How to Start a Marijuana Business in Oregon

If you're a budding entrepreneur and want to learn how to start a marijuana business in Oregon, our cannabis business guide has got you covered. Oregon is ripe with business opportunities in the medical and adult-use cannabis market.

Our Oregon cannabis business guide covers the different license types (medical and adult-use), application requirements, and licensing fees to get your business off the ground.

Medical or Adult-Use?

First, consider whether you want to open up a medical or adult-use cannabis business in Oregon. Choosing between the medical and adult-use programs will determine which state agency you have to apply with.

• Medical: Oregon Health Authority (OHA)
• Adult-use: Oregon Liquor Control Commission (OLCC)

Once you choose the program you want to work in, you will have to create an online account on the state agency’s website.

Retail Medical Purposes Registration

A recreational cannabis retailer can register with the OLCC for the sale of cannabis for medical purposes. Completing the supplemental form can allow retailers to purchase from medical wholesalers and processors and sell to medical cannabis cardholders.

A retailer must physically separate medical cannabis products from other cannabis products in storage and display.

Eligibility Reminder

You must ensure that the city or county you plan to operate your business in allows for commercial cannabis activity.

Oregon law allows cities and counties to prohibit cannabis producers, processors, wholesalers, and/or retailers in their jurisdiction.

Cannabis Business License Types

Now that you have zeroed in on the cannabis program of your choice, it's time to consider the business license type you are seeking.

Here are the available business license types in Oregon's medical and adult-use programs.

Adult-Use

• Producer
• Processor
• Wholesale
• Laboratory
• Retail
• Research

Medical

• Processor
• Dispensary

License Application Requirements

Medical

Before medical dispensaries and processors begin the application process, they must designate a Primary Person Responsible for Dispensary or Processing Site (PRD or PRP) who will be the primary point of contact for the agency.

The following information will be needed to complete the online application:

• Physical and mailing address of proposed establishment
• Name, address, phone number and email address for each PRD or PRP, owner, or individual who has a financial interest in the operation
• Valid, government-issued photo identification for PRD or PRP listed on the application
• Oregon Secretary of State business name and registration number
• All associated fees

Adult-Use

When submitting your adult-use business license application online, you will need to submit the following items along with your application:

• Business details (company name, physical and mailing address, Secretary of State number)
• Funding sources: interested parties and legal entities
• Land Use Compatibility Statement (LUCS)
• Business operating plan
• Floor plan of proposed facility
• Proof of right to occupy the premises
• Other documentation depending on license type
• All associated fees

Starting Your Cannabis Business

If you're ready to start your marijuana business in Oregon, here are the first steps:

Develop a Business Plan

1. Research: Reach out to Oregon’s professional associations and guilds to navigate through the permitting process and determine the best way to develop a business plan.
2. Setup: Refer to the state’s Startup Toolkit to determine how to register your business and get your tax numbers, as well as determine insurance requirements, permits and licensing, and other employer obligations.
3. Funding: Find financing sources to invest in your operation, which requires a high level of funding. Oregon residents and out-of-state residents can invest in cannabis businesses.

Secretary of State Business Number

All businesses in the state of Oregon must register with the Secretary of State to obtain a business number. A Secretary of State business number will be required during the application fees.

Land Use Planning & Zoning Compliance

No matter what cannabis business you plan to operate, we recommend considering the location and its eligibility as a marijuana establishment site.  contact your local planning department before you apply for license or purchase of land.

Zoning restrictions vary by license type. No adult-use marijuana licensed facility may be at the same physical location or address as a medical marijuana processing, dispensary, or grow site.

In addition, dispensaries must ensure they are 1,000 feet from a school or another dispensary.

Local Codes

Whether you plan on building a new site or retrofitting an existing one, we recommend consulting with your local county and city officials to learn all of the building codes, the best way to work with contractors, and how to obtain all required inspections.

Licensing Fees

Medical

• Processors & Dispensaries
  • $3,500 registration fee
  • $500 non-refundable application fee
  • $35 background check fee
  • $480 Cannabis Tracking System (CTS) user fee

Adult-Use

At the time of application, an applicant must pay a $250 non-refundable application fee. If the Commission approves the application and grants an annual license, the following fees must be paid, prorated for an initial license that is issued for 6 months or less:

• Producers
  • Micro Tier I: $1,000
  • Micro Tier II: $2,000
  • Tier I: $3,750
  • Tier II: $5,750
  • Medical Canopy: $100
• Processors: $4,750
• Wholesalers: $4,750
• Micro Wholesalers: $1,000
• Retailers: $4,750
• Laboratories: $4,750
• Sampling Laboratory: $2,250
• Certificate of Research: $4,750 for a 3-year term
• Hemp Certificate: $1,000 for a 1-year term

How to Start a Marijuana Business in Oregon

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