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Why Cannabis LLCs Need Operating Agreements

Canna Law Blog

In states where operating agreements are optional, companies without them are governed by default state law , which may not reflect the members intent, is often much more rigid, and may lead to uncertainty in situations not exactly addressed by state law. Ownership and management confusion is common.

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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. Theres no ambiguity or loophole.

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

Canna Law Blog

As with any business, but especially a cannabis business, it is essential to know the state and local licensing/permitting requirements for acquiring, operating, and locating a license.

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Cannabis Transactions: I ❤️ Letters of Intent

Canna Law Blog

It’s very important, though, to be clear about the status of an agreement: state law varies on the enforceability of LOIs when the status is not clear. Binding versus nonbinding versus hybrid LOIs LOIs are usually nonbinding, or nonbinding with just a couple of binding terms (e.g., confidentiality, exclusivity).

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Will Texas Legalize Recreational Marijuana?

Veriheal

Specifically, the Texas State Law Library explains , The Texas Controlled Substances Act classifies tetrahydrocannabinols (THC) in penalty group 2 for the purposes of criminal penalties. Well examine these questions to get a holistic view of the situation.

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Licensing Cannabis Trademarks: What You Need to Know

Canna Law Blog

You might still get some coverage under state trademark laws, or for federally legal products like hemp-based cosmetics or branded merchandise but it takes a strategic approach. Each state has its own rules, and they vary widely. Some states require trademark license agreements to be disclosed.

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

Canna Law Blog

Feature LLC S Corporation C Corporation Nonprofit Corporation Liability Protection Yes Yes Yes Yes Taxation Pass-through (default); can elect C or S tax status Pass-through (must file IRS Form 2553) Double taxation (corporate and dividend levels) Exempt from federal income tax; must operate for charitable purposes Ownership Flexibility Unlimited members; (..)