The CBD market in New York City continues to expand as more residents turn to hemp-based wellness products. Starting a CBD company in NYC, however, takes more than just a good product idea. From licensing and packaging rules to banking restrictions, every step must be handled carefully to remain compliant.
At Corepay, we have helped hundreds of CBD businesses across the country launch and grow through compliant, reliable payment processing. Whether you are opening an online store or a physical retail location, our team specializes in guiding high-risk CBD merchants through the complex setup process.
If you are ready to start your CBD company in New York City, this guide outlines each important step, from licensing and registration to product compliance and setting up a CBD-friendly merchant account with Corepay.
*Learn more about our CBD payment processing services here.
Step 1 – Learn New York’s CBD and Hemp Rules
New York regulates CBD through the Office of Cannabis Management (OCM) under the state’s Cannabinoid Hemp Program. This program controls how hemp-derived products can be manufactured, tested, labeled, and sold.
Key facts to know:
- Hemp-derived CBD must contain less than 0.3% THC by dry weight.
- Businesses that process, manufacture, or sell CBD products must obtain a license through the OCM.
- Products must meet strict packaging, labeling, and testing standards before being sold in New York.
- Food or beverages infused with CBD have additional restrictions.
Staying within these guidelines is critical. Failing to follow OCM regulations can result in product seizures, license suspensions, or loss of banking and payment privileges.
Step 2 – Register Your Business in New York
Before applying for any CBD license or merchant account, your company must be properly formed and registered.
- Choose a legal structure such as an LLC or corporation for liability protection.
- Register your business with the New York Department of State (NY DOS).
- Obtain an EIN from the IRS for tax and banking purposes.
- Open a business bank account that will be used exclusively for your CBD transactions.
- Apply for local permits if operating a retail storefront in NYC.
A properly structured business not only builds credibility but is also a requirement for Corepay’s underwriting and bank approval process.
Step 3 – Apply for a Cannabinoid Hemp License
The New York State Office of Cannabis Management oversees licensing for businesses that process or sell hemp-derived products.
To apply:
- Visit the OCM’s Cannabinoid Hemp Program portal.
- Choose the appropriate license type: manufacturer, processor, or retailer.
- Submit ownership details, facility information, and product plans.
- Complete background checks and provide required documentation.
- Maintain compliance with Good Manufacturing Practices (GMP) or equivalent standards.
Once approved, your license must be renewed periodically and maintained according to state rules. Skipping renewals or changing business operations without updating your license can lead to penalties.
Step 4 – Follow New York’s Labeling and Testing Requirements
New York requires all cannabinoid hemp products to meet strict testing and labeling standards.
Your label must include:
- The name and address of the manufacturer or distributor
- The net quantity of contents in both metric and U.S. customary units
- The amount of CBD per serving and per package
- A batch or lot number that links to testing results
- A statement that the product contains hemp-derived cannabinoids
Products must be tested by independent, third-party labs for THC content, contaminants, pesticides, heavy metals, and potency accuracy. Avoid making medical or therapeutic claims such as “reduces stress” or “treats anxiety,” as these can trigger FDA or state enforcement.
Corepay’s compliance team helps CBD merchants ensure that product claims, COAs, and website content meet labeling and advertising requirements before payment processing begins.
Step 5 – Develop and Test Your CBD Product Line
Whether you produce your own extracts or purchase from licensed suppliers, consistent quality control is essential.
- Buy hemp only from licensed growers that provide Certificates of Analysis (COAs).
- Use safe and standardized extraction methods such as CO₂ or ethanol extraction.
- Test each batch for potency, solvents, pesticides, metals, and microbial contaminants.
- Keep documentation organized and link each product SKU to its corresponding COA.
A strong focus on testing and transparency helps ensure compliance and builds customer trust while making underwriting smoother for your merchant account.
Step 6 – Set Up a CBD Merchant Account With Corepay
Traditional payment platforms such as PayPal, Stripe, and Square often restrict or freeze CBD transactions. Corepay offers the flexibility and compliance needed to process payments legally.
Why CBD companies choose Corepay:
- Direct banking relationships with acquiring banks that accept CBD merchants
- In-house underwriting designed for high-risk businesses
- NetValve gateway with tokenization, 3D Secure, and intelligent routing
- CB-Alert chargeback prevention and monitoring tools
- Full Visa and Mastercard compliance oversight
Our approval process is fast and transparent. After reviewing your license, product list, and COAs, we connect your business with a reliable banking partner. Most accounts are approved within a few days.
Step 7 – Build Your Website and Marketing Strategy
With your license and payment solution in place, you can begin developing your online presence.
- Choose a website platform such as Shopify, WooCommerce, or BigCommerce.
- Optimize for SEO keywords like “CBD oil New York City” or “hemp store NYC.”
- Use educational marketing to build trust and authority.
- Set up email campaigns and recurring billing options. Corepay’s NetValve gateway supports tokenized subscriptions for repeat orders.
Pairing a professional website with compliant content and secure payment processing positions your CBD company for growth in New York’s competitive market.
Step 8 – Maintain Compliance and Renew Licenses
Licenses must be renewed according to OCM requirements, and your business must keep accurate production and testing records.
- Track product batches, COAs, and disposal logs.
- Stay current with OCM and FDA announcements.
- Renew all registrations and background checks on time.
- Maintain good standing with your banking and payment providers.
Corepay keeps CBD merchants informed of upcoming regulatory or payment rule changes so your business can remain compliant and uninterrupted.
Why Corepay Is the Best Partner for CBD Businesses
Corepay has more than a decade of experience helping CBD and hemp merchants process payments safely and efficiently.
What sets us apart:
- Transparent pricing starting at 3.9%
- Dedicated CBD account managers
- No surprise reserves or hidden fees
- Real-time fraud and chargeback alerts
- Global acquiring network in the U.S., U.K., and EU
Our goal is to keep your business compliant, profitable, and stable so you can focus on growth.
Start Your CBD Business in New York City With Corepay
Launching a CBD company in NYC is achievable when you follow the right steps. From state licensing to merchant processing, compliance must come first.
Corepay simplifies payment acceptance for CBD brands by connecting you with acquiring banks that understand the hemp industry. Our NetValve gateway ensures secure transactions, chargeback protection, and uninterrupted processing.
If you are ready to take your CBD brand to market, apply with Corepay today and gain a trusted partner for every stage of your business.
