{"id":286776,"date":"2019-10-17T09:58:46","date_gmt":"2019-10-17T14:58:46","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/cannabis-law\/starting-a-cannabis-business\/how-to-open-a-marijuana-dispensary-in-colorado.html"},"modified":"2023-09-29T12:55:28","modified_gmt":"2023-09-29T17:55:28","slug":"how-to-open-a-marijuana-dispensary-in-colorado","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/cannabis-law\/starting-a-cannabis-business\/how-to-open-a-marijuana-dispensary-in-colorado.html","title":{"rendered":"How to Open a Marijuana Dispensary in Colorado"},"content":{"rendered":"\n
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How to Open a Marijuana Dispensary in Colorado<\/h1>\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Amber Sheppard, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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Key Takeaways<\/h2>\n

Even though marijuana is illegal at the federal level, cannabis businesses must pay income tax on profits. The Internal Revenue Service<\/a> specifies that no cannabis business can have a deduction or credit for any amount. As a result, the effective tax rate for marijuana businesses can be quite high. One positive is that cannabis businesses are not subject to any federal excise tax.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n

It’s been over ten years since Colorado legalized adult-use recreational cannabis. As a result, Colorado’s cannabis industry is well established. Starting a cannabis dispensary business in Colorado is, in some respects, just like starting any other business. However, there are some key differences.<\/p>\r\n

Even though recreational marijuana and medical marijuana are legal in Colorado, marijuana is still illegal at the federal level. This article looks at starting a marijuana dispensary in Colorado and the legal roadblocks and hurdles that cannabis business owners may face while doing so.<\/p>\r\n

Choosing a Name for Your Marijuana Dispensary<\/h2>\r\n

One of the first considerations of any business is selecting a name<\/a>. Once you choose a name, you should go to the Colorado Secretary of State’s<\/a> website to see if it is available.<\/p>\r\n

Colorado allows a marijuana business to register a trade name and a trademark at the state level. This prevents competitors within Colorado from copying your company name or the names of your company’s cannabis products. However, you cannot register your trademark at the federal level. Federal law prohibits the U.S. Patent and Trademark Office<\/a> from registering trademarks for marijuana businesses.<\/p>\r\n

State and Federal Taxation<\/h2>\r\n

In general, paying state taxes on your Colorado marijuana business is not an issue. However, paying federal income tax is another matter.<\/p>\r\n

Location of Your Marijuana Dispensary<\/h2>\r\n

In choosing the location of your marijuana business, you will have to comply with local county and city zoning restrictions and requirements. Colorado allows local jurisdictions to impose restrictions on the time, place, manner, and number of marijuana businesses.<\/p>\r\n

Colorado Marijuana Dispensary Laws<\/h2>\r\n

Marijuana businesses are highly regulated. The Marijuana Enforcement Division<\/a> is the Colorado marijuana industry’s licensing authority. A number of permit and marijuana business license application requirements exist.<\/p>\r\n

A plain-language summary is below in a table format for your easy reference.<\/p>\r\n

What are the Relevant Statutes? State Regulations<\/p>\r\n