Starting any new business is a huge amount of work – but starting a cannabis business makes that look like child’s play. Between the licensing, regulations, legal hurdles, financial hurdles, banking hurdles, and more, you’re going to have your hands full. Without the help of industry experts’ knowledge base to navigate this maze, it’s nearly impossible to design and execute an effective business plan in the cannabis world.
It wasn’t long ago that the term “cannabis business” meant an illegal operation hiding in the shadows of the black market. With the federal government now taking a hands-off approach to state cannabis sales, things have changed. Where in previous years you just needed a quiet basement and neighbors who weren’t nosy, you need lawyers and accountants and business strategies.
In a way, it was almost easier on the black market than it is today.
When you’re operating in full view of the federal government, on a foundation that constantly shifts, you have to stay ahead of the game.
CTN has interviewed a plethora of industry leaders and developed relationships with movers and shakers from cannabis-legal states across the nation. We can help you focus on what’s right for you and help you get your dream started with the knowledge you need.
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Structuring Your Cannabis Company: A Formation Plan Built to Last
Step 1 – What Will You Be Doing?
The first step is to decide what aspect of the cannabis industry you want to take part in. Are you retail savvy and going to run a dispensary? Are you more of a green thumb and want to be a grower? Do you want to get into the manufacturing side of things and create edibles, tinctures, salves, and other infused products?
Maybe you’re interested in developing a testing facility, a delivery service or software and online solutions, or perhaps you see yourself doing a combination of all the aspects of the cannabis industry. The point is, there’s no single path to success in cannabis – the industry is exploding and there’s no end to the opportunities available.
Step 2 – Consider the Factors
You want to make sure you’re heading the cannabis industry with your eyes open. You should be aware of the costs – they can vary from location to location, industry to industry. Are you taking on investors? How many and what is their involvement?
Your timing is important. How long will it take you to get a license? What hoops do you need to jump through? Is there a residency requirement? What are the risks? Knowing what you are getting into and what to expect is going to be key to being successful – that’s why you should get support and education from those who have been there and done it. Our free seminars are a great place to start.
Step 3 – Understand Your Structure
This might be the most important part of getting your company up and running. Understanding how to structure your business is key to short-term success and long-term viability is the key. Ask yourself – where is your value? Is it in your IP or your brand? Your product itself? Your procedures? How many legally-defined companies do you need?
Are you touching the plant? How many LLCs or other types of incorporation will you need for each company? Which assets belong to which companies to avoid the extra costs of 280E? How do you structure the relationship between those companies? Who owns the IP? What companies will then be subject to 280E and why? How do you handle employees and payroll when your product can’t be backed by a federal bank?
Forming Your Company Means Knowing the Law
Trying to organize your company so that you can avoid the hazards of 280E can be a headache, to say the least. If you do it wrong, you could be the best grower, distributor or marketer in the world, and still, be doomed to fail.
280E is the foundation of everything
You want to make sure you’re getting your information from someone knowledgeable, who has done it before and counseled others on how to get it done right the first time – so you’re not destroyed by taxes and red tape.
This is not our first rodeo. We’ve been movers and shakers in the cannabis industry for years. Chris and our experts host a talk show where we interview some of the most successful individuals in the cannabis industry, we’ve networked with the best the industry has to offer, and now we’re here to help you get started as well. It all comes down to what you’re willing to do to succeed. One of those things has to be networking, and that’s a big benefit of our seminars. You get introduced to potential investors, partners, and experts that can make your dreams happen.
Check out our seminar dates and times to see when we’re headed to your neck of the woods and sign up for a life-changing event that going to kickstart your business.
Learn How to Get Started As a Cannabis Entrepreneur
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