How do I open a marijuana dispensary in Nevada?

While Nevada approved the legalization of medical marijuana over fifteen years ago, the Legislature only recently created the legal process for marijuana patients to purchase their medicine. This process is probably the most the highly regulated industry in Nevada.

There are four types of Medical Marijuana Businesses:

Dispensaries: As per NRS 453A.115, (Nevada Revised Statutes) a business that is registered with the Division and acquires, possesses, delivers, transfers, transports, supplies, sells or dispenses marijuana or related supplies and educational materials to the holder of a valid registry identification card.

Cultivation Facilities: As per NRS 453A.056, a business that is registered with the Division, and acquires, possesses, cultivates, delivers, transfers, transports, supplies or sells marijuana and related supplies to a medical marijuana dispensaries; facilities for the production of edible marijuana products or marijuana-infused products; or other cultivation facilities.

Production of Edible Marijuana or Marijuana Infused Products: As per NRS 453A.105, a business that is registered with the Division pursuant to NRS 453A.322, and acquires, possesses, manufactures, delivers, transfers, transports, supplies, or sells edible marijuana products or marijuana infused products to medical marijuana dispensaries.

Independent Testing Laboratories: As per NRS 453A.107, a business that is registered with the Division to test marijuana, edible marijuana products and marijuana- infused products. Such an independent testing laboratory must be able to determine accurately, with respect to marijuana, edible marijuana products and marijuana-infused products, the concentration therein of THC and cannabidiol, the presence and identification of molds and fungus, and the presence and concentration of fertilizers and other nutrients

Obviously these laws are confusing, products grown and produced in Nevada must be tested at a licensed Nevada facility and are subjected to some of the harshest standards in the world.

In addition to Nevada’s complicated licensing process, depending on the type of facility you are looking to open, the number licenses is also an issue. The Nevada Legislature limited the number of dispensary licenses that could be granted, but the number of cultivation, production and testing facilities was left unlimited. However, the state application period was limited to ten days per year and is subject to the discretion of the State of Nevada authorities.

There are also significant application fees at $5,000.00 for any license type. Moreover, you must prove that you have at least $250,000.00 in liquid assets for startup capital, proof that you own the property where you plan to open your business, or that you have permission from the landlord to operate a marijuana facility on the property and must perform background checks on all potential owners and employees. Only after you’ve received approval from all state and local authorities, can you begin operating your business but you are always subjected to continuing inspections and audits.

You will need an experienced lawyer with all of this. At LawTrades, the attorneys on our marketplace are experienced in working with entrepreneurs who want to specialize in this new industry. We offer transparent flat-fee pricing and a satisfaction guarantee. Visit our website to get the legal guidance you need. Good luck!