Since 2016, California has legalized cannabis for both medical and recreational use. To cultivate and sell cannabis in the state, you must, among other things, obtain a cultivation license. Depending on the type of license and the size of the grow operation, California cultivation license prices vary.
A cultivation license can cost anywhere from $1350 to $78,000, according to the Bureau of Cannabis Control (BCC). Depending on the size of the operation, different license fees apply, with smaller grow operations paying less than larger ones. A Type 1C license, for example, will cost $1350 for outdoor cultivation of less than 5,000 square feet, while a Type 5B license, for indoor cultivation of more than 22,000 square feet, will cost $78,000.
In addition to the cultivation license, other permits are needed in California to run a cannabis business. Transporting cannabis goods from the cultivators to the retailers requires a distribution license. A distribution license is priced at $1,000 per year.
Moving on to Virginia, the state just approved medicinal cannabis, but it has not yet issued any licenses for establishments that cultivate or operate dispensaries. Currently, the licensure procedure is managed by the Virginia Board of Pharmacy. The Board has said that it will provide up to five licenses for dispensaries and up to five licenses for medical cannabis processing and production facilities.
Virginia’s licensing procedure is still in progress, but even though the state has not officially disclosed the costs, it is anticipated that the cost of starting a dispensary will be significant. A dispensary in Virginia is expected to cost between $250,000 and $1 million to open.
Last but not least, selling edibles is prohibited in Virginia. Only cannabis oils, capsules, sprays, and tinctures may be sold under the state’s medical marijuana program, and they must be packaged in a way that makes tampering obvious. Patients are not allowed to smoke cannabis and cannot consume edibles.
Conclusion: Depending on the scale of the company, obtaining a cultivation license in California is an expensive process with fees ranging from $1350 to $78,000. It is anticipated that creating a dispensary in Virginia will be expensive, with costs ranging from $250,000 to $1 million. Additionally, only a limited number of items may be sold under Virginia’s medicinal cannabis program, and edibles are not allowed.