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

Research the laws and regulations governing adult-use or medical-use cannabis for more information about the regulatory requirements for licensure in the city or town you wish to operate.

Missouri Cannabis Legalization

Missouri became the 32nd state in the country to legalize medical cannabis in 2018 and the 21st state to legalize adult-use cannabis in 2022. Medical cannabis sales first began in 2020, which was 23 months after the law originally passed. The first licensed sales of recreational cannabis occurred on February 3, 2023.

The Department of Health and Senior Services (Department) is responsible to release applications, issue licenses, and develop regulations. The Division of Cannabis Regulation was formed in November 2022 following the passage of Amendment 3, which amended Missouri’s constitution to include adult-use cannabis laws within Article XIV. Amendment 3 entrusted the Department with regulating adult use of cannabis for those ages 21 and up in Missouri just as it led the state’s medical marijuana program since its 2018 inception.

Missouri Cannabis Market

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

Cannabis Licenses Types Available in Missouri

A fee schedule is provided by the Department. The new application fee is paid at the time of first application for a license or certification. An annual fee is paid 30 days after a license or certification is issued and then annually on the same date. For microbusinesses, the first annual fee will be due on the anniversary of their licensure. A renewal fee must be paid every third year, between 90 and 30 days before the expiration of a license or certification.

After adult-use cannabis was legalized in Missouri, licensed cultivation, dispensary or manufacturing facilities for medical cannabis were able to apply for a conversion to a “comprehensive” license for a fee of $2,000 which allows to perform activities with both medical and adult-use cannabis.

Activities that can be performed by each licensee are outlined in a document from the Department and briefly summarized below.

Cannabis Delivery in Missouri

After Missouri voters approved Amendment 3 on November 8, 2022, legalizing the recreational use of cannabis for adults 21 and older, both medical and recreational cannabis may be delivered. Cannabis can be delivered to consumers, qualifying patients and primary caregivers by licensed dispensary facilities and transportation facilities.

Cannabis Delivery Service by State

Cannabis Courier Service by State

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

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

Applications for all medical and marijuana facility licenses or certifications are submitted electronically through a department-provided, web-based application system. An applicant shall provide information in a form and manner as prescribed by regulations, which may include, but is not limited to the following:

• Name and address of the designated contact for the applicant entity;
• Legal name of the applicant entity, including fictitious business names;
• All owners of the applicant entity, with ownership percentage, and a visual representation of the facility’s ownership structure;
• Proposed address of the facility with 1. An attestation that the proposed facility location complies with the facility location requirements of this chapter; 2. An attestation that the proposed facility location complies with any facility location requirements of the local government; and 3. A copy of, and a hyperlink to, all local government requirements for facility location, such as zoning requirements, if applicable. Applicable sections shall be highlighted in the copy of the regulations;
• Proposed blueprints that outline the entire facility and feature all rooms and areas clearly labeled, including purpose and square footage, camera locations, limited access areas, and access permissions;
• For facilities that will be cultivating marijuana, the cultivation practices(s) (indoor, outdoor, or greenhouse) used by the facility, and, if using a combination of practices, the ratio of cultivation space limits for each cultivation practice, as provided in the cultivation section of this chapter;
• For each comprehensive facility applicant, the application shall include a business plan that explains how the applicant would serve both the medical and adult-use markets, while maintaining adequate supply at a reasonable cost to qualifying patients, and a plan to promote and encourage participation in the regulated marijuana industry by people from communities that have been disproportionately impacted by marijuana prohibition.

5. Obtain the required licenses. Pass inspection.

The issuance of a facility license or certification does not authorize the facility licensee to begin activities related to marijuana authorized by the license. A facility licensee will be granted final approval to operate upon passing a commencement inspection.

A facility license or certification shall be valid for 3 years from its date of issuance.

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.

Renewal requests must be submitted in a department-provided, web-based application system at least 30 days, but no sooner than 90 days, prior to expiration.

Missouri Cannabis Taxes

• The state tax rate for medical marijuana purchases is 4% and there is no authority for an extra local tax.
• The state tax rate for adult-use marijuana purchases is 6% and local governments may impose an additional sales tax of up to 3%.

The ability for Missouri cannabis businesses to deduct expenses at the state level was made possible by the passage of Amendment 3 in November 2022, which legalized adult-use marijuana and included provisions to decouple from the federal 280E regulations.

Cannabis Advertising Regulations in Missouri

(A) “Advertisement” means any dissemination of information by print, audio, or video means, whether through the media or otherwise, including but not limited to billboards, radio, television, motion pictures, newspapers, internet, email, texting, website, mobile applications, magazines or similar publications or other printed or graphic matter, or any electronic means, except that the term shall not include:

• Any packaging or label affixed to packaging of marijuana product; and
• Any editorial in any periodical or publication or newspaper for the preparation or publication of which no money or other valuable consideration is paid or promised, directly or indirectly, by or on behalf of any entity subject to these regulations.

(B) Prior to use, all marijuana product designs, packaging designs, and label designs must be submitted to the Department.

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. Pass inspection.
• Register your business as an employer and a tax payer.
• Keep track of your ongoing compliance requirements.

Cannabis Microbusiness Retail Business Plan Sample, Missouri