What is Cannabis Business Legal Services?
Cannabis Business Legal Services refer to the specialized legal support necessary for entrepreneurs, operators, and investors navigating the complex regulatory landscape of the cannabis industry. Given that cannabis remains one of the most highly regulated sectors in the United States, businesses must comply with varying local, state, and federal laws related to licensing, compliance, corporate structure, and expansion.
At Cogent Law, we specialize in navigating the complex legal landscape of the cannabis industry, offering extensive experience in federal, state, and municipal regulatory compliance and advocacy. Supported by cross-disciplinary teams in regulatory compliance, corporate, securities, M&A, litigation, and government relations, we provide practical, strategic, and cost-effective counsel to help businesses succeed at every stage.
Who Needs Cannabis Business Legal Services?
- Entrepreneurs launching new cannabis ventures
- Investors seeking to deploy capital in the cannabis industry
- Operating cannabis companies/investors seeking M&A representation
- Operating cultivators, product manufacturers, brands/white-labelers, and dispensaries
- Operating cannabis companies looking to expand into new markets or states
- Businesses seeking multi-state licensing and operational approvals
- Operators requiring ongoing compliance support and general counsel services
How Cogent Law Can Help
Cogent Law provides comprehensive legal counsel for cannabis businesses, including:
- State Cannabis Licensing and Applications: Guidance through state and local cannabis licensing requirements and application processes.
- Regulatory Compliance: Ongoing support with local, state, and cannabis regulations to ensure operational success and mitigate legal risks.
- Corporate Formation, Fundraising, and Equity: Advising on entity formation, corporate governance, fundraising structures, and equity considerations.
- M&A, Debt/Equity Financings, and Lender Representation: Legal counsel for mergers, acquisitions, financing transactions, and representation of lenders involved in cannabis-related deals.
- Real Estate Acquisition and Zoning Board Representation: Assistance with property acquisition and advocacy before zoning boards and municipal authorities.
- Ongoing Compliance Programs for CRBs: Development and implementation of compliance programs tailored for Cannabis-Related Businesses (CRBs).
- AML/KYC Compliance for Financial Institutions: Advising financial institutions on anti-money laundering (AML) and know-your-customer (KYC) compliance specific to cannabis-related transactions.
- Privacy Policies, User Agreements, and Data Security: Drafting policies and agreements to protect business interests and ensure compliance with data protection regulations.
- Investigations, Litigation, and Government Relations: Representation in regulatory investigations, litigation matters, and engagement with government agencies.
- Ongoing Outside General Counsel Support: Providing outside general counsel services for businesses at all stages, ensuring continuous legal support.
Benefits of Hiring an Attorney for Your Cannabis Business
Navigate Complex Regulations: Ensure compliance with ever-changing local, state, and federal laws to avoid operational risks and penalties.
Secure Timely Approvals: Expedite the often lengthy and complicated licensing and approval processes with professional legal guidance.
Mitigate Legal Risks: Minimize potential liabilities through proactive legal strategies and compliance measures.
Position for Growth: Benefit from strategic counsel on fundraising, mergers, acquisitions, and market expansion opportunities.
Access Comprehensive Support: Leverage the expertise of a multidisciplinary legal team for all aspects of your business operations.
What to Expect When Working with Cogent Law
- Client-Centered Service: We prioritize understanding your business goals and tailoring legal strategies to meet your specific needs.
- Responsive Communication: Our team is committed to providing timely, practical advice and support throughout your business journey.
- Comprehensive Solutions: From licensing and compliance to corporate structuring and multi-state expansion, we offer the full spectrum legal services.
- Proven Track Record: Our attorneys have successfully assisted businesses in securing licenses, navigating regulatory hurdles, and structuring for growth across multiple jurisdictions.
- Strategic and Practical Counsel: We are committed to delivering practical, strategic, and cost-effective legal solutions, ensuring your business is positioned for long-term success.
Thinking About Launching or Growing a Cannabis Business?
Navigating cannabis regulations isn’t easy — but with the right legal foundation, it’s absolutely possible to build a thriving business in this industry.
We’ve created a
Free Guide: “How to Successfully Launch and Grow Your Cannabis Business” to help entrepreneurs understand what it takes to: secure local and state approvals,
structure their business for growth, fundraise legally, stay compliant long-term and expand into new markets.
This step-by-step resource was developed by attorneys at Cogent Law Group, who’ve helped dozens of cannabis clients launch, grow, and scale.
Cannabis Business Legal Services – FAQ
1. What legal risks do cannabis businesses face if they operate without proper compliance?
Operating without full compliance with local, state, and federal regulations can expose cannabis businesses to significant risks, including regulatory enforcement actions resulting in fines or potentially license revocation, civil litigation, and loss of investor confidence. Engaging experienced legal counsel ensures that your operations meet all regulatory requirements, safeguarding your business from these potentially catastrophic consequences.
2. How does federal law impact state-licensed cannabis businesses?
Although many states have legalized cannabis for medical or recreational use, cannabis remains classified as a Schedule I controlled substance under federal law. This creates unique challenges for cannabis businesses, particularly in areas like banking, taxation, and interstate commerce. Cogent Law helps clients navigate these complexities by advising on risk mitigation strategies, structuring compliant operations, and working within state-legal frameworks.
3. What should I know about raising capital for a cannabis business?
Raising capital in the cannabis industry requires careful planning to ensure compliance with securities laws and cannabis-specific regulations. Investors often seek assurances that businesses have been structured properly, continue to maintain rigorous compliance protocols, and have retained experienced legal counsel. Cogent Law assists with structuring equity offerings to ensure that fundraising efforts adhere to applicable laws and applications.
4. Why is local government approval critical for cannabis businesses?
In most jurisdictions, cannabis businesses must obtain both state licenses and local government approvals. Local authorities control zoning, land use, and operational permits, making their approval essential for lawful business operations. Cogent Law provides advocacy and representation before zoning boards and municipal authorities to help businesses secure these crucial local approvals.
5. How does real estate law intersect with cannabis business operations?
Real estate considerations are central to cannabis business operations, as businesses must secure appropriate facilities that comply with zoning laws and distance requirements from schools, parks, and other sensitive areas. Lease agreements and property acquisitions must account for cannabis-specific risks and restrictions. Cogent Law offers legal counsel on site selection, lease negotiations, and compliance with local real estate regulations.
6. What kind of ongoing legal support does a cannabis business need after obtaining licenses?
Securing licenses is just the beginning. Cannabis businesses require continuous legal support to maintain compliance, implement internal policies, prepare for regulatory inspections, and adapt to evolving laws. Cogent Law provides outside general counsel services to ensure businesses remain compliant, competitive, and prepared for expansion or fundraising opportunities.
7. How should cannabis businesses approach data privacy and cybersecurity?
Cannabis businesses collect sensitive personal data from customers and patients, making data privacy and cybersecurity critical legal concerns. Companies must comply with applicable privacy laws, such as the California Consumer Privacy Act (CCPA), and implement robust security measures. Cogent Law assists with drafting privacy policies, user agreements, and advising on cybersecurity best practices to mitigate data-related risks.
8. What should cannabis businesses know about litigation risks?
Cannabis businesses face potential litigation risks related to contract disputes, regulatory enforcement actions, product liability claims, employment issues, and intellectual property disputes. Cogent Law provides strategic counsel to mitigate these risks and offers experienced representation in regulatory investigations, civil litigation, and government enforcement actions.
Have more questions?
Contact Cogent Law at
202-644-8880 to schedule a consultation and learn how we can support your cannabis business with practical, strategic legal counsel tailored to your needs.