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Trimming Cannabis

Our guide on how to start a marijuana business in Michigan breaks down each step of the state’s application process to start a medical or adult-use establishment.

Michigan does not limit the number of cannabis establishments that can be licensed. However, a county or municipality may set their own rules and regulations.

Industry Snapshot: Michigan

Michigan allows for the sale, production, and use of medical and adult-use marijuana. Medical cannabis became legal in 2008. Recreational cannabis became legal in 2018.

During the first 24 months of the adult-use program, only licensed medical marijuana operators could apply. Starting March 2021, the state removed this eligibility requirement.

If you want to get a cannabis establishment license for either program, you must apply with the state’s Marijuana Regulatory Agency (MRA), part of the Department of Licensing and Regulatory Affairs (LARA).

Business License Types

Medical

  • Grower Class A: Up to 500 plants
  • Grower Class B: Up to 1,000 plants
  • Grower Class C: Up to 1,500 plants
  • Processor
  • Provisioning Center
  • Safety Compliance Facility
  • Secure Transporter

Adult-Use

  • Class A Marijuana Grower: Up to 100 plants
  • Class B Marijuana Grower: Up to 500 plants
  • Class C Marijuana Grower: Up to 2,000 plants
  • Designated Consumption Establishment
  • Marijuana Event Organizer
  • Marijuana Microbusiness: Authorized to sell, process, and grow up to 150 cannabis plants
  • Marijuana Processor
  • Marijuana Retailer
  • Marijuana Safety Compliance Facility
  • Marijuana Secure Transporter
  • Marijuana Event Organizer

Licensing Application Process

Medical and adult-use business licensing can be completed online or through a paper application. If completed online, applicants must register and create an Accela user account. The application process involves two main steps.

Step 1: Prequalification Application

The main applicant and each supplemental applicant will need to submit pre-qualification applications. This process involves background checks of all applicants.

If you qualify as a member of a disproportionately impacted community and want to participate in the Social Equity Program, you must apply with the Social Equity Program before submitting a pre-qualification application.

Main applicants must submit a non-refundable $6,000 application fee. The fee does not apply to supplemental applicants.

Supplemental applicants vary depending on the business structure.

Prequalification status is valid for two years. The applicant has within two years to complete the Step 2 application.

Prequalification will require the following items and supporting documents:

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  • Demographic information
  • Attestations
  • Disclosures
  • Copy of governing documents
  • Certificate of good standing
  • Approval to conduct business transactions in Michigan (if applicable)
  • Certificate of assumed name (if applicable)
  • Summary of facts and circumstances concerning a license denial, restriction, revocation, suspension, or nonrenewable (if applicable)
  • Copy of notice of tax liability due (if applicable)
  • Copy of litigation documentation (if applicable)
  • Copy of organizational structure

Step 2: Establishment License Application

During step 2, the main applicant submits the establishment license application for all of the types of licenses they are applying for. During this step, the MRA will look over the proposed marijuana establishment application.

The MRA review includes but is not limited to proof of financial responsibility, business specifications, municipality information, and general employee information.

In addition, the location of the establishment must pass an inspection by the MRA within 60 days of applying.

Class A, B, C, and excess marijuana growers, as well as marijuana processors, designated consumption establishments, and marijuana microbusiness must pass a Bureau of Fire Services (BFS) plan review.

All establishments, except temporary marijuana events and marijuana event organizers, must pass a BFS inspection within 60 days of submitting a complete application.

Note: The MRA must approve or deny an application within 90 days for adult-use or 180 days for medical business application upon receiving a complete application and fee.

Adult-Use Licensing Fees

State License Type Initial Licensing Fee
Class A Marijuana Grower $4,000
Class B Marijuana Grower $8,000
Class C Marijuana Grower $40,000
Excess Marijuana Grower $40,000
Marijuana Microbusiness $8,000
Marijuana Processor $40,000
Marijuana Retailer $25,000
Marijuana Secure Transporter $25,000
Marijuana Safety Compliance Facility $25,000
Marijuana Event Organizer $1,000
Temporary Marijuana Event See Rule 26 in the Marihuana Licenses Rule Set
Designated Consumption Establishment $1,000

Medical Marijuana Licensing Fees

Medical marijuana applicants (except for safety compliance facilities) must pay the fee for an annual regulatory assessment set annually.

For the Fiscal Year 2021 (starting Oct. 1, 2020, and ending Sept. 30, 2021), the licensing fees are as follows (reduced from the previous fiscal year):

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License Type Licensing Fee
Grower Class A $7,000
Grower Class B $14,000
Grower Class C $21,000
Processor $21,000
Provisioning Center $13,125
Secure Transporter $13,125
Safety Compliance Facility No fee

 

 How to Start a Marijuana Business in Michigan More Info

Learning how to start a marijuana business in Michigan can be overwhelming. There are many steps to follow. 

Enroll in Cannabis Training University’s marijuana business training program to learn more on how to start a weed business from scratch.

Start your cannabis business today!

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