At our firm, we’ve helped numerous cannabis startups navigate the complexities of choosing the right business entity. Because every startup is unique and has different goals and needs, a one-size-fits-all approach just won’t work. Below, I’ll explore some of the key considerations we focus on when finding the optimal entity type and structure for a
On January 1, 2024, the federal Corporate Transparency Act (CTA) took effect. The CTA requires a host of both domestic and foreign entities to disclose their beneficial ownership to the Treasury’s Financial Crimes Enforcement Network (FinCEN). Compliance with the CTA is required for all businesses, including those in the cannabis industry. In this post, I’ll overview
The internet is a badlands of misinformation on cannabis law and policy. Less than stellar takes may be amplified on news sites, giving them a veneer of authority. Social media platforms, from X to LinkedIn (where all the pros are said to be) don’t have nonsense filters. This dynamic is not new! However, things reached
Register Here California’s cannabis market is broken. Taxes are too high, local control has proved disastrous, the illegal market is growing and regulations are too burdensome. There are not enough retain licenses and too many cultivation licensees. Over the past few years, the situation has become so dire that many licensees have exited the industry,
When someone buys a cannabis business, and not just that business’s assets, they essentially inherit all of its liabilities. And there are usually a lot. If the business is in the midst of a lawsuit, owes back taxes, is behind on rent, etc., the buyer will need to deal with those problems on its own–unless
Register Here California’s cannabis market is broken. Taxes are too high, local control has proved disastrous, the illegal market is growing and regulations are too burdensome. There are not enough retain licenses and too many cultivation licensees. Over the past few years, the situation has become so dire that many licensees have exited the industry,
Register Here On Wednesday, April 17, 2024 at 12:00 pacific time, Harris Sliwoski managing partner Vince Sliwoski (Portland), Harris Sliwoski partner Griffen Thorne (Los Angeles), and Andy Shelley of CannXperts will present a free webinar entitled “How to Buy or Sell a Cannabis Business.” Drawing on their extensive experience from representing businesses and entrepreneurs through
Cannabis contracts are – in the simplest sense – binding agreements between two parties. But how you get to something being “binding” can be complicated. And in the cannabis industry, where things move a mile a second and people often overlook basic contract requirements, the results can be disastrous. Today I want to focus on
Cannabis businesses often use letters of intent (LOIs) to get agreed deal terms in writing before spending time and money negotiating the definitive written contract. LOIs can be a big help, especially with a complicated deal. But they are easy to botch, and can lead to some pretty devastating consequences if not done right. Be
Cannabis companies and (depending on the state) brands often use license agreements to grow their brands. If done correctly, they can be a huge driver of revenue for the brands and licensees, and can grow the good will of the brand across a particular territory. However, they are notoriously easy to botch. A bad license
