Articles Posted in Marijuana business

For many cannabis businesses, social media seems like the ideal place to advertise. Facebook provides many tools forcannabis business advertisers that allow them to focus their audience in a way that would be extraordinarily beneficial for marijuana products and dispensaries. They would be able to narrow down the viewers to only include people in states where cannabis is legal. They would also be able to add age restrictions, ensuring as much as possible that minors would not be exposed to the ads. It’s really a win-win, except for one very annoying catch.

Marijuana businesses are prohibited from advertising on Google or Facebook.

A recent report from Washington Post examined the challenges marijuana businesses face advertising to their customers while pot remains illegal under federal Controlled Substances Act, 21 U.S.C. Section 812. The act outlines guidelines by which to classify certain drugs based on how dangerous a risk they pose, whether they have any medical benefits, and if they are addictive. Currently, marijuana is Schedule I, the most restricted classification on the list, despite no evidence it fits any of those qualifiers. That very same act (under Section 843) states “It shall be unlawful for any person to place in any newspaper, magazine, handbill, or other publications, any written advertisement knowing that it has the purpose of seeking or offering illegally to receive, buy, or distribute a Schedule I controlled substance.”

So how are there so many marijuana ads out there?

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Los Angeles, Oakland, San Diego and San Francisco have been praised for being at the forefront of decriminalization and legalization of marijuana in California.marijuana business

On the flip side, we have San Bernardino. The city recently passed a regulation (Ordinance No. 1464 Section 5.10) that prevents any cannabis business that has “conducted commercial cannabis activity in the City of San Bernardino in violation of local and state law” from obtaining one of the 17 licenses available in the city.

One savvy business owner isn’t taking this move lying down, though. She is suing the city after officials in December raided and shut down a facility she owned and leased out to cannabis growers. They confiscated 35,000 marijuana plants, according to a report from High Times. And though the owner of the facility was never charged, she still falls under the current restrictions and is not qualified for one of the licenses, currently being given to other establishments who have the same intention as her: to run a facility for growing marijuana. Continue reading

There are many questions that have been answered with the legalization of recreational marijuana in California.cannabis business

  • What? Proposition 64 was approved by voters and made legal adult-use marijuana.
  • Who? Residents 21 years or older.
  • When? As of Jan. 1, 2018.
  • Where? Now, that’s a trickier matter.

Firstly, the state law did not automatically go into effect everywhere. From county to county, city to city, local governments have been making decisions about whether to maintain a ban on recreational cannabis or to legalize and set up regulations. Some of the big cities, like Los Angeles, San Francisco and San Diego have permitted recreational sales. Some areas, like Orange County, cultivation is allowed with restrictions, but manufacturing and retail are banned. Los Angeles took a different route, allowing retail but not cultivation or manufacturing. Other counties, like San Bernadino, don’t permit any recreational cannabis activity.

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Sales are booming for cannabis businesses after Prop 64 allowed recreational marijuana to become a legitimate industry in the eyes of the state. However, operations are still heavily regulated, and many new marijuana business owners find the task of abiding this onerous list of laws to be a difficult one. Without the help of a marijuana attorney to advise of potential problem points, businesses could easily find themselves under heavy sanctions – or worse, criminal prosecution.cannabis business

The California Bureau of Cannabis Control recently sent warning letters to several hundred businesses suspected of operating without state marijuana business license, according to Leafly. The letters outline criminal and civil action planned if the businesses refused to either close or become compliant with regulations. Bureau leaders said they are pursing all delivery services and retailers who may not be operating legally.

Some of these businesses slipped into questionable business practice after legalization passed, but as officials ironed out the details of statewide regulation and oversight. In some cases, business owners have been trying to fly under the radar to avoid being taxed (practically out of existence). In many cases, however, these business owners were simply unaware of their obligations or haven’t filed the proper paperwork or gone through all the correct channels. This is where having a marijuana business attorney can be invaluable to protecting your investment. Continue reading

Adult-use cannabis became legal in California Jan. 1 with Proposition 64 going into effect. Many cities and counties however have decided to maintain a ban on marijuana, and others did not have local regulations in place in time for the official roll out of the law.marijuana business attorneys

But even after just a few weeks, the state government is already reaping big cash benefits reefer. Gov. Jerry Brown estimates $643 million in marijuana excise taxes in the first year, according to a Los Angeles Times report. Earlier projections estimated tax revenue could eventually hit $1 billion. Brown cautioned we don’t fully know every market issue that is at play, so local governments should be careful before enacting any sweeping measures.

Even as such, the lower estimates more than cover the $52 million California budgeted for 2017-2018 to establish and run the marijuana licensing system. The $643 million also does not include local sales taxes or state license fees. It costs businesses $1,000 for a license to sell cannabis. The fees are set to cover all costs associated with permits, including background checks, and resources necessary for processing and issuing. Continue reading

In 2013, Deputy Attorney General James Cole issued what was known as The Cole Memo, a directive during the Obama administration that toldmarijuana business lawyers federal officials to back off of prosecuting those selling, distributing, growing, or using marijuana, so long as the offenders were following state laws. The memo was issued to reconcile the federal Controlled Substances Act, 21 U.S.C. Section 812, which classifies marijuana as a Schedule I narcotic, with the wave of state laws that allow cannabis sales and use, either medically or recreationally. The move gave hope to the growing number of Americans in favor of full cannabis legalization nationwide.

However, the U.S. recently took a big step backward when current Attorney General Jeff Sessions rescinded the directive, re-opening the door for federal prosecutors to allocate resources at their discretion for cracking down on marijuana operations.

Leaders in states that have legalized marijuana have no intention of going down without a fight, though. With many more making moves to legalize cannabis in state legislatures or on ballots this year, they might have even more allies by their side. Continue reading

Proposition 64, which makes the sale and use of recreational marijuana legal in California, went into effect at the start of the year, but Los Angeles marijuana business owners had to wait to join in the fray of commercialLos Angeles Marijuana Business Attorney businesses opening their doors.

Los Angeles city council approved guidelines for the sale of recreational marijuana late in 2017, and the city hoped to have the regulations put in place by the roll-out of the Adult Use of Marijuana Act on Jan. 1, 2018. However, the city now says it needs extra time to establish the intricate rules.

Therefore, Los Angeles could not start accepting applications right away. Additionally, it usually takes weeks for a business to receive a license and meet standards with local and state officials. Continue reading

Thanks to Prop. 64, the state of California is considering applications for licenses forLos Angeles Recreational Marijuana Business Lawyers recreational marijuana businesses beginning Jan. 1, 2018.

Authority rests with local governments to decide whether to allow recreational marijuana sales to go into effect in their area, giving them power to either issue bans or develop policies for businesses to operate.

The Long Beach City Council is the latest to join the movement. The council recently voted to move ahead with developing policies for recreational marijuana businesses to operate in Long Beach.  Continue reading

The passing of Proposition 64 in 2016 legalizes recreational marijuana in California as of January 1, 2018. This will increase the opportunity for marijuana businesses to grow throughout the state.Marijuana regulations

According to an article from Forbes, California cannabis business owners are projected to make $5.2 billion in revenue in 2018, with about $1 billion in tax revenue lining state coffers.

But for every new road that is paved on the way to full legalization, there are numerous bumps along the road. California business owners expect plenty of marijuana regulations, with local governments in the state being given a great deal of jurisdiction over whether or not to allow commercial marijuana production and sales. Continue reading

The owners of a marijuana dispensary in Colorado are challenging a provision of U.S. Tax Code that the Internal Revenue Service has interpreted to mean state-legal marijuana businesses should not be allowed to take deductions or claim credits.

marijuana tax lawyer

The couple asserts in a brief filed in U.S. Tax Court that the IRS’ determination of their taxes owed for 2010 through 2012 were unjust, and that they were unfairly taxed compared to other business owners. A marijuana attorney representing the pair characterized the specific section of the code as “absurd.”

Section 280E, deals with expenditures in connection with illegal sale of drugs. As noted in a 2015 internal memo within the IRS, although a marijuana business is illegal under federal law, it remains obligated to pay federal income tax because Section 61(a) doesn’t differentiate between income derived from legal sources and those derived from illegal sources (See the 1961 case of James v. U.S.).  Continue reading

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