Jan 22, 2016 | California Marijuana Laws, Marijuana Legalization, MMJ News
When it comes to legal marijuana and setting up the legal entity for a new medical marijuana business, entrepreneurs need to first focus on what is allowed by their respective state. Some states allow traditional LLC or corporate structures while others require a non-profit or “not-for profit” collective or a cooperative, as you can see from the California non-profit collective collective form. Entrepreneurs should also be careful to follow other small details in the guidelines for marijuana related businesses.
No matter which entity you choose, most lawyers recommend some form of incorporate, largely to protect yourself from personal liability for business debts and lawsuits. Yes, you can go it alone as a sole proprietor or run your business as a partnership. But it places additional obstacles in your way. Please also remember that the liability protection of a corporation or LLC does not extend to criminal activities. As such, you are still subject to arrest (particular from a Federal standpoint) although these prosecutions appear to be decreasing.
There are the questions of whether to take on a traditional incorporation or a limited liability company (or LLC). This question is more difficult to answer – both are useful in particular circumstances. Then there is the issue of whether to become a non-profit or a for-profit company. These rules vary by state, sometimes with fairly dramatic differences and other times with only subtle distinctions. It’s best to find the appropriate code section for your state, typically organized under the Secretary of State’s office.
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Dec 22, 2015 | Marijuana Legalization, MMJ News
Cannabis extraction is a process that releases essential oils from cannabis flowers, in order to deliver better patient treatment, or to produce a more concentrated high for seasoned smokers. The resulting concentrate variously goes by the name cannabis oil, budder, wax, or shatter depending on the quality of the product and / or the preferences of the consumer. In most instances, the user smokes the product but it can also be used to make edibles.
Common Methods of Cannabis Extraction
Extraction of cannabis oil can be a complex, potentially dangerous activity, with the exception of the dry sieve and water methods we describe shortly. If, for whatever reason you decide to do your own extraction using other methods, we recommend you do significant research first, perform extraction in a well ventilated area, wear flameproof clothing, and have a fire extinguisher nearby. Here are the commonest methods currently in use.
Cannabis Extraction Using Non-Hydro Carbons
– Dry Sieve Extraction Method – Equipment Cost: Minimal
This method for releasing resin involves agitating the raw product over a screen that allows the resin buds through for compression into blocks. Works best with frozen material that snaps easily.
– Isopropyl Alcohol Extraction Method – Equipment Cost: Minimal
Alcohol is highly water-soluble and works by dissolving the heavier oils from the plant matter. The mixture must then be carefully heated to remove the alcohol from cannabis oil.
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Dec 15, 2015 | Marijuana Legalization, MMJ News
Some investment gurus are comparing medical marijuana investment opportunities to the 1849 Gold Rush that lead to the declaration of the state of California. There were three types of beneficiaries in those days. These were the miners who did the work, the bartenders and ladies that entertained them after dark, and the investors who bankrolled their businesses.
As prohibition fades before relentless challenge for universal legalization, the possibilities are increasingly evident of making relatively large sums of money through direct investment. If California is budgeting $134 million in tax revenue, how much money do you think is changing hands at the coalface? Ten per cent of that through passive investment seems a better prospect than publicly traded shell and penny stocks.
Tracking Down a Good Direct Investment in MMJ
Specialist assessment is required before passive investment in the emerging medical marijuana industry, because the company owners lack seasoned business skills. Many are emerging entrepreneurs who have been growing medical marijuana in their backyards, and in some instances selling. They may lack the skills to promote a good investment that just needs cash to take a positive step.
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Nov 6, 2015 | California Marijuana Laws, Marijuana Legalization, Proposed MMJ Law Changes
Attached is a PDF document that was prepared by Hon. Steven K. Lubell (Ret.) at californiamedicalmarijuanalicensing.com. The “Medical Marijuana Regulation and Safety Act – Application Requirements” document outlines the new requirements that individuals will need to follow in order to obtain a license to cultivate, distribute, manufacture/process, or dispense medical marijuana in California. The requirements include:
– Live Scan
– Comply with local ordinances
– Provide documentation that you have a compliant property (or lease) in place
– Ensure property is at least 600 Feet from any qualifying school (as required by Section 11362.768 H&SC)
– Labor Peace Agreement: Only applies to applicants with 20 or more employees.
– Obtain a Seller’s Permit
– Pay all applicable fees
Another section discusses the meaning of “applicant” or owner:
– Regular owners or anyone with interest in the operations.
– If the owner is an entity, “owner” includes within the entity each person participating in the direction, control, or management of, or having a financial interest in, the proposed facility.
– If the applicant is a publicly traded company, “owner” is anyone owning 5 percent or more of the outstanding shares and the CEO.
Nov 5, 2015 | California Marijuana Laws, Marijuana Legalization, Proposed MMJ Law Changes
California’s 2016 legislative program has some interesting measures pending. These are 15-0103 (Control, Regulate, and Tax Adult Use of Marijuana Act) and 15-0104 (Cannabis Control and Taxation Act). The Attorney General has these posted for comment. Interested parties are free to express opinions by following the given links.
The proposed Control, Regulate, and Tax Adult Use of Marijuana Act could become one of the most significant marijuana laws in California if eventually approved. However, those on the extreme right are keen to stop it dead in its tracks if they possibly can. So what is all the fuss about? Who is backing 15-0103 and what does the Sutton-Lyman initiative contain?
The measure is supported by big money in the form of heirs to the Hyatt hotel chain and Napster’s co-founder, and has a broad support base on both sides of the house. This is because it strengthens law enforcement, makes it tougher for kids to lay their hands on pot, protects health and safety, and promises generous support for preservation of the environment.
Marijuana Laws in California: What’s the Trend?
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Nov 2, 2015 | California Marijuana Laws, Marijuana Legalization, Proposed MMJ Law Changes
I find an intriguing dichotomy in California’s Control, Regulate, and Tax Marijuana Act proposed Friday October 2 for review. On the one hand, the draft is positively socialistic. It permits Californians aged over 21 to possess an ounce of marijuana (eight decent-sized joints) and have six pot plants in the garden of which their mother may or may not approve. The rest of the 51-page draft focusses on squeezing tax money out of a to-be-regulated industry. Regardless, it would be a huge step forward for the industry to make marijuana legal in California.
The sponsors make for interesting reading. Sean Parker, Napster co-founder and ex Facebook president kicked the ball onto the pitch although his sidekick denies he supports the latest version. The leading sponsors are now Progressive Insurance, the founder of Weedmaps Media (an app guiding consumers to marijuana dispensaries) and a bunch of heirs to the Hyatt Hotel chain. This could make an interesting story line someday but you connect the dots. The Hyatt money might just be enough to inspire consensus on the bill this year.
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