Microbusiness
A microbusiness is the only fully vertically integrated license in New York’s adult-use program. It allows small operators to cultivate, process, distribute, and retail cannabis — but only their own products and only within strict limits.
This license is designed for lean, single-site operators who want full control of their supply chain without scaling into multi-location or multi-tier operations.
What This Covers
- What a microbusiness license allows
- License limits and structural restrictions
- Prohibited activities
- Premises, buildout, and compliance requirements
What You’re Licensed to Do
A microbusiness license authorizes four activities under one operation:
- Cultivate cannabis within OCM-defined canopy limits
- Process and package products made from your own harvest
- Distribute only the products you manufacture
- Sell those products at your own licensed retail location
Microbusinesses operate as a closed system.
Every product sold must originate from cannabis you cultivated and processed yourself.
You may not source products from other licensees or sell products to outside retailers.
License Limits and Restrictions
Microbusinesses are intentionally capped to prevent large-scale vertical integration.
Key limits include:
- Strict canopy limits on cultivation
- Processing volume and batch size caps
- One retail location only
- No wholesale activity
- Ownership and control restrictions, including TPI rules and SEE eligibility where applicable
These limits are set by regulation and are enforced closely.
What You Cannot Do
A microbusiness license does not allow you to:
- Purchase cannabis or manufactured products from other licensees
- Sell or transfer products to other dispensaries or distributors
- Operate more than one licensed location
- Share premises with another licensee
- Hold, invest in, or influence any other cannabis license type
This license is built for independence, not scale.
If you want brand expansion, contract manufacturing, wholesale distribution, or multi-location retail, you need a different license type.
Premises, Buildout, and Compliance Requirements
Even though activities fall under one license, a microbusiness must comply with four separate regulatory functions.
Your premises must demonstrate:
- Physical separation between cultivation, processing, distribution, and retail areas
- Full security coverage across all zones
- METRC tracking from propagation through final sale
- Controlled access and compliant storage for raw materials and finished goods
- Written SOPs covering every stage of operations
- A facility layout that matches the plans approved by OCM
A microbusiness is effectively running four license types at once.
Buildout planning, staffing, and documentation must reflect that complexity.
What Operators Usually Miss
- You cannot supplement inventory with outside products
- Each operational area is inspected independently
- SOP gaps in one function affect the entire license
- Facility changes require approval before implementation
- METRC errors compound across cultivation, processing, and retail
When This Comes Up
- During site selection and facility design
- When applying for licensure
- During buildout and pre-opening inspections
- When staffing across multiple operational roles
- During audits or compliance reviews
What Happens If You Ignore This
Noncompliance can result in:
- Forced reduction of operations
- Product quarantine or destruction
- Fines and enforcement actions
- License suspension or revocation
- Inability to renew or modify the license
Because microbusinesses touch every part of the supply chain, enforcement risk is higher.
Related Pages
- Adult-Use Retail License Guide
- License to Launch
- Processor Requirements
- Distributor Requirements
- SEE Program Overview
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