An experienced New York cannabis business lawyer can provide invaluable guidance during the early stages of starting a cannabis dispensary (or for that matter, an adult use cannabis consumption lounge, adult use cultivation facility or cannabis processor facility) and assist on many levels.

1. Legal Compliance

Understanding Regulations

Cannabis business lawyers can help you navigate complex state and local regulations, helping ensure your adult use cannabis business complies with all licensing requirements, zoning ordinances, and operational guidelines.

Permit Acquisition

Assist in the application process for necessary permits and licenses, including those for cultivation, processing, and retail.

Regulatory Updates

A NY cannabis business lawyer can advise you with respect to the specific regulations that could affect your New York adult use cannabis business operations.   For example, the New York marihuana regulation and taxation act (MRTA) has specific regulations regarding the marketing and advertising of adult use cannabis or who can own an interest in a cannabis licensee, to name a few.

2. Business Structure

Entity Selection

A New York cannabis lawyer will advise on the most suitable business structure (e.g., LLC versus corporation, etc.).

Tax Implications

Similarly, clients should be aware of and understand the tax implications of different business structures and federal (IRS §280E, for example) and state tax treatment of cannabis businesses.  Working with various advisors, a cannabis business lawyer can help develop strategies for tax optimization.

3. Real Estate

Lease Negotiation

A cannabis business lawyer can assist in determining the suitability of the location of your cannabis business and negotiate “cannabis-friendly” lease terms for the adult-use cannabis dispensary store (or the cannabis cultivation or processing facility, as the case may be).  For example, a cannabis lawyer can help ensure the lease aligns with your business needs, exit strategy and compliance with various zoning and setback laws (and OCM proximity protection).

Property Acquisition

Cannabis lawyers provide guidance on property acquisition.   This includes discussing and planning whether the business owners will own rather than rent the cannabis dispensary building (or cannabis farm or processing facility, as the case may be).  An experienced NY cannabis attorney can help you navigate the specific issues regarding owning land and facilities used for cultivating, processing, and dispensing cannabis products.

4. Financing

Investor Agreements and Loan Negotiations

A cannabis business lawyer can draft and review investor agreements for the cannabis operations — which have their own specific risks and legal compliance issues.  The cannabis lawyer can help negotiate cannabis-friendly provisions in your loan documents.

5. Intellectual Property

Trademark and Branding

A savvy NY cannabis lawyer can help you develop a strong brand identity and protect your intellectual property through trademark registration.  Because cannabis is federally illegal, the USPTO will not grant trademarks for hemp-based products with a THC content of more than 0.3 percent, however there are ways to obtain trademark registration (and other intellectual property protection) to protect the intellectual property of other aspects of the cannabis dispensary business.

Licensing Agreements

As with other cannabis business related agreements, licensing agreements should be drafted and reviewed by a cannabis business lawyer.  This is especially important when you sell or distribute products to other cannabis businesses and there are various laws and regulations that need to be followed.

6. Employment Law

Cannabis business lawyers can help in your compliance with employment laws, including wage and hour laws, overtime, and other employment matters.  They can draft employment contracts and employee handbooks to protect your business’s interests and set forth the rights and expectation of your employees.

7. Risk Management

Insurance

A cannabis business lawyer can help you identify the various risks of the business and working with your insurance professionals, help you find appropriate insurance coverage to protect the business.

Supply chain disruptions or potential risks to the business may occur without warning.  An experienced cannabis business lawyer can help you develop contingency plans in such events.

The cannabis industry is becoming more competitive every single day.  Protect yourself with a cannabis business lawyer!

By hiring a cannabis business lawyer early in the process of opening a cannabis dispensary (or a cannabis cultivation or cannabis processing facility, as the case may be), you can avoid costly mistakes and minimize legal risks.

If you are a New York cannabis business or are in search of a NY cannabis business lawyer, contact us today!

We have extensive experience helping New York Cannabis businesses, including drafting and negotiating various documents and agreements related to: Business formation and business licensing; mergers, acquisitions, and financing deals; vendor and ancillary business contracts; real estate leases for the retail dispensary store, adult use cannabis consumption lounge or adult use cannabis delivery locations; branding and intellectual property protection; and other IP licensing agreements.

To speak to an attorney at no cost or obligation, call us at (212) 688-8944, or use the form to contact us.