Marijuana leaves on both sides. Marijuana (Cannabis) Bonds in the middle.

Marijuana (Cannabis) Surety Bonds

In the rapidly evolving landscape of legalized marijuana, navigating the complexities of regulations and compliance measures is paramount for businesses seeking success and longevity. Among the various requirements imposed on cannabis businesses, one crucial aspect that often garners less attention but is nonetheless vital is the marijuana surety bond.

Marijuana surety bonds serve as a form of protection for states and municipalities, ensuring that cannabis businesses adhere to applicable laws and regulations. These bonds provide financial security and guarantee that businesses will fulfill their obligations, such as paying taxes, following safety protocols, and adhering to licensing requirements. Essentially, they act as a safeguard for the government and the public interest.

What is a Marijuana (Cannabis) Surety Bond?

A marijuana or cannabis surety bond is a contractual agreement between three parties: the principal (the cannabis business owner), the obligee (the entity requiring the bond, typically a government agency), and the surety (the bonding company). In the event that the principal fails to fulfill their obligations, the surety steps in to cover any financial losses up to the bond amount.

Types of Cannabis Surety Bonds

License Bonds

These bonds are a prerequisite for obtaining a cannabis business license. They ensure that the licensee will operate in compliance with all applicable laws and regulations.

Tax Bonds

Cannabis businesses are subject to various taxes, including excise taxes and sales taxes. Tax bonds guarantee that the business will fulfill its tax obligations.

Permit Bonds

Permit bonds are required for specific permits related to cannabis cultivation, manufacturing, distribution, or retail operations.

Supply Bonds

Supply Bonds are needed to guarantee the fulfillment of some contracts.

Why Are Marijuana Surety Bonds Necessary?


Legal Compliance:

Compliance with state and local regulations is non-negotiable in the cannabis industry. Marijuana surety bonds provide assurance to regulatory bodies that businesses will operate within the confines of the law, minimizing the risk of non-compliance and associated penalties.

Financial Protection:

For government agencies, ensuring compliance with cannabis regulations is not just a matter of enforcement but also a financial concern. Marijuana surety bonds serve as a financial safety net, guaranteeing that funds are available to cover any damages or losses resulting from non-compliant activities.

Consumer Protection:

By requiring marijuana surety bonds, authorities prioritize the protection of consumers. These bonds create accountability for cannabis businesses, ensuring that they meet quality and safety standards, thereby safeguarding consumers from potential harm.

Many More

How Are Marijuana Bonds Obtained?

Marijuana Bonds are easy to obtain for most. Axcess Surety has programs for many of these bonds to be purchased online instantly and without a credit check. Simply visit our state page where the bonds are needed, search for the marijuana bond and purchase it. Larger amounts may only require a credit check of the owner.

For larger or more complicated obligations, additional information such as personal and company financial statements may be required. The marijuana bond experts at Axcess Surety have the expertise and bond companies available to help most. Be aware that the surety bond companies that write marijuana bonds are limited at this point. Make sure you are working with a broker who knows the market and has the tool to help.

What Do Cannabis Bonds Cost?

Cannabis Bonds generally cost about 1% - 2% of the required bond amounts for most license and permit bonds. For example, a $10,000 grower license bond would cost $100 per year. Credit and financial strength may increase the costs for some applicants. Some bonds such as Cannabis supply bonds may cost more depending on the risk. 

Alternatives to Cannabis Bonds

Some states will allow cannabis applicants to post alternatives to surety bonds. These may include cash or a letter of credit. Generally, surety bonds are a better choice for most. Cash or LOCs will tie up the person or business resources that could be used for other purposes such as operations or growth. 

Additionally, both cash and LOCs can be drawn on demand for almost any reason. The applicant may find it costly and time consuming to get their money back. Alternatively, surety bonds must be investigated before being paid. Learn more about the difference by clicking on the images. 


In the complex regulatory landscape of the cannabis industry, marijuana surety bonds play a crucial role in ensuring compliance, protecting stakeholders, and promoting responsible business practices. For cannabis entrepreneurs, understanding the importance and requirements of these bonds is essential for navigating the regulatory framework and building a successful and sustainable enterprise. By adhering to regulatory requirements and maintaining financial integrity, cannabis businesses can thrive while contributing to the legitimacy and growth of the industry as a whole.

The cannabis industry can learn more about surety bonds, including many frequently asked questions by visiting our Complete Guide. Contact the Marijuana and Cannabis Surety Bond experts at Axcess Surety today for all your bond needs and questions.

Frequently Asked Questions

Can I Get a Cannabis Bond with Bad Credit?

Generally, yes. Many of our cannabis bonds do not require a credit check. For those that do, we have programs to help applicants in most circumstances, including credit challenges. Give our people a call if you have concerns about applying.

What Do Cannabis Bonds Guarantee?

There are different types of Cannabis Bonds. Most guarantee that the terms of the cannabis license are upheld, laws are obeyed, product is destroyed when necessary, and taxes are paid. 

How Long Does it Take to Get a Cannabis Bond?

Many of our cannabis bonds are instant issue. This means that they can be purchased in minutes. An applicants must simply complete the online application, purchase and print their bond. For other requests, we can usually have the bond the same day that an application and supporting information is received.

How Much is the Surety Bond in Most States for Cannabis?

While each bond is a little different, most of Cannabis Surety Bonds cost about 1% - 2% of the bond amount per year.
Contact Us

Axcess Surety is the premier provider of surety bonds nationally. We work individuals and businesses across the country to provide the best surety bond programs at the best price.

5440 W 110th St Suite 300-2
Overland Park, KS 66211
12288 S. Mullen Rd.
Olathe, KS 66062
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