In this post, you’re going to learn exactly how to get a cannabis license in Washington in 2025. If you’re planning to start a cannabis business in Washington, this guide is for you. 

Overview of Washington Cannabis Laws

Washington’s legal cannabis market is growing fast and is expected to reach $3.34 billion by 2030, with an annual growth rate of 14.4% from 2024 to 2030. 

On December 6, 2012, Washington became one of the first states to legalize recreational marijuana, alongside Colorado. The state had already approved medical cannabis back in 1998. 

Under Washington law, adults 21 and older can legally use cannabis for both medical and recreational purposes.

Moreover, cannabis can only be purchased from state-licensed retailers, and there are limits on how much you can buy:

• 1 ounce of cannabis flower
• 7 grams of cannabis concentrate
• 16 ounces of edibles
• 72 ounces of cannabis-infused drinks

The Washington State Liquor and Cannabis Board handles licensing and regulations for cannabis businesses. Right now, the state isn’t issuing new licenses, so the only way to get one is to buy one from a current license holder. If you find a seller, the WSLCB will review your criminal history and require proof that you’ve lived in Washington for at least six months before approving the transfer.

Read More: How to Open a Dispensary in Colorado 

Cannabis Business Paths in Washington

There are four types of cannabis licenses approved by the WSLCB and include the following:

Cannabis Research License

Authorizes the licensee to produce, process and possess cannabis for research purposes based on the rules in RCW 69.50.372.

The application fee for a cannabis research license is $250 and the license fee is $1300.

Cannabis Transportation License

Authorizes the licensee to move or deliver cannabis and related products from one licensed cannabis business to another within the state of Washington.

The application fee for a cannabis transportation license is $250 and the license fee is $1300. 

Cannabis Retailer License

Authorizes the sale of cannabis products, cannabis paraphernalia, and lockable storage boxes. 

The application fee for a cannabis retailer license is $250 and the license fee is $1381.

Cannabis Producer/ Processor License

Authorizes the holder to grow, harvest, trim, dry, cure, and package cannabis for sale to licensed processors and other producers. The holder can also sell cannabis plants, seeds, and plant tissue cultures to other licensed producers. In addition, the licensee is allowed to sell immature cannabis plants, clones, and seeds to registered cooperative members, qualifying patients, designated providers, or licensed cannabis researchers.

The application fee for a cannabis transportation license is $250 and the license fee is $1381. The annual renewal charges are $1200.

Insurance Costs: While specific insurance costs aren’t listed, social equity applicants can expect coverage requirements similar to those of businesses in their license category. However, some programs may offer discounted premiums to support these businesses and reduce financial barriers.

‍Insurance pricing is influenced by numerous factors, including business size, industry, location, operational risks, and claims history. The estimates provided are for informational purposes only and should not be considered as specific advice or guaranteed rates. For accurate pricing tailored to your business, consult with a licensed insurance professional.

Getting a Cannabis Business License in Washington 

Check Your Eligibility

Before applying for a cannabis license in Washington, you need to meet these requirements:

• Age Requirement: You must be 21 years or older.
• Residency Requirement: You must have resided in Washington for a minimum of six months at the time of application submission. 
• License Name Requirement: According to WAC 314-55-020, all cannabis producer licenses must be issued under the applicant’s name.
• Criminal History Check: You must submit a Personal Criminal History form and complete fingerprinting.
• Location Restrictions & Requirements: The Liquor and Cannabis Board (LCB) will not issue a cannabis license if your business is located within 1,000 feet of:
  
  • Elementary and secondary schools
  • Libraries 
  • Playgrounds
  • Childcare centers
  • Recreation centers or facilities
  • Public parks
  • Public transit centers
  • Game arcades (if they allow entry to people under 21)
  • For more details, check WAC 314-55-050.
• Zoning Approval: You must provide a zoning determination letter and a certificate of occupancy from the Department of Buildings (DOB) Zoning Administrator.
• Proof of Occupancy: Submit a valid lease, intent to lease, or purchase agreement for the building where your business will operate.
• Local Laws & Regulations: Each city and county has its own zoning, permits, and licensing rules. Contact your local authorities to get the necessary information for your area.
• Air Quality Regulations: In Washington State, air quality is regulated by regional air quality agencies and the Washington State Department of Ecology, depending on the county. Since cannabis production and processing can affect air quality, cause strong odors, and create off-site nuisances, producers and processors must follow air quality rules.

Understand the Application Process

Here’s a simple breakdown of the licensing process so you know exactly what to expect.

Register Your Business

If you’re setting up an LLC or corporation, you must register it with the Washington Secretary of State’s Office before moving forward.

Check Local Rules

Every city and county has its own zoning laws and permit requirements. Before choosing a location, check with your local government to ensure you meet all the necessary rules.

Apply for Your Cannabis License

The Washington State Liquor and Cannabis Board (WSLCB) handles dispensary licenses. You’ll need to:

• Fill out the retailer license application as per their instructions.
• Submit it via mail to the WSLCB for processing.

Licensing Specialist Contact

After WSLCB receives your application, they will email you the contact details of a licensing specialist assigned to your case. Within two business days, your specialist will:

• Schedule a phone interview to discuss the next steps.
• Send an email with electronic forms and a list of required documents you must submit.

Application Review & Approval

WSLCB will carefully review your application and the documents you provided. They will approve your license and send you a billing statement with payment instructions if everything checks out.

Receive Your License

Once you pay the licensing fee, WSLCB will issue an approval letter, which also acts as a temporary 30-day license.

During this period, the DOR Business Licensing Service will process and issue your official cannabis business license.

By following these steps carefully, you’ll be on your way to running a fully licensed dispensary in Washington!

Notable Regulatory Bodies & Compliance Requirements

Running a cannabis business in Washington State means following strict rules and regulations set by the Washington State Liquor and Cannabis Board (WSLCB). Staying compliant is crucial for keeping your license, protecting your business, and building a strong reputation in the industry.

Key Compliance Requirements

• You must maintain detailed records of inventory, sales, and financial transactions. These records help prove compliance during inspections or audits.
• As state law requires, install surveillance cameras, access controls, and alarm systems.
• Regularly update security protocols to address any weaknesses.
• All cannabis products must be tested for potency, and other quality standards. Labels must clearly show ingredients, potency, and required warning labels to ensure consumer safety.
• Set up internal audits to catch and fix any compliance issues before they become serious.
• Stay updated on regulatory changes through the WSLCB website and industry newsletters. 
• Attend mandatory meetings, respond to inquiries, and quickly resolve any compliance concerns.

Ignoring violations can put your license at risk, leading to fines, penalties, or even losing your license. That’s why having comprehensive cannabis insurance is essential. It protects your business and helps ensure compliance with Washington’s regulations by covering potential liabilities, protecting assets, and meeting state-mandated insurance requirements.

Importance of Cannabis Business Insurance in Washington

Cannabis businesses must provide an insurance certificate when applying for a license in the state of Washington. The insurance policy must be in the applicant's name and specifically highlight the type of business the applicant will own. It should be purchased from an insurance provider authorized to operate in Washington and with a rating of at least A—Class VII. 

Moreover, each business must have commercial general liability insurance with a minimum coverage of $1 million. This insurance protects business owners from legal claims made by customers or third parties and covers common risks of owning a business, such as customer injuries and property damage.

There are a few other insurance policies that cannabis business owners should consider having and include:

• Product Liability Insurance-  Covers the costs of any damage or injury caused by the products you sell.
• Commercial Property Insurance- Covers the costs of any loss or damage to your dispensary property, ensuring your business stays protected from unexpected events.
• Workers' Compensation Insurance- Safeguards your employees by covering any expenses or losses they may face due to a work-related injury, ensuring their well-being and financial security.
• Management Liability Insurance: Protects executives and decision-makers from claims related to wrongful acts like mismanagement, harassment, or discrimination, helping maintain business stability and security.
• Crime Insurance: Protects all cannabis businesses from any financial loss which are a result of criminal activities such as fraud, theft, forgery and embezzlement.
• Commercial Auto Insurance: Perfect for delivery services, providing coverage for vehicle accidents and related liabilities.
• Builder’s Risk Insurance:.Covers structures under construction, protecting against risks like theft, vandalism, and natural disasters—essential for businesses building or renovating facilities.

Choosing an insurance provider who is familiar with state-specific cannabis regulations is important, as they can guide you properly and help your business stay fully protected. At Frontier Risk, our team of experts offers precise insurance solutions that meet all the requirements of the cannabis industry in Washington.

Endnote

Getting a cannabis business license in Washington is just the first step and keeping your business safe and running smoothly is just as important. Insurance protects you from unexpected risks like property damage, lawsuits, and other challenges that could set you back.

At Frontier Risk, we specialize in cannabis industry insurance, offering coverage tailored to your needs. With our protection, you can focus on growing your business while we handle the risks.

Don’t let unexpected problems disrupt your success—contact us today and secure the protection you need for a strong and thriving future.

FAQs

What Type Of License Applications Are Being Accepted At The Moment? 

Currently, the state of Washington is accepting applications for Research and Transportation licenses along with Cannabis Cooperative registrations. Applications for cannabis retailers, producers or processors are only being accepted through the Social Equity Program. Applications are also available to bring any change to an existing license.

Can Customers Use Or Consume Cannabis Products At The Place Of Purchase?

No, you cannot allow customers to use or consume cannabis products at your business’s location as public consumption is prohibited in Washington. 

Do I Need Any Additional Permits Or Licenses To Operate My Cannabis Business? 

Yes, you may need an additional permit or license based on the region you are living in and will have to check with the authorities of that particular region regarding it.

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