By Mike Khader
•
23 Mar, 2022
Starting a cannabis business involves steps like business formation, drafting/negotiating agreements, contract review/enforcement, and more. Whether you seek to produce your cannabis or sell products from others, it's vital to get professional insight. Here are five key reasons why you need a business attorney, with expertise in cannabis, for your business startup: 1. Know the Requirements Cannabis remains illegal under federal law, but each state has unique regulations for its use and availability. Some adopt decriminalization while others accommodate medical authorization or full legalization. Compliance and license requirements also vary greatly. Involving a business lawyer early can help you determine the scope of your activities and inform the business entity you should form. Consulting with a business attorney can reveal everything from business formation and licensing to regulatory compliance and legal risks. Understanding business requirements and local/federal legal laws are vital, but states adopt varied approaches. Grasping the requirements is a challenge without professional insight. You should hire an attorney conversant with current cannabis business laws in your area. 2. Secure a Business License It's advisable to engage an attorney before registering the business to ensure you have the proper foundation for the entity you seek to create. Working with a lawyer will make a straightforward process of obtaining your marijuana business license. The best attorneys know the existing laws and business models, so they can quickly help with the following: • Business Formation Before you get a cannabis business license, you’ll need to form a legal business entity. There are various types of business entities allowed in each state, including sole proprietorships and partnerships. Your choice solely depends on the cannabis business and its operations. Reputable lawyers also form the company in your best interests to enable future growth and scalability. • License Application An attorney can get the proper license for cannabis farmers, producers, laboratory testing firms, online sellers, local dispensaries, cannabis-infused products, and more. They know all requirements and procedures involved in cannabis business license applications. Involving a lawyer will ensure your business meets all existing requirements to avoid revocation and future legal issues. • Avoid High Costs Applying for a cannabis business license is costly. You'll need to finish business formation paperwork and agreements and pay for the license application. A cannabis production start-up can cost thousands of dollars in non-refundable application fees. If your license is revoked, you’ve just lost a significant amount of money, which can be devastating for your business. Working with a lawyer helps you avoid such high costs. 3. Contracts/Trademarks/Insurance A business attorney is vital for contract review and enforcement. Poorly written contracts and business agreements can leave you liable for various damages and fines. With an attorney, you can protect your interests and guarantee insurance if another party violates the contract. Cannabis business lawyers will handle all kinds of contracts, including real estate lease agreements, employee agreements, and more. Attorneys can also assist with trademarking and protecting business intellectual property, insurance policy selection, resolving tax issues, and more. Involving an attorney can keep the business operating within regulatory compliance requirements at all fronts. You need them to get approval for a new product. Attorneys protect your business from third-party liabilities and keep tabs on the ever-changing, highly-regulated industry. 4. Limit Business Risks Cannabis businesses face various risks, from legal authorities closing down on illegitimate operations to partners exploiting vacuums in the contracts. You need a lawyer to analyze business risks, enforce protective agreements, and keep the business operations lawful. Business lawyers can review all contracts, leases, and confidentiality agreements to identify ways to minimize risk. Proactive measures aside, business lawyers are essential when facing a lawsuit. Litigations are some of the top concerns of all businesses, especially cannabis companies. You may easily lose your license or pay huge fines and compensations because of a lawsuit. Business lawyers will protect your business through contracts, agreements, and policies. They also inform insurance policy to cover other risks. 5. Round-The-Clock Legal Advice Every business needs sound legal advice when making decisions. Worker's issues, partnership agreements, business taxes, product launches, patents, and litigation call for attorney services. It's unlikely that a single lawyer will have the right skills and experience in all these areas. When starting a cannabis business, you should work with a reputable law firm specializing in business law. The best firms provide round-the-clock business legal advice, which means you can avoid mistakes and mitigate risks. You’ll get proactive monitoring and strategies to keep your business ahead of the curve and within legal requirements. Whether you need to protect your stake and assets in case of litigation or set up a new shop in another area, you should consult a business lawyer. Most firms offer flexible services customized to your business. Reputable Cannabis Business Attorney Services Starting a cannabis business requires attorney services from the early stages. Working with a full-service law firm can help you understand all aspects of the law and contracts. At Khader Law , we pride ourselves in providing premium services to put your business ahead of the curve on commerce and law. Our NY law office is ready to help you start a successful business and guide you through all legal aspects.