Start Your Cannabis Business in Minnesota
The Minnesota cannabis market is projected to be a multi-billion dollar industry. Whether you're a social equity applicant or a seasoned entrepreneur, here's how to get started.
Choose Your License Type
The Office of Cannabis Management (OCM) offers various licenses tailored to different business models.
Cannabis Microbusiness
The most popular "all-in-one" license. Allows cultivation, manufacturing, and retail at a smaller scale.
Cannabis Retailer
Standard storefront license for selling adult-use products. Most competitive license type.
Cannabis Delivery
Allows businesses to deliver products directly to consumers. Lower overhead than retail.
Social Equity:
Leveling the Playing Field
Minnesota law prioritizes applicants who have been disproportionately affected by past cannabis prohibition. Social equity status grants priority in licensing lotteries and lowers application fees.
- Prior cannabis-related conviction (or immediate family)
- Military veterans or active National Guard members
- Residents of disproportionately impacted zip codes
- Small-scale farm operators (3+ years)
The Application Process
Social Equity Verification
Status: Annual Windows
Gather your documents to prove eligibility before the application window opens.
Zoning & Security Planning
Identify potential locations and ensure they meet local buffer zone requirements (schools, parks, etc.).
Submit Application
Complete the OCM application portal requirements, including standard operating procedures (SOPs).
Critical Startup Hurdles
Understanding the challenges before you invest
Banking
Most major banks won't work with cannabis businesses. You'll need specialized credit unions.
Zoning
Local municipalities can limit the number of dispensaries and set strict buffer zones.
280E Tax
Federal law prevents many normal business deductions. Expect higher effective tax rates.
Compliance
Seed-to-sale tracking and surveillance requirements are rigorous and expensive.
Need Help Launching?
Once you secure your license, the battle for customers begins. We provide high-impact local SEO, web design, and retention marketing for licensed MN cannabis businesses.
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