Starting a Marijuana Business: Do You Need a Lawyer?
The simplest answer to the question of needing a lawyer is that if someone asks whether consulting an attorney is advisable, then it is probably a good idea. The reason is that having questions answered by a legal professional is not a bad idea. If you have doubts about a business operation, it is best to have clarity before engaging in commercial activity. In the marijuana industry, this is even more important. Legally operating establishments have been raided by local and federal law enforcement agencies for numerous reasons. There is confusion and misinterpretation of statutes that not only differ from state to state, but also on the federal level. Therefore, everyone in the cannabis industry is encouraged to have legal counsel to ensure that their activities are legitimate.
Congressional approval for hemp
Although the United States Congress officially legalized hemp, much confusion still exists among regulatory agencies and law enforcement. Hemp, considered to be cannabis with a THC concentration of no more than 0.3 percent, contains cannabidiol (CBD), with promising medical properties. The definition’s percentage, although arbitrary, does place some standards as to what is considered hemp and what is classified as psychoactive marijuana. However, interstate commerce of the substance is regulated by federal and state departments. Therefore, transporting may be illegal in some states but legal by the central government. Furthermore, if the transportation of hemp is done by a truck that is traveling through a state that has a stricter definition of the farm bill, the legality is even harder to interpret.
Industry growth among chaos
Industries will have a limited amount of growth when faced with a chaotic environment. The cannabis industry is no different. Although some estimates show that the global reach will be 23 billion dollars in sales by 2025, the United States needs to clarify laws, regulations, and standards for products derived from the plant. Nevertheless, the business opportunity is clear, and states that legalized marijuana early on are great examples of economic development obtained by the new industry. Colorado and California, for example, have obtained billions of dollars in tax revenues associated with the marijuana industry. Therefore, other states are following the example. However, it is still important to note that cannabis with higher concentrations of THC is still illegal at the federal level. This means that companies should seek legal advice to ensure that their activities are protected to avoid arrest and prosecution for their activities.
Regulation and industry
With the growth, chaos, and lack of regulation, the industry is currently facing some problems. For example, some studies have shown that product labels are missing, incomplete, or inaccurate. In terms of legality, this opens some questions as to who is responsible for the claims and who is liable for problems with a cannabis-related product. If an online retailer sells a product manufactured by an organization that improperly labeled the product, the responsibility may not be as clear. In these cases, new businesses are encouraged to deal with reputable organizations. Many companies review products and vendors while promoting openness. Make sure to read the review of Select cbd and browse through the content to find the best possible organizations to conduct business with.
Just because activities are legal in a state does not automatically mean that other sectors of the economy will recognize them as such. Therefore, bank loans, mortgages, and rental property may become a problem. Some law practices, including McAllister Garfield, specialize in this industry and can assist with all areas that involve business transactions in the industry. While it may be possible to establish and run a business without hiring a legal expert, the cannabis industry is one where the risk of not having an attorney on speed dial is too high.