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How to Open a Dispensary in CT (Connecticut)

How to Open a Dispensary in CT (Connecticut)

The state of Connecticut has officially legalized both medical and recreational cannabis. This is simply adding to the ever-expanding cannabis market, which is projected to reach nearly $70 billion by the end of the decade. If you are an entrepreneur looking for some opportunities to make money in the cannabis industry, then opening up a dispensary in the state of Connecticut is always an option.

With all of that being said, opening up a legal dispensary in any state is not an easy undertaking. Dispensaries are closely regulated and subject to many different requirements that you have to meet in order to maintain compliance and legality.

Not only do you have to find vendors for your products, choose the right products, build a physical location, market your dispensary, and more, but you also need to start a legitimate business entity followed by obtaining your cannabis dispensary license.

Starting a business entity is one thing, but obtaining your cannabis dispensary license in Connecticut involves jumping through quite a few hoops and navigating through some red tape. Whatever the case may be, it is more than possible to accomplish this. Here is the official guide on how to open a dispensary in Connecticut, including everything you need to know to get the job done.

How to Open a Dispensary in CT: Step-by-Step

How to Open a Dispensary in CT: Step-by-Step
How to Open a Dispensary in CT: Step-by-Step

Right now, we’re going to take you through a step-by-step process on exactly how to open a dispensary in the state of Connecticut. As you’re about to see, it all starts with creating and planning your business.

1. Plan and Create the Business

A good idea before you start any kind of cannabis business is to take a closer look at the various laws surrounding cannabis businesses in the state of Connecticut. Once you understand all of the Connecticut cannabis laws that are relevant to your case, then you can start creating your business. The first step here is to create a formal business entity.

To ensure that you are doing everything properly, you’ll want both a lawyer and an accountant. Remember, this is a highly regulated field and industry, which means that you need to have industry professionals in your corner to help you through the process. The first step officially is to create a business entity in the state of Connecticut. This could be a sole proprietorship, partnership, an LLC, or even a corporation.

If you are looking to start a cannabis business, and you want to be partially protected, we recommend starting an LLC, as this stands for a limited liability company, which provides you, the owner, with some liability protection. The bottom line however is that you need to have a business entity so you can get tax identification numbers, an EIN, to hire employees, pay taxes, open up a business bank account, and more.

To officially start a business entity in the state of Connecticut, you’ll have to file your articles of organization. Your articles of organization have to include various pieces of information, such as where the dispensary will be located, where funding will be come from, what your revenue projections are, what staffing looks like, have you planned to minimize the risk to the people around you, how the dispenser will be marketed, and more.

We recommend doing a bit more research into the business application process, especially all of the different information that you’ll need to include along with your articles of organization to be approved as an official type of business in the state of Connecticut. Once you form an official business entity, you can then get to the next step of the process, which includes finding a location for your dispensary.

2. Find a Location for the Dispensary

In the state of Connecticut, before you can apply for your dispensary license, you first have to find a location. Therefore, we recommend doing a bit of research in terms of the ideal area allowed locations for cannabis dispensaries in Connecticut. There are states which have laws surrounding where dispensaries can be located, such as in proximity to schools and other such areas.

Although finding a good location for a dispensary in terms of legal requirements can be difficult, this is important to keep in mind. There are various zoning rules, which means that there are only certain locations in Connecticut where your dispensary will be allowed.

Once you’ve taken zoning and legal requirements into account, you’ll then need to take your own budget into account. Of course, you need to choose a location that you can actually afford to purchase, rent, or maintain. It can actually be really difficult to find a good location, in which case we recommend hiring a professional real estate agent that specializes in marijuana dispensary real estate.

These are people who will be able to help you find various suitable locations that you can then choose from. What you also need to consider, besides legal and budgetary needs, is that the location needs to be large enough to suit your requirements. You also need to choose a location that provides you with great growth opportunities, has great foot traffic, and still remains in your budget.

3. Secure Funding

Before you apply for your cannabis dispensary license in the state of Connecticut, you need to prove that you have funding. In other words, you need to prove that you are able to pay for the dispensary in one way or another. What you first there for you to consider is how much it will cost you to start a dispensary in Connecticut.

First and foremost, a dispensary license itself in the state of Connecticut will cost you $1000 per year. However, starting your own dispensary can easily cost up to $2 million. For instance, all of the permits and licenses you need can cost up to $75,000, finding a good retail location can cost up to $200,000, you could spend up to $50,000 on security systems, $100,000 on inventory, then you also have to account for staffing and training, marketing and advertising, insurance, and more.

You’ll then likely also have to deal with utilities and rent, employees benefits and salaries, inventory restocking, marketing and advertising over the long term, and the maintenance of security systems. It can easily cost you $2,000,000 to start a dispensary in Connecticut, not to mention the fact that there is also a state cannabis tax in place that can range up to 15% based on the THC content of the product in question.

As you can see, it takes quite a bit of money to get started with a dispensary in the state of Connecticut, not to mention that you might have to pay up to $20,000 per year on insurance as well. Not only do you have to show proof of funding, but you have to find it first. There are of course a variety of options that you have at your disposal here, including using your personal savings, asking friends or family, selling equity in the company, going to private investors, like using cannabis focused lenders, or even trying for a traditional bank loan.

With that being said, getting a traditional bank loan for a dispensary is nearly impossible in the United States. Technically speaking, D9 THC is still illegal at the federal level, which means that most banks and large institutions won’t work with cannabis businesses.

4. Get Insured

Before you can apply for your dispensary license in Connecticut, you have to also get insurance. There are actually many different types of insurance that you’ll need to legally start a dispensary in Connecticut.

First, you’ll need general liability insurance to protect against third party bodily injury, personal injury claims, and property damage that may arise from incidents or accidents at your dispensary.

You then also need product liability insurance to cover claims that are related to the product sold in your dispensary, including allegations of mislabeling, of failure to warn, or defective products.

Next, you’ll also need to look into getting property insurance to cover physical assets, as well as workers compensation insurance to provide coverage for medical expenses and lost wages in the event that an employee suffers a work related illness or injury on site.

There are still other types of insurance that you’ll need here, including cyber liability insurance, directors and officers insurance, and employment practices liability insurance.

Yes, this can all be quite expensive, and could easily cost you up to $20,000 per year, if not more. However, if you expect to attain a dispensary license in Connecticut, then you absolutely need to have insurance.

5. Apply for Your Dispensary License in CT

Apply for Your Dispensary License in CT
Apply for Your Dispensary License in CT

The next step in the process of opening a dispensary in the state of Connecticut is applying for your dispensary license. Now, there is a fairly intensive application process for getting your dispensary license, so let’s take a look. It all starts with the type of dispensary license that you want to go for.

Types of Dispensary Licenses in CT

There are four main types of dispensary licenses that you can obtain in Connecticut, with the first one being a medical dispensary license.

This is a special type of license that allows you to operate a dispensary solely for the purpose of selling cannabis to medical cannabis patients. All dispensaries with a medical dispensary license have to comply with a variety of strict regulations in regards to patient verification, secure storage, and product safety.

Next, we have the recreational dispensary license. Seeing as cannabis is legal in the state of Connecticut for recreational use for anyone 21 and older, this means that you can open a recreational dispensary. Recreational dispensaries also have to stick with various requirements in terms of consumer education, sales limits, and product labeling.

The third type of dispensary license you can get in Connecticut is a hybrid dispensary license, which allows you to serve both recreational and medical customers. If you are looking to make as much money as possible, then this is what you want to go for.

The fourth type of cannabis license you can get in Connecticut is known as a micro dispensary license. This is a very special type of license that allows for the cultivation, processing, and sale of marijuana products in a small capacity.

Required Documentation to Receive a Dispensary License in Connecticut

Once you’ve chosen what type of dispensary license you want to apply for, you then need to gather all of your required documentation. As you’re about to see, there are many different documents that you’ll need to successfully obtain your dispensary license in Connecticut. The following is a list of everything you’ll need to do so.

  • You will require identification documents for all officers, owners, and key employees.
  • You will require a property ownership or lease document for the location in question.
  • You will need to fill out the application form.
  • You will require a detailed operational plan that outlines the inventory management, processing, and cultivation procedures.
  • You’ll require business formation documents, such as your articles of organization.
  • A proof of compliance with land use regulations and local zoning requirements is required.
  • A quality control plan that demonstrates compliance with product standards is required.
  • You’ll also need a security plan that details the measures that you will integrate to ensure safety of your customers and the dispensary.
  • You’ll need to provide evidence that you have sufficient financial resources and funding to support the operation.
  • You must have supplied a compliance plan that addresses all of the relevant state laws and regulations.
  • You’ll have to submit employment contracts and agreements for all key personnel.
  • You aren’t required to submit certificates of insurance for liability coverage, as well as any other additional types of insurance.
  • There may also be some additional documents that you’ll require.

Applying for a Dispensary License in Connecticut: Step-by-Step

As you are about to find out, getting your dispensary license in the state of Connecticut involved six separate steps. Let’s take a look at each of the six steps you need to follow to get your dispensary license in Connecticut.

  1. The Planning Stage: Essentially, everything we’ve talked about so far is a part of the planning stage. You need to create a comprehensive business plan that includes information about security measures, staffing, financial projections, your proposed location, insurance documents, and more.
  2. Gather All Documentation: As you can tell, this process involves a whole lot of documentation. You’ll need many different pieces of information, such as your identification, lease or property ownership documents, financial statements, business formation documents, and more. You’ll also need that detailed operational plan that includes information about inventory management procedures, processing, and cultivation.
  3. Complete and Submit the Application: The next step in this process is to fill out the online application form, while ensuring that all information is complete and accurate. Based on the license type, you’ll also have to pay a fee. Generally speaking, for a recreational dispensary license in the state of Connecticut, the fee is $1000 per year.
  4. Complete a Background Check: In order to qualify for a recreational cannabis dispensary in the state of Connecticut, you’ll also need to undergo a background check and fingerprinting check. This is actually the case for all key employees, officers, and owners. The DCP may also conduct A variety of investigations, including a site visit, to evaluate both compliance and site suitability.
  5. Application Review: The DCP will review your application based on a plethora of criteria, such as compliance with regulations, complete information, security protocols, and financial stability. If you are approved, you’ll be provided with a provisional license, that then allows you to proceed with the final step.
  6. Get the Permanent License: the final step here is to make sure that your dispensary location is secured, that your business operations have been finalized, and that you meet any and all remaining requirements. Once all requirements have been met, you’ll then be provided with a permanent dispensary license, which allows you to legally operate a recreational dispensary in the state of Connecticut.

One thing that many people also wonder is how long it will take to get a recreational dispensary license in Connecticut.

How long it takes is based on a variety of factors, including the review process, additional requirements, and the completeness of the application.

However, on average, you can expect it to take anywhere between three and 12 months to obtain your dispensary license in Connecticut.


The bottom line is that there are quite a few steps that you have to follow when opening a dispensary in the state of Connecticut. The most important part is of course gathering all of your documentation and required resources so you qualify for your recreational dispensary license.

Once you’ve gathered all of your required documentation, started a legitimate business entity, gathered funding and insurance, you can then go about getting your license. Once you have your license, you are then free to sell cannabis at your dispensary.

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Fabian R.

I hold a Bachelor's degree in Political Science from Ryerson University in Toronto, Canada. With close to a decade of professional experience, my expertise lies in content writing, blogging, and copywriting. I've dedicated the past 10 years to crafting content centered around health, fitness, and cannabis subjects. My strengths include exceptional writing abilities, effective communication, and a track record of delivering swift results.