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.
A Guide to Marijuana License Bonds
Currently, 23 states and Washington, D.C. allow medical marijuana prescriptions to be written for certain ailments. Some of these states use surety bonds to regulate their medical marijuana industry. Don’t worry if you’re unsure what surety bonds are. That’s why we created this guide to marijuana license bonding!
Pay a Low Rate for Your Marijuana Surety Bond
We have in-house underwriting authority to quote and issue bonds for marijuana dispensaries quickly and easily.
Get a Marijuana License Bond With Bad Credit
Bad credit? No problem! 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 us.
Note that applicants with open tax liens cannot be approved at this time.
Get Licensed as a Marijuana Dispensary
The marijuana licensing process can be complicated depending on the jurisdiction that regulates your business licensing. Be sure to pay close attention to deadlines, know when all of your paperwork is due, and budget for all licensing costs.
Learn How Marijuana License Bonds Work
Like other surety bonds, marijuana bonds bind three parties together to ensure industry standards are upheld. When it comes to marijuana bonds, the three parties involved include:
- Principal: the marijuana dispensary that maintains the bond as a pledge to follow the law as outlined on the bond form
- Obligee: the state agency that requires the dispensary to purchase a bond to ensure industry compliance
- Surety: the agency that issues the bond and backs the principal’s pledge to adhere to industry regulations
Marijuana bonds typically function as a kind of tax bond to guarantee that all taxes are paid in full according to the law. If a bonded dispensary should fail to do so, 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’s typically required to ensure the payment of taxes for licensing purposes.
Apply for your surety bond
Get a FREE Marijuana License Bond Quote Today! Click here to begin