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The main license types
- Dispensary (retail): sell to consumers or patients.
- Cultivation: grow cannabis, licensed in tiers by canopy size and light type.
- Manufacturing: make concentrates, edibles, vapes and other products.
- Distribution: move products between licensed businesses.
- Delivery: deliver to consumers, with or without a storefront.
- Testing laboratory: independently test products for safety and potency.
- Microbusiness: combine several small-scale activities under one license.
Three licensing models
Open licensing states such as California don't cap state licenses, but cities and counties decide what's allowed locally. Capped states such as Illinois and New York release a limited number of licenses in rounds. Vertically integrated states such as Florida and Texas issue one license that covers growing through selling.
Choosing the right license
Your budget, experience and local rules usually decide. Retail and cultivation draw the most competition and capital; delivery, distribution and microbusiness licenses can be lower-cost entry points where available.
