Why your Accountant and Lawyer need to work together on your Cannabis Business License Application

Learning Objectives

• To recognize the areas of law and accounting that are required for a cannabis license application.
• To familiarize themselves with the terms, culture, and expectations of a cannabis business application.
• To discuss the challenges imposed by the Schedule I status of cannabis, as it impacts accounting, taxation, and banking.
• To analyze how those issues impact the entity formation and ongoing legal framework in which the business operates. 
• To review the implications of social equity licensing in cannabis, compared to non-social equity licensing.

Course Description

Most businesses are subject to various licensing, permit, and registration requirements. These are put in place for public safety, tax, or other reasons. Because the cannabis industry is heavily regulated, licensing for cannabis businesses is particularly complicated. Compliance requirements not only vary from state to state, but they can also change depending on your business category (cultivation vs. retail, for example) and which city or county you’re planning to operate in.

To operate legally, you must meet all necessary business licenses, permits, registration, and other requirements

With states in the northeast rolling out license application deadlines, and entrepreneurs throughout the country in into the opportunities in the legal cannabis industry, accountants, tax professionals, and lawyers are being approached by clients to assist with completing the paperwork required by states and municipalities.

As with general licensing requirements, business license requirements for cannabis vary greatly from state to state and between municipalities. For example, while some states hold an open application period and give out many licenses, other states are more restrictive and can limit the number of licenses issued to single digits. There are also restrictions related to residency and background (those with previous convictions may not be eligible), which can apply to owners, contractors, and employees.

Key Topics Covered: 

• Know what license the team is applying for
• Guiding Principles in Cannabis Consulting
• Operating Agreement
• The TYPE of business is important!
• IRC deductions for manufacturers and cultivators
• SAFEs, KISS Agreements Convertible Notes
• The Rules in Cannabis Constantly Change!
• Know the Exit Plan

This CPE course is designed to introduce professionals to the collaborative environment that will provide optimal service to the client, and head off the potential for miscommunications when the regulatory commissions require additional clarifications, or when the entity commences the business life cycle.

Overview

• Understand the "Vibe" of the team and whether they have run a business before

  10 mins
• Is your client trying to apply for a license that...

  18 mins
• Guiding principles in cannabis consulting

  22 mins
• The central tensions in cannabis

  30 mins
• The rules in cannabis constantly change!

  39 mins