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Buyer Beware: Five Key Due Diligence Items When Buying a Cannabis Business

Canna Law Blog

Our cannabis business attorneys regularly handle transactions involving the purchase and sale of licensed cannabis businesses. These deals often move fast, with brokers rushing both sides toward closingfrequently without regard for applicable diligence and cannabis regulations. Know the red flags and find them.

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Cannabis Taxation: C Corp, S Corp, LLC, LLP, Partnership, Nonprofit, or Something Else for Your Cannabis Business?

Canna Law Blog

Choosing the Right Business Entity in the Cannabis Industry One of the most fundamental questions facing any entrepreneur – whether in the cannabis industry or elsewhere – is: What type of business entity should I choose? Some industries are relatively low-risk (spoiler: cannabis is not one of them).

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Why Cannabis LLCs Need Operating Agreements

Canna Law Blog

Cannabis businesses are usually structured as limited liability companies (LLCs)and for good reason. Below, we look at a few critical reasons why cannabis LLCs shouldn’t operate without one. Below, we look at a few critical reasons why cannabis LLCs shouldn’t operate without one. But thats a major misstep.

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Intoxicating Hemp Swindle

Project CBD

A new study from an industry advocacy group in California examines the content of dozens of unregulated intoxicating “hemp” products that are easily available in the Golden State despite being banned by state law. The study, entitled The Great Hemp Hoax , was released Feb. Hemp not really hemp Speaking in a Feb.

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Licensing Cannabis Trademarks: What You Need to Know

Canna Law Blog

For many cannabis brands, licensing their trademarks can be a savvy business move (for more information on cannabis trademarks generally, check out our webinar, Trademarking Cannabis: Cutting Through the Legal Haze ). Heres what you need to know if youre thinking about licensing your cannabis brand.

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File Under Bad Ideas: 50/50 Cannabis Business Ownership

Canna Law Blog

There are many ways to set up a cannabis business, and we like to think that we’ve seen them all. But there’s probably no worse category than 50/50 ownership of a business– a recipe for all sorts of disasters. Most partners are aligned at first, but over time a business will have its ups and downs.

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Cannabis Transactions: I ❤️ Letters of Intent

Canna Law Blog

In cannabis contract negotiations, it’s common for the parties to execute an early-stage document called a letter of intent (“LOI”). LOIs are used in most cannabis real estate and M&A transactions, but they can be used for any kind of contract negotiation. confidentiality, exclusivity).