Minnesota Cannabis Microbusiness License
Start small, grow big. The microbusiness license is Minnesota's entry point for entrepreneurs to cultivate, manufacture, and sell cannabis under one license.
What is a Cannabis Microbusiness?
A microbusiness is a vertically integrated cannabis license designed for small operators. Unlike separate cultivation, manufacturing, and retail licenses, a microbusiness allows you to do all three under one license with reduced fees and smaller scale requirements.
Cultivate
Grow your own cannabis
Manufacture
Create products
Sell
Retail to customers
License Type Comparison
Microbusiness
Vertically integrated small operator
Activities:
- Limited cultivation
- Manufacturing
- Retail sales
Mezzobusiness
Mid-size integrated operation
Activities:
- Larger cultivation limits
- Manufacturing
- Retail sales
- Delivery
Cultivator
Growing cannabis only
Activities:
- Cultivation
- Wholesale to processors
Retailer
Selling cannabis products
Activities:
- Retail sales
- Can add delivery
Application Process
Research & Planning
Understand requirements, secure funding, identify location
- Review OCM requirements
- Create business plan
- Secure startup capital
- Research local zoning
Local Approval
Get municipal or county approval before state application
- Check local opt-in status
- Meet zoning requirements
- Apply for local permits
- Community engagement
State Application
Submit comprehensive application to OCM
- Complete application forms
- Pay application fees
- Submit background checks
- Provide operating plans
Review & Approval
OCM reviews application and conducts inspections
- Respond to OCM inquiries
- Complete facility buildout
- Pass pre-opening inspection
- Receive license
Launch Operations
Begin cultivation, processing, and/or sales
- Activate license
- Begin operations
- Comply with seed-to-sale tracking
- Maintain compliance
Estimated Costs
Microbusiness Startup Cost Estimates
Costs vary significantly based on location, scale, and buildout needs
Application & Licensing
- Application fee$1,000 - $5,000
- Annual license fee$5,000 - $20,000
- Background checks$200 - $500
Facility & Equipment
- Facility build-out$50,000 - $200,000
- Growing equipment$20,000 - $75,000
- Security system$10,000 - $30,000
- POS & tracking software$5,000 - $15,000
Operations
- Initial inventory/genetics$5,000 - $20,000
- Working capital (6 months)$50,000 - $150,000
- Insurance$5,000 - $20,000/year
- Professional services$10,000 - $30,000
* Social equity applicants may qualify for fee reductions and financing assistance
Social Equity Provisions
Minnesota's cannabis law prioritizes applicants from communities disproportionately affected by cannabis prohibition.
Who May Qualify
- Prior cannabis convictions (eligible for expungement)
- Residents of disproportionately impacted areas
- Veterans
- Farmers with less than $1M gross revenue
Benefits
- Reduced application and license fees
- Priority in license lottery
- Technical assistance programs
- Access to low-interest loans
Important Considerations
- Local opt-out: Many Minnesota cities have opted out of allowing cannabis businesses. Verify your target location allows cannabis retail.
- Banking challenges: Most banks won't work with cannabis businesses due to federal law. Plan for cash-heavy operations or cannabis-friendly credit unions.
- 280E tax rules: Federal tax code limits deductions for cannabis businesses. Consult a cannabis-specialized accountant.
- Insurance difficulties: Cannabis business insurance is limited and expensive. Budget accordingly.
Frequently Asked Questions About Microbusiness Licenses
Official Resources
Ready to Start Your Cannabis Business?
Explore our guides and resources to help you navigate Minnesota's cannabis licensing process.