Microbusiness Cannabis License in New Jersey
Now that New Jersey has a legal cannabis market, business entrepreneurs have the opportunity to enter the booming cannabis industry. The cannabis industry in New Jersey is expected to surpass $1b in annual sales and every business entrepreneur wants in. Many cannabis licenses are available within New Jersey and choosing the one that works for your business goals is important. Herein, our cannabis consultants in New Jersey explain a microbusiness cannabis license in New Jersey. We also offer our best advice on winning a license.
What is a Microbusiness Cannabis License?
To begin with, let’s explain what a microbusiness exactly is. A microbusiness is a person or entity licensed by the Cannabis Regulatory Commission as a cannabis grower, cannabis processor, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service. Importantly, if you have a microbusiness cannabis license in New Jersey you can not:
- Employ more than 10 employees
- Operate a cannabis establishment occupying an area of more than 2,500 square feet. In the case of a cannabis grower, you can not grow cannabis in New Jersey in an area more than 2,500 square feet and above 24 feet.
- Possess more than 1,000 cannabis plants each month (Cannabis Distributor’s possession of cannabis plants for transportation shall not be subject to this limit)
- Acquire and process more than 1,000 pounds of cannabis in dried form (Cannabis Processor)
- Acquire for resale each month more than 1,000 pounds of cannabis in any form (Cannabis Wholesaler/Cannabis Retailer)
Contact our cannabis business consultants for information on what requirements are necessary for you to win a license.
Cannabis Microbusiness Application in New Jersey
The commission creates rules for microbusiness in New Jersey and allows a limited amount of these businesses within the state. With that, the commission issues a fair amount of microbusiness licenses.
For example, the commission ensures that at least 10 percent of the total licenses issued for each class of cannabis establishment are designated for and only issued to microbusinesses in New Jersey. Additionally, they ensure that 25 percent of the total licenses issued to be issued to microbusinesses.
These minimum 10 percent per class and 25 percent overall include the number of conditional licenses issued for each class. The bill includes that these two categories are not mutually exclusive to one another.
Application Fee for Microbusiness License in New Jersey
The application fees for microbusinesses differ in comparison to the other licenses New Jersey offers. The max fee for the issuance or renewal of a license issued to a microbusiness will be no more than half the fee applicable to a license of the same class issued to a person/entity that is not a microbusiness. Also, a license is valid for one year and you can renew the license after that.
Requirements for a Microbusiness
In order to acquire a microbusiness, you need to meet a few requirements. These include:
- 100 percent of the ownership interest in the business must be held by New Jersey residents who have resided in the state for at least 2 years
- At least 51 percent of the owners, directors, officers, or employees within the business have to be residents of the municipality or a neighboring municipality in which the microbusiness is located.
- No owner, director, officer, or another person with a financial interest who also has decision-making authority for a licensed cannabis establishment, distributor, or delivery service (whether or not a microbusiness license) can hold any financial interest in a microbusiness
- Additionally, a microbusiness license in New Jersey can not sell or transfer its’ license
- Lastly, a microbusiness license has to comply with such other requirements established by the commission
As you can see, a microbusiness is a little different from the other cannabis licenses within the New Jersey cannabis industry. With that, a microbusiness license in New Jersey may be the perfect choice for your business needs. Contact our cannabis consultants in New Jersey for additional assistance on your cannabis microbusiness application.