Ohio Cannabis Consultant Overview:

How To Open A Marijuana Business in Ohio

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

This summary of Ohio 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 Ohio.

Ohio 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.

Ohio Cannabis Market Condition Overview

Business Climate and Timeline

On November 7, 2023, a majority of Ohio voters approved Issue 2 to legalize the possession and use of marijuana by individuals aged 21 and over, the sale of marijuana by state-licensed dispensaries to those individuals, and to create the Division of Cannabis Control within the Ohio Department of Commerce.

The following information is based on a voter approve initiated statute ballot measure which may be amended by the state legislature. Any amendments to the statute may impact the timeline for the licensing processes and dispensary sales.

Non-medical cannabis is not available to purchase in licensed dispensaries. At this time, the general public is not permitted in dispensaries unless the individual is a registered patient or caregiver in the Ohio Medical Marijuana Control Program (MMCP). Currently there are no individuals or entities licensed to sell non-medical cannabis in the state of Ohio. Sale of marijuana prior to non-medical licenses being issued may be subject to criminal penalties.

Ohio’s new Division of Cannabis Control (DCC) has nine months to complete the rulemaking and licensing processes for non-medical cannabis. Non-medical cannabis sales may not begin until licenses are issued and facilities are certified. The MMCP will continue to be administered by the Division of Cannabis Control and MMCP patients and caregivers are encouraged to keep their patient or caregiver card active after non-medical cannabis sales begin.

When will non-medical marijuana be available for purchase?

The initiated statute laid out a process for non-medical cannabis licensure that includes licensing applications and a timeline requiring that initial applications be available by June 7, 2024 and provisional licenses be issued by September 7, 2024. Pursuant to the statutory requirements, the DDC must build a framework to complete the licensing application process for all non-medical cannabis licenses.

Non-medical marijuana is not available to purchase in dispensaries. The public is not permitted in medical marijuana dispensaries unless the individual is a registered patient or caregiver in the Ohio Medical Marijuana Control Program (MMCP). Currently there are no individuals or entities licensed to sell non-medical cannabis in the state of Ohio, and any sale of marijuana prior to non-medical licenses being issued may be subject to criminal penalties.

How many new licenses will there be?

According to initiated statute requirements, each current medical marijuana cultivator, processor, testing laboratory, and dispensary will receive a non-medical cannabis cultivation, processing, testing, and dispensing license. Those licenses are for the same location at which they are currently operating.

Additionally, each current medical marijuana level I cultivator will receive three dispensary licenses, while current medical marijuana level II cultivators will receive one dispensary license. Each medical marijuana dispensary that is not commonly owned or controlled by a cultivator or processor will receive an additional non-medical cannabis dispensary license at new locations selected during the application process.

Forty level III cultivator licenses and 50 dispensary licenses will be issued to applicants with a preference to participants of the Cannabis Social Equity and Jobs Program, which the statute prescribes to be established by the Department of Development.

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 the Division of Cannabis Control (DCC) 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 an Ohio cannabis business license?  Schedule a Free Consultation

Ohio Cannabis License Types

Four Primary Types of Adult-Use Licenses in Ohio:

  • Cultivators
  • Processors
  • Dispensaries
  • Testing Laboratories

Ohio 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 Ohio

To apply for a marijuana license in Ohio, 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 Ohio

To apply for a cannabis business license, you must show compliance with Ohio 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 Ohio?

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 an Ohio Cannabis Business License

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

  1. Review the state laws, rules & regulations. Learn about the rules and regulations necessary to operate a cannabis business in the State of Delaware. This will help you and your team understand the requirements to win a cannabis license.
  2. Choose an Ohio cannabis business license type. Ohio issues four different primary types of adult-use cannabis business licenses.
  3. Connect with an Ohio cannabis consulting firm. Consider reaching out to an Ohio cannabis consultant. Cannabis business license applications can be extremely complex and time-consuming to write. The professional Ohio 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 Ohio. 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 Ohio. 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 Ohio. 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 Ohio 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 Ohio 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!