In the state of Illinois, those who wish to partake in medical marijuana business must obtain licensure that mandates the posting of surety bonds for timely sales tax revenue payments, as well as ensuring legal business performance. Further, the business performance regulates the lawful manufacturing and dispensing of medicinal cannabis. Once the cultivation business has submitted its license application to the Illinois Department of Agriculture, a surety bond is required.
Illinois carries extensive guidelines and fees associated with applying for marijuana dispensary and cultivation licensure. In addition to obtaining a surety bond, the state requires the following medical cannabis dispensary documents to be submitted at the time of application:
The surety agents at ProSure Group are dedicated to assisting individuals through this process to determine the necessary surety bond needed so that your establishment may legally operate in Illinois. Once the bond is identified ProSure Group will move forward with underwriting and completing the necessary steps to issue the bond.
A medical cannabis cultivation center surety bond solidifies legal financial, performance and continual construction operations. Additionally, a continual post-construction 90-day production of medical cannabis is ensured to be provided to the licensed dispensaries.
The cultivation center shall serve as the principal named on the surety bond. The bond must also meet all the conditions of the Illinois Department of Agriculture outlined below.
This bond ensures that the dispensing establishment completes any construction timely and successfully; operates legally and provides continual cannabis production; submits renewal fees; maintains bookkeeping; abides by Illinois tax regulations; submits required reports; and abides by Illinois Administrative Rules.
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Depending on the financial status and credit score of the applicant, the bond cost will vary. Typically, the cost of the bond is anywhere from 1 percent to 2 percent of the total bond amount. Note that Illinois does outline the following costs related to bonds:
Should the cultivation establishment successfully continue operations the bond amount may be reduced by $500,000. Further, the necessary criteria are as follows:
Alternatively, a cannabis cultivation center risks forfeiture of the balance of a medical marijuana surety bond in the event of one of the following circumstances:
The first step is to contact a surety bond company, such as ProSure Group. Our agents provide professional assistance throughout the entire process. Once the necessary paperwork and documents are submitted to ProSure Group, underwriting will begin. Once all matters are in order the bond will be executed and assign the bond.