It took more than ten years to pass the federal and state laws, which now allow legal sale and use of cannabis. Around 30 states have already endorsed medical and recreational cannabis, but every year more and more states are legalizing it. If you have the plans to start a cannabis business, you are on the right track. People who have already started the business see an economic upswing to the tune of $9 million in positive net impact. This number is expected to reach or go beyond $21 million next year.
As the sector continues to develop globally, many businesses turn to cannabis attorneys for counsel and guidance to navigate the legal regulations and processes. Whether you want to start a store or create CBD salve for pain, working with a cannabis lawyer can be important to ensure you:
- Secure a License
Although licensing is a painful part of starting a cannabis business, it’s an important component for staying compliant. This is why you should not take it lightly.
However, every municipality and state will have different license rules, so you will need a cannabis attorney to help you navigate the processes and requirements. From growing cannabis to starting a dispensary, the licensing world is broad.
- Get Enlightened on the Intellectual Property
The total number of filings at the USPTO (the United States Patent and Trademark Office) directly correlates to the legalization of cannabis. The intellectual property related to your cannabis products and brand needs to be protected at all costs. Whether you have a new or existing cannabis business, you need to develop a plan to protect its name through patents, trademarks, and copyrights.
Early filing is important, so working with a qualified cannabis attorney is important to establish a business-focused intellectual property strategy. This filling will cover a wide range of inventions, such as:
- Vaporizers
- Cultivation techniques
- Pharmaceutical compositions
- CBD-infused products, including coffee beans and drinks
- Understand the Local Zoning Issues
Zoning for cannabis projects can be subjected to local ordinances, regulations, and laws, making the issue more difficult. Understanding the whys and hows may also be easy to grasp, especially when working with a cannabis lawyer who focuses on the legal aspect of this business line. By working with an experienced attorney, you will also understand the local laws to have a good chance of enjoying long-term success in the cannabis industry.
- Save on Taxes
There is still one aspect of 280E, which has been the saving grace of cannabis. This includes writing off the prices of wholesale CBD products or Costs of Goods Sold (COGS). The costs of producing cannabis may include everything related to moving or growing your product. This may comprise transportation and greenhouse expenses.
A cannabis business still deducts its COGS. For cannabis resellers, this includes the costs of products, and to some extent, the expenses of doing business may be legally included in COGS. Be sure that IRS agents will closely examine what’s included in the Costs of Goods Sold. Hence, working with an attorney will ensure that you get proper COGS treatment, resulting in low taxes.
The Bottom Line!
Cannabis businesses are growing strong globally. While the businesses were regarded as taboo in the early years, the popularity and usage of CBD products and cannabis are rising steadily and fast. This has given the industry traction and recognition in most states in America.
While the state laws strictly govern the industry, cannabis businesses can be mom-and-pop shops, which require legal needs. Therefore, it may be important for ambitious entrepreneurs, including you, to seek cannabis attorney’s help to legally secure a license, save on taxes, and understand zoning issues.
