Cannabis Corporate Documentation Attorneys
For many business owners looking to startup, get established or expand a cannabis business around the U.S., it’s an exciting road ahead.
Great opportunities exist for business owners and investors who can navigate the red tape and position themselves to take advantage of the relaxation of attitudes towards cannabis. An important industry is developing and you can be part of it.
But there’s no escaping the heavy regulations that the industry is saddled with. A multitude of risks exists for business owners who fail to plan, prepare the necessary documentation, and fall foul of the regulations.
The strongest businesses will be those run by people with a good understanding of the local, state and federal regulations, and who take the necessary steps to safeguard their investments.
It’s not just about having the best products and marketing team. You need to establish the fundamentals of running your business in accordance with the laws. Corporate documentation is an important part of this and needs your attention both before you apply for your cannabis business license and after you get it.
The cannabis business attorneys at Cannabis Law Solutions will help you prepare the documentation you need to keep your business protected and the authorities happy.
How can we help with corporate documentation?
Every state that has legalized medical or recreational cannabis to date requires a large volume of corporate documentation before a business can operate legally.
The amount of paperwork involved can be mindboggling for those just starting in the industry but think of it as one of the trade-offs for entering a new and exciting industry that is just emerging from the shadows.
Wherever you are based in the U.S., our cannabis attorneys understand the state laws and requirements for licensing and maintaining compliance with the stringent regulations.
We can help you:
- Obtain a cannabis business license
- Transfer business ownership
- Change corporate structure
- Transfer business location
Our attorneys will prepare and file the necessary paperwork to ensure a timely turnaround of your case. We have assisted both new and established cannabis industry clients with such activities over the past decade.
Why is corporate documentation so challenging for cannabis businesses?
With the cannabis business laws still being written in many states—and being revised in others—it’s not surprising that business owners get confused with the corporate documentation and legal requirements when applying for a license or making changes to their business.
State laws require careful planning, drafting and filing all of the necessary paperwork and doing so protects your business for the future.
The challenge of corporate documentation is made considerably easier when you can call on seasoned advice from industry professionals who have helped other business owners get set up within the emerging cannabis sector for many years.
Templates are unlikely to work for your documentation needs in such a heavily regulated industry. Whether you are starting a limited liability company (LLC) or a corporation, you need tailored and specific advice on how to set up and operate your business to stay on the right side of the regulations and avoid internal decision-making issues.
It is not just about submitting business plans, floor plans, products details, security policy information, financial information and so on. The required documentation for cannabis businesses goes a lot deeper into your organization.
Certain challenges stand out in particular with cannabis corporate documentation. Firstly, you need the cooperation of your company members to pass stringent background checks before a license will be awarded.
Some members may baulk at this requirement and create delays and other issues when obtaining your license. Your corporate documentation should, therefore, include a clause that commits all LLC members or corporate shareholders/officers to cooperate fully with such licensing requirements.
Regulatory violations due to criminal convictions
Personal bios must usually be submitted to state authorities outlining personal history information, including residential and employment history and any criminal history. Each member may also be asked for full disclosure of assets and liabilities.
Your state may prohibit the award of a license for a company in which a member has a felony conviction on their record, for instance. This may apply both during an initial license application and after a license is awarded.
So, for example, if a member of your LLC or a shareholder is charged and convicted with a felony while you are operational and does not exit the business, you may be subject to a regulatory violation charge.
This type of issue must be addressed directly in your corporate governance documentation. A member convicted of a felony is not usually compelled to resign their position but your corporate documentation should include a clause to make this so.
Distribution of inventory upon dissolution of a cannabis business
Another reality that your corporate documentation needs to address is what happens if the business fails or doesn’t last the distance for some reason?
No entrepreneur wants to contemplate this but in the event of your cannabis business being dissolved, you need to decide what happens to the assets.
There are complications with this in the cannabis industry because the chief asset is likely to be the cannabis itself. Strict limits apply to how much cannabis a person can legally possess or sell.
Your cannabis business must address the scenario in the corporate documentation you draft, such as your business operation or shareholder’s agreement. Speak with one of our cannabis business attorneys for reliable advice on this.
Get help with corporate documentation for your cannabis business
Whether you are growing, manufacturing, retailing or otherwise part of the burgeoning cannabis industry, the issue of corporate documentation affects you.
Our cannabis business attorneys can help you identify and draft the documentation you need to safeguard your business.
For informed legal advice, call 866-329-0729 for a consultation with a knowledgeable cannabis attorney at Cannabis Law Solutions.