A Guide to Medical Marijuana Bonds
SuretyBonds.com is legally licensed to issue surety bonds nationwide. If your state requires a medical marijuana bond, we can help.
Currently, 23 states and Washington DC allow medical marijuana prescriptions to be written for certain ailments. Colorado leads the pack as it’s the only state that currently uses surety bonds to regulate its medical marijuana industry. Don’t worry if you’re unsure what surety bonds are. That’s why we created this guide to medical marijuana bonding!
Pay A Low Medical Marijuana Surety Bond Cost
SuretyBonds.com works with many underwriters who are willing to back bonds for medical marijuana dispensaries. This means our surety specialists can shop your bond to ensure you get the lowest rate available. Qualified applicants with good credit typically pay premiums that are 2-5% of the bond amount, which translates to just $100-$250 for $5,000 of coverage. What are you waiting for? Find out your low rate today!
Get A MMJ Bond With Bad Credit
Bad credit? No problem! SuretyBonds.com sponsors an exclusive bad credit bonding program for applicants with less-than-stellar credit histories. Other surety providers avoid working with applicants who have had credit issues, but not SuretyBonds.com. Don’t let a low credit score keep you from getting your MMJ dispensary license!
Enjoy Quick, Easy & Accurate Bonding
When you’re ready 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 one 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 you’ll receive the original bond form in the mail via your preferred shipping option. If you’re in a rush, choose our overnight shipping option.
Get Licensed As A Medical Marijuana Dispensary
Purchasing a surety bond might not seem like the most difficult or intricate step of the licensing process, especially when the amount of coverage required is so minimal. Unfortunately, the MMJ licensing process can be complicated as it requires applicants to pay close attention to deadlines. Don’t procrastinate. Be sure you know when all of your paperwork is due and how much it will cost to file it.
The number of medical marijuana dispensaries in Colorado has recently been on the rise. When industries begin to boom, the government agencies responsible for them look for ways to regulate businesses and protect consumer interests. Section 12-43.3-304 of the Colorado Medical Marijuana Code requires that every medical marijuana dispensary in the state keeps a $5,000 bond on file with the Colorado Department of Revenue (DOR).
The Colorado DOR only has one licensing deadline each year for medical marijuana dispensaries. This means entrepreneurs who want to open a medical marijuana dispensary only have one chance to apply for a license each year. Furthermore, this type of bond expires annually on June 30, so MMJ bonds should be renewed by July 1 so that dispensary owners can avoid a lapse in bonding coverage.
Other states will likely follow Colorado’s suit by establishing their own MMJ bond requirements in the near future.
Learn How Medical Marijuana Bonds Work
Medical marijuana bonds function as do other surety bonds, which bind three parties together to ensure industry standards are upheld. When it comes to medical marijuana bonds, the three parties involved include:
- Principal: the medical marijuana dispensary that maintains the bond as a pledge that taxes will be paid according to law
- Obligee: the state agency that requires dispensaries to purchase a bond to reinforce industry standards
- Surety: the agency that issues the bond and backs the principal’s pledge to pay taxes appropriately
The medical marijuana bond functions as a tax bond, which means it guarantees that a bonded medical marijuana dispensary will pay all taxes appropriately. If a bonded dispensary should fail to do so, the government can can make a claim on the bond to collect the owed monies.