1. Understand regulatory and legal requirements. Do market research.

Medical Cannabis Legalization

Montana legalized medical cannabis in 2004 through Initiative 148 (Montana Medical Marijuana Act). Between 2009 and 2011, the program surged in popularity and several lawmakers tried to repeal and undo it. However, Initiative 182, approved in November 2016, overruled the restrictions that lawmakers tried to impose and created a regulatory structure.

Montana Cannabis Market

Later, in 2017, Senate Bill 333 established mandatory testing, a seed-to-sale tracking (Metrc) system and imposed a 4% tax on medical cannabis. In 2019, Senate Bill 256 amended the state’s medical cannabis program by eliminating the requirement for patients to purchase cannabis from a single dispensary only.

Recreational Cannabis Legalization

On November 3, 2020, through the Constitutional Initiative 190 voters legalized the possession and use of cannabis by adults aged 21 and over. Then in 2021, House Bill 701 was signed into law, implementing and refining Initiative 190. Recreational sales began in January 2022.

2. Decide the type of cannabis business. Choose a location. Check local zoning regulations.

Cannabis License Types Available in Montana

The Montana Department of Revenue, Cannabis Control Division (CCD) is responsible for issuing licenses for both medical and recreational cannabis.

All licenses are valid for one year, except for transporter license which is valid for two years.

From January 1, 2022, to June 30, 2025, CCD could only issue cultivator, manufacturer, dispensary, testing laboratory and transporter licenses to former medical cannabis licensees that were licensed or had a pending application with the Department of Public Health and Human Services. Combined-use licenses – created specifically for Montana’s eight federally recognized tribes and/or entities majority owned by one of those tribes – were allowed to be issued to new applicants right away.

It was originally planned that new entrants into the adult-use market will wait until 2023 to apply. However, the license moratorium was extended to 2025 and then further until June 30, 2027, through Senate Bill 27 which was signed into law on May 5, 2025.

It is possible to apply and possess any combination of these licenses.

3. Develop a solid cannabis business plan. Secure financing.

A typical cannabis business plan outline includes sections such as Executive Summary, Market Overview, Sales Strategy, Operating Plan, Organizational Structure (+ Diversity Plan) and Financial Plan.

4. Prepare the required documents. Submit applications. Pay fees. Obtain the required licenses.

To obtain a cannabis license, the applicant must submit a complete application through the TransAction Portal. The application processing fee is 20% of the license fees.

Documents required to be submitted with the application include:

• Documentation of Montana residency.
• Documentation of date of birth.
• Consent to fingerprint.
• Documentation of property ownership or property owner permission.
• Business organization chart.
• Business structure form.
• Source of funding verification.
• Building inspection report.
• Fire inspection report.
• City and country approval.

More details can be found on CCD’s official website.

5. Register your business as an employer and tax payer.

6. Keep track of your ongoing compliance requirements.

Cannabis Delivery in Montana

Transporter licensees can deliver medical cannabis to registered cardholders. However, delivery of recreational cannabis is illegal.

Cannabis Delivery Service by State

Montana Cannabis Taxes

A 4% tax is imposed on sale of medical cannabis and a 20% tax is imposed on sale of recreational cannabis. Counties can also impose a local-option tax rate up to a maximum of 3% on medical, recreational, or both.

In 2017, Montana passed legislation that exempt businesses from Section 280E of the federal tax code that allows cannabis companies to deduct business expenses from their state income taxes.

Cannabis Advertising Regulations in Montana

It is prohibited in Montana to:

• Advertise cannabis through marketing directed towards location-based devices, including cellular phones, unless users opt in to receive push notifications related to cannabis.
• Use unsolicited pop-up or push-to advertising on the internet.
• Advertise on TV, radio or in print such as newspapers, magazines, flyers and mailers. However, it is allowed to use informational pamphlets at cannabis trade conferences or distribute business cards.
• Use signage that claims the products are safe. However, it is allowed to assert that the products have been tested by a licensed cannabis testing laboratory.
• Advertise on a billboard.
• Use images that will likely appeal to youth.
• Use a commercial mascot outside of, or close to, a licensed cannabis business.

Cannabis businesses must ensure that their website uses appropriate measures to verify that individuals visiting are 21 years of age or older. Cannabis business social media accounts that advertise cannabis must be private and contain a clearly visible notice on the main page stating that only individual aged 21 and over can follow the account.

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Main steps in short

• Understand regulatory and legal requirements. Do market research.
• Decide the type of cannabis business. Choose a location. Check local zoning regulations.
• Develop a solid business plan. Secure financing.
• Prepare the required documents. Submit applications. Pay fees. Obtain the required licenses.
• Register your business as an employer and a tax payer.
• Keep track of your ongoing compliance requirements.

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Cannabis Courier Business Plan Sample, Montana

Hemp/CBD business plan templates are available at hempcbdbusinessplans.com.