Getting Your "Cannabusiness" off the Ground
Any business owner can be vulnerable to making mistakes. However, cannabis business owners and those embarking on starting a "cannabusiness" may face more challenges and obstacles as they navigate the process. Knowing the common pitfalls and how to avoid them can help save you some time-consuming and frustrating headaches. Steer clear of these five common mistakes.
1. Not Understanding Michigan Cannabis Laws
Owning a "cannabusiness" can be both rewarding and demanding. Adding in all the complex Michigan laws and regulations that you must abide by can often be confusing and hard to understand, leaving you vulnerable to non-compliance. For example, there is a limit to how much cannabis you can dispense to a patron, so not fully understanding the legal distribution thresholds could mean hefty fines or, in more severe law violations, jail time.
2.Not Understanding Laws Related to Cannabis
Not only is it critical to know how to comply with cannabis laws, but it's also important to know that there may be other laws you must abide by. For example, there are dispensary zoning regulations in Michigan, so there are restrictions to the areas where you can do business.
3. Not Practicing Full Compliance with Cannabis Laws
Cannabis laws in Michigan are strict, and as a "cannabusiness" owner, you are expected to follow all the mandates to the fullest extent. Complying with only "some" of the cannabis laws could have you facing penalties and fines, as well as losing your business license.
4. Not Understanding Tax Codes
When it comes to tax codes and regulations, it's critical for business owners to fully understand the tax laws surrounding the sale of cannabis, including the following:
- Collecting and remitting sales tax
- Use tax
- Excise tax
- Income tax
- Business personal property tax
Not complying with tax laws could leave you open for an unwanted audit.
5. Not Hiring a Lawyer
It's easy to make mistakes if you are not experienced with cannabis laws. Staying compliant is highly critical to the success of your "cannabusiness." From tax and zoning laws to dispensary limits, having an experienced cannabis lawyer assist you with opening or maintaining your cannabis business to ensure you are compliant can make all the difference.
Need Help with Cannabis Law? Contact Grewal Law PLLCToday
Cannabis law is complicated and calls for the legal representation of a seasoned professional. At Grewal Law PLLC, we have a legal team dedicated to this area of the law. Our attorneys can help you establish your own "cannabusiness" or guide you through the complex legal issues and challenges surrounding this substance.
Call Grewal Law PLLC at (888) 211-5798 to schedule a consultation today.
