How to Open a Cannabis Business in Massachusetts

Marijuana Laws

Important Massachusetts cannabis laws include:

• Massachusetts Medical Marijuana Initiative created a medical marijuana program and medical marijuana treatment centers (MTCs) for qualifying patients

• Section 935 CMR 500.00 covers adult use of marijuana
• Section 935 CMR 501.00 covers medical marijuana use
• Section 935 CMR 502.00 covers marijuana operations
• M.G.L. c. 94I, Medical Use of Marijuana
• M.G.L. c. 94G, Regulation of the Use and Distribution of Marijuana Not Medically Prescribed
• Social Equity Program

Customer Regulations

• Customers must be 18 years or older for medical use. If the customer is under 18, then two Massachusetts physicians must confirm the need
• Customers must be 21 years or older for recreational use
• Customers must have a government-issued current ID or passport
• Medical sales for medical marijuana require a state-issued patient permit

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:

• One ounce of cannabis – customers can only purchase one ounce a day from a store
• 5 grams of concentrate
• Six plants – customers can have up to six plants per person at home. Customers can only purchase six plants at a time and cannot exceed twelve plants for two or more individuals in one home.

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):

• Application fee: $1,500

• Annual license fee: $10,000

Retail Stores and Dispensaries:

• Application fee: $1,500
• Marijuana retailer license: $10,000

Social Consumption Establishment:

• Application fee: $1,500
• Marijuana retailer license: $10,000

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:

• Application fee: $1,500
• Annual license fee: $10,000

• Application fee: $3,500
• Annual license fee: $50,000

• Application fee: $1,500
• Annual license fee: $10,000

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

• Cannabis marketing cannot “jeopardize public health." This means no marketing or sample programs near minors or child-related businesses.
• The Cannabis Control Commission (CCC) allows the use of company brands and logos on marijuana products.
• Packaging and signs cannot use medical symbols, images of marijuana, or marijuana-related items.
• Cannabis businesses cannot use slang or everyday terms for marijuana, such as weed.
• Displays for marijuana products must be clear.

Packaging and Label Regulations

Massachusetts has many nuanced packaging and labeling laws for cannabis products. CCC regulations include:

• Required warnings about impairment, habit-forming risks, driving or operating machinery, and risks involving use while pregnant
• The 21-year-old age limit must be on all marijuana products
• Must have child-resistant packaging
• Cannot have packaging that appeals to minors
• Packaging must indicate the number of servings within it
• Must list a statement that the product is not approved by the Food and Drug Administration (FDA)

Government Agencies and Cannabis Organizations

• Cannabis Control Commission (CCC) – recreational marijuana regulations

• Bureau of Health Care Safety and Quality (BHCSQ) – medical marijuana regulations and programs
• Medical Use Marijuana Program