In recent years, a number of U.S. states have legalized recreational use of marijuana, while many others permit marijuana businesses to operate for medical marijuana purposes. Numerous states that permit medical marijuana but have not yet legalized recreational marijuana have decriminalized marijuana possession for those who cannot lawfully possess marijuana for medical purposes. Marijuana laws continue to change with rapidity, as an article from DISA Global Solutions underscores. Accordingly, business lawyers in a variety of regions can plan to assist entrepreneurs who plan to open medical marijuana and recreational marijuana dispensaries. If you do want to launch a marijuana business, what do you need to know?
Recent Changes to Marijuana Laws
If you are planning to launch a business in the marijuana industry, the first thing you need to know is whether medical or recreational marijuana is legal in the state where you want to start the business.
In the recent election, voters in New Jersey, Vermont, Arizona, Montana, and South Dakota elected to legalize recreational marijuana sales for adults. In those states, recreational marijuana sales will begin in 2021 or 2022. A list of states in which recreational marijuana has been legal for some time and recreational marijuana businesses operate includes Colorado, Massachusetts, Alaska, the District of Columbia, Oregon, Washington State, California, Maine, Nevada, Guam, Michigan, and Illinois.
Other states have indicated plans to move forward with the legalization of recreational marijuana, including New York. On a recent WAMC radio roundtable, New York Governor Cuomo indicated that he expects recreational marijuana to be legalized soon in the state: “I think this year it is ripe because the state is going to be desperate for funding . . . and it’s also the right policy. So I think we get there this year.”
Choosing a Business Structure
Similar to any situation in which an entrepreneur plans to launch a business, making plans for a marijuana dispensary will require you to choose the appropriate business structure. An experienced Manhattan business attorney can work with you to determine whether a LLC, or a corporation is best suited to your marijuana business plans.
If you do plan to launch a marijuana business in New York, you should also think ahead to a point in time at which recreational marijuana could become legal. Since you will need to begin your business as a medical marijuana dispensary, will you need to or want to change the business operations once the sale of recreational marijuana becomes possible? A Manhattan corporate lawyer can help you to think through options and possibilities.
Obtaining the Appropriate License to Operate
If you are launching a marijuana business, you will also need to work with a New York business attorney or a corporate lawyer to determine what kinds of licenses you will need to seek in order to open your company. Marijuana businesses tend to require compliance with state health department rules and regulations, and you may need to complete multiple registrations before you can open your doors.
Seek Advice from a Manhattan Business Formation Lawyer
When you are considering options for launching a marijuana business, you should seek advice and guidance from a business formation attorney in your state. While many entrepreneurs have years of experience with start-ups and IPOs, marijuana businesses can have distinct complications that will require assistance from an experienced business formation attorney in Manhattan.