Submitted by UCS on December 19, 2017

California is ready for Cannabis…….filings that is

Lately, there’s been a real buzz going on at the California Secretary of State offices. Why? Starting January 1, 2018, the Secretary of State will accept filings for the newly created entity type, Cannabis Cooperative Association.

According to an article under Forbes #MarketMoves section, U.S. retail sales in 2017 from 20 jurisdictions were at $6.5 billion, but according to Greenwave Advisors, that number is projected to grow to $30 billion by 2021!

As you can imagine, interest in this industry is sky high!

Those seeking to establish a cannabis-related business will need to file (not roll) the proper paperwork with the Secretary of State as well obtain the necessary commercial cannabis-related licenses. You will need to determine what type of entity you are going to register. This can range anywhere from a Corporation, Limited Liability Company (LLC) Limited Partnership (LP) or Limited Liability Partnership (LLP). General Partnerships are not required to file with the Secretary of State but may choose to do so if they deem it necessary. Note, that registering with the Secretary of State alone does not provide a business with the necessary licenses to conduct cannabis-related activities. Check with your local city and county in which the cannabis-related activities will take place to determine what other paperwork will need to be submitted.

The process for establishing your company is similar to how you set up most commercial entities in California. Once you are established with the Secretary of State:

1. Obtain Required City and/or County License, Permit or other authorization
2. Obtain a Seller’s Permit & Cannabis Tax Permit from the California Department of Tax & Fee Administration (If Necessary)
3. Obtain Required State License(s)
4. Obtain an Employee Identification Number if you plan to have employees
5. Consult Taxing Agencies to determine obligation your business may have
6. Register your company with the United States Trademark & Patent office (Optional)

For more information contact United Corporate Services at info@unitedcorporate.com or (800) 899-8648 or visit the California Cannabis Portal.

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This policy is subject to change at any time.