Navigating Minnesota’s Cannabis Licensing Scheme

By: Alex Smith

Following the state of Minnesota’s decision to legalize cannabis on August 1, 2023, entrepreneurs have waited eagerly for the opportunity to enter into the market for the cultivation, manufacture, and sale of cannabis and related products. Minnesota closed its first licensing window for applicants seeking mezzobusiness, cultivator, and manufacturer licenses on March 16, 2025, however, there are still opportunities to obtain licenses to operate a business in Minnesota’s cannabis industry.

Determine Eligibility

A first step to determine whether you should seek a cannabis-industry license is to confirm your eligibility. In addition to providing the required application materials (discussed below), the following requirements must be met in order to be eligible:

• Must be at least 21 years of age

• If applicant is a business, must be incorporated in Minnesota

• Must not be a licensed peace officer

• Must never previously had a cannabis license revoked

• Must have paid all required taxes related to the operation of a cannabis business, if applicable

• Must not have any confirmed labor violation with the DOL, NLRB, or OSHA within the last five years

• Must pass a criminal background check, with disqualifications at the discretion of the Minnesota Office of Cannabis Management (“MOCM”)

Choose a License

The remaining license offerings from the MOCM can be categorized as licenses relating to two separate product types, “cannabis” (meaning cannabis plants and seedlings, cannabis flower, and cannabis products); and “lower-potency hemp edibles” (meaning a product that contains no more than five milligrams of delta-9 THC). The available license types are as follows:

Cannabis

• Microbusiness

• Wholesaler

• Transporter

• Testing Facility

• Delivery Service

• Event Organizer

Lower-Potency Hemp Edibles

• Manufacturer

• Retailer

• Wholesaler

Applicants should apply for the license which will grant them the permission to accomplish their current business plans, while also considering whether it would be worthwhile to seek a “higher-grade” license in anticipation of expanding one’s business at a future date.

Gather Application Materials & Complete Application

Although the application materials may vary slightly depending on the type of license you are seeking, applicants should be prepared to provide the following with their application:

• Disclosure of Ownership and Control

• Capitalization Table

• Proof of Trade Name Registration

• Business Plan

• Standard Operating Procedure for Quality Assurance, Inventory Control, and Accounting and Tax

• Operation Plan

For assistance in preparing your application and obtaining a Minnesota cannabis license, please contact me at (612) 361-6394, alex@smithpllcmn.com, or through our web portal.