Thinking about how to open a dispensary in Nevada? While the state’s cannabis market is thriving, entering the industry requires patience, preparation, and strict compliance with Nevada’s cannabis regulations.
Currently, Nevada is not accepting new retail dispensary license applications, but entrepreneurs can prepare in advance for when the next application window opens.
Why Consider Opening a Dispensary in Nevada?
Nevada is home to one of the strongest cannabis markets in the U.S. Despite a slight dip in 2022 sales (down 4% compared to 2021), the state still generated over $965 million in combined medical and adult-use cannabis sales.
Most of these sales came from Clark County (Las Vegas) and Washoe County (Reno), making them prime markets for new dispensaries.
In the 2022 fiscal year alone, Nevada collected $63 million from wholesale excise taxes and nearly $90 million from retail cannabis excise taxes, proving the sector remains highly profitable.
Types of Dispensary Licenses in Nevada
If you want to know how to open a dispensary in Nevada, you need to understand the licensing structure. Nevada issues only one type of retail license for cannabis stores. With this license, dispensary owners can:
- Purchase cannabis from cultivation facilities
- Source cannabis products from manufacturing facilities
- Acquire products from other retail stores
- Sell cannabis and cannabis products directly to consumers
How to Get a Nevada Dispensary License
The Nevada Department of Taxation (NDOT) regulates cannabis licenses. At this time, they are not accepting new applications.
However, before opening the next window, the NDOT will give a 45-day public notice. To stay updated, you should subscribe to notifications on the Nevada Department of Taxation’s official website.
Application Requirements for a Dispensary in Nevada
Based on the last application round (2018), anyone learning how to open a dispensary in Nevada should prepare the following documents:
- Business Name (DBA) and Tax ID Numbers (Federal & Nevada)
- Physical & mailing addresses of the dispensary
- Business hours of operation
- Zoning approval letter and distance approval compliance
- Certificate of Occupancy from the local jurisdiction
- Information on owners, officers, and board members
- Lease agreement or property owner approval letter
- Nevada State Business License and municipal business license
- Copies of active agent cards
- Inspection Letter with no deficiencies or corrective plan
Future application requirements may differ, but these provide a reliable starting point for preparation.
Essential Plans Needed to Open a Dispensary in Nevada
To strengthen your application, you’ll likely need:
- Business Plan – Covering mission, market analysis, operations, financials, branding, and compliance.
- Security Plan – Detailing surveillance, alarm systems, employee training, and product storage.
- Inventory Plan – Explaining cannabis tracking systems, auditing processes, and seed-to-sale compliance.
- Site Plan – Showing zoning compliance, property layout, parking, and distance from schools or community facilities.
Local (Municipal) Approval
Before applying for a state license, dispensary operators must first obtain city or county approval. Municipalities issue their own cannabis business licenses and have specific zoning laws, so requirements may vary depending on whether you operate in Las Vegas, Reno, or smaller Nevada cities.
Costs of Opening a Dispensary in Nevada
When planning how to open a dispensary in Nevada, budgeting is key.
- Application Fee: $5,000
- Retail License Fee: $20,000
- Local Business License: $1,500+ (varies by municipality)
- Startup Costs: Between $250,000 to $1 million+, covering property, renovations, security, staffing, marketing, legal compliance, and inventory.
Additionally, Nevada dispensaries must pay a 10% retail excise tax on adult-use cannabis, plus any local jurisdiction taxes.
Insurance for Dispensaries in Nevada
While Nevada does not mandate specific insurance policies for dispensaries, experts recommend:
- Workers’ Compensation Insurance (mandatory for all Nevada employers)
- General Liability Insurance
- Product Liability Insurance
- Commercial Property Insurance
Funding Options for Your Dispensary
Since federal law still prohibits cannabis, bank loans are difficult to secure. However, you may fund your dispensary through:
- Private lenders & investors
- Cannabis-specific lenders
- Venture capital or private equity firms
- Community banks or credit unions
- Crowdfunding platforms
- Personal savings or family/friend investors
Does Nevada Have a Cannabis Social Equity Program?
Currently, Nevada does not provide a social equity program for dispensaries, but there is one for cannabis consumption lounge licenses.
Also Read: How to Open a Dispensary in New York.
Final Thoughts
Learning how to open a dispensary in Nevada means understanding strict compliance requirements, preparing for significant financial investment, and closely monitoring when the state reopens its license application window.
With Nevada’s cannabis market showing strong demand and consistent tax revenue, opening a dispensary here could be a highly rewarding opportunity for well-prepared entrepreneurs.