Why Cannabis LLCs Need Operating Agreements
Canna Law Blog
APRIL 28, 2025
Cannabis businesses are usually structured as limited liability companies (LLCs)and for good reason. LLCs offer far more flexibility than corporations, which are bound by rigid governance rules. To take advantage of this flexibility (and for many other reasons), LLC ownerscalled members need a well-drafted operating agreement. Below, we look at a few critical reasons why cannabis LLCs shouldn’t operate without one.
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