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UPDATED NOTICE: AS OF AUGUST 10, 2015, WE ARE NO LONGER ABLE TO ISSUE MARIJUANA LICENSE BONDS AS A RESULT OF THE RACKETEERING LAWSUITS FILED EARLIER THIS YEAR.
We apologize for the continued changes surrounding these bond types recently. We do hope to resume offering marijuana bonding services soon. Our team will continue to post information here and on our blog regarding these changes.
A Guide to Marijuana License Bonds
Twenty-nine states and the District of Columbia currently have laws broadly legalizing marijuana in some form. A number of these states use surety bonds to regulate their medical marijuana industry. If you’re unsure what surety bonds are we created this guide to marijuana license bonding.
If you need a specific type of marijuana bond in Colorado, check out our dedicated Colorado Marijuana Bond page for updated information on pricing and bond amounts.
How Do Marijuana License Bonds Work?
Like other surety bonds, a marijuana bond binds three parties together to ensure industry standards are upheld. When it comes to marijuana bonds, the three parties involved include:
- Principal: This is the marijuana dispensary that maintains the bond as a pledge to follow the law as outlined on the bond form
- Obligee: This is the state agency that requires the dispensary to purchase a bond to ensure industry compliance
- Surety: This is the agency that issues the bond and backs the principal’s pledge to adhere to industry regulations
Marijuana bonds typically function as a type of tax bond to guarantee that all taxes are paid in full according to the law. If a bonded dispensary fails to comply, the government can make a claim on the bond to collect the owed monies.
Note that some states require marijuana performance bonds to ensure other types of compliance, such as adhering to certain construction standards while developing their business. Such bonds involve a much higher risk, so the underwriting process is more involved than what is typically required to ensure the payment of taxes for licensing purposes.
Pay a Low Rate for Your Marijuana Surety Bond
SuretyBonds.com has in-house underwriting authority to quote and issue bonds for marijuana dispensaries quickly and easily. If credit is an issue, there is no need to worry. SuretyBonds.com sponsors an exclusive low credit bonding program for applicants with poor credit histories. Request a free quote online now, or speak with a dedicated agent by calling 1 (800) 308-4358 to begin the application process.
Note that applicants with open tax liens cannot be approved at this time.
Enjoy Quick, Easy & Accurate Bonding
To purchase a bond, call us at 1 (800) 308-4358 or submit an online quote request to get started. You’ll get a free, no-obligation price quote within 1 business day of your application. Your bond will be issued once your payment is processed. You’ll receive a copy of your bond immediately via email, and the original bond form in the mail via your preferred shipping option.
Get Licensed to Distribute Marijuana
Many states that have legalized marijuana require businesses to post a marijuana surety bond in order to receive a license. The type of licensing and documentation your marijuana business requires will depend on both the location of your operation and the jurisdiction of that state, and the sort of business you are conducting. For example, someone growing and marketing marijuana to retail businesses may require different licensing and permits than someone operating a dispensary.
Although marijuana is legal in 29 states and Washington D.C, licenses for both medical and recreational marijuana are available for only seven states and the District of Columbia. When going through the licensing process, be sure to pay close attention to your state’s deadlines and paperwork due dates, and always budget for all licensing costs.