The cannabis industry is an emerging industry that requires well-informed, agile legal counsel to navigate the gauntlet of federal, state and local laws and regulations.
Our attorneys are uniquely suited to meet the needs of clients in this booming sector.
Sheppard Mullin’s Cannabis Industry Team combines members from nearly every practice group to advise cannabis and ancillary businesses on their legal needs. The team assists with regulatory compliance, raising and deploying capital, banking and finance, accounting control and anti-money laundering compliance, real estate development and leasing, litigation, intellectual property, public company representation and SEC filings, investigations and taxation.
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Legal Issues
The District of Columbia is one of the first jurisdictions to legalize recreational cannabis, and while this move is a step in the right direction for the people of DC, it can also pose challenges for cannabis businesses. In addition, the District’s proximity to federal lands means that anyone who is caught on federal property with medical marijuana may face arrest, prosecution or incarceration, and this poses a serious problem for any company doing business in the district.
This is why a well-informed, agile cannabis lawyer washington dc who can navigate the gauntlet of federal, state and local laws and regulations governing the industry is essential. Sheppard Mullin’s cannabis industry team is composed of members from nearly every practice group, enabling the firm to help cannabis companies and their investors in all stages of their business.
Licensing
The cannabis industry is a highly regulated business, and businesses operating in this industry must comply with all relevant licensing laws. These laws can affect everything from marketing and product labeling to zoning issues and legal taxation.
As a result, it is crucial to hire a legal expert who understands the nuances of this growing and rapidly evolving industry. The right cannabis lawyer can help you protect your investment and keep your business legal and compliant.
Sheppard Mullin’s Cannabis Industry Team assists companies in the legal cannabis space with regulatory compliance, capital formation and deploying funds, banking and finance, accounting control and anti-money laundering, real estate development and leasing, intellectual property, public company representation and SEC filings, investigations and taxation. The firm also advises clients in other sectors that intersect with the cannabis industry on legal and regulatory issues related to their activities.
Taxes
As cannabis businesses grow, they face complex legal issues that are associated with their industry. These issues include state-level licensing, corporate structuring and compliance with regulatory requirements.
One of the biggest challenges that cannabis companies face is taxation. This is because of the federal government’s stance on cannabis as a drug, and its taxing laws.
Cannabis business owners can expect to be audited often and pay high tax rates due to these issues. This is why you should hire a cannabis lawyer who knows how to navigate the various laws and regulations related to your business.
Insurance
Insurance is an important consideration for cannabis-related businesses. While many traditional risks are common to both cannabis-related businesses (CRBs) and ancillary businesses, this industry is different from other industries in several critical ways.
For example, a significant percentage of CRBs operate solely as cash-only businesses, which creates additional challenges and risks that traditional insurance coverage would not protect them against. These challenges can include property loss due to fires, theft, and other factors.
Whether purchasing or renewing insurance, litigating a coverage dispute, or defending against claims, cannabis-related businesses are faced with unique obstacles and legal hurdles that require counsel who understands both insurance coverage law and the nuances of the cannabis industry. Understanding these obstacles and how to overcome them is essential to the success of both policyholders and insurers in this complex industry.
Regulatory
There are a host of regulatory issues that cannabis businesses are facing. These range from state and federal laws that regulate the industry to local zoning, licensing and permitting issues.
A DC cannabis lawyer who has expertise in a variety of industries can offer the guidance and advice you need to make your business thrive. They can help you with your business formation, capital attraction, regulatory compliance, intellectual property and real estate matters.
Laws governing marijuana are complex, and it is critical for attorneys to understand them well. They also need to be on top of ethics rules that are specific to the field, so they can avoid committing any ethical violations by counseling clients on legal substances that are state-legal.
