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Michigan Microbusiness Licensee Opportunities

The opportunities are endless! A marijuana microbusiness license could allow you to open up a Cannabis lounge with direct-to-consumer sales, or utilize the microbrewery model that has spread like wildfire throughout the State of Michigan. Other more imaginative ideas include Marijuana-themed restaurants with Cannabis-infused food, or simply adding Cannabis sales to an already existing business model—such as movie theaters, arcades, escape rooms, and more!

While the recreational marijuana law allowing for microbusinesses has been passed, there is still much that is as of yet unknown about the microbusiness license. The biggest unknown is whether the State of Michigan will require the licensee to have its facilities all under one roof, or if a microbusiness licensee will be allowed to sell from a different location from where they grow and process.

In addition to waiting on the rules regulating microbusinesses to be issued by the Michigan Department of Licensing and Regulatory Affairs (LARA), we will also need to see which municipalities allow marijuana microbusinesses and which ones don’t. Before you start worrying too much about whether your municipality with allow them, know that each municipalities’ cut of the state’s excise tax on recreational marijuana is determined by how many dispensaries and microbusinesses operate in the municipality. Since many municipalities are not keen on having numerous dispensary storefronts within their boundaries, we expect many cities and townships to jump on the microbusiness concept since it will allow them to obtain a greater share of the recreational marijuana tax revenue without the nuisance of numerous dispensaries.


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What’s a Marijuana Microbusiness?

Proposition One legalized recreational marijuana in the State of Michigan and created new license types for cannabis companies in Michigan. While most recreational cannabis licenses require the applicant to first have a Michigan medical marijuana license, one license type did not—the Marijuana Microbusiness.

A Michigan microbusiness license allows the holder to grow up to 150 plants, process those plants into a variety of cannabis extracts and edibles, and sell those products directly to the consumer. There are limits to what the microbusiness can do, however, as well as limits to who can be a licensee.

Microbusiness licenses are initially limited to Michigan residents, and licensees cannot hold any other recreational marijuana license. Microbusinesses also cannot sell to other licensees—they can only sell directly to consumers over the age of 21. While these requirements do restrict what a microbusiness licensee can do with the license, they also serve to protect the Michigan microbusiness market from large “big cannabis” companies that will eventually swallow up much of the Michigan market as they have done in other states such as California and Colorado.

Microbusinesses in Michigan will also be subject to two sets of regulations. First, they will be subject to state-level regulations from the Department of Licensing and Regulatory Affairs—or “LARA”. These regulations have yet to come out and are expected to be released by the end of 2019. Another potential set of regulations are municipal regulations. Municipalities are able to place additional regulations and requirements on Michigan microbusinesses that operate within their municipality, as long as such regulations are not considered to be unreasonably impractical.

So what can you do with a Michigan cannabis microbusiness license? The possibilities are endless! One of the business models we have seen that has attracted the most attention are cannabis lounges, also sometimes called Amsterdam-style coffee shops. Other business models include “tour-and-taste” operations, which are popular in California, as well as Cannabis-themed arcades, movie theaters, restaurants, and more!

Our attorneys are able to guide you through the legal and compliance process, help you hone your business model, and put you in the best possible position for success! Our managing attorney, Scott F. Roberts, has spoken at industry conferences about the microbusiness model and is one of the state’s foremost experts on Michigan microbusinesses. He has worked with small to medium sized businesses almost his entire career, is an entrepreneur himself, and is able to provide not just legal services, but business consulting and advice as well. Contact us today to schedule a free legal and business consultation!

Areas We Serve

If you are planning on locating your microbusiness anywhere in the State of Michigan, we can help! While we are based in Detroit, we assist cannabis clients throughout the entire State of Michigan, from Detroit to the East, Muskegon to the West, Niles to the South, and as far North as the Upper Peninsula, we are able to help clients obtain state and municipal licenses throughout the State of Michigan.

Call Marijuana Microbusiness Law today at (313) 375-5335

Speaking Highlights

Business / Legal Path in Room 2

Cannacon

Scott Roberts will provide an overview of state requirements for Marijuana Microbusiness licenses and will examine different business models used in other states such as California and Nevada with similar laws. He aims to educate caregivers and other Michigan residents looking to enter Michigan’s recreational marijuana market on the new microbusiness license and how to best set up a marijuana microbusiness for long-term success.
@COBO CENTER, DETROIT
June 21, 2019
10:30 am
Scott F. Roberts speaking at a conference on microbusiness

420 CANNA EXPO

The 420 Canna Expo is the Nation’s premier event for everything cannabis and hemp. Spend the day learning from the most knowledgeable professionals in the industry on building a business, state and federal laws, medical and recreational cannabis, nutritional and industrial hemp. Explore exhibits from every aspect of the industry including, commercial and home cultivation, micro microbusinesses
SOARING EAGLE CASINO & RESORT Mt. Pleasant, MI
April 20, 2019
10:00 am 8:00 pm
Micro-Business Workshop

Cannabis Aid

Get a front seat into the near future of post-legalization. Join Mr. Scott Roberts as he explains one of the largest upcoming business opportunities to come, the "micro-business". In a practical and hands-on approach, Scott will conduct a workshop that explores your possible business opportunities as caregivers and other potential licensees looking to start a micro-business under the Regulated Marijuana Like Alcohol ("RMLA") ballot initiative. You will get an example business plan, as well as walk through potential compliance issues for micro-businesses that may cause failure. This workshop session is perfect for caregivers looking to transition to this new business license category created by the RMLA as well as Cannabis entrepreneurs looking to enter the Michigan Marijuana market without incurring the expansive upfront costs of other license types.
Cobo Center, 1 Washington Blvd, Detroit, MI 48226, USA
October 30, 2018
01:30 pm - 02:15 pm

Michigan Marijuana Legalization News

Microbusiness License Update

Microbusiness License Update

While largely ignored by many in the Michigan cannabis industry, the Michigan marijuana microbusiness license seems like it is finally starting to get the attention