If you are considering going into the marijuana business, you likely have several questions. Although states like Colorado have taken steps to legalize marijuana, it remains illegal under federal law. As you set up your marijuana business, you must obtain several licenses and remain in compliance with the numerous rules and regulations governing the production, packaging, and sale of marijuana. Enlist the guidance of a trusted and experienced attorney today by calling the Law Offices of Clifton Black, PC. We will walk you through the business formation process and ensure that your new venture has a solid foundation to enjoy future growth and success.
Our skilled business formation lawyers have served countless clients over the years, helping them navigate complex marijuana compliance laws, rules, and regulations. We can help you form your marijuana business, obtain the necessary licenses, understand how to remain in compliance with the latest regulations, and recognize how federal laws may impact your business. We encourage you to contact us today to discuss your vision.
What Licenses Must I Obtain to Open a Marijuana Business in Colorado?
Whether your goal is to operate a business that sells marijuana for recreational or medical use, you will need to obtain the required licenses. It’s important to recognize that licensing requirements may vary by county or city and are continuously being updated. The Colorado Marijuana Enforcement Division (MED) offers the most current licensing information for the state regulations on its website. You can navigate these resources to get an idea of the various licenses you may need to procure, such as those for operating a marijuana store, marijuana cultivation, opening a medical marijuana center, or another related business endeavor. While these resources may help answer some of your questions, enlist the support of our experienced cannabis law attorneys to ensure you move through the process as smoothly and strategically as possible.
Understanding Potential Penalties for Violating Regulations
The mission of the MED is to promote public safety and reduce public harm by regulating the marijuana industry. The legal text governing the medical and retail marijuana industry daunting and complicated. Failing to comply with these strict regulations can result in fines, license restrictions, or license revocation.
The regulations you are required to comply with depend on the license you hold. Regulations can range from who you can legally sell products to, chemicals that can be used in production, and the types of certifications the MED requires you to have to name a few. Regulation violations are broken into three categories: Violations of public safety, license violations, and license infractions.
The extent of the penalties will depend on the severity of the violation, which category they fall into, and if any aggravating factors were present. For more than a decade, our dedicated marijuana attorneys have helped clients understand their responsibilities and obligations. We are here to ensure you put the necessary protections in place to remain in compliance, minimizing the potential for legal consequences later on.
Navigating Federal Marijuana Laws
Although marijuana is fully legal in Colorado, Federal law still classifies marijuana as a schedule 1 controlled substance. This clash between Federal and State laws create a situation where you can be charged with a Federal crime for activities that are allowed by the State.
Federal laws affect the marijuana industry in more ways than one. The Controlled Substance Act (CSA) makes it a crime to open, lease, rent, maintain, or use property to manufacture, store, or distribute a controlled substance. This means landlords with tenants involved in the legal marijuana industry run the risk of federal asset forfeiture and other criminal fines.
Many banks and credit companies are reluctant to provide accounts and lines of credit for marijuana companies because they fear violating the CSA. Federal laws also prevent marijuana businesses from deducting standard business expenses such as transportation, marketing, and training. While these obstacles may sound disheartening for entrepreneurs, you can trust that our dedicated and knowledgeable legal team will help you articulate your goals and pursue them with clarity and confidence.
Get Started with a Trusted Marijuana Compliance Attorney Today
If you’ve ready to enter the marijuana industry, the first step is to understand the complex state and city or county laws that govern the marijuana business formation process. Navigating these laws can be complicated, especially since they are always changing. Founding attorney Cliff Black has proven experience assisting clients in the marijuana industry. Whether you need guidance transferring ownership or defending your business against an alleged violation, the Law Offices of Clifton Black, PC is here to help.