How to Open a Marijuana Dispensary in Massachusetts
By FindLaw Staff | Legally reviewed by Amber Sheppard, Esq. | Last reviewed September 29, 2023
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In 2016, Massachusetts became the first state on the east coast to legalize recreational marijuana businesses. Until then, Massachusetts only allowed medical marijuana from nonprofit dispensaries known as Registered Marijuana Dispensaries (RMD). Now, the Massachusetts cannabis market is booming with recreational use marijuana business opportunities.
If you want to start a business in the cannabis industry, you have options. You can become a marijuana cultivator and grow marijuana products, or open a recreational cannabis retail store or microbusiness. You can also apply to be an RMD or even run a marijuana lab with testing capabilities.
Massachusetts' cannabis laws carefully regulate all types of marijuana establishments. The application process for a cannabis business is now open to entrepreneurs looking to create a compliant business plan.
Cannabis Business Laws You Need to Know
The Massachusetts Cannabis Control Commission (the “CCC" or “Commission") regulates the Massachusetts marijuana industry and all cannabis licenses in the state. The table below outlines the ordinances, regulations, and laws you must know before opening a cannabis dispensary in Massachusetts.
Marijuana Laws |
Important Massachusetts cannabis laws include:
|
Customer Regulations |
|
Marijuana Sale Regulations |
The state requires cannabis businesses to track all cannabis sales. There are also limits on the number of marijuana products a retail dispensary can sell to a customer in one day:
Customers cannot smoke or eat any cannabis products in the dispensary unless the business also has a Social Consumption license and permit. There are no limits on how often you visit the same dispensary in one day, so long as you do not purchase more than the prohibited amounts in one day. |
Permits and Licensing |
Before filing a license application, you should check with your local jurisdiction or municipality to make sure you can run a cannabis business in the location chosen. Next, you submit your cannabis dispensary license application via the Massachusetts Cannabis Industry Portal (MassCIP). The Commission runs MassCIP. The following license types require annual renewal. Within 90 days of submitting your license application, you will either receive a provisional license or a rejection. If approved, you pay a one-time application fee. If denied, you pay the fee again to reapply. Registered Marijuana Dispensary (RMD):
Retail Stores and Dispensaries:
Social Consumption Establishment:
Cultivation Businesses: The application and license fees depend on the size of the facility and whether it is indoor or outdoor. The Commission provides a list of these fees. Marijuana Product Manufacturer:
|
Taxes |
Register with MassTaxConnect to file tax returns and pay taxes on the sale of adult-use marijuana. |
Local Market Competition |
Dispensaries are opening quickly in Massachusetts. The state government can cap the number of new licenses at any time. Move quickly to create your business before the government pauses the application process. You may also consider home delivery of medicinal marijuana products to give your business an edge. Dispensaries can be very profitable once they are up and running. Estimates show most dispensaries make upwards of $50,000 and can have profits in the millions over time. You can see the number of local dispensaries by county on the Cannabis Control Commission map. |
Cost to Open a Dispensary in Massachusetts |
Cannabis startup costs will vary according to location. With a commercial lease agreement, employee costs, and licensing fees, expect to need hundreds of thousands of dollars at a minimum. Some cannabis businesses have startup costs in the millions. |
Transporting Marijuana Across State Lines |
Whether you can legally transport marijuana across state lines depends on the state. Massachusetts does not recommend traveling across state lines with Massachusetts-purchased cannabis. See FindLaw's article Transporting Marijuana: Laws and Regulations for more information. |
Advertising Regulations |
|
Packaging and Label Regulations |
Massachusetts has many nuanced packaging and labeling laws for cannabis products. CCC regulations include:
|
Government Agencies and Cannabis Organizations |
|
Note: While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
What are the Steps Needed to Open a Dispensary?
Follow the steps below to prepare for the application process:
- Understand the laws and regulations for your county or city
- Create a business plan for your cannabis business
- Seek finances and investors for your company – this is often heavily regulated
- Determine company partners
- Determine company structure
- Apply for proper licenses and registration
- Apply for an RMD registration
- Learn more about the full RMD application process
- Pay for license fees and background checks
- Select the building or location
- Hire your operations team and employees – everyone must pass a background check
- Contract with cultivators or manufacturers for products, or apply for a license to grow them yourself
- Open your doors to the public
This process is lengthy and requires nuanced documentation and steps along the way. An attorney can help you avoid common mistakes and get your dispensary doors opened as soon as possible.
Related Resources
Learn About Marijuana Dispensary Compliance
Find a Cannabis Attorney to Review Your Business Plan
If you are unsure which marijuana business is right for you or have compliance questions about the process, a business attorney may be the right solution for you. An attorney can advise you as you work to open your dispensary doors.In 2016, Massachusetts became the first state on the east coast to legalize recreational marijuana businesses. Until then, Massachusetts only allowed medical marijuana from nonprofit dispensaries known as Registered Marijuana Dispensaries (RMD). Now, the Massachusetts cannabis market is booming with recreational use marijuana business opportunities.
If you want to start a business in the cannabis industry, you have options. You can become a marijuana cultivator and grow marijuana products, or open a recreational cannabis retail store or microbusiness. You can also apply to be an RMD or even run a marijuana lab with testing capabilities.
Massachusetts' cannabis laws carefully regulate all types of marijuana establishments. The application process for a cannabis business is now open to entrepreneurs looking to create a compliant business plan.
Cannabis Business Laws You Need to Know
The Massachusetts Cannabis Control Commission (the “CCC" or “Commission") regulates the Massachusetts marijuana industry and all cannabis licenses in the state. The table below outlines the ordinances, regulations, and laws you must know before opening a cannabis dispensary in Massachusetts.
Marijuana Laws |
Important Massachusetts cannabis laws include:
|
Customer Regulations |
|
Marijuana Sale Regulations |
The state requires cannabis businesses to track all cannabis sales. There are also limits on the number of marijuana products a retail dispensary can sell to a customer in one day:
Customers cannot smoke or eat any cannabis products in the dispensary unless the business also has a Social Consumption license and permit. There are no limits on how often you visit the same dispensary in one day, so long as you do not purchase more than the prohibited amounts in one day. |
Permits and Licensing |
Before filing a license application, you should check with your local jurisdiction or municipality to make sure you can run a cannabis business in the location chosen. Next, you submit your cannabis dispensary license application via the Massachusetts Cannabis Industry Portal (MassCIP). The Commission runs MassCIP. The following license types require annual renewal. Within 90 days of submitting your license application, you will either receive a provisional license or a rejection. If approved, you pay a one-time application fee. If denied, you pay the fee again to reapply. Registered Marijuana Dispensary (RMD):
Retail Stores and Dispensaries:
Social Consumption Establishment:
Cultivation Businesses: The application and license fees depend on the size of the facility and whether it is indoor or outdoor. The Commission provides a list of these fees. Marijuana Product Manufacturer:
|
Taxes |
Register with MassTaxConnect to file tax returns and pay taxes on the sale of adult-use marijuana. |
Local Market Competition |
Dispensaries are opening quickly in Massachusetts. The state government can cap the number of new licenses at any time. Move quickly to create your business before the government pauses the application process. You may also consider home delivery of medicinal marijuana products to give your business an edge. Dispensaries can be very profitable once they are up and running. Estimates show most dispensaries make upwards of $50,000 and can have profits in the millions over time. You can see the number of local dispensaries by county on the Cannabis Control Commission map. |
Cost to Open a Dispensary in Massachusetts |
Cannabis startup costs will vary according to location. With a commercial lease agreement, employee costs, and licensing fees, expect to need hundreds of thousands of dollars at a minimum. Some cannabis businesses have startup costs in the millions. |
Transporting Marijuana Across State Lines |
Whether you can legally transport marijuana across state lines depends on the state. Massachusetts does not recommend traveling across state lines with Massachusetts-purchased cannabis. See FindLaw's article Transporting Marijuana: Laws and Regulations for more information. |
Advertising Regulations |
|
Packaging and Label Regulations |
Massachusetts has many nuanced packaging and labeling laws for cannabis products. CCC regulations include:
|
Government Agencies and Cannabis Organizations |
|
Note: While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
What are the Steps Needed to Open a Dispensary?
Follow the steps below to prepare for the application process:
- Understand the laws and regulations for your county or city
- Create a business plan for your cannabis business
- Seek finances and investors for your company – this is often heavily regulated
- Determine company partners
- Determine company structure
- Apply for proper licenses and registration
- Apply for an RMD registration
- Learn more about the full RMD application process
- Pay for license fees and background checks
- Select the building or location
- Hire your operations team and employees – everyone must pass a background check
- Contract with cultivators or manufacturers for products, or apply for a license to grow them yourself
- Open your doors to the public
This process is lengthy and requires nuanced documentation and steps along the way. An attorney can help you avoid common mistakes and get your dispensary doors opened as soon as possible.
Related Resources
Learn About Marijuana Dispensary Compliance
Find a Cannabis Attorney to Review Your Business Plan
If you are unsure which marijuana business is right for you or have compliance questions about the process, a business attorney may be the right solution for you. An attorney can advise you as you work to open your dispensary doors.