9 min read

How to Get a Dispensary License in Missouri 2025

June 19, 2024

Missouri’s cannabis market has seen transformative growth since the legalization of medical marijuana in 2018, followed by recreational cannabis in 2022. With the introduction of comprehensive licenses, including retail, cultivation, manufacturing, and microbusiness opportunities, the state has opened doors to both established cannabis operators and new entrepreneurs alike.

Yes, you can open a dispensary in Missouri in 2025, but the process requires careful planning. To get a dispensary license in Missouri in 2025, you must submit an application form through the Division of Cannabis Regulation under the Department of Health and Senior Services (DHSS). You’ll need to select your license type (medical, recreational, or microbusiness), pay the application fee, submit all required documentation, pass a background check, and meet zoning rules, such as being 250 feet from existing elementary or secondary schools.

Only applications from dispensaries using a certified seed-to-sale tracking system will be considered. These must meet strict eligibility criteria, including ownership details, financial plans, and a strategy to remain compliant with local regulations. Your application will be approved or denied within one hundred fifty (150) days, as required by law.

Use a fully integrated POS (point of sale) system like IndicaOnline to manage your operations, stay compliant with Metrc, and track sales from inventory to customer. This guide will walk you through every major requirement and help you avoid the common pitfalls.

Overview of Missouri’s Cannabis License

The DHSS oversees the regulation and licensing of cannabis operations, including dispensaries, product manufacturers, testing facilities, and microbusinesses. All cannabis business activities must be approved and licensed by the DHSS under DHSS guidelines to ensure public health and safety.

Missouri has created a dual framework supporting both medical marijuana treatment centers and the recreational cannabis market. The regulatory map has been drawn up to facilitate access for consumer-qualifying patients or primary caregivers, as well as adult-use consumers aged 21 and older.

To maintain transparency and integrity within the cannabis business ecosystem, Missouri law mandates the use of a certified seed-to-sale tracking system like Metrc. All cannabis businesses, from cultivation to sales, must use this system to report and track inventory, sales, and product movement across facilities.

Licensing is limited by congressional districts, meaning applicants can only apply in their designated district, and license numbers are capped to prevent oversaturation. Applications for new licenses are opened periodically and awarded either on merit or through a random lottery system, depending on the license type.

Types of Licenses

The DHSS offers several types of cannabis business licenses, each tailored to specific operations within the state’s regulated cannabis market. Understanding these license categories is crucial for selecting the appropriate application form and structuring your business plan effectively.​

  1. Medical Marijuana Dispensary Facility License

Permits businesses to sell cannabis products to registered qualifying patients or their designated primary caregivers. Licensees must adhere to DHSS regulations, which include:​

  • Product Testing and Labeling: Ensuring all cannabis products undergo testing for potency and contaminants, with accurate labeling reflecting these results.​
  • Inventory Control: Implementing a certified seed-to-sale tracking system to monitor cannabis products throughout the supply chain.​
  • Security Measures: Maintaining facilities with surveillance systems and trained staff to prevent unauthorized access and ensure product safety.​
    Location Compliance: Dispensaries must be situated at least 1,000 feet from existing elementary or secondary schools unless a local government allows for a shorter distance.​

The application process involves submitting detailed operational plans, security protocols, and community safety strategies. As of the latest updates, the DHSS is not accepting new applications for this license type. ​

  1. Comprehensive Dispensary Facility License

Allows businesses to operate in both medical and adult-use (recreational) cannabis markets. License holders must comply with regulations similar to those governing medical dispensaries, including product testing, inventory tracking, security measures, and location restrictions. Currently, the DHSS is not accepting new applications for comprehensive dispensary licenses. ​

  1. Microbusiness Dispensary License

Designed to promote inclusivity within the cannabis industry, this enables smaller businesses to engage in retail sales of cannabis products. Microbusiness dispensaries are authorized to acquire, process, package, store, sell, transport, and deliver marijuana products and drug paraphernalia to consumers, qualifying patients, and primary caregivers. Notably, microbusiness dispensaries may only conduct transactions with other microbusiness facilities or marijuana testing facilities, not with standard medical or comprehensive facilities. ​

​Missouri’s microbusiness licenses are designed to promote equitable participation in the state’s cannabis industry, particularly for individuals from marginalized or under-represented communities. They allow small-scale dispensary or wholesale operations and aim to reduce financial and systemic barriers to entry.​

Eligibility Criteria:

To qualify for a microbusiness license, majority ownership must be held by individuals meeting at least one of the following criteria:​

  1. Financial Status: Have a net worth of less than $250,000 and an income below 250% of the federal poverty level for at least three of the past ten years. 
  2. Veteran Status: Possess a valid service-connected disability card issued by the United States Department of Veterans Affairs. ​
  3. Non-Violent Marijuana Offense: Have been, or have a parent, guardian, or spouse who has been, arrested for, prosecuted for, or convicted of a non-violent marijuana offense at least one year prior to December 8, 2022 (excluding offenses involving distribution to minors or driving under the influence). ​
  4. Geographic Location: Reside in a ZIP code or census tract area where:​
    • At least 30% of the population lives below the federal poverty level.
    • The unemployment rate is 50% higher than the state average.
    • The historical rate of incarceration for marijuana-related offenses is 50% higher than the state average.
  5. Educational Background: Graduated from, or lived in, a school district that was unaccredited at the time of graduation, or lived in such a district for three of the past five years. 

Application Fee:

The application fee for a microbusiness license is $1,500, payable at the time of application submission. ​

Application Process:

Applications are submitted through the DHSS online registry portal during designated application periods. Applicants must provide comprehensive documentation demonstrating eligibility, including the applicable financial records, proof of residency, and legal documents. ​

Operational Limitations:

Microbusiness licensees are restricted to conducting business exclusively with other microbusinesses or marijuana testing facilities. They are not permitted to transfer marijuana products to or from standard medical or comprehensive facilities.

For detailed information and updates, refer to the DHSS’s official resources:​

Lottery Awards Microbusiness Licenses

​Missouri’s microbusiness license program aims to foster equitable participation in the state’s cannabis industry by issuing licenses through a lottery system. This initiative is designed to support individuals from marginalized or underrepresented communities.​

2024 Microbusiness License Lottery:

In 2024, Missouri’s Division of Cannabis Regulation (DCR) conducted its second round of microbusiness license lotteries:​

  • Number of Licenses Issued: A total of 57 licenses were awarded. Each of Missouri’s eight congressional districts received:
    • Two microbusiness dispensary licenses
    • Four microbusiness wholesale facility licenses​
    • An additional nine licenses were distributed across six districts due to prior revocations for rule violations
  • Application and Selection Process: Over 2,000 applications were submitted during the April 15-29 application period. The Missouri Lottery’s random draw ensured impartiality.

2025 Microbusiness License Lottery:

Missouri plans to conduct a third round of microbusiness license lotteries in 2025:​

  • Number of Licenses to Be Issued: An additional 48 licenses are slated for distribution, maintaining the allocation pattern of six licenses per congressional district (two dispensary and four wholesale). ​
    Application Details: Specific dates for the application window will be announced on the DHSS website. ​
    Eligibility and Application Process: Applicants must meet defined eligibility criteria, including factors like net worth, income, veteran status, or residency in qualifying areas. Detailed information and updates will be available on the DHSS microbusiness page.

Application Process

Applying for a dispensary license in Missouri involves a structured process overseen by the DHSS. The application window is announced periodically, and it’s crucial to prepare thoroughly to meet all eligibility criteria and submit the necessary required documentation.​

Step 1: Prepare Your Application

Before the application window opens, ensure you have the following:

  • Business Plan: A comprehensive document detailing your business model, market analysis, financial projections, and operational strategies.​
  • Security Plan: Outline measures to secure the facility, including surveillance systems, access controls, and protocols to prevent unauthorized access.​
  • Location: Identify a suitable property that complies with zoning laws and is not within 1,000 feet of existing elementary or secondary schools, daycares, or churches—unless local ordinances state otherwise.​

Step 2: Submit Your Application

Applications are submitted through the Missouri Cannabis Industry Portal. The application fee varies by license type:​

  • Comprehensive Dispensary License: $7,672.28
  • Microbusiness Dispensary License: $1,500​

To avoid delays, ensure all required documentation is complete and accurate.​

Step 3: Application Review

The DHSS reviews applications based on compliance with state regulations, business viability, and community impact. Decisions are typically made within 150 days of submission.​

Step 4: Post-Approval Requirements

Upon approval, licensees must pay the annual fee within 30 days:​

  • Comprehensive Dispensary License: $10,960.40​
  • Microbusiness Dispensary License: $1,500. ​Additionally, licensees must complete a Facility Agent ID Card application for all employees, with a fee of $75 per card.

Missouri Dispensary Regulations

Operating a dispensary in Missouri requires adherence to specific regulations to ensure compliance and maintain licensure.​

Separate Licenses for Each Location

Each dispensary location must have its own license. While multiple licenses can be held by a single entity, each facility operates under a distinct license.​

Annual Fees

Licensees are required to pay annual fees to maintain their license:​

  • Comprehensive Dispensary License: $10,960.40
  • Microbusiness Dispensary License: $1,500​

The first annual fee is due within 30 days of license issuance, with subsequent payments due annually.

Location Restrictions

Dispensaries cannot be located within 1,000 feet of existing elementary or secondary schools, daycares, or churches unless local ordinances allow exceptions.​

Inventory Management

Missouri mandates the use of a certified seed-to-sale tracking system to monitor cannabis from cultivation to sale. This ensures product safety and regulatory compliance. IndicaOnline offers a suite of services tailored to assist Missouri dispensaries in achieving compliance and operational efficiency: Our point of sale system streamlines transactions with integrated compliance features.

Financial Records

Maintaining accurate financial records is crucial for compliance and operational success.​

Sales Records

Document all transactions, including product details, quantities, prices, and customer information, ensuring adherence to purchase limits.​

Purchase Records

Keep detailed accounts of all inventory acquisitions, including supplier information and product specifics.​

Payroll Records

Maintain comprehensive records of employee wages, benefits, and tax withholdings.​

Tax Records

Accurately document all tax payments, including state and local cannabis taxes, sales taxes, and employee-related taxes.​

Preparing for a Missouri Dispensary License in 2025

Securing a dispensary license in Missouri requires meticulous planning and adherence to DHSS guidelines. Key steps include:​

  • Understanding License Types: Determine whether a comprehensive or microbusiness license aligns with your business goals.​
  • Developing Comprehensive Plans: Create detailed business, security, and operational plans.​
  • Securing Financing: Ensure you have the necessary capital to cover application fees, annual fees, and operational costs.​
  • Identifying a Compliant Location: Find a property that meets zoning requirements and is appropriately distanced from restricted areas.​
  • Engaging with the Community: Conduct a community outreach meeting to address local concerns and build support.​

Entering Missouri’s cannabis market in 2025 offers significant opportunities for entrepreneurs. By understanding the licensing process, adhering to state regulations, and implementing robust operational plans, you can establish a successful dispensary. Engaging with the community and utilizing tools like IndicaOnline can further enhance your business’s compliance and efficiency.​