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.
  • Final approval. Obtain the required licenses.
  • Register your business as an employer and a tax payer.
  • Keep track of your ongoing compliance requirements.
    • Cannabis Taxes
    • Cannabis Advertising Regulations

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

Research the laws and regulations governing adult-use and medical-use cannabis for more information about the regulatory requirements for obtaining a license for your cannabis business.

Maryland Cannabis Legalization

In 2014, the Maryland Legislature passed HB 881 which legalized medical cannabis and established the Maryland Medical Cannabis Commission (MMCC). On April 22, 2015, MMCC met to further consider regulations to implement the medical Cannabis law.

On November 8, 2022, Maryland voters passed a ballot referendum legalizing cannabis use for individuals 21+ on/after July 1, 2023. HB 556 and SB 516 established a new agency, the Maryland Cannabis Administration (MCA), to regulate cannabis businesses in the State. Emergency regulations were approved by the Joint Committee on Administrative, Executive, and Legislative Review (AELR) on June 23rd and took effect on July 1st, 2023 to expire on June 30th, 2024.​​​​​ The MCA’s permanent regulations are now in effect under COMAR 14.17.01-.22.

Maryland Cannabis Market

2. Decide on the type of cannabis business you want to start. Choose a location. Check local zoning regulations.

Cannabis Licenses Types available in Maryland

The following businesses shall register with the Administration in order to provide services to a cannabis licensee: (1) a transporter; (2) a security guard agency; (3) a waste disposal company; and (4) any other type of cannabis business that is authorized by the Administration to provide plant or product–touching services to cannabis licensees.

The state allows vertical integration but does not mandate it. Parties or entities who wish to operate a growing and processing facility, as well as a dispensary, must submit separate license applications for each facility. The Administration may award separate licenses for each operation.​

Cannabis Delivery in Maryland

Medical cannabis can be purchased and delivered. Adult-use cannabis businesses can also apply for a micro-dispensary license, which would enable them to run a delivery service without having a physical storefront. The first of these licenses is set to be awarded by January 1, 2024.

Medical cannabis dispensaries can deliver cannabis products to patients until July 1, 2026.

Cannabis Delivery Service by State

Cannabis Non-Storefront Business by State

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

Application requirements include a detailed  business plan demonstrating a likelihood of success and sufficient business ability and experience on the part of the applicant.

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

To apply for a Maryland adult-use cannabis growers license, you must submit an application form, pay the mandatory application fee ($5,000 for a standard grower, processor, or dispensary, or incubator space; $1,000 for a micro grower, processor, or dispensary license), and provide supporting documentation that proves you meet all the requirements.

• Documentation that the applicant meets the criteria for a social equity applicant, if applicable.
• An operational plan for the safe, secure, and effective cultivation, manufacture, or dispensing of cannabis.
• A solid cannabis business plan, including financial plan.
• A diversity plan, including objectives, timetables, and evaluation metrics that describes the steps an applicant will  take to ensure that the applicant’s business will promote the meaningful inclusion of diverse groups.

You will also need to attend an interview with a panel of experts who will assess your suitability for a license. After submitting your application, you will need to wait for the decision of the Maryland Cannabis Administration.

5. Final approval. Obtain the required licenses.

Applicants selected in the lottery will receive a conditional licensee, which is valid for 18 months beginning from the day of award of the conditional license. During the conditional license period, a business must complete a supplemental application that includes:

• Criminal history and financial background investigation on all owners and investors.
• Verifying all information provided in the application, including ownership and control.
• Identifying a physical location and demonstrating legal control of the premises.
• Passing all health, safety, and security inspections.
• Registering, if not already, with State Department of Assessment and Taxation.
• Obtaining additional funding through grants, loans, or additional investors, if applicable.

6. Register your business as an employer and a tax payer.

7. Keep track of your ongoing compliance requirements.

Physical security measures, good production practices, packaging, labelling, transport and reporting requirements, taxes and more.

Maryland Cannabis Taxes

Adult-use cannabis products are subject to a 9% sales tax. Medical cannabis is exempt from sales and excise taxes.

Cannabis businesses in Maryland are not exempt from applying rules of 280E section rule under state tax law, so the businesses cannot deduct business expenses other than cost of goods sold.

Cannabis Advertising Regulations in Maryland

“Advertisement means any publication, dissemination, or circulation of any auditory, visual, digital, oral, or written matter, which is directly or indirectly calculated to induce the sale of cannabis or any cannabis-related product or service.”

An advertisement for a cannabis licensee, cannabis product, or cannabis-related service may not be placed on the side of a building or any other publicly visible location, except for a licensed cannabis grower, processor, or dispensary which may display an advertisement for its cannabis business, cannabis product, or cannabis-related service on property owned or leased by the licensee.

A cannabis advertisement may not be placed on television, radio, internet, mobile application, social media, or other electronic communication or print publication unless at least 85% of the audience is reasonably expected to be at least 21 years old as determined by reliable and current audience composition data.

Any cannabis-related website must employ a neutral age-screening mechanism that verifies a user as at least 21 years old before the (1) user may access or view any content and (2) website may collect any personal information. Any advertisement on social media must also include a notification that an individual must be at least 21 years old to view the content.

(Title 36, Subtitle 9, Alcoholic Beverages and Cannabis Article, Annotated Code of Maryland)

Main steps in short

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

Cannabis Processing/ Flowers/ Pre-rolls/ Extraction/ Manufacturing Business Plan Sample, Maryland