What is a Nevada marijuana surety bond?
A Nevada marijuana surety bond is a financial guarantee that a medical marijuana licensee will meet specific requirements. In Nevada, marijuana-related surety bonds are required at the local level in some locations. Testing facilities, cultivation facilities, and product manufacturing facilities may need to post a bond.
In Nevada, medical marijuana businesses in Las Vegas and North Las Vegas must purchase and post a surety bond before obtaining a license to operate.
How do marijuana bonds work?
A marijuana surety bond is a three-party agreement between a principal, an obligee, and a surety.
- Principal: A medical marijuana business
- Obligee: A government agency
- Surety: A bonding institution
The bond provides financial protection to governing agencies, ensuring they receive all the money licensed businesses owe them. If a principal breaks the surety contract, the obligee may file a claim against the bond to recover the money the principal owes them.
Get Your Nevada Marijuana Bond:
- In Nevada, marijuana-related surety bonds are required at the local level in Las Vegas and North Las Vegas.
- Marijuana bonds guarantee that businesses pay their taxes and fulfill all obligations as promised.
- If you have an excellent credit score and strong financial credentials, you may pay as little as 1-5% of the total bond amount.
Who needs a marijuana bond in Nevada?
Local governments in Nevada govern the marijuana industry in conformity with state laws. If you plan to run an authorized medical marijuana facility or establishment in Las Vegas or North Las Vegas, you may need a surety bond. Bonds guarantee that businesses pay their taxes and fulfill all obligations as promised.
Nevada Requirements for Marijuana Businesses
The cities of Las Vegas and North Las Vegas require medical marijuana-related businesses to post the following surety bonds to ensure legal and ethical operations.
- North Las Vegas $250,000 Surety Bond
- North Las Vegas $50,000 License Bond
- Las Vegas $250,000 Surety Bond
- Las Vegas $50,000 License Bond
A business that has applied for a medical marijuana establishment license must post a $250,000 surety bond to maintain compliance with any obligations the city sets. Medical marijuana establishment licensees must also post a $50,000 license bond to ensure compliance with its city’s Municipal Code and other state and city provisions.
Frequently Asked Questions
Sureties must carefully underwrite marijuana bonds due to their high-risk nature. The price reflects this. You will pay a small percentage of the total bond amount required to obtain a Nevada medical marijuana bond. If you have an excellent credit score and strong financial credentials, you may pay as little as 1-5% of the total bond amount.
If you have poor credit, you may still be able to get bonded. While your premium may be higher, working with a surety provider like ZipBonds gives you access to a large pool of sureties and the opportunity to find an affordable solution.
Your Las Vegas or North Las Vegas medical marijuana establishment bond will remain in full force until canceled. The surety will renew your bond annually as you continue paying your premiums. Your bond may be canceled by giving your obligee (the city) 30 days’ written notice.
Apply for Your Marijuana Surety Bond in Nevada
To apply for your medical marijuana surety bond, start the application below. You will need to compile financial documents, your registration certificate, surety bond forms, and other applicable documents as directed to complete the licensing process.
ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward, and many of our bonds are issued instantly. We’d be happy to walk you through the process. Just call 888-435-4191 to speak with an agent directly!
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.