The cannabis industry is booming more than ever before as the substance becomes increasingly popular. The growing rate of legalization of recreational and medical use marijuana is allowing budding entrepreneurs to enter this vast and burgeoning industry.
While legalization at a federal level is still a long shot, over half of the states throughout the country have legalized marijuana in some form. From purely recreational use to being used as an alternative to prescription and over-the-counter drugs for various ailments, there is a lot of potential for the legal cannabis industry.
However, starting a cannabis business might not be as easy as you might think.
Difficulties Surrounding The Legal Weed Industry
While the growing awareness of the benefits that marijuana has is setting aside much of the stigma, the federal government still considers cannabis a Schedule I controlled substance. Considering its legal status at the federal level, running a cannabis business could involve a wide range of challenges.
The Internal Revenue Services (IRS) is always keen on putting cannabis businesses under the microscope. Uncle Sam carefully scrutinizes all businesses operating in the sector, waiting on any opportunity to pounce on entrepreneurs who slip up and make mistakes. The sophisticated tax and legal concerns in the industry keep changing as the industry’s landscape develops. As a result, many businesses find themselves in trouble with the law without understanding why.
Considering the challenges that come with running any company, business owners in the cannabis industry might find themselves overwhelmed if they have to keep track of all the complex legal and tax-related matters. Hiring an experienced legal professional can help you focus on running your business while ensuring compliance with all the regulations to garner success for your cannabis business.
Let’s discuss some of the advantages that come with hiring a lawyer for your cannabis business.
Advantages Of Hiring A Lawyer For Your Cannabis Business
If you’re not sure whether you need to work with an experienced cannabis lawyer to run your business, learning about the advantages they can offer should help you make a more well-informed decision.
1. They can help you understand state and federal laws
Most entrepreneurs starting cannabis businesses understand that there is a certain degree of difficulty they have to face when starting their business and try to learn as much as they can about state and federal laws concerning cannabis businesses. Unfortunately, the regulations can keep changing at a state and the federal level and each state has its own regulations regarding these businesses.
There are various sub-categories that businesses can be classified into within the industry and each of them requires adherence to different regulations and standards. An experienced cannabis lawyer with an in-depth understanding of state and federal regulations can help you understand the laws and how to navigate the complexities of the regulations.
2. They can ensure that you meet all application requirements
Each state has its own laws concerning establishing a legal marijuana business. Some states have more relaxed regulations regarding business licenses, but most of them have strict rules that make it challenging for entrepreneurs to secure the appropriate licenses. To make matters worse, the application window is also narrow.
With fierce competition for limited licenses, it can become difficult to secure a license and meet all the requirements. Considering the high expenses involved in the application process, it is better to have a legal expert involved who can ensure that you meet all the regulatory requirements and submit the application on time.
3. They can guide you through all the important processes
An experienced attorney with a grasp of federal and state laws surrounding marijuana and the legal weed industry can help you identify the conditions that apply specifically to the category your cannabis business classifies in.
From the application to the licensing, financing, and running of your business to make it a successful enterprise, you need to understand all the necessary requirements. Depending on where you are situated, the regulatory processes can be vastly different. An experienced lawyer can help you navigate through the processes and understand them to ensure that you can continue running a legitimate business that is successful.
4. They can minimize the risk to your business
Having a legal expert who can help you remain compliant with all the complex rules and regulations can significantly minimize the legal risks to your business. Adhering to all the laws surrounding marijuana businesses in your state can make a world of difference in your company’s success. Making key mistakes can result in law enforcement taking legal action against you and harm your business.
A good attorney will ensure that your business is structured and operates with complete compliance with the applicable state laws, allowing your business to remain safe and helping you avoid hefty fines.
5. They can help your business get the right start
Any type of business is challenging to launch. When it comes to cannabis businesses, the process can be even more tedious. Running the business to consistently ensure that it is compliant makes it a challenge. An experienced lawyer working with your business can help you establish a strong foundation for your business and help you steer your company to long-term success.
From helping you with the process of business formation and operation, to ensuring compliance with local and state laws, and assistance in navigating all the tax-related concerns, the right cannabis lawyer can be pivotal in helping your business get the right start it needs.
Starting a cannabis business is not easy considering all the complexities surrounding legal matters, taxation, and compliance. Starting any kind of business is a challenge without the right help, and it is even more challenging for cannabis businesses.
The cannabis industry is booming right now despite the dynamic changes in the legal landscape surrounding the industry. If you are an entrepreneur looking to start a business in a growing industry with plenty of room to grow, getting into the cannabis business industry could be the ideal opportunity for you. As far as tax-related issues and legal challenges regarding your cannabis business are concerned, getting the right legal help can get you a long way.
Polston Tax is a firm licensed to practice in all 50 states as tax attorneys. With hundreds of professionals in their ranks specializing in all areas of the tax industry, you can rely on their team to provide you the help you need with great effect. The right tax solution providers who are skilled in dealing with complex issues surrounding marijuana businesses can help your marijuana business thrive without Uncle Sam becoming a problem for you.