As more and more states legalize cannabis (aka marijuana) for adult use, business is booming. Before licensing businesses to sell cannabis, most states are requiring a type of surety bond, frequently referred to as a cannabis license bond. These bonds are also commonly called cannabis bonds, cannabis surety bonds, marijuana license bonds, marijuana surety bonds—and many other variations.
Though the terminology varies, the fundamental purpose of cannabis bonds is easy to understand: when you secure a cannabis bond, you are guaranteeing that you will abide by all of the regulations applicable to the business in your state, including the timely submission of sales taxes. Failure to adhere to state requirements can result in a claim against the bond.
Essentially, cannabis license bonds serve as a protection to the public—a commitment that a cannabis business is run professionally, honestly and in accordance with the law. Like other types of surety bonds, a cannabis license bond involves three parties: the obligee (the public entity requiring the bond); the principal (the person needing the bond); and the surety company that issues the bond. It is critical for a cannabis license bond to be written to the specific requirements of the obligee—especially since state laws are evolving.
As a direct, national bond writer, Colonial is prepared to meet the specific requirements of obligees across the country. We make it so easy, speedy and affordable to secure a cannabis license bond that you can do it in minutes, right here, now:
