Cannabis Business Formation
Cannabis, also referred to as marijuana, is currently the fastest growing industry, specifically New York. On March 31, 2021, Gov. Andrew Cuomo signed the Marijuana Regulation and Taxation Act into law. Click here to see the full bill. It is best to discuss your proposed business with the Law Office of Regine D. Pointdujour, PLLC so we can help you navigate through this complex process.
The legal cannabis business is a growing and highly-regulated industry. With these new laws and ever evolving regulations, its important that you adhere to the guidelines of your state, while keeping in mind that marijuana is still illegal under federal law.
It's important to protect your brand and your product! Be sure to trademark your business name and logo, as soon as possible. If you develop a novel cannabis-related product or a new technique, you should consider patenting your idea/product.
LIST OF LICENSES AVAILABLE UNDER NEW YORK LAW
Adult-use cooperative license — the acquisition, possession, cultivation, processing and sale from the licensed premises of the adult-use cooperative by such licensee to duly licensed distributors and/or retail dispensaries; but not directly to cannabis consumers.
Adult-use cultivator license — for the acquisition, possession, cultivation and sale of cannabis from the licensed premises of the adult-use cultivator by such licensee to “duly licensed processors.” A cultivator can apply for one processor and one distributor license.
Adult-use distributor license — the acquisition, possession, distribution and sale of cannabis from the licensed premises of a licensed adult-use processor, microbusiness cultivator, or registered organization authorized to sell adult-use cannabis, to duly licensed retail dispensaries. A distributor licensee may not have any economic interest in any retail dispensary license (no vertical integration (except for grand-fathered Registered Organizations)).
Adult-use processor license — the acquisition, possession, processing and sale of cannabis from the licensed premises of the adult-use cultivator by such licensee to “duly licensed distributors.” Processors must purchase cannabis from cultivators and can sell cannabis to distributors only. A processor licensee can have up to three processor licenses.
Adult-use retail dispensary license — the acquisition, possession and sale of cannabis from the licensed premises of the retail dispensary by such licensee to cannabis consumers. No person may have a financial or controlling interest in more than three retail dispensary licenses. This restriction, however, does not prohibit Registered Organizations (the pre-existing licensed medical marijuana licensees) from obtaining adult-use retail dispensary licenses at locations previously registered and in operation as of April 1, 2019. Under the current medical marijuana regulations, Registered Organizations can have up to 4 medical dispensary locations. A retail dispensary would not be permitted to sell more than one ounce of cannabis per consumer per day, nor more than 5 grams of cannabis concentrate per consumer per day.
Delivery license — for the delivery of cannabis and cannabis products by licensees independent of another adult-use cannabis license. A delivery licensee is not permitted to employ more than twenty-five full-time paid delivery services, or the equivalent.
Microbusiness license — for the limited cultivation, processing, distribution, delivery, and dispensing of their own adult-use cannabis and cannabis products.
Nursery license — for the production, sale and distributing of clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis by licensed adult-use cultivators, cooperatives, microbusinesses or registered organizations.
On-site consumption license — Adult-use retail dispensaries (provided the location would qualify for alcohol sales) can apply to have an on-site license (which cannot sell more than 1 gram of cannabis to a consumer for on-site consumption).