Our Cannabis Practice Group is designed to alleviate the worries involved in this uncertain yet extremely profitable business sector. With us as your Cannabis Business Managers, we handle 100% of your enterprise setup, management, investments, sales, branding and State and Federal licensing. We offer complete maintenance and supervision as your only Business Manager for regulation and business management.
We provide a service found nowhere else in California.
IPPRECISE CANNABIS 360 is designed to shield your assets, build a legal & safe operating enterprise structure, protect your intellectual property patents, trademarks, and brand on the Federal & State levels. In this industry, "...if you don't start it right, it won't end right."
OUR Services Detailed
Cannabis Business Corporate Entity Formation
Business Enterprise Setup & Management
Asset Protection & Corporate Entity Structure
Asset Protection & Corporate Entity Structure
Transactional Contracts, Permits & Licensing
Patent Prosecution (Domestic & Foreign)
Plant Patent Prosecution (Domestic & Foreign)
Trademark Prosecution (Domestic & Foreign)
Cannabis Creative Development
IPPRECISE CANNABIS 360 Business Representation
IP Precise is an Innovation Firm, not to be confused with a law firm.
Cannabis Corporate Entity Formation
State Compliant Corporate Meetings & Minutes
Entity Formation Documents & Portfolio Map
Asset Protection (Personal, Sales, Real Estate, Equipment, etc.)
Federal, State & Local Corporate Tax Schedule
Cannabis Entrepreneurs need to first focus on what is allowed by their respective state before forming a corporation. Some states allow traditional LLC or corporate structures while others require a non-profit or “not-for profit” collective or a cooperative. Entrepreneurs should also be careful to follow other small details in the guidelines for marijuana-related businesses.
Type of Cannabis Entity Structure
Depending on the type of business, partnership or agreement, we will recommend and prosecute the correct type of entity structure to incorporate. to protect yourself, investors and the business from personal or commercial liability for business debts and lawsuits.
We represent creative and eclectic cannabis entrepreneurs. As such, each business has different goals. Therefore, each intended corporate entity structure will also vary. This includes whether to form a traditional incorporation or a limited liability company (or LLC) to become a non-profit or a for-profit company. Rules vary by state, sometimes with small differences, other times with major differences.
Many cannabis entrepreneurs come to California to start a legal grow or business. As legal state terms may differ, it's vital to not assume that the legal phrases used in one state are identical in meaning to your own state. A mutual benefit corporation, in California, is one of at least three types of ways that a dispensary organized as a “collective” can incorporate. In Washington state, the most similar legal entity to California's mutual benefit corporation is called a mutual benefit organization. But a mutual benefit organization is not identical in structure to California's mutual benefit corporation, and Washington also has a similar entity called a public benefit organization.
Collective Entity Structure versus Cooperative Entity Structure
We thoroughly investigate the collective-versus-cooperative question with our cannabis entrepreneurs. Based on California law, the collective concept refers to a group of entities that work on, or share, a similar project or set of interests.
A cooperative, in contrast, is a union of individuals that forms to conduct some productive enterprise, and to share the profits in accordance with the capital or labor that each participant contributes. Cooperatives can incorporate under the LLC banner, or as an S-Corp or C-Corp, although none of those forms is required.
Corporate Entity Must Adhere to Local Municipality Laws
A potential medical-marijuana business owner should also review the ordinances of the municipality or county government in which he or she wants to open the business. A local government may have enacted rules that restrict where a marijuana dispensary can be located; some require a minimum distance from a school or church, for example. Some cities, even those located in states that have legalized medical marijuana, have enacted their own total bans on dispensaries.
Corporations organized in California conducting lawful business activities should keep a firm tax schedule to remain in compliant with all tax laws, which includes the requirement of levying sales taxes on your retail sales and, in some cases, local taxes. Additionally, when establishing the legal entity for your business, review the requirements for application and registration fees and include those costs in your business plan. The fees can vary extremely widely. Arizona, Connecticut, and Illinois, for example, are among the states that charge $5,000 to apply for a dispensary license. Colorado, on the other hand, charges between $7,000 and $15,000 for the same license. The registration fee for a cultivator is typically far more expenses. Illinois, for example, charges a whopping $200,000 for a cultivation center license (and $2M in an escrow account) making it out of reach from most.
DO NOT GIVE LEGISLATURES A REASON TO SHUT-DOWN YOUR BUSINESS. THE SLIGHTEST DEVIATION OR INFRACTION IS SUFFICIENT CAUSE TO SHUT-DOWN YOUR ENTERPRISE.
State & Federal Level Compliance Formation
Location Scouting, Zoning & Permit Regulations
Municipal Adherence & Development
Corporation Manual, Policy & Administration
Employee Handbook & Human Resources Structure
Medical marijuana is illegal in the state of California if not setup correctly. If found illegally operating, legal authorities will close you down, seize your assets and prosecute you, the enterprise, and sometimes, your employees as well.
To be successful in California, you have to go through every government municipality and confirm regulations are met to the precise letter of the law. There are many State legislatures seeking for the slightest error in your setup to shut cannabis ventures.
New California State Law
In October of 2015, we were present and witnessed Governor Jerry Brown sign into law three bills entitled the California Medical Marijuana Regulation and Safety Act (MMRSA). Although big news for our office since Partner Jean-Que M. Dar was a member of the execution process, this also means lots of changes which can affect preexisting Cannabis businesses. In sum, the bills turn the unregulated gray marijuana marketplace to state law regulated matters. Lastly, these bills allow more inclusion and participation from the Federal Government.
Visit the National Conference of State Legislatures to stay up to date on local and State law enactments: NCSL State Medical Marijuana Laws.
Location, Location, Location - Local Laws
Local zoning laws have been amongst the greatest challenges for new Cannabis businesses. Given its operation methods, it will need to be located in a commercial zone. We acquire the appropriate permits and other documents before you proceed.
In many California cities it is also not permitted to open a dispensary within 1,000 feet of a child care center or pre-K-12 school or within 500 feet of a residential area or within 1,000 feet of a park or library or within 250 feet of any adult business that sells “drug paraphernalia” (pipes, bongs, etc.), the list goes on.
Business Manager, Staff & Insurance
The risk in operating a Cannabis business has a severe level of risk involved. Many casually dismiss the notion that all their hard work can be shut down for simply failing to have a fire extinguisher in the correct location within a business. This is where a competent business or facility manager or staff will be of great importance. In addition to the federal illegality, owners may also face social stigma and difficulty with securing future employees.
Cannabis business' are also a target fo theft and vandalism. Therefore, insurance will be critically important. However, most discover when it is too late that their insurance policy will not cover certain items given the type of business. Even after fully disclosing the type of business, use of equipment and purpose of business, insurance companies will find a hole to leave owners stranded. Through our network, we make it our responsibility to provide you with the correct type of insurance based on successful claims and payout filed. Basic commercial insurance is simply not worth it.
While many states require background checks not only for the operator(s) of a Cannabis business, but also for all investors and owners. Prior felony convictions, as well as other drug-related charges, may disqualify you from being able to obtain an operating license. We can help here if this is the case.
As with any business, your staff must be properly permitted with the correct type of licenses. For example, a restaurant owner will have to show proof of Health & Saftey Certifications to remain in good standing. Moreover, the restaurant owner will have to stay on top of his licenses and recertify before a license will expire. The consequences of reapplying on a suspended or expired license could shut your business down. Also, state officials have these dates docketed for an immediate annual inspection. Don't be surprised if they show up to your office before you arrive on inspection day. If you followed our counsel you will be able to open your doors. We have a tight, safe and secure business enterprise docket date management system. We never miss a date and always prepare in advance.