Mississippi Medical Cannabis Business Licenses: Dispensary, Cultivation, Processing and Local Rules
Mississippi Medical Cannabis Business Licenses: Dispensary, Cultivation, Processing and Local Rules
Mississippi medical cannabis is a licensed business, but there is no single Mississippi cannabis license. The paperwork is split across several agencies, and many of the hardest rules are local. You will register your entity with the Secretary of State, register for a tax permit if you sell at retail, obtain a state license from either the Department of Revenue or the Mississippi State Department of Health, and then clear your city or county. This guide covers each layer in the order you will meet it.
Informational content only. This article describes Mississippi's medical cannabis program and business formation rules in general terms. It is not legal or tax advice. The statutes, agency rules and local ordinances control, and they change. Talk to a Mississippi attorney and a CPA before you sign a lease, buy property or submit an application.
Who licenses what
The state medical cannabis program has been running since 2022. Each part of the business is licensed by a different agency:
| Business activity | Agency that licenses it | What you need before applying |
|---|---|---|
| Dispensary (retail sales) | Department of Revenue (ABC) | Sales tax permit, plus Secretary of State registration |
| Cultivation, processing, testing, disposal and transportation | Mississippi State Department of Health (MSDH) | Secretary of State registration |
| Any entity, every business | Secretary of State, Business Services Division | Nothing. This is the starting point. |
Mississippi has no state general business license. A Secretary of State registration creates your legal entity, and a Department of Revenue sales tax permit is a tax registration. Neither one is the cannabis license itself.
Step 1: Register the entity with the Secretary of State
Form your entity first. The state expects a registered entity before you apply to the Department of Revenue or MSDH, and the license is issued to that entity. Key details for an LLC:
- Certificate of Formation (Form F0100): $50 filing fee. File through the Secretary of State online filing portal. Most online filings are approved immediately, and filings that need staff review are normally returned within 24 hours.
- Name: The name must include "limited liability company," "LLC" or "L.L.C." It must be distinguishable on the state's records from other registered or reserved names (Miss. Code Ann. 79-29-109). Search the business entity search before you choose one.
- Name reservation: $25 for 180 days, if you need time to finish the application.
- Registered agent: Every Mississippi LLC must keep a registered office and an agent for service of process, with a physical Mississippi street address. The agent must be a Mississippi resident or an entity authorized to do business in the state. A commercial agent files a listing statement with the Secretary of State for $100.
- Annual report: Due April 15 each year, filed online, with no fee for LLCs. Failure to file can lead to administrative dissolution.
If you will trade under a name other than the LLC name, file a Fictitious Business Name Registration (Form F0070) with the Secretary of State, not the county. The fee is $25.
Entity tax treatment matters. An LLC taxed as a partnership reports its income on the members' Mississippi returns and pays no LLC franchise tax. An LLC taxed as a corporation pays Mississippi corporate income tax and the franchise tax. For tax year 2026, the franchise tax is $0.50 per $1,000 of capital above $100,000, with a $25 minimum. It steps down to $0.25 for 2027 and is repealed effective January 1, 2028. Confirm the structure with a CPA before you file.
Step 2: Dispensary license (Department of Revenue)
The Department of Revenue licenses dispensaries. The sequence runs like this:
- Get a sales tax permit first. The Department of Revenue sales tax permit page describes the permit as the privilege of operating a business in Mississippi. There is no fee for it, but a bond may be required for applicants without a permanent Mississippi location.
- Secure a site in a commercial zone. Confirm zoning and the distance rules below before you sign anything.
- Submit a complete application and pay the fees. The Department of Revenue issues the license within 30 days of receiving a complete application.
| Dispensary cost | Amount | Notes |
|---|---|---|
| Application fee | $15,000 | Non-refundable |
| License fee | $25,000 | $40,000 total in the first year, including the application fee |
| Yearly renewal | $25,000 | Due each year after the first |
Confirm with the Department of Revenue when each payment is due, since the timing of the application fee versus the license fee affects your cash plan.
Location rules
- Commercial zone: The site must sit in a commercial zone.
- School, church and childcare buffer: The main entrance must be more than 1,000 feet from the property line of a school, church or childcare facility. A waiver form is available, but confirm its current process with the Department of Revenue.
- Dispensary spacing: No dispensary may be within 1,500 feet of another dispensary.
Measure these distances with a survey, not a map app, before you sign a lease.
Opt-out places
Cities and counties can opt out of medical cannabis businesses. The Department of Revenue keeps a map and list of opted-out places. An application for a location in an opted-out place is denied, and the $15,000 application fee is forfeited. Check the list and call the local clerk before you spend a dollar on the application.
Step 3: Cultivation, processing, testing, disposal and transportation (MSDH)
The Mississippi State Department of Health licenses cultivation, processing, testing, disposal and transportation entities. Register with the Secretary of State first, as in Step 1. This article does not state MSDH application fees, license fees or processing timelines, so do not budget from it alone. Request the current application packet and fee schedule from MSDH, and ask whether the local rules in your city or county apply to growing and processing sites in addition to dispensaries.
Step 4: Local rules: cities, towns, villages and counties
Mississippi has no state general business license, so local government fills the gap. Every city, town and village issues its own privilege license under Miss. Code 27-17. Counties license only businesses outside municipal limits. A dispensary inside a city needs that city's license. A site outside city limits falls under the county, and the county may have opted out.
Local fees vary widely, and the figures below are examples only:
| City | Local cost | Status of the figure |
|---|---|---|
| Pearl | MSDH license plus a local permit of $1,500 initial and $1,500 annual | Pearl Zoning Ordinance Sec. 414 (2024) |
| Oxford | $1,500 first year and $1,000 renewal | Reported in 2022. Confirm the current figure with the city clerk. |
Do not assume another city's fee applies to you. Call the clerk of each city or county where you are considering a site and ask four questions: Has the city or county opted out? What is the local permit fee and renewal? Is the site zoned for this use? What documents does the local office need from your entity?
Step 5: Sales tax and other tax registrations
Mississippi's state sales tax rate is 7%. There is no county add-on. Only Jackson and Tupelo add city levies. Register with the Department of Revenue for your sales tax permit, then confirm with the Department of Revenue how sales of medical cannabis are taxed, since that treatment is not settled in this guide.
Mississippi has no state minimum wage law, so the federal minimum wage sets the floor for most employers. Plan your payroll and withholding registrations with your CPA.
A practical order of operations
- Choose the license type you want (dispensary or one of the cultivation, processing or testing activities).
- Pick an entity name, reserve it if needed, and file the Certificate of Formation for $50.
- Appoint a registered agent with a Mississippi street address.
- Choose the target city or county, and confirm it has not opted out.
- Check zoning and the 1,000 foot and 1,500 foot distance rules with a survey.
- Get the local privilege license or permit and confirm its fees.
- Register for the sales tax permit with the Department of Revenue.
- Apply to the Department of Revenue (dispensary) or MSDH (other activities).
- Calendar the April 15 annual report and the yearly license renewal.
Where to confirm
- Mississippi Secretary of State, Business Services Division: entity formation, name reservation, fictitious names and annual reports.
- Mississippi Department of Revenue: dispensary licensing, opt-out list, sales tax and franchise tax.
- Mississippi State Department of Health: cultivation, processing, testing, disposal and transportation licensing. Find its medical cannabis page through the state health agency's site.
- Your city clerk or county board of supervisors: local privilege licenses, permits and opt-out status.
- Mississippi Small Business Development Center Network: free and low-cost help with planning and filings, with 19 locations statewide.
- SBA Mississippi district office: loan programs and business counseling.
Before you apply
The fastest way to lose money in this program is to sign a lease before confirming three things: the site passes the distance rules, the city or county has not opted out, and the local permit is available. Confirm all three in writing. Read the current statutes and agency rules directly, because this guide summarizes them and cannot replace them. A Mississippi attorney who handles cannabis licensing should review your entity structure, your lease and your application package, and a CPA should review your tax treatment and payment schedule.
Reminder: This article is informational, not legal or tax advice. Consult a qualified Mississippi attorney and a CPA for your specific situation.