How Much Would It Cost to Open a Dispensary in Nevada?
An overview of the licensing, application, legal fees, and more
By Super Lawyers staff | Reviewed by Canaan Suitt, J.D. | Last updated on July 8, 2024 Featuring practical insights from contributing attorney Amanda N. ConnorUse these links to jump to different sections:
- Applying for the Right License in the Cannabis Industry
- Meeting the Application Requirements
- Protect Your Investment
In November 2016, voters in Nevada weighed in on Question 2, the state’s Initiative to Regulate and Tax Marijuana. By a margin of 54 to 46, the ballot measure passed, paving the way for the state to permit the sale and use of marijuana. Among other things, the law creates fresh commercial cannabis business opportunities.
However, if you’re looking to apply for a dispensary license, you may have to wait a while until the next application period. If you do plan to apply and become a dispensary owner, here’s what you need to know.
Applying for the Right License in the Cannabis Industry
Under Nevada marijuana law, there are four different types of marijuana business licenses available:
- A marijuana dispensary license
- A marijuana cultivation facility license
- A marijuana production facility license
- An independent testing laboratory license
- A marijuana distributor license
An applicant must have the appropriate license for their specific operations. If you are seeking a cannabis dispensary license in Nevada, it can be expensive. The fees for retail adult-use cannabis licenses are $20,000 for the initial license and $6,600 for renewal. For medical cannabis licensing, fees are $30,000 for the initial license and $5,000 for renewal. Compared to many other businesses, the application and licensing fees are especially high. Of course, these costs are only the beginning. You must also have enough capital for startup costs—including selecting and securing property for the proposed dispensary.
Meeting the Application Requirements
To obtain a marijuana dispensary license in Nevada, you must meet a number of different specific requirements. Perhaps most notable are the capital requirements. The state requires all dispensary applicants to prove that they have control of $250,000 in liquid assets for the business entity.
If an entrepreneur lacks sufficient startup capital, the dispensary license application will be denied on those grounds. Beyond paying for the application fee and the initial license, business owners must get sufficient liquid capital.
Further, as part of the dispensary application process, property for the proposed site must be obtained. The selected property should comply with all state and local regulations related to marijuana dispensaries. Notably, most property must be renovated before it can be turned into a marijuana store. This is because Nevada law requires all marijuana establishments to have secure entrances and to be built in the style of a traditional medical or pharmaceutical facility.
“The way to get involved in Nevada’s marijuana industry currently would be to purchase an already issued license because they are transferrable,” says Amanda N. Connor of Connor & Connor in Henderson. “You have to pass a criminal background check and have no excluded felony offenses within the last 10 years. And then there’s also a financial component: The company or individual has to show a minimum of $250,000 in liquid assets in a U.S. banking institution.”
Protect Your Investment
Opening and operating a marijuana business operation in Nevada is a complicated process. If you are considering making a major investment in the industry, consult with a Nevada cannabis attorney. Your business lawyer can advise you on all relevant issues related to the application and licensing process. It’s also highly recommended that you speak to an experienced attorney before purchasing any real estate to open a dispensary.
For more information on this area of law, see our overviews of cannabis law and business organizations.
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