Medical Marijuana Attorney – Montana
Before launching a medical marijuana business, it is important to review your business formation options with a medical marijuana attorney Montana business owners trust. Medical marijuana is a newer industry and as such, the licensing requirements for medical marijuana operations are constantly evolving. It is therefore important to work with an attorney to better ensure that you have all your permits, applications, and regulatory considerations “in a row” before your company becomes operational.
However, even before you start to worry about permits and licensing, etc. you’ll need to determine what kind of business structure your company is going to operate under. The legal formation of your business requires you to choose a specific operational structure. This structural decision will impact everything from how your business is taxed to the amount of liability that you may be personally exposed to in the event that your business suffers losses or issued. As a result, it is critically important that you speak with a trusted Montana medical marijuana attorney about your options before you commit to any particular structure.
Business Formation Considerations – Medical Marijuana Operations
There are four primary legal structures that you can use when incorporating your medical marijuana business. Note that there are some nuanced options within a few of these structures that our firm may recommend that you consider, given your company’s particular needs and your vision for your business. However, all legal structures are subcategorized underneath these broad four options. Each of these primary options has potential benefits and potential drawbacks for business owners. The “best” business model for your company will be the option that best suits its unique needs. Don’t be tempted to assume a business model that your competitors have chosen based on assumptions that “this is the way things are done.” Weigh your options carefully and choose whichever structure uniquely makes sense for you and your company.
Sole proprietorships and partnerships are not subject to the same levels of governmental reporting that the other two options are. Similarly, they have flexible management structures. Sole proprietorships are owned by a single individual, while partnerships have multiple owners. These businesses are taxed personally and do not limit an owner’s personal liability in the event that the business is sued or experiences financial trouble. By contrast, limited liability companies do provide significant personal liability protection for members (the LLC term for owners). These businesses may be taxed individually or on a corporate level. Their management structures and reporting requirements are more significant than those demanded of sole proprietorships and partnerships. Finally, corporations have strict management structures, are taxed as separate entities, and are subject to strict reporting requirements. Corporate structure is generally the most attractive when a startup founder is interested in raising capital through the sale of shares, wants no personal liability for the business, and is interested in rapid and expansive growth of the operations in question.
Legal Assistance Is Available
There is no “right or wrong” answer as to which business structure you should choose for your company. When you arrive for a consultation at Silverman Law Office, PLLC, we’ll explain how each option could affect your business practically, financially, and legally. Our Montana medical marijuana attorney team looks forward to speaking with you about your new company’s needs.