The world is full of opportunities for entrepreneurs who are savvy enough to find and capitalize on them. The increasing awareness regarding cannabis and the ensuing legalization movement has created a massive new opportunity that you can pursue: Legal weed.
As the cannabis industry continues to grow throughout the world, legal cannabis businesses are popping up all over the US. More than half of the states have legalized cannabis in some form. Some have legalized medical marijuana, cannabis for recreational use, cultivation, and possession. Medical marijuana is becoming a popular alternative to over-the-counter and prescription drugs for various ailments and symptoms.
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Challenges for Cannabis Businesses
The stigma surrounding marijuana is slowly making way for more progressive thinking, making cannabis businesses a more viable and lucrative opportunity for entrepreneurs to consider. However, starting a cannabis business can be tricky. The federal government will likely remove cannabis from its list of Schedule I controlled substances. For now, it is still considered illegal at the federal level. Even if you run a cannabis company that complies with state regulations, there are several ways you can get in trouble with the government.
The Internal Revenue Services (IRS) keeps a keen eye on cannabis businesses. They closely scrutinize businesses in the legal weed industry, which is already riddled with several tax-related disadvantages. Navigating the complex tax-related and legal concerns can be quite complex for a cannabis business compared to a standard business in any other industry.
Having experienced lawyers on your side is crucial if you want to run a successful cannabis business and ensure that you remain completely compliant with all rules and regulations. Not sure why you should hire a lawyer for your cannabis business? We might help you make a more well-informed decision.
5 Benefits of Hiring a Lawyer for Your Cannabis Business
Having legal professionals who are experienced in working with cannabis businesses can offer you several advantages as you start your cannabis business. Let’s take a look at some of the most substantial benefits of hiring a lawyer for your cannabis business that you should consider.
1. They ensure that you complete all application requirements
Cannabis is a legal substance in some form or the other in most states. However, each state has varying laws when it comes to starting a business in this industry. Some states have very strict regulations regarding how many licenses they will issue to cannabis businesses.
Several states offer a narrow window of opportunity for entrepreneurs to apply for the license and establish a business, making competition fierce and the chances of success rare. Applicants are often paying application fees that are higher than they would for a standard business.
It can be overwhelming to navigate the entire process without the proper help. Hiring an attorney experienced in working with cannabis businesses can ensure that you do not miss any deadlines for applications, meet the requirements, and can successfully secure the license to start your cannabis business.
2. You will have better guidance to understand state and federal laws regarding cannabis businesses
Most cannabis business owners have a decent understanding of laws related to cannabis in their state. Regardless of your company’s status in the state, it is still technically considered illegal at the federal level. Federal laws regarding cannabis are quite complex, and not having a good understanding of regulations at the state and federal level can lead you to a lot of trouble.
Having an experienced lawyer working with your cannabis business means that you will have expert guidance to understand state and federal laws regarding cannabis businesses. Knowing these complex laws can help you keep your company away from trouble with Uncle Sam.
3. They help you navigate complex legal processes
An attorney with a lot of experience in state and federal cannabis laws can do far more than helping you understand the laws yourself. They can take proactive steps to ensure that you follow all the complex legal and tax-related processes to keep your business completely compliant.
Starting a cannabis business is a challenge itself. Making sure that it thrives into a more profitable venture requires an expert grasp on all the laws, requirements for applications, and how to secure financing for your cannabis company. These processes can be overwhelming for business owners who are not well-versed with them and can vary depending on which state your business is in.
Hiring a lawyer for your cannabis business ensures that you can rely on their expertise to navigate the complex legal and tax-related waters while running a profitable business.
4. You can start your business on the right foot
Considering all the legal and tax-related challenges at the state and federal level, it is easy to understand that starting a cannabis business is not easy. Even after launching your business, things do not necessarily become easier. The IRS will keep a close eye on your company and be on the lookout for any discrepancies they can find. Even a minor slip-up can warrant a full audit that can land your company in significant trouble.
When you launch a cannabis business, you might face all the standard challenges like marketing, customer relations, cash flow, and much more. Beyond the standard obstacles, you will have to jump through a lot of hoops and avoid pitfalls set in place for cannabis businesses to ensure that you remain compliant with all the complex rules and regulations.
Having experienced lawyers offering you guidance and support can help you build up a strong foundation to launch your business. A stable foothold can help your business launch on the right foot and set you up for long-term success. Running a cannabis business without expert legal help can end up with you violating some laws without realizing what you are doing wrong.
Suppose you violated a minor law that you were not aware of regarding cannabis businesses. The best-case scenario will be a hefty fine and possibly losing your license to run the business. The worst-case scenario could see you facing real jail time with criminal charges.
Fortunately, having an experienced lawyer working with you can avoid breaking any laws.
5. They help you minimize risks to your business
The legalization movement is ongoing right now, and we frequently see changes in state-level regulations. Keeping a close eye on all the federal and state-level laws regarding cannabis businesses is a challenge on its own, adding to the risk your business faces if you make even the most minor slip.
A major benefit of hiring a lawyer for your cannabis business is that it is part of their job to stay updated with all the latest legal developments and regulations. An expert working with your business will stay atop any changes in the law that can affect your business and help you restructure your company to ensure continued compliance.
With all the complexities surrounding legal matters, taxation, and compliance, you might understand that starting a cannabis business is not easy. Starting any kind of business is a challenge without the right help.
Despite all the complicated tax-related challenges and legal concerns, the legal weed industry is booming right now. If you are a budding entrepreneur seeking an industry that has plenty of room to grow, now is the time to make an early entry and set yourself up for a successful future. 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.