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.
• Submit an application. Pay fees. Prepare and submit the required documents.
• 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.

Medical Cannabis Legalization

Maine voters legalized use of medical cannabis in 1999 and have significantly expanded the program since, most recently by creating a regulated system of medical cannabis dispensaries and caregivers permitted to grow pot for clients.

Since medical cannabis sales were approved in Maine, the state’s dispensaries have been extremely limited. Only eight medical dispensaries were permitted one in each of the state’s predefined geographic areas and a new law increased this number to fourteen. The dispensaries are required to obtain permits and licenses and cultivate their own cannabis, with production caps set by the state. Much of Maine’s medical cannabis sales have been carried out by a large number of caregivers, many of whom profit by growing cannabis for patients.

The State of Maine has enacted legislation allowing to legally grow cannabis for Maine qualified patients. As a Maine licensed caregiver you are allowed by law to produce and transport up to 2.5 ounces of medical cannabis at reasonable market prices to the patient you care for every visit.

According to a new law, medical cannabis providers may now sell up to 30% of their total amount grown to other legal providers, increasing access and selection for medical cardholders.

Recreational Cannabis Legalization

Recreational cannabis was legalized on November 8, 2016, through Ballot Question 1 passed by voters. Mainers aged 21 and over are allowed to possess up to 2.5 ounces of cannabis.

Maine Cannabis Market

On June 27, 2019, new cannabis regulations (P.L. 2019, ch. 491) were approved by a state legislative committee which became effective on December 5, 2019. Maine started accepting recreational cannabis business license applications in December 2019 and recreational sales began on October 9, 2020.

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

Cannabis License Types Available in Maine

All medical and recreational cannabis licenses are issued by the Office of Cannabis Policy (OCP). All licenses are valid for one year.

Medical Cannabis:

Recreational Cannabis:

An applicant can apply for and possess multiple licenses except for the following cases:

• An applicant may not have more than 3 cultivation facility licenses.
• An applicant may not have cultivation facility licenses of a number that allows a combined total licensed area of 30,000 square feet, except when that exceedance is due to approved increases in the maximum licensed area under a tier 4 cultivation facility license.
• An applicant who is a registered caregiver or has interest in a registered medical cannabis dispensary, cultivation facility, products manufacturing facility or cannabis store, cannot apply for a testing facility license or sample collector license.

Cannabis Delivery in Maine

Both medical and recreational cannabis and cannabis products can be delivered in Maine. Medical cannabis can be delivered by dispensaries while recreational cannabis is delivered by cannabis stores. However, cannabis stores cannot sell recreational cannabis through Internet-based sales platforms or a third-party delivery service.

It is possible for Tier 1 and Tier 2 cultivation facilities as well as nursery cultivation facilities to sell immature plants and seedlings to consumers through delivery service.

Cannabis Delivery Service by State

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. Submit an application. Pay fees. Prepare and submit the required documents.

Licensing process:

1. Submit a complete application for a conditional license along with the relevant fee, an OCP-issued Individual Identification Card for each employee and a criminal history check completed by all principals.
2. Within 90 days, the OCP will approve or deny the conditional license which is valid for one year only and is non-renewable.
3. The conditional licensee must obtain local authorization within 90 days of applying for an authorization. Within 10 days of receiving an approval local authorization form, the OCP will request additional information and updated documents from the applicant.
4. Once all the additional information has been submitted, the applicant must play a relevant licensing fee. After the receipt of payment, the OCP will issue an active license.

Additional information required to be submitted for the active license includes:

• Evidence of compliance with all electrical and permitting requirements.
• Registration with the State Tax Assessor (does not apply to a sample collector or testing facility license).
• Any changes to the original application, if such have been made.
• If applying for a cultivation facility license, an updated operating and cultivation plan based on the actual premises to be licensed.
• A facility plan including the location, size and layout of the cannabis establishment.

Since 2018, Maine has allowed an income subtraction modification for IRC § 280E expenses of a medical cannabis business, and on July 26, 2023, Maine Governor Janet Mills signed into law legislation allowing state legal adult use cannabis businesses to deduct ordinary business expenses. The state-level exemption does not affect the federal taxes owed by cannabis companies.

280E Deductions

How much is a cannabis license in Maine?

5. 5. Register your business as an employer and a tax payer.
   6. Keep track of your ongoing compliance requirements.

Maine Cannabis Taxes

The state sales tax of 5.5% applies on all cannabis transactions at dispensaries and 8% on edibles specifically.

In June 2025, Governor Mills signed a new budget bill into law, raising the 10% sales tax on retail sales of adult-use cannabis to 14% which will come into effect from January 1, 2026.

The following excise taxes are imposed on a cultivation facility licensee when making sales to other licensees in the state:

• $335 per pound or fraction thereof of cannabis flower.
• $94 per pound or fraction thereof of cannabis trim.
• $1.50 per immature cannabis plant or seedling.
• $35 per mature cannabis plant.
• 30¢ per cannabis seed.

However, starting January 1, 2026, these excise taxes are reduced to the following:

• $223 per pound or fraction thereof of cannabis flower.
• $63 per pound or fraction thereof of cannabis trim.
• $1 per immature cannabis plant or seedling.
• $23 per mature cannabis plant.
• 20¢ per cannabis seed.

Cannabis Advertising Regulations in Maine

Companies can advertise provided that the advertisements:

• Are not misleading or false.
• Are not placed within 1,000 feet of the property line of a public or private school.
• Do not appeal to individuals younger than 21.
• Are not displayed where there is a high likelihood that they will be seen by individuals younger than 21.

A licensee may submit to the OCP a request for approval of any sign, advertisement or marketing materials that they intend to use. Within 30 days, the office will issue a written decision on whether the request is approved or denied.

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.

Maine Cannabis Business FAQs

Cannabis Edibles Business Plan Sample, Maine