 pm

    I’m interested in getting into the business when it finally makes it to my state of Texas, any suggestions on what I should do to be ahead of the game when it dose become legal here. Ide like to do as much as passable to in advance ?

  • Aaron November 4, 2011, 6:53 pm

    If you want to open a dispensary than speak with a medical marijuana advocacy group. Americans for safe access, NORML, MPP, National Cannabis Industry association, students for sensible drug policy and the like are good places for legitimate cannabis news. Take that info and deal with reputable sources. I am the director of one in Los Angeles and I can tell you that cannabis has been legal here for 15 years and no one in LA has ever had a “license”. This is a long term battle for regulation and not for people looking to make a quick buck.

  • WULFMOON` November 2, 2011, 10:27 pm

    I am looking for some information on opening a dispernsary. I want to help our community with having a medical clinic.
    can anyone help me out and give me some information on how i can open a clinic and get my lineces for this .

  • Mr. GREEn November 1, 2011, 8:19 pm

    if you want to own a legal grow op, check this link out. http://www.thcjobs.com/jobs/owner/ and they are offering a $30,000 referral too.

  • Joel October 21, 2011, 2:48 am

    Im trying 2 open a despensary but I cant find no type of info were the marijuana despensaries get there cannabis from can anyone provide some info thanx

  • 420_man October 4, 2011, 7:53 pm

    oooooooooooooooooooh now I know how to do this………..thanks mysterious guy.

  • ARICKA KANE October 2, 2011, 12:56 pm

    I AM CURRENTLY WORKIN AT A DISPENSARY AND LEARNING THE IN AND OUTS.. OF THE BUSINESS MY BROTHER IS A GROWER A VERY GOOD 1 AT THAT WE ALSO KNO HOW TO MAKE EDIBLES HASH COLLECT KEIF I WOULD LIKE TO FIND A INVESTER.. THE DISPENSARY HAS BEEN OPEN. 1WEEK AND ABOUT 80% OF THE PATIENTS ARE OUR LOCAL FRIENDS AND FAMILY AND THEY SEEM TO BE DOIN REALLY WELL I WOULD LIKE MORE INFORMATION ON HOW WE CAN START OUR OWN WE PRETTY WOULD BE ABLE TO PROVIDE MERCHINDISE WHICH WOULD CUT THE COST OF OPENING MORE THEN 1/2 INCLUDING THE CUSTOMERS PLEASE EMAIL ME WITH ANY INFORMATION AT ARICKAKANE@GMAIL.CON

  • PhilAble August 22, 2011, 6:08 pm

    LEGAL ZOOM WONT HELP FILE ANYTHING RELATED TO MEDICAL MARIJUANA. TRY BIZFILINGS.COM

  • Chris July 24, 2011, 1:13 pm

    Adding a 7th step to the excellent ones outlined above – you’ll need a complete medical marijuana dispensary management solutions such as 420soft (see at MarijuanaTech.com)

    This can be run on your existing PC with an Internet connection and instead of paying thousands the first month is FREE and it’s just about $8.00 per day thereafter.

    There is a delivery module and complete solutions for a brick-n-mortar site.

    If you DO want the niceties such as a Touchscreen Budtender Station Bundle contact me. As your Technology Consultant I design and help implement and train your staff on it’s use.

    For Patient Intake you can use the magnetic stripe on the back of the Patient’s drivers license / ID card, swipe it through the reader and it propagates all the fields for you automatically for fast and accurate entry. It also pulls up repeat Patients this way.

    For accurate inventory management an integrated scale (I OFFER LEGAL-FOR-TRADE NTEP SCALES) send the exact weight to the PC with a press of the button. Instead of 3.5g 1/8th’s the system will record the exact weight that went out, say 3.63g, helping account for shrinkage.

    Each employee can have their own log-in and subsequent privilege (module access) and tracks and logs their time and transactions.

    Batches are easily tracked as new inventory comes in and your real-time menu can be displayed on a big screen.

    HIPAA compliance is important too, and this allows you to scan their Doctors Recommendation (or drivers license, picture, signed collective agreement, etc.,) in order to store it off-site.

    Ringing up Patients is fast and easy since the system creates barcodes and and produces a dram label (medicine container label showing strain name and weight), warning label to seal bag, itemized receipt, even a Patient Member ID barcode.

    Referral rewards and accrued points are tracked in order for you to provide promotional specials, the system will automatically send text/email to notify patient the strain on their wish list is in. Or sent a text/email blast with promotional specials bringing in more foot traffic.

    Directors, Managers, you can log in and see how your operation is doing from anywhere as you are automatically networked in via the cloud.

    Lastly, the Seed-To-Sale module has just been added so you may now also manage your grow too!

    For a complete demonstration get a hold of me, my info is at http://www.MarijuanaTech.com

    Chris – serving ALL Legal Medicinal Cannabis States.

  • Matt July 14, 2011, 8:28 pm

    Hi Guys, My Name is Matt Jacobsen and I own several dispensaries in California.

    Because I know so many want to know how to open one up but just dont know all the methods, Ive written a free newsletter with tips, tricks and advice and guide at http:www.start-a-dispensary.com

    Theres also tons of free articles there on many topics you would want to know. Connect with me there if any of you need help.

    Regards, Matt

  • Aaron June 30, 2011, 3:06 pm

    Could you please tell me the requirements you must meet before opening a dispensary, i plan on owning one

  • Patty June 5, 2011, 2:36 pm

    I have the perfect location for someone interested in growing LEGAL marijuana. It is a large 30×40 quanzite hut type building 10 miles out in the country from the nearest town.

  • adiddy May 2, 2011, 10:26 am

    interesting! might look into it further….my immediate fears would be local drug lords getting pissed that I’m moving in on their action and the threat of people wanting to rob my spot….any thoughts??

  • Thc Finder April 19, 2011, 6:12 pm

    get connected to all dispenseries and caregivers in your area! just put in zipcode! most services offer delivery! the: “Thc Finder” 🙂

  • Amy April 17, 2011, 11:50 pm

    Hi,
    I am a pretty damn skilled cook and would like to get into the market of high end edibles. Gourmet “pot” pies (savory, not sweet) and other items beyond the standard candy, cookie and brownie route. Can you tell me how I would go about doing this legally and selling to a dispensary? Thank you!

  • Brandon April 10, 2011, 9:29 pm

    I’m interested in starting a nonprofit in NM, what are the background check requirements and the nonprofit board requirements?

  • northwest alliance for the healing cure March 25, 2011, 9:44 am

    I cannot find allot of info about opening a dispencary here in washington state. i want to do it 100% legal and make sure that i have all the proper paperwork and documentations that i need. i will appreciate as much info as possible on this very delicate matter. thank you.

  • Arizona Dispensary Solutions February 17, 2011, 8:37 am

    At Arizona Dispensary Solutions, we help you get started in the medical marijuana business with comprehensive services from the initial application process to all aspects of continued growth.

  • Carmelina Rilley February 1, 2011, 9:19 am

    That’s Also nice, when it comes in india hope it could make a Rocking place for youngster.. hope that
    come accurate.

  • Michelle Ratcliff January 29, 2011, 6:39 pm

    Im am researching in this buisness to grow and sell medical marijuana. How to obtain a license in New Mexico. Please EMail Me.
    I reall want to get started!!!!

  • David Valdez January 21, 2011, 9:42 pm

    I am in New Mexico and it is very hard here for patients to get there medicine because it is to expensive and not enough quality medicine is being produced. My girlfriend and I are trying to get the government to allow a co-op of patient growers to help each other obtain medicine. If there is any way that you can help us out in this venture it would be greatly appriciated. Oh by the way the reason there is not a co-op of patient growers is because the state will not allow it.

  • greg carter January 5, 2011, 9:45 pm

    planning to open up shop in az,, just starting to cut through the tape and anyone intersted in a partnership or investment oppertunity please shoot me a line,, my email is parisnbella@gmail.com, the funding and the will i allready have but knowledge is a little lacking,,

  • Rickey January 4, 2011, 1:02 pm

    I live in Louisiana which is a bad thing in my position.Marijuana is illegal here and I need certain meds for my back but I stand a chance to loose my Dr. being able to write my prescriptions for my meds if I show up positive for thc.So I have to suffer and not have the great benefits that I get from the thc with my pain.If I could use the thc I could cut back on my other pain meds which aren’t cheap and also are very addictive.I am thinking of moving my family there and would like to start a shop to help others with there needs,for I am disabled and have only been this way for 6 mt.I need to find some way to keep my mind occupied and what better way than helping others.After selling every thing here which will take awhile,I won’t have a lot to invest but am willing to do all of the work,my wife is a very great and still working as a school teacher and if she decided to would work very well at the store in many ways,but still with all this said I would still have only a modest amount to invest which I would only be able to give to some one who would want to work with me and who I trust.I am just in a bad place rite now in life having broke my back 6 months and now finally having a Dr. saying that you or permanently disabled and will not be able to do any sort of heavy(10 lbs.)lifting,which until now in life is all I have done to survive and to support my family.When I heard the Dr. say this it was like a Mike Tyson blow to the head.I just could use some advise or some help from some one who has been where I am,that would be great.I hope to here from someone soon.

    • Green Ninja January 11, 2011, 6:27 pm

      Man I guess I would consider going to some where it is legal for a while. I’m sorry to hear about your injury. A job like growing could be done as light work.

  • JOEY January 3, 2011, 1:00 pm

    HI MY NAMES IS JOEY ..I LIVE IN GRANTS PASS OREGON .IM A PATIENT I HAVE A MEDICAL CARD AND I AM MY OWN GROWER.IS THERE A WAY YOU CAN HELP ME START A MEDICAL DISPENSARY IN MY TOWN ..WE THE PEOPLE HAVE TO DRIVE I HR OR SO TO GET TO A DISPENSARY ..I WOULD LIKE TO HELP THE PEOPLE IN MY TOWN THAT DON”T HAVE TRANSPORTATION TO GET TO A DISPENSARY FOR THEIR MEDICATION .SO IF THERE IS A WAY TO HELP ME AND THE PEOPLE IN MY TOWN ..PLEASE LET ME KNOW .THANK YOU FOR YOUR TIME ..JOEY

  • josh December 22, 2010, 9:26 am

    we did it big in colorado now its time to get started in the good old AZ

  • don December 17, 2010, 4:59 pm

    I appreciate all the help I get towards achieving my own farm/dispensary and am currently working towards this in Az.

  • mkdnetz December 12, 2010, 6:50 pm

    dude great page!
    im seriously thinking bout moving to the USA…
    I mean… its the perfect work…im talking bout this with a friend of mine…i hope we can get this started.

    thanks again 4 this page
    and feel free to mail me if u want 😉

  • nick December 3, 2010, 10:37 am

    I Wanna know how do you open a shop?

  • rickygodbolt August 1, 2010, 10:49 am

    ithankthatweedisgoodforsomesoiwoodliketohelpsomonesoemialmewrithsomegoodnew

  • Arin July 7, 2010, 5:50 pm

    How can i start my own collective? Where can i obtain any documentation needed?

    • Green Ninja July 7, 2010, 7:57 pm

      Go ask the gov’t! Seriously! They regulate it and know the most about it. Go to your county courthouse and start asking questions. Its important to check it out at the local level, especially county–sometimes they have special regulations on top of the state regulations.

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