Montana Cannabis Consultant Overview:

How To Open A Marijuana Business in Montana

Are you interested in starting a cannabis business in Montana? The cannabis consultants at New Leaf can help you navigate the process!

This summary of Montana requirements and license application process outlines what it takes to win a marijuana business license. Get started today to meet the demands of consumers! Schedule a free consultation with one of our knowledgeable cannabis consultants in Montana.

Montana Cannabis Consulting & License Application Writing Experts

New Leaf Cannabis Consulting is the #1 Top Rated Cannabis Application Writing, Consulting, and Capital Fundraising one-stop-shop in the U.S. We offer a complete range of services from business model formation and planning, to state licensure, to raising capital and finding investors for the business.

New Leaf has worked with over 180 clients in over 16 different states since we opened our doors in 2015. Our success rate is well over 95% across the board. We offer more services than any of our competition.

If you need cash for your cannabis startup, and/or state and municipal license approval for a completely reasonable price, look no further than New Leaf Cannabis Consulting.

Cannabis Market Condition Overview

Business Climate and Timeline

In 2020, voters approved I-190 legalizing recreational cannabis. The Montana state legislature passed House Bill 701 in April 2021. Under HB 701, the “Montana Marijuana Regulation and Taxation Act” became effective on January 1, 2022. As of January 1, 2022, medical and adult use marijuana is legal to purchase in the state of Montana by individuals 21 and over.

Summary of Montana Marijuana Laws

  • Dispensaries in Montana are required to track inventory, transfers, and sales in Metrc.
  • Medical marijuana delivery is allowed in Montana.
    Registered medical marijuana cardholders can purchase and possess up to one ounce of marijuana flower, or its equivalents.
  • Consumers 21 and older can purchase and possess up to one ounce of usable marijuana. Not more than 8 grams may be in a concentrated form and not more than 800 milligrams of THC may be in edible marijuana products.
  • Medical marijuana purchases are taxed at 4% of retail sales. Recreational purchases are taxed at 20% of retail sales. Local jurisdictions can add an additional tax of no more than 3%.

Real Estate & Zoning

In most states, you will need to lock down the location for business operations in the form of either a lease, lease with option to purchase, or a purchase agreement.

Most importantly, during the real estate acquisition process, your company MUST make sure that the actual location COMPLETELY adheres to state and municipal regulations regarding distance restrictions from other businesses such as a daycare or school. An example of this would be Dispensary/Retail. Most times you will not be able to locate your dispensary in a section of the city which is not zoned specifically for retail. Your dispensary location cannot be located anywhere else. Check with the Montana Cannabis Control Division for locality resolutions and ordinances.

Usually the next step is Municipal/City/Township Approval. Nine times out of ten, these steps will need to take place before the full license application can be completed and submitted.

Need assistance getting a Montana cannabis business license?  Schedule a Free Consultation

Montana Cannabis License Types

Montana is offering six primary types of adult-use cannabis licenses. There is no requirement to have multiple license types. Dispensaries may purchase marijuana or marijuana products from other licensed businesses.

  • Manufacturer Licenses
  • Cultivator Licenses
  • Dispensary Licenses
  • Transporter Licenses
  • Testing Lab Licenses
  • Combined-Use Licenses

Cultivator Licenses

Montana Cultivation licenses allow a licensee to cultivate marijuana for either adult use or medical. To allow for increasing amounts of cultivation space, licenses are issued according to a tiered canopy system.

  • Applications for new cultivation business will be available starting 7/1/2025.
  • Cultivators can apply to increase their tier by one tier in conjunction with their regular renewal by demonstrating compliance with 16-12-223 (1)(e), MCA.
  • All new cultivation sites are required to be indoor only.
  • Cultivators may sell the marijuana they cultivate to other businesses or at their own licensed dispensary.
  • All licensed marijuana facilities are subject to inspection by CCD inspectors.
  • Businesses may have multiple license types including Cultivator, Manufacturer, Dispensary, and Transporter. There is no requirement to have multiple license types.
  • Cultivators are allowed to transport their own product between licensed facilities.
  • Cultivators may not sell directly to consumers for either medical or adult use. Sales to consumers may only occur at licensed dispensaries.
  • All employees must have a valid Worker Permit prior to starting work.

Cultivation Canopy Tiers and Fees

Micro Tier: Maximum Square Footage 250, Facilities 1, Fees $1,000
Tier 1: Maximum Square Footage 1,000, Facilities 1, Fees $2,500
Tier 2: Maximum Square Footage 2,500, Facilities 2, Fees $5,000
Tier 3: Maximum Square Footage 5,000, Facilities 3, Fees $7,500
Tier 4: Maximum Square Footage 7,500, Facilities 4, Fees $10,000
Tier 5: Maximum Square Footage 10,000, Facilities 5, Fees $13,000
Tier 6: Maximum Square Footage 13,000, Facilities 5, Fees $15,000
Tier 7: Maximum Square Footage 15,000, Facilities 5, Fees $17,500
Tier 8: Maximum Square Footage 17,500, Facilities 5, Fees $20,000
Tier 9: Maximum Square Footage 20,000, Facilities 6, Fees $23,000
Tier 10: Maximum Square Footage 30,000, Facilities 7, Fees $27,000
Tier 11: Maximum Square Footage 40,000, Facilities 8, Fees $32,000
Tier 12: Maximum Square Footage 50,000, Facilities 9, Fees $37,000

Manufacturer Licenses

A manufacturing license allows a licensee to convert or compound marijuana into marijuana products, marijuana concentrates, or marijuana extracts. It also allows the licensee to package, repackage, label, or relabel marijuana products, as allowed by statute and rule.

  • Applications for new licenses to manufacture will be available starting 7/1/2025.
  • Existing businesses may apply for additional manufacturing sites or tier increases.
  • Manufacturing licenses are tiered according to how much concentrate is manufactured monthly.
  • Manufacturing businesses that do not produce concentrate but perform other allowable activities that fall under the definition of manufacturing are licensed as a Tier 1.
  • Businesses may have multiple license types including Cultivator, Manufacturer, Dispensary, and Transporter. There is no requirement to have multiple license types.
  • Manufacturers may purchase marijuana from licensed businesses and may sell the products they manufacture to other licensed businesses.
  • Manufacturers can transport their own product between licensed facilities.
  • Manufacturers are not allowed to sell directly to medical or adult use consumers. Sales to consumers may only occur at licensed dispensaries.
  • All employees must have a valid Worker Permit prior to starting work.

Manufacturer Tiers and Fees

All fees are annual and are based on the amount of concentrate produced monthly. Manufacturers who do not produce concentrate may use the lowest tier.

Tier 1: $5,000, Up to 10 pounds of concentrate production per month.
Tier 2: $10,000, Between 10 and 15 pounds of concentrate production per month.
Tier 3: $20,000, 15 pounds or more of concentrate production per month.

Dispensary Licenses

Dispensaries are locations where marijuana can be sold to adult-use consumers and/or registered cardholders. Montana dispensaries are licensed as adult-use or medical-only. Adult-use dispensaries may sell marijuana and marijuana products to either registered cardholders or adult-use consumers. Medical-only dispensaries may only sell marijuana and marijuana products to registered cardholders.

  • Applications for new dispensary licenses will be available starting 7/1/2025.
  • Existing businesses may apply for additional dispensary locations.
  • Businesses may have multiple license types including Cultivator, Manufacturer, Dispensary, and Transporter. There is no requirement to have multiple license types.
  • Dispensaries may purchase marijuana or marijuana products from other licensed businesses.
  • All sales to registered cardholders or adult-use consumers must be entered in the seed-to-sale tracking system.
  • All employees must have a valid Worker Permit prior to starting work.

Dispensary License Fees

The dispensary license fee is $5,000 for the first location that a licensee operates as an adult-use dispensary or a medical marijuana dispensary. The dispensary license fee increases cumulatively by $5,000 for each additional location under the same license. Applications require a processing fee of 20% of the license fees. Application processing fees are non-refundable regardless of the outcome of the application.

Transporter Licenses

The Montana Marijuana Transporter license  allows a business to transport marijuana and marijuana products between licensed marijuana business registered premises, including testing laboratories, or to medical registered cardholders. Transporters may not deliver to adult-use consumers.

Transporter Application Requirements

  • Must meet all General License Application Requirements
  • Applications must be submitted through the TransAction Portal (TAP).
  • Transporter licenses are valid for two years from date of issue.
  • Transporters may optionally apply for a storage facility endorsement. A storage facility endorsement allows the licensee to maintain a separate, off-site storage facility for the temporary storage of marijuana.
  • Applications require a processing fee of 20% of the license fees.
  • Application processing fees are non-refundable regardless of the outcome of the application.

Transporter License Fees

Two-year period: $10,000.
Storage facility endorsement: $1,000 annually.
Application processing fee: 20% of the license fees. Application processing fees are non-refundable regardless of the outcome of the application.

Testing Lab Licenses

The Montana marijuana testing laboratory license allows a marijuana testing laboratory to provide testing of representative samples of marijuana and marijuana products and to provide information about the chemical composition and potency of a sample, as well as the presence of molds, pesticides, or other contaminants.

Testing Laboratory License Fees

$5,000 Annually
Storage Facility Endorsement $1,000 Annually

Combined-Use Licenses

Montana combined-use licenses were created specifically for Montana’s 8 federally recognized tribes and/or entities majority owned by one of those tribes. These licenses consist of a cultivation and dispensary located at the same premises. Combined-use licensees are subject to the General Licensee Requirements. There may be a maximum of eight combined-use licenses issued to either a federally recognized tribe located in Montana or a business entity majority owned by a federally recognized tribe located in Montana. Each tribe is allowed only one combined-use license. A combined-use license consists of a Cultivation License and one Dispensary License allowing for the operation of a dispensary.

Application Requirements

  • Must meet all General License Application Requirements
  • Applications must be submitted through the TransAction Portal (TAP).
  • All marijuana business applicants must demonstrate they are located within a jurisdiction that allows their business to operate in accordance with 16-12-301, MCA.
  • Applications require a processing fee of 20% of the license fees.
  • Application processing fees are non-refundable regardless of the outcome of the application.

Combined-Use License Fees

Initial licensure and annual fees: $7,500 per year.

Montana Cannabis License Process and Scoring Criteria

Montana Cannabis License Requirements

Cannabis licenses are awarded by having a complete and well written application and all required supplemental documentation as well as city approval. An applicant’s criminal history also comes into play as well as past taxes of the owner/directors of the company. And of course, sometimes there is a required proof of capitalization — i.e. proving that you will have enough money in the bank to build out and run your business.

In highly competitive states such as Illinois or New York, there is a scoring process for an extremely limited number of available licenses. Licenses will be awarded to only the best of the best submissions. It is highly suggested that you hire an agency that can provide you with an “above and beyond” application submission.

Eligibility for a Cannabis License in Montana

To apply for a marijuana license in Montana, applicants must meet several qualifications and eligibility requirements necessary to receive a license. Each applicant must be 21 years of age or older and is required to undergo a criminal background check.

Application Requirements for Marijuana Licenses in Montana

To apply for a cannabis business license, you must show compliance with Montana laws and local ordinances. To illustrate your commitment to the process, hundreds of pages of technical writing may be necessary.

Some of the necessary documentation includes the following:

  • License Application (Required Measures and/or Exhibits). A well written application will need to be written in lockstep with the State Regulations for each Exhibit/measure.
  • Business Plan. Including executive summary, mission statement, market analysis, 5 to 7 year business life-cycle timeline with expansion events. Products and services, management and staff, SWOT analysis, quality assurance and compliance.
  • Financials. Full 5 to 7 year financial projections, income statement, balance sheet, statement of cash flows.
  • Operations Manuals, Exhibits and SOP’s such as:
    • Inventory and Record Keeping/Diversion
    • Quality Assurance Manuals
    • Operations Manuals/Procedures for cultivation, processing, dispensary, lab testing, transportation
    • Transportation and Distribution Plan
    • Employee, Staffing and Training Manuals
    • Social and Economic Impact/equity plans/community outreach plan
    • Environmental Plans with water and electrical usage plan/manual
    • Chemical and Pesticide Storage Plans
    • Waste Disposal Procedures
    • Accounting and Tax Compliance
    • Hemp Research Plan
    • Sanitation and Maintenance Plans
    • Odor Control Plan
    • Patient/Customer Education Manuals (mainly for dispensary/retail)
  • Labor/Union Compliance Agreements
  • Training Manuals. New Leaf will design manuals to your specifications, along with state regulations, for all cannabis business models
  • Regulatory Compliance Manuals. These explain all the different regulatory compliance regulations, such as quality assurance, product recall, packaging and labeling, advertising, hours of operation, patient and/or customer purchase limits, staffing and training, inventory and record keeping, security, tax payment and insurance compliance.
  • Security Plan. Video Surveillance, Alarm System, Emergency Procedures.
  • Floor Plans, Blueprints. To-Scale, with Security Overlays. Floor plans of the entire facility.
  • Corporate Structuring. Social Equity Certification and Registration, LLC and Corporation Registration and FEIN filing, Operating Agreements, Capitalization Tables, Shareholder Rights and Regulations Consultation, Corporate Bylaw Strategy.

Post Licensure Support. New Leaf serves as a liaison between you, your company, and the State Licensing Commission to help you get through the application evaluation. The State, no matter how good your application is, most definitely will have follow up questions and requests for additional documentation and/or information.

Denial Appeal. Denial appeal is also part of the Post Licensure Support.

Financial Requirements — How much does it cost to get a cannabis license in Montana?

Many states will require what is known as a Capitalization Attestation. What is this, you may ask? A capitalization attestation is usually done by a CPA. It involves submitting your profit and loss statements, bank account information, proof of funds, and an assumption of the costs for startup CapEx and OpEx.

Need Cash for your Cannabis Startup? New Leaf offers a full suite of Investment Capital Fundraising Services including corporate structuring and partnership agreements, 409 (B) company valuations, 5-7 year pro forma financial projections, and more! New Leaf will act on your behalf in actually SHOPPING the deal to our syndicate of accredited investors from across the globe. We can help you successfully raise the capital needed to get your project off the ground. Find out more here.

How to Win a Montana Cannabis Business License

A step-by-step guide on how to apply for and WIN a cannabis license in Montana.

  1. Review the state laws, rules & regulations. Learn about the rules and regulations necessary to operate a cannabis business in the State of Montana. This will help you and your team understand the requirements to win a cannabis license.
  2. Choose a Montana cannabis business license type. Montana issues six different primary types of cannabis business licenses.
  3. Connect with a Montana cannabis consulting firm. Consider reaching out to a Montana cannabis consultant. Cannabis business license applications can be extremely complex and time-consuming to write. The professional Montana marijuana consultants at New Leaf can manage the entire process for you. We can assist you with license application writing services, increasing your chance of winning a cannabis license in Montana. Book a free consultation today!
  4. Form a business entity. Forming a legal business entity is the next step in the process of applying for a cannabis license in Montana. LLCs and corporations are the two types most commonly formed by cannabis applicants. Find out which is the best choice for your business goals — we can help.
  5. Select a location for your cannabis business in Montana. Choosing a property for your cannabis business that meets all the state and local requirements can be complicated as well. Our experience with zoning processes that can help you find the ideal property for your marijuana business.
  6. Build the best team. The team that you list on your application will have a major impact on whether or not you receive a license.
  7. Write a business plan. After securing a location for your cannabis business, the next step is to develop a carefully detailed business plan. Your business plan will help lay out your goals and track progress as your business begins to grow. Business plans can also help attract investors. Investors use them to determine if a business is on the right path and worth putting money into.
  8. Raise capital for your Montana cannabis business. Although start-up costs for a cannabis business can be significant, careful planning and the right team can make it a huge success. New Leaf can help you craft a detailed plan and get it into the hands of investors.
  9. Write and submit your Montana cannabis business application. Depending on type of license, applicants may need to write and submit the following documentation:
  • Business Plan and Financials
  • Corporate Structuring
  • Safety and Security Plan
  • Location Information
  • Waste Disposal Procedures
  • Transportation and Distribution Plans
  • Employee, Staffing and Training Manuals
  • Regulatory and Compliance Plans
  • Quality Assurance and Control Plans
  • and much more!