It is not uncommon for entrepreneurs to utilize the services of an attorney whenever they launch a new business venture. Business attorneys specialize in helping entrepreneurs start new businesses. But what if you wanted to start a cannabis business? What if your attorney wouldn’t help you? The obvious answer is to find a cannabis attorney, of course!
Actually, the suggestion is offered with all seriousness. Cannabis attorneys really do practice in the U.S. They are not as common as divorce attorneys, real estate attorneys, etc., but their numbers are growing thanks to so many states giving the green light to medical and recreational cannabis.
A cannabis attorney is a state licensed attorney who specializes in the law as it applies to cannabis businesses. I did some research to try to figure out exactly what these attorneys do. To my surprise, I discovered three things that seem to be common to most of them.
1. They Help Obtain Licenses
One of the biggest challenges to starting a new cannabis business is obtaining a state license. Cannabis attorneys help entrepreneurs through the licensing process to ensure that everything is done in accordance with the law. If necessary, they go to bat for clients who believe they were passed over for licenses unfairly. Why is this sort of service necessary? Because many states limit licenses.
Utah is a state with a strong medical cannabis law and limited licenses. Although the state’s population exceeds 3 million, lawmakers have decided to limit the number of dispensary licenses regulators can issue. That limit is 15.
The Utah marijuana pharmacy Beehive Farmacy locations in Salt Lake City and Brigham City were among the first to get licenses. A brand-new pharmacy that just opened in Cedar City was the last. They didn’t get their license until just a few months ago. The point is that it can be tough to get a license in a state that limits the total number issued. An attorney can be extremely helpful in a highly competitive market where licenses are hard to come by.
2. They Assist With Compliance
Although there is money to be made in the cannabis industry, compliance is always a concern. States are very particular about how their medical and recreational cannabis programs are governed. Lawmakers establish strict rules cannabis businesses are expected to abide by.
Cannabis attorneys work alongside their clients to help with compliance issues. They offer advice and answer questions. They explain how businesses can effectively comply and still maintain profitability. Without their help, at least some cannabis businesses would struggle with compliance.
3. They Assist With Risk Mitigation
Finally, cannabis attorneys help their clients manage and mitigate risk. Entrepreneurs face risks at multiple levels, primarily in a legal and financial sense. Cannabis attorneys understand those risks and can offer sound legal advice to mitigate them.
Risk mitigation in the cannabis industry is all about protecting the entrepreneur’s investment. An entrepreneur will put a ton of money into starting a new cannabis business whether he decides to grow, process, or distribute. There is no sense in risking that investment by running a sloppy business. Cannabis attorneys step in with sound advice and guidance to make sure cannabis businesses are operated properly and with minimal risk.
Some standard business attorneys may not be willing to get involved with cannabis entrepreneurs. That is unfortunate but not the end of the world. Thanks to a burgeoning cannabis industry nationwide, a growing number of attorneys are shifting gears to provide much needed services for the industry. So yes, you can hire a cannabis attorney.
