In recent months, the office has received queries from entrepreneurs curious to obtain a license in New York’s yet-to-be-developed legal cannabis market. Until the New York City Marijuana Control Board and the Office of Cannabis Management issue laws and develop an application process, we won’t understand precisely what it will require to obtain a New York marijuana license. Since, as the saying goes, still hands are the evil one’s toy, this post describes 5 blunders to prevent if you want a New York cannabis license.
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Purchasing or Leasing Space
To get NY dispensary license, at least thirty days before the license is released, you must have a right to real possession where the license will run. Finding real estate where a marijuana service can run is tough: property owners may not wish to rent to a service that is openly in violation of government law and many lenders will not give lendings to those who will purchase property specifically to go against government legislation. Due to these obstacles, locating realty should be a leading concern for any applicant. While the Marijuana Regulation and Taxes Act (MRTA) does develop, licenses may not operate near delicate places (e.g., schools, holy places).
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Choosing the Wrong Company Partners
Licensing requirements can create odd bedfellows. In 2015, A job of releasing retail licenses after legislators decided to combine the adult-use and medical markets. One criterion for these new licenses was that an applicant had been part of a medical dispensary that had remained current on taxes. Below are a couple of essential concerns that potential organization partners should think about:
- Who gets to vote and what choices require a vote?
- How will losses and revenues be allocated?
- What occurs in case of a conflict?
- How does an organization add or eliminate stakeholders?
- What takes place to possessions when the business closes?
- Does that determine whether to market the business or its properties?
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Operating a Marijuana Service Before Obtaining a License
Do not grow (various other than in compliance with MRTA’s indoor grow arrangements) marijuana without a license. Do not process cannabis without a license. Under MRTA, any illicit marijuana activity can result in disqualification from holding a cannabis license.
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Taking on Financial Investment Improperly
Starting a marijuana business needs investment, and sometimes more of it. To raise money, you may need financiers. To do that, you must consider safety regulations. Securities law is a complicated lawful area, regulated by state and federal regulations. If you are taking a type of payment aside from an individual or small business loan, most likely safety regulation will apply, and complying with securities laws will be important. While this included layer of regulation can be complicated, it should not be forgotten.
