Getting started in Ohio’s cannabis distribution industry might seem overwhelming, but with the right steps and paperwork, it’s entirely achievable. Whether someone’s looking to launch their own cannabis distribution company or work within an existing operation, the following guide walks through everything they’ll need to know to succeed in this rapidly growing field.
Step 1: Confirm Eligibility
To begin, individuals must be at least 21 years old, a legal Ohio resident, and pass a background check, which includes fingerprinting. Those with recent felony drug convictions or ties to regulatory agencies may not qualify.
Step 2: Choose the Right License Path
Ohio offers a variety of cannabis business licenses. For those interested in cannabis distribution, the processor license is key. It allows companies to handle, package, and distribute cannabis products to licensed dispensaries. Applicants can either apply through the dual-use system (for medical and adult-use sales) or through the 10(B) lottery system, depending on the licensing window that’s open.
Step 3: Secure a Location and Draft a Business Plan
Applicants must choose a compliant location—this means one that’s not within 500 feet of schools, churches, or other restricted areas. A comprehensive business plan is also required. This should detail everything from management and staffing to financial forecasts, compliance strategies, and security protocols.
Step 4: Prepare Required Documents
The application process includes submitting a wide range of documents. These typically include:
- A valid Ohio ID and proof of residency
- Fingerprint and background check confirmation
- Business formation documents and operating agreements
- Detailed financial statements
- Premises layout with security plans
- Operational SOPs (Standard Operating Procedures)
- Zoning approval and local permits
- Tax compliance paperwork
Applicants must also prepare a facility design with Metrc (Ohio’s seed-to-sale tracking system) in mind, since inventory tracking is mandatory.
Step 5: Pay Application Fees
There is a non-refundable $5,000 application fee. If the application is approved, an additional certificate of operation fee will be due. These can range up to $70,000–$80,000, depending on the license type and scope of the business.
Step 6: Submit the Application
All required forms and supporting documents must be submitted through the state’s eLicense portal or designated upload systems. Submission instructions are very specific, so attention to detail is crucial.
Step 7: Application Review or Lottery Drawing
Applications are reviewed either on a first-come, first-served basis (for dual-use) or entered into a random lottery drawing (for 10(B)). Successful applicants are granted provisional licenses pending inspection.
Step 8: Pass a Facility Inspection
An on-site inspection will be scheduled. Inspectors will evaluate the facility’s security setup, Metrc compliance, employee training protocols, and overall operational readiness. Passing the inspection leads to issuance of the final Certificate of Operation.
Step 9: Stay Compliant
Even after licensing, cannabis distributors must stay current on regulations, submit Metrc reports regularly, train staff, and remain compliant with tax and advertising rules. Licenses must be renewed every two years.
