The cannabis industry continues to grow worldwide. Ever since the legalization movement picked up momentum in recent years, the legal cannabis industry has also started booming. Well over 50% of the states in the US now recognize marijuana as a legal substance in some form or the other.
Some states have legalized cultivation, possession, medical, and even recreational use of marijuana. Medical marijuana is becoming a popular alternative to several over-the-counter and prescription drugs for a natural way to address symptoms.
Despite the stigma surrounding cannabis slowly going away, beginning a cannabis business is still a tricky affair. The federal government still considers cannabis as a Schedule I substance. Even if a cannabis business complies with state regulations, there are several ways they can get into trouble with Uncle Sam.
The Internal Revenue Services (IRS) keeps a close eye on cannabis businesses. The increasing scrutiny also comes with several tax disadvantages for cannabis-related companies. Navigating tax-related and other issues can be quite complex for a cannabis business compared to a standard business.
If you want to run a successful cannabis business and ensure that you are not violating any regulations in your state, it would be ideal to have a cannabis expert attorney onboard. Experienced cannabis lawyers working with your business can provide you with several advantages.
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5 Benefits of Hiring a Lawyer for Your Cannabis Business
Here are some of the greatest benefits of hiring a lawyer for your cannabis business.
1. Make sure you meet all the application requirements
While cannabis has been recognized as a legal substance in most states, each one of them has varying laws regarding establishing cannabis businesses. Several states have issued strict regulations regarding the number of cannabis business licenses that they will issue.
Many states also have a narrow window to apply to establish a cannabis business, making competition fierce. Applicants often also need to pay higher fees to generate substantial profits for the licensing state.
Hiring a cannabis attorney can ensure that you meet all the regulatory requirements and meet application requirements to reduce risk and counterbalance the high application fees by getting you effective results.
2. Ensure proper understanding of state and federal laws
Many cannabis business owners already have a basic understanding of laws related to cannabis in their state. However, the business is still technically illegal at the federal level. Not having a detailed understanding of regulations at the state and federal level can land your business in trouble with Uncle Sam.
Having an experienced cannabis lawyer on your team can help you properly understand the federal and state-level regulations regarding cannabis businesses to help your company succeed despite the challenges.
3. Walk you through complex processes
An attorney with a comprehensive understanding of both federal and state-level cannabis laws can help you ensure that you can follow all the complex procedures for your business while remaining compliant.
Establishing and growing a legal cannabis business requires understanding the sophisticated laws, requirements for applications, and for financing your company. The processes can vary dramatically depending on which state you are in.
One of the most important benefits of hiring a lawyer for your cannabis business is that you can rely on their expertise to navigate these tricky waters.
4. Help your business get a good start
A cannabis business is not easy to launch. However, getting your business off the ground does not mean that things will start becoming easier. The IRS will keep your company under the microscope and look for any opportunity to land you in trouble.
Your cannabis business might face all the standard business challenges like cash flow, marketing, customer relations, and more. Additionally, cannabis businesses have to jump through a lot of hoops to ensure that they are complying with very complex laws and regulations. Having the help of an experienced cannabis lawyer working with you can help you establish a strong foothold for your business.
A strong foundation can do more than just help you get a good start for your business. It can also help your business succeed in the long run. Running a cannabis business without legal expertise can end with you violating certain laws without even realizing it.
The best-case scenarios in such circumstances are penalties and losing the license to operate. The worst-case scenario can see you facing criminal charges and jail time. An experienced cannabis lawyer can help you make sure that you do not break any of the complex laws.
5. Minimize the risks
The biggest advantage of having an expert cannabis lawyer to work with your business is that you get to reduce the potential risk to your business. Even if you are well-versed with the state and federal regulations surrounding the cannabis industry, keeping a close eye on everything can be too overwhelming. If anything slips through, you are at risk of losing your operating license or even face criminal charges.
An expert marijuana lawyer working on your side can ensure that your business is structured properly and operates, aligning with all state and federal laws. The result is a significantly reduced risk for your business.
Tax Attorneys to Help Structure Your Marijuana Business
Yes, starting a cannabis business is not as easy as it might seem. Despite all the sophisticated tax-related concerns, it is a booming sector of the economy, and you could capitalize on it by getting into it right now. As far as your tax-related issues are concerned and figuring out the best way to structure your marijuana business, we can help you out at Polston Tax.
Licensed to practice in all 50 states as tax attorneys, we have hundreds of professionals in our firm, specializing in all areas of the tax industry. We’re more than well-equipped to handle your marijuana business’ tax matters and provide you with all the help you need.
Contact us today to get your marijuana business the tax help it needs so you can focus on growing your business without worrying about compliance and tax issues.