{"id":286794,"date":"2019-10-16T15:07:21","date_gmt":"2019-10-16T20:07:21","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/cannabis-law\/starting-a-cannabis-business\/starting-a-marijuana-business-do-you-need-a-lawyer.html"},"modified":"2025-06-03T11:08:00","modified_gmt":"2025-06-03T16:08:00","slug":"starting-a-marijuana-business-do-you-need-a-lawyer","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/cannabis-law\/starting-a-cannabis-business\/starting-a-marijuana-business-do-you-need-a-lawyer.html","title":{"rendered":"When Do Cannabis Business Owners Need a Lawyer?"},"content":{"rendered":"\n
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When Do Cannabis Business Owners Need a Lawyer?<\/h1>\n\n
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\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Laura Temme, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Legal counsel<\/span> is crucial for navigating state-specific cannabis laws<\/span>, which vary widely and can include high application fees and stringent security requirements. Lawyers specializing in cannabis law<\/span> can assist with corporate formation<\/span>, intellectual property<\/span> protection, zoning<\/span> issues, and compliance with both state and federal laws<\/span>, ensuring that business operations align with all legal standards to prevent potential legal challenges or loss of licensing.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Although many states have legalized the sale and use of marijuana, it is still an illegal drug under federal law. Under federal law<\/a>, it is unlawful to use, grow, possess, or distribute marijuana. It does not even recognize an exception for medical marijuana.<\/p>\n

The good news for cannabis operations is that the federal government generally defers to state law when it comes to cannabis regulations. At the same time, cannabis businesses must abide by state regulations regarding the manufacture and sale of medical marijuana<\/a> and recreational cannabis.<\/p>\n

For this reason, cannabis business owners and operators should have legal counsel on hand. They need an attorney with extensive experience in the cannabis practice and will also want to consult attorneys from other practice areas.<\/p>\n

Here, we\u2019ll explain when cannabis operations owners should talk to an experienced cannabis attorney<\/a> and discuss events that may trigger the need for legal services.<\/p>\n

High Application Costs and Complex Regulations<\/h2>\n

Anyone interested in opening a marijuana dispensary<\/a> or a store that specializes in CBD and THC products should understand how daunting the application process can be. It can be tough to get state approval for your business. It can also be costly.<\/p>\n

Cannabis laws vary\u00a0from state to state.\u00a0<\/a>State laws regarding cannabis legalization range from decriminalization to outright legalization of marijuana. Some states make exceptions for medical marijuana, while others approve full recreational adult use.<\/p>\n

While most states have legalized cannabis<\/a> in some way, that doesn\u2019t mean it\u2019s easy to open a dispensary. Many states have firm limits on the number of marijuana businesses that can exist at one time. To maintain these limits, some states only issue cannabis licenses during narrow application periods.<\/p>\n

How Expensive Is It to Open a Marijuana Business?<\/h3>\n

Joining the cannabis industry is expensive. Not only do you have the costs of corporate formation, but you also have to pay high license application fees.<\/p>\n

For example, New York\u00a0charges a $10,000 application fee<\/a> for a medical cannabis dispensary license. States also charge thousands of dollars for license renewals.<\/p>\n

Many state regulations require\u00a0that prospective cannabis business owners endure strict security and financial measures.\u00a0<\/a><\/p>\n

For example, the State of Washington requires that owners and employees of cannabis operations undergo extensive criminal background checks. These background checks can become expensive and cumbersome.<\/p>\n

It\u2019s not just state governments that have strict cannabis laws. Many municipalities have regulations on marijuana businesses. In Colorado, cannabis businesses must obtain licenses from the county or municipality.\u00a0<\/a><\/p>\n

Obtaining a license<\/a> is expensive and time-consuming. The application process can take a lot of time and has pressing deadlines.<\/p>\n

Any entrepreneur interested in entering the cannabis industry should consult a cannabis lawyer. If a potential owner of a cannabis operation fails to follow state cannabis laws, they may lose their cannabis license.<\/p>\n

A Real Estate Lawyer Can Help with Zoning Issues<\/h2>\n

Cannabis businesses face unique real estate challenges, such as zoning restrictions<\/a>. Many states regulate the locations where you can operate your cannabis business. A property suitable for a grower or processor may not be ideal for a dispensary or ancillary cannabis company.<\/p>\n

One way to avoid issues with zoning is to hire a real estate attorney<\/a> with experience in your state’s land use and cannabis laws. They can help with the following:<\/p>\n