How to get a commercial grow or retail marijuana license in Colorado

How do I get a city marijuana business license?

The process of obtaining a Colorado marijuana business license varies by city, but may involve the following steps:

• Register with the city or municipality
• An intake meeting with local licensing staff
• A background check*
• Zoning approval
• A city inspection
• Obtain a state Marijuana Enforcement Division license
• Obtain a city license marijuana license

Your business is prohibited from having marijuana products on-site or from growing plants until you have obtained both a city and state license.

*Note: For confidentiality reasons, the state's background check approval cannot be used for city review and approval. Also, the city may have stricter standards for background check reviews than those required by the state MED.

How do I get a Colorado MED-regulated marijuana business license?

To obtain a Colorado state-level marijuana license your business must complete a MED Regulated Marijuana Business License Application, Finding of Suitability application, personal background check, and pay state and local fees.

Some of the requirements for the initial application may include the following:

• A copy of the local license application for a regulated marijuana business
• Certificate of Good Standing from the jurisdiction in which your business entity was formed (must be one of the states of the United States, territories of the United States, District of Columbia, or another country that authorizes the sale of marijuana)
• Registered agent: If the applicant is an entity, the identity and physical address of its registered agent in the state of Colorado
• Organizational and corporate governance documents
• Organizational chart (including the identity and ownership percentage of all chief business officers)
• Proof of possession of licensed property (ex. deed, lease)
• Fingerprints
• Facility diagrams
• Financial statements
• Tax documents

What are the types of retail and medical marijuana licenses in Colorado?

The following retail and medical marijuana license types are listed on the MED Regulated Marijuana Business License application.

• Retail Marijuana Store
• Retail Marijuana Cultivation Facility
• Retail Marijuana Testing Facility
• Retail Marijuana Business Operator
• Retail Marijuana Transporter
• Retail Marijuana Transporter No Premises
• Retail Marijuana Products Manufacturer
• Medical Marijuana Store
• Medical Marijuana Products Manufacturer
• Medical Marijuana Testing Facility
• Medical Marijuana Business Operator
• Medical Marijuana Transporter
• Medical Marijuana Transporter No Premises
• Medical Marijuana Research & Development Facility
• Medical Marijuana Cultivation Facility

What is a controlling benefit owner for a Colorado marijuana business?

A controlling benefit owner is an individual or entity that has significant ownership or control of a Colorado marijuana business. Controlling benefit owners can include natural persons, entities, trusts, and qualified investors and private funds, and they must meet one of the following criteria:

• Owns or acquires beneficial ownership (voting power) of 10 percent or more of the marijuana business;
• Is an affiliate that controls the marijuana business
• Is otherwise in a position to control the marijuana business
• A qualified institutional investor that owns or acquires beneficial ownership of 30 percent or more of the securities of a marijuana business

How much does a Colorado marijuana license cost?

Colorado marijuana license and application fees vary based on the type of operation and the number of controlling beneficial owners.

For example, let’s compare the first payment of state licensing authority fees due at application for a retail marijuana store. The initial state cost for a Level 1 (one to four controlling beneficial owners) store is $3,120*. The initial state cost for a Level 2 (five to nine controlling owners) store is $5,960*.

*Based on Colorado MED fee schedule as of December 4, 2024. This example does not reflect total fees required by both the state Department of Revenue and the local jurisdiction.

When do Colorado marijuana business licenses need to be renewed?

Colorado marijuana business licenses must be renewed after either one or two years. MED regulated marijuana business licenses are valid for one year from the date of issuance. Medical and retail marijuana transporter licenses are valid for two years from the date of issuance.

You must apply for the renewal of an existing license prior to the license’s expiration date.

What is a social equity license in Colorado?

Colorado’s Social Equity Program licenses are available to individuals who 1) haven’t owned a regulated marijuana business and had their license revoked and also 2) meet qualifying criteria, such as having been arrested or convicted of a marijuana offense.

In recognition of the effects of decades of criminal enforcement of marijuana laws on communities of color, the Colorado MED has focused on outreach and engagement resources to support diversity initiatives in the cannabis industry. One such initiative is the Social Equity Program.

A person who meets the criteria to be a social equity licensee can participate in the Accelerator Program, where an existing retail marijuana licensee hosts and offers technical and capital support to the social equity licensee. A social equity licensee can also choose to operate independently.

To qualify, check your eligibility with the MED and submit a Natural Person Finding of Suitability Application (DR 8520) before applying for a Social Equity Program marijuana business license. .

How do you form a marijuana business in Colorado?

Forming a marijuana business in Colorado is a lengthy process that requires registering your business with the Secretary of State, applying for city and state licenses, and more. Here are some of the initial tasks you may need to complete.

• Choose a business name. Corporation and LLC business names must comply with state naming rules.
• Obtain a Colorado registered agent. You must have an in-state registered agent when forming or registering your business with the Colorado Secretary of State.
• Register your LLC or corporation. File formation or registration documents with the Colorado Secretary of State
• Obtain an employer identification number (EIN). Required if you do business as an LLC or corporation, or if you have employees. Aside from taxes, you need an EIN to open a business banking account or business credit card.
• Register your trade name: If you don’t use your legal first and last name or the true name of your entity to conduct business in Colorado, you must file a trade name, aka a doing business as (DBA) name or assumed name. In Colorado, a trade name is filed with a Statement of Trade Name with the Secretary of State.
• Submit Finding of Suitability application. Suitability application is filed with Colorado MED, Department of Revenue. Fingerprints are required with the submission of applications for individuals.
• Apply for zoning use permit. Your local jurisdiction may require this to be obtained prior to applying for a local marijuana business license.
• Apply for a local marijuana business license. Review city requirements prior to starting the application process.
• Apply for a state marijuana business license. Review state requirements prior to starting the application process.
• Obtain a state sales tax license: Obtain the appropriate state tax license — either a retail marijuana sales tax license or retail marijuana excise tax license — with the Colorado Department of Revenue, Taxation Division.
• Complete labor and employment requirements: Colorado businesses are required to meet specific state and federal labor and employment requirements, including reporting new hires, workers’ compensation insurance, etc.

CT Corporation can help

Outsourcing business registration and license research, applications, management, and renewals can help you take the pressure off internal resources. By working with a full-service management provider who specializes in the efficient processing of business licenses, you can free up your time to focus on starting and growing your Colorado-based marijuana or cannabis cultivation or retail business while ensuring you keep up with changing compliance requirements.

For more information on CT Corporation services and how we can streamline your business licensing, please contact us.