All adult-use dispensing organizations (AUDOs) in Illinois are required to obtain an Adult-Use Dispensing Organization (AUDO) Bond. AUDOs are businesses that are licensed to sell recreational cannabis to adults over the age of 21. The AUDO Bond is a type of  surety bond,  that guarantees that the AUDO will comply with all applicable laws and regulations. If the AUDO fails to do so, the surety company will pay the state forAdult-Use Dispensing Organization (AUDO) Bond any losses incurred. The surety will then seek reimbursement form the AUDO.

The AUDO Bond is required to protect the state and consumers from financial losses in the event that an AUDO violates the law or goes out of business. The bond also helps to ensure that AUDOs are financially stable and able to meet their obligations to the state and their customers.

How to get a Adult-Use Dispensing Organization (AUDO) Bond

At we make it easy to obtain this surety bond. Our simple, three step process is:

  1. Complete the easy to navigate and secure online application1
  2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
  3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Adult-Use Dispensing Organization (AUDO) Bond will be shipped to the bond applicant.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license. is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, is the premier online provider of surety bonds nationwide since 2003.

To start an Adult-Use Dispensing Organization (AUDO) in Illinois, you must follow these steps:

  1. Apply for a license. The first step is to apply for a license from the Illinois Department of Financial and Professional Regulation (IDFPR). The IDFPR has a detailed application process that you must follow. You can find more information about the application process on the IDFPR website.
  2. Obtain a surety bond. All AUDOs in Illinois are required to obtain a surety bond in the amount of $50,000. The surety bond guarantees that the AUDO will comply with all applicable laws and regulations. You can purchase a surety bond from a surety company that is authorized to do business in Illinois.
  3. Secure a location. Once you have obtained a license and a surety bond, you need to secure a location for your AUDO. The location must be in compliance with all zoning and licensing requirements.
  4. Build out your AUDO. Once you have secured a location, you need to build out your AUDO. This includes installing the necessary equipment and security measures.
  5. Hire staff. You will need to hire staff to operate your AUDO. This includes budtenders, security guards, and other support staff.
  6. Stock your AUDO. Once you have hired staff, you need to stock your AUDO with cannabis products. You can purchase cannabis products from licensed cultivators and processors.
  7. Open your doors! Once you have completed all of the above steps, you are ready to open your doors and start selling cannabis products to adults over the age of 21.

Here are some additional tips for starting an AUDO in Illinois:

  • Develop a business plan. This will help you to define your business goals and strategies.
  • Conduct market research. This will help you to understand the competitive landscape and identify opportunities for your business.
  • Create a financial model. This will help you to project your costs and revenues and ensure that your business is financially viable.
  • Obtain legal and accounting advice. This will help you to comply with all applicable laws and regulations.
  • Network with other AUDOs and cannabis businesses. This will help you to learn from the experiences of others and build relationships that can benefit your business.

Starting an AUDO in Illinois can be a challenging but rewarding experience. By following the steps above and taking the time to plan carefully, you can increase your chances of success.

How to Get Your Illinois Adult-Use Dispensing Organization (AUDO) Bond

  1. Complete an online application. It’s free and no-obligation.
  2. One of our surety experts will contact you with a firm quote and an agreement to sign.
  3. Provide payment and your signed agreement, and then you will receive your Surety Bond!

If you have any questions, please call us at 877-654-2327.

How to Get Bonded

1. Apply Online
Using our Free & Secure Application
2. Get Your Free Quote
Applications are No-Obligation
3. Get Your Bond
Most Bonds are Approved in 1-2 Business Days

Surety Bond Experts

Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.

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