For those looking to get into the cannabis industry in Ohio with a business of their own, you’ll have to acquire an Ohio marijuana surety bond. The selling, growing, and processing of marijuana in Ohio is strictly regulated, and surety bonds are used as a way to ensure that businesses operate in adherence to local rules and regulations. This post will explore some of the basics of these surety bonds so that you can make sure your business is operating legally.
What is an Ohio Marijuana Surety Bond?
Marijuana surety bonds are used by the state of Ohio to make sure that businesses requiring marijuana licenses have the financial means to adhere to all state and local laws. The surety bonds provide a path for the state to recoup any financial losses incurred by the marijuana-related business.
To understand how a marijuana surety bond functions, it’s helpful to take note of the three parties involved.
- First, the obligee is the entity that requires the bond. In this case, it’s the state of Ohio.
- Next, the principal is the party that needs to be bonded. This is the marijuana business looking to set up shop in Ohio, in this scenario.
- Last, the surety is the business that serves as the underwriter of the bond and steps in to resolve valid disputes. Viking Bond Service, Inc., has decades of experience providing surety bond solutions to business of all types.
Do I Need an Ohio Marijuana Surety Bond?
If you’re looking to open a cannabis-related business in Ohio, chances are you’ll have to be bonded. Those looking to dispense, cultivate, process, or test marijuana products will each have their own surety bond requirements that will need to be met. These surety bonds are an important part of the business licensing process.
Who Oversees Ohio Marijuana Surety Bonds?
In Ohio, every medical marijuana product has to be registered with the state Department of Commerce as well as the Board of Pharmacy. These government agencies also oversee that businesses in the marijuana industry are properly bonded.
As of this writing, Ohio is planning to license 24 cultivators, 60 dispensaries, and 40 marijuana processors statewide. Each of these business types has its own bond requirements and regulations to follow.
How Big of a Bond Do I Need?
Bond requirements may change as the legislature adjusts regulations. Currently, there are five levels of marijuana surety bond requirements:
- Dispensary bond requirement: $50,000
- Testing Laboratory bond requirement: $75,000
- Level II Cultivator bond requirement: $75,000
- Processor bond requirement: $250,000
- Level I Cultivator requirement: $750,000
Be sure to check with your local governing body to determine what the current bond requirements are for your locality.
How Much Does an Ohio Marijuana Surety Bond Cost?
Bond premiums are calculated as a percentage of the bond amount. That means you don’t have to put up the entire amount of the bond to secure one. Your premium is determined by factors such as credit standing and bonding history. Viking Bond Service, Inc. also offers options for those with less-than-perfect credit through our bad credit surety bond program.
Viking Bond Service, Inc. is committed to providing businesses with the surety bond coverage they need at the lowest prices, so you can have the confidence to set up a marijuana business in Ohio.
What’s the Bonding Process Like?
Though operating legally within this flowering industry can be complicated and involve ample red tape, Viking Bond Service, Inc. aims to make the bond process simple for you. Our Surety Bond Experts are happy to walk you through the process, from initial application to issuance. Getting started is as easy as filling out an online application or giving us a call.
Why Should I Work with Viking Bond Service, Inc.?
Viking Bond Service, Inc. has over thirty years of experience providing superior surety bond solutions for businesses across the country. Not all surety bonds are created equal, which is why working with us is in the best interest for aspiring marijuana businesses in Ohio. Whether you’re looking to cultivate, dispense, process, or test marijuana products, Viking Bond Service, Inc. can provide you with the surety bonds you need.
To get started, simply fill out an online application or give us a call at (888) 278-7389. We look forward to hearing from you!