Adult-Use Processor (Type 1, 2, or 3)
New York calls manufacturing 'processing.' Type 1 processors handle extraction plus manufacturing (concentrates, edibles, vapes, topicals). Type 2 processors handle manufacturing only (infused products from already-extracted cannabis). Type 3 processors handle blending and packaging only. Volatile-solvent extraction (butane, propane) requires the most rigorous buildout and fire-safety review.
Pick processor type and product mix
Type 1 (extraction + manufacturing) is the most capital-intensive. Type 2 (manufacturing only) lets you produce edibles and infused products from pre-extracted cannabis sourced from Type 1 processors. Type 3 (packaging + blending) is the lightest. Many new operators start Type 2 to control complexity and capital.
Time: 1-2 weeksCost: FreeCheck SEE eligibility
SEE applicants get fee waivers, expedited review, and access to the Cannabis Social Equity Investment Fund for capital and real-estate support.
Time: 2-4 weeksCost: Free to applyOfficial portal ↗Confirm municipality didn't opt out
Processor operations are usually permitted in industrial zones, but the municipality must not have opted out of MRTA cannabis businesses entirely. Check OCM's opt-out list.
Time: 1 dayCost: FreeOfficial portal ↗Secure processor premises
Industrial-zoned property with: 500 ft school setback, food-grade prep areas (for edibles), climate control, secure storage, OSHA-compliant workspaces, fire-suppression. Type 1 with volatile extraction: explosion-proof rooms, certified ventilation, C1D1-rated electrical, dedicated fire-suppression. Coordinate with the local fire marshal early.
Time: 1-4 monthsCost: Type 3: $80K-$300K | Type 2: $150K-$600K | Type 1 volatile: $400K-$1.5MForm NY entity + banking
NY LLC or corporation. EIN. Cannabis-friendly banking. Include LLC publication requirement ($1K-$3K).
Time: 2-4 weeksCost: $200 LLC + publication + bankingOwner background checks
All true parties of interest submit fingerprints and undergo OCM background and source-of-funds review.
Time: 4-8 weeksCost: $102 per ownerWrite SOPs
Required: extraction or infusion methods (with safety procedures for Type 1 volatile), batch records, sanitation, employee training, waste disposal, packaging, labeling, lab testing chain of custody, recall procedures. SOPs are the single most-reviewed document in your application.
Time: 4-8 weeksCost: $3,000 - $15,000 consultingLab testing relationships
Every product batch must be tested by a NY-licensed independent lab before retail distribution. Establish relationships with at least two labs. Major NY labs: Phyto-Farma, Inertia Labs (NY ops), TrichromeAG.
Time: 1-2 weeksCost: Per-batch testing $400-$1,000OCM state application
File through the OCM portal. Required: business and operating plans, security plan, premises diagram, SOPs, social-equity plan, financial documentation, local approval letter, fingerprint clearance. Type 1 volatile applicants submit additional fire-safety and engineering documentation.
Time: 16-28 weeksCost: $2,000 application + $7,000 annual feeOfficial portal ↗OCM + fire marshal inspection, license issued
OCM inspection covers premises, SOPs, BioTrack integration. Type 1 volatile operations also need fire-marshal sign-off. Once both pass, license is issued.
Time: 4-8 weeksCost: Included
Tips from people who've done it
- →Start Type 2 if you don't strictly need extraction. The capital and timeline difference is significant.
- →Edibles dosing and labeling are the leading source of OCM product recalls. Test rigorously and verify every label against current rules.
- →BioTrack onboarding has a steeper learning curve than METRC for operators coming from other states. Plan 2-4 weeks of dedicated training time.
- →Build relationships with multiple labs. NY's testing capacity is still growing. A single-lab dependency is fragile.