Cannabis LLCs Need Operating Agreements
Uncategorized April 18, 2022
Cannabis businesses are usually limited liability companies (LLCs). There are a lot of reasons for this, starting with the fact that LLCs are more flexible than corporations, which have much more rigid rules. To take advantage of those flexibilities, and for a lot of other reasons, LLC owners (called members) need an operating agreement. Below,
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The intersection of state and federal law on cannabis has led to some interesting situations at the border, especially where cannabis related property is seized. States such as Washington, Oregon, and California have legalized cannabis for all uses, while the federal Controlled Substances Act still prohibits marijuana distribution and sale anywhere in the United States.
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