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NY Cannabis Microbusiness License Requirements Explained
A New York cannabis microbusiness license allows cultivation, processing, distribution, and retail under one operation, but only for products you grow yourself. This page explains canopy limits, structural restrictions, prohibited activities, and compliance requirements.
What Is a NY Cannabis Microbusiness?
A microbusiness license combines four activities under one license:
- Cultivation
- Processing
- Distribution
- Retail
But it operates as a closed system.
Every product sold must come from cannabis you cultivated and processed yourself.
You cannot bring in outside inventory.
What You’re Allowed to Do
With a microbusiness license, you may:
- Cultivate cannabis within approved canopy limits
- Process and package products made from your harvest
- Distribute only the products you manufactured
- Operate one retail location to sell those products
You control your supply chain, but only your supply chain.
What You Cannot Do
A microbusiness does not allow you to:
- Purchase cannabis from other licensees
- Sell products made by other brands
- Distribute to outside retailers
- Operate more than one storefront
- Franchise your brand
- Hold or influence another adult-use cannabis license
- Expand into wholesale distribution
If you want multi-store growth or wholesale expansion, this is not the license.
Microbusiness Canopy Limits
Cultivation is capped.
A microbusiness may cultivate no more than:
- 10,000 square feet of indoor flowering canopy, or
- 25,000 square feet of outdoor flowering canopy, or
- An approved combination within allowable limits
Important:
- Only flowering canopy counts
- Vegetative and drying space does not increase your cap
- Exceeding canopy limits is a violation
- Canopy is verified through floor plans and tracking data
Temporary overages are still violations.
Processing Restrictions
You may process only cannabis you cultivated yourself.
Allowed activities include:
- Drying and curing
- Trimming and packaging
- Manufacturing pre-rolls and infused products
You may not:
- Accept biomass from other licensees
- White-label for other brands
- Manufacture for outside retailers
Processing must match approved equipment and facility layouts.
Distribution Limits
You may distribute only to your own retail location.
You may not:
- Distribute to other dispensaries
- Act as a wholesale distributor
- Transport product for other businesses
Distribution activity is reviewed during inspections.
Retail Restrictions
A microbusiness may operate only one storefront.
You may sell only products you cultivated and processed.
Inventory must reconcile across cultivation, processing, and retail in METRC.
You cannot fill your shelves with outside brands.
Ownership and Control Limits
Microbusinesses are subject to strict ownership rules.
You may not:
- Hold, control, or influence another adult-use license
- Accept undisclosed management control
- Use outside financing that creates hidden ownership
True Party of Interest (TPI) rules apply fully.
Undisclosed control is a violation.
Facility and Buildout Requirements
Even though this is one license, you are running four regulated functions.
Your premises must show:
- Physical separation between cultivation, processing, distribution, and retail
- Security coverage across all areas
- Secure storage for product and cash
- Full inventory tracking from seed to sale
- Written SOPs for each function
Each area is inspected independently.
What Operators Usually Miss
- You cannot supplement inventory
- Each function is inspected separately
- METRC errors multiply across operations
- Facility changes require approval
- Scale is intentionally limited
Micro is independence, not expansion.
When This Comes Up
- Choosing between retail vs microbusiness
- Designing your facility
- Raising capital
- Planning brand growth
- Preparing for inspection
- Considering adding outside inventory
What Happens If You Ignore These Limits
Because microbusinesses touch the full supply chain, risk is compounded.
Violations may result in:
- Forced reduction of operations
- Product quarantine or destruction
- Fines
- Suspension
- Revocation
- Denial of renewal
Microbusinesses are closely monitored because they combine cultivation, manufacturing, distribution, and retail under one roof.
Go Here Next
- License to Launch
- Processor License Overview
- Distributor License Overview
- Delivery License
- Cultivator License
- Adult- Use Retail License
- Registered Organization (Medical)
- Special Populations & Community Education
