Full-Service Cannabis Consulting Tailored to Colorado's Unique Market Needs

Unlock success in Colorado’s cannabis industry with Catalyst BC—your trusted partner for expert cannabis consulting, seamless cannabis licensing, compliance with Colorado cannabis law, cutting-edge facility design, and maximizing yield & profit optimization.

Let's Learn about Colorado Cannabis Laws

Colorado, located in the western U.S., is known for its stunning natural beauty, including the Rocky Mountains and vast plains. With a population of over 5.8 million, Denver is both the state’s largest city and its economic hub. Colorado is famous for its outdoor recreation opportunities, including skiing, hiking, and camping, making it a top destination for nature enthusiasts.

The state has a diverse economy with strong sectors in agriculture, technology, and energy. Colorado is also one of the nation’s leading cannabis markets, having pioneered the legalization of recreational marijuana. This has made Colorado a model for other states looking to legalize and regulate cannabis.

Legal Status of Cannabis in Colorado

Colorado was one of the first states in the U.S. to legalize recreational cannabis, paving the way for a regulated market. Since the passage of Amendment 64 in 2012, adults aged 21 and older have been allowed to possess, purchase, and consume cannabis for recreational use. Individuals can legally possess up to one ounce of cannabis, and home cultivation of up to six plants per person (with no more than three being mature at a time) is permitted. Colorado also legalized medical marijuana earlier, in 2000, under Amendment 20, offering a robust program for patients with qualifying conditions. Cannabis is regulated by the Colorado Marijuana Enforcement Division (MED), which oversees licensing, compliance, and enforcement.

The state has established a thriving cannabis industry, with dispensaries operating under stringent safety and regulatory requirements. While recreational cannabis is widely accessible, public consumption remains prohibited, and driving under the influence of cannabis is illegal. Colorado has used tax revenue from cannabis sales to fund education, public health initiatives, and infrastructure projects. This model has positioned Colorado as a leader in cannabis policy, balancing economic benefits with public safety concerns.

Catalyst BC, in alignment with the state’s efforts, provides Colorado hemp and cannabis cultivators, farmers, businesses, and suppliers extensive seed-to-sale support including Colorado cannabis licensing and applications, business strategy, financial planning, start-up support, guidance on staying compliant with Colorado cannabis law and more.

Legal Status of Hemp Farming in Colorado

Hemp farming is fully legal in Colorado, aligning with federal guidelines established under the 2018 Farm Bill. The state has embraced industrial hemp as a valuable agricultural commodity, creating opportunities for farmers and entrepreneurs. The Colorado Department of Agriculture (CDA) oversees the hemp program, which requires growers to register and comply with regulations around THC limits (hemp must contain no more than 0.3% THC). Inspections and testing are conducted to ensure compliance, and non-compliant crops must be destroyed. Catalyst BC supports the CDA’s work by providing consulting to Colorado growers and farmers to help navigate licensing, start up support, and operational optimizations.

Colorado is a leading state in hemp cultivation, with farmers producing hemp for a wide range of uses, including CBD extraction, textiles, and bioplastics. The state’s favorable climate and regulatory environment have contributed to a booming industry. However, challenges such as market saturation and evolving federal guidelines remain. The Colorado Department of Agriculture supports hemp producers through education, grant opportunities, and guidance to maintain the state’s leadership in the hemp sector.

Legal Status of Natural Medicine in Colorado

Passed in 2022, The Natural Medicine Health Act (NMHA) decriminalized adult possession of natural medicines (including psilocybin, psilocin, mescaline not derived from peyote, ibogaine and DMT), and initiated the process of creating regulated healing centers in Colorado.

The licensing and regulation of natural medicines in Colorado falls under two state agencies: the Department of Regulatory Agencies (DORA) and the Department of Revenue (DOR).

DORA will regulate and license facilitators of natural medicine services.
DOR will license and regulate natural medicine businesses – healing centers, cultivations, manufacturers, and testing facilities, and their owners and employees.

In alignment with local and state regulations and rules established by DOR and DORA, we provide guidance in Colorado Natural Medicine Facility Design, Controlled Environments, and more.

Navigate local zoning and building codes confidently and build laboratories, patient healing centers, and cultivation facilities with experienced engineers and architects. Contact our Colorado Natural Medicine team for a complimentary consultation.

Navigating the Complexities of Operating a Cannabis or Hemp Business in Colorado

Colorado’s cannabis market is one of the most developed in the U.S., but businesses must comply with a wide range of regulations.

Catalyst BC provides comprehensive consulting and expert guidance in all areas of Colorado based cannabis and hemp businesses including Business Strategy, Financial Planning, Colorado Cannabis Licensing & Applications, Facility Design, Startup Support, Operational Optimization, Genetic Development, and Cannabis Business Turnaround. Book a free consultation today to learn more.

Colorado Cannabis Application Guide

Colorado Marijuana Regulations

Administration and oversight of marijuana businesses in Colorado are conducted by several state agencies. Information on the various agency roles can be found on the Colorado Cannabis website.

At the Colorado Department of Revenue, the Marijuana Enforcement Division (MED) oversees regulation and licensing of marijuana businesses for both medical and retail marijuana. Retail marijuana may be referred to as recreational marijuana by the industry. The Taxation Division administers retail marijuana sales tax and retail marijuana excise tax. This website includes information on how to file state administered sales and excise tax, including the state sales tax on tangible personal property, retail marijuana sales tax and retail marijuana excise tax.

Retail marijuana licensees in Colorado

For all the information you need on operating a retail marijuana business, go to the Department of Revenue’s Retail Marijuana Licensing Information Page.

It’s important to cross-reference state rules on retail marijuana licensing with your local rules, which may be stricter.
Learn more about how marijuana laws differ in each county and town across Colorado.
All applicants must pass background checks. Applicants who are owners with day-to-day control over the business must establish and maintain Colorado residency. Additionally, to qualify for a Social Equity License, individuals must demonstrate Colorado residency. Learn more about license rules and regulations in your area by visiting the Department of Revenue’s website.
For a list of existing license recipients in the state, visit the Department of Revenue’s website. Please keep in mind, licensed does not mean operating. A marijuana business must be licensed by both the state and their local jurisdiction before being allowed to operate.
The state recently released guidance on the use of pesticides in commercial marijuana grow operations.

Working in the Colorado Marijuana Industry

Regulations and requirements apply to anyone who wants to work in the marijuana industry. All applicants must:

Be age 21 or older.
Pass criminal background checks.

You can learn more about employment within the medical and retail marijuana industries from the Department of Revenue.

For information about becoming a caregiver for medical marijuana patients, visit the Colorado Department of Public Health and Environment.

For information about medical marijuana centers, visit the Department of Revenue’s Marijuana Enforcement Division.

Obligations of Colorado Cannabis Retail Business and Property Owners

The following information applies to retail marijuana, not medical use.

Employers don’t have to allow employees to use marijuana products. When Coloradans passed Amendment 64, they voted to give employers choices about marijuana use. Employers can:

- Test employees for marijuana and other drugs.
- Make employment decisions based on drug test results.

Consult your legal counsel to determine how your hiring and employment policies align with Amendment 64.

Any use of marijuana on your business’ property may be considered public use, which is illegal.

Amendment 64 made it legal for adults 21 and older to possess up to 1 ounce of marijuana at any time. However, businesses can choose to ban the possession of retail marijuana on their property.

Business owners may implement marijuana possession and use policies that are more strict, not less, than state law.

Property owners can make their own choices about marijuana on their property.

Owners of private properties, including hospitals, businesses, hotels and other facilities, are allowed to ban marijuana possession and use on their properties. For example, Denver International Airport has banned the possession, use and transfer (giving) of any marijuana products on airport grounds.

Rental property owners and hotels have the right to ban the possession and use of marijuana products on their properties.

Types of Marijuana Business Licenses In Colorado

Colorado state statute authorizes the State Licensing Authority to issue the following Regulated Marijuana Business Licenses (Each facility is authorized to engage only in the type of activity for which it is licensed and as described in statute.):

Medical Marijuana Store License allows the holder to operate a business that sells Medical Marijuana to Colorado Medical Marijuana Registry Patients and Transporting Caregivers, as described in 44-10-501C.R.S.
Medical Marijuana Cultivation Facility License allows the holder to operate a cultivation business to grow and harvest Medical Marijuana, as described in 44-10-502C.R.S.
Medical Marijuana Products Manufacturer License allows the holder to operate a business that produces Medical Marijuana Products such as edibles, concentrates or tinctures. These licensees are only authorized to wholesale their products to MED licensed Medical Marijuana Centers as described in 44-10-503 C.R.S.
Medical Marijuana Testing Facility License allows the holder to operate a facility that conducts potency and contaminants testing and research for MED Medical Marijuana business licenses as described in 44-10-504 C.R.S.
Medical Marijuana Transporter License allows the holder to provide transportation and temporary storage services to MED Licensed Medical Marijuana Businesses as described in 44-10-505 C.R.S.
Medical Marijuana Business Operator License allows the holder to provide professional operational services to one or more MED Licensed Medical Marijuana Businesses as described in 44-10-506 C.R.S.
Medical Marijuana Research and Development License allows the holder to grow, cultivate possess and transfer marijuana for use in research only as described in 44-10-507 C.R.S.
Retail Marijuana Store License allows the holder to operate a business that sells Retail Marijuana to an individual twenty-one years of age or older as described in 44-10-601 C.R.S.
Retail Marijuana Cultivation Facility License allows the holder to operate a facility to grow and harvest Retail Marijuana plants as described in 44-10-602 C.R.S.
Retail Marijuana Product Manufacturer License allows the holder to operate a facility that manufactures retail marijuana-infused products such as edibles, concentrates or tinctures as described in 44-10-603 C.R.S.
Retail Marijuana Testing Facility License allows the holder to operate a facility that conducts potency and contaminants testing for other MED Licensed Retail Marijuana businesses as described in 44-10-604 C.R.S.
Retail Marijuana Transporter License allows the holder to provide transportation and temporary storage services to Retail Marijuana Businesses as described in 44-10-605 C.R.S.
Retail Marijuana Operator License allows the holder to provide professional operational services to one or more Retail Marijuana Businesses as described in 44-10-606 C.R.S.
Retail Marijuana Accelerator Cultivator License allows the holder to operate a retail marijuana product manufacturing operation on the site of a retail marijuana products manufacturing facility with an accelerator endorsement as described in 44-10-607 C.R.S.
Retail Marijuana Accelerator Manufacture License allows the holder to operate a retail marijuana product manufacturing operation on the site of a retail marijuana product manufacturing facility with an accelerator endorsement as described in 44-10-608 C.R.S.
Marijuana Hospitality Business License allows the holder to operate a premise in which marijuana may be consumed as described in 44-10-609 C.R.S.
Retail Marijuana Hospitality and Sales Business License allow the holder to operate licensed premises within which marijuana may be sold and consumed as described in 44-10-610 C.R.S.

Colorado Regulated Marijuana Business License Application Checklist

Step 1. Complete the MED Regulated Marijuana Business License Application

Download the Regulated Marijuana Business License Application (DR 8548) from the Forms Page, unless you are submitting it digitally, and ensure the following:

This application includes addendums for

Publicly Traded Companies
Qualified Private Fund
Qualified Institutional Investors
Marijuana Research and Development Facility

Step 2. Include all applicable Findings of Suitability Applications

To determine which of the following applications should be submitted with your business license application visit our Marijuana Business Owners webpage.

Natural Person
Owner Entity

Step 3. Pay Application Fee

The MED cannot complete its intake of your application without your payment of requisite fees.

Please include a check or money order or indicate you would like to pay by credit card (and you will be sent a link).
The MED is also offering an online payment link option available via Colorado Interactive Payment System. For applicants seeking to use this online payment link option, following receipt of your application, a MED staff member will contact you via email with the link to submit your payment. PLEASE NOTE: inaccurate payment may delay the issuance of your license. Full and proper payment is required, so please double-check your payment before submitting it! For a summary of fees, please see the latest MED Fee Schedule

Step 4. Pay Local Jurisdiction Fees

FEES DUE TO LOCAL JURISDICTIONS MUST BE INCLUDED WITH YOUR APPLICATION SUBMISSION AS A SEPARATE FORM OF PAYMENT (CHECK OR MONEY ORDER ONLY). Please refer to your application for additional details.

Step 5. Supporting Documentation

Include any necessary addendums:

Publicly Traded Companies
Qualified Private Fund
Qualified Institutional Investors
Marijuana Research and Development Facility
The application includes addendums for these items.

For Colorado Marijuana Licensing and Application Assistance, contact our team to schedule a complimentary consultation.

State Sales Tax License Requirements

Applicants must apply for the State Tax License appropriate for the type of business they plan to operate.

Retail marijuana is subject to retail marijuana excise tax and a retail marijuana sales tax. The retail marijuana excise tax is imposed on the transfer of retail marijuana between retail marijuana business licensees. The retail marijuana sales tax is imposed on the sale of retail marijuana to a consumer.

Some products sold in marijuana retail stores are not subject to retail marijuana sales tax, rather, they are subject to retail sales tax. Items such as t-shirts or hats sold by a marijuana retail store are subject to the Colorado retail sales tax. For additional information on the retail sales tax, visit the Sales & Use Tax web page.

Review the Marijuana Taxes Guidance Publications for more information.

Local Authority Licensing in Colorado for Marijuana Businesses

You must confirm that the Local Authority where you plan to operate allows Medical and/or Retail Marijuana businesses to operate within their jurisdiction. The MED will not accept new marijuana business license applications for businesses located within a local authority’s jurisdiction unless they have advised us that they are currently accepting new Medical and/or Retail Marijuana business license applications – local authorities that have advised the MED that they allow marijuana businesses to operate within their jurisdiction. Be aware that before your marijuana business may begin operation, you must also obtain a license from the Local Licensing Authority within whose jurisdiction you intend to operate. With this in mind, you may want to begin your Local Licensing Authority’s license application process at the same time you are pursuing your State marijuana business license.

Ways to Submit Your Colorado Marijuana Business License Application

Submit Digitally

Use your computer, phone, or another device with internet access to submit your application.

For detailed instructions see this training video

Submit by Mail

Colorado Springs/Southern Regional Office

2447 North Union Blvd.
Colorado Springs, CO 80909

Grand Junction/Western Slope Regional Office

200 Grand Ave., Suite 202
Grand Junction, CO 81501

Lakewood Office

Attn: MED / Marijuana
COLORADO DEPARTMENT OF REVENUE
P.O. BOX 17087
DENVER CO 80217-0087

Drop Off In-Person

Lakewood Office Location Only

COLORADO DEPARTMENT OF REVENUE
1707 Cole Boulevard, Suite 300
Lakewood, CO 80401

The MED Lakewood Office Drop Box is available from 8 a.m. – 5 p.m. Please place your complete applications in an envelope to keep the application intact.

In-Person (Appointments Only) at MED
Lakewood, Colorado Springs, Grand Junction

This scheduling tool will allow you to choose your appointment type and the closest office to you.
You must have your completed application and any additional documentation available at the time of your scheduled appointment.
If you arrive more than ten (10) minutes late for your scheduled appointment, your appointment will be canceled, and you must reschedule.

Best Practices in Completing a Colorado Cannabis License Application

The statutory basis for this rule includes but is not limited to sections 44-10-103, 44-10- 202(1)(b), 44-10-202(1)(c), 44-10-202(1)(e), 44-10-203(1)(k), 44-10-203(1)(i), 44-10-203(2)(b), 44-10-203(2)(h), 44-10-203(2)(q), 44-10-203(2)(w), 44-10-203(2)(dd)(XII), 44-10-303(2)(b), 44- 10-310(7), 44-10-313, 44-10-401, 44-10-801, 44-10-802, 44-10-803, 44-10-1201, 44-10-1202, C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(a)(II). The purpose of these rules is to establish fees required for applications, renewals, licenses, permits, and other fees required to accompany applications and submissions to the Division.
2-105 – Employee License – Initial Fees and Renewal Fees
A. Initial Application Fees. Upon application for an Employee License, the Applicant must submit a total fee reflecting an application fee and license fee, as follows:
2-105(A) 1
License Type
Total Due at Application
Employee License
$170.00
Conditional Employee License
$220.00
B. License Renewal Fee. Upon application to renew an Employee License, the Applicant must submit the following total fee:
2-105(B) 1
License Type
Total Due at Application
Employee License Renewal
$120.00
C. When Fees Are Due. The application and License fees reflected in this Rule are due at the time of application.
Basis and Purpose – 2-110
The statutory basis for this rule includes but is not limited to sections 44-10-103, 44-10- 202(1)(b), 44-10-202(1)(c), 44-10-202(1)(e), 44-10-203(1)(k), 44-10-203(1)(i), 44-10-203(2)(b), 44-10-203(2)

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