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Unlicensed Cannabis Collectives Officially Illegal in CA

Ever since recreational marijuana was first legalized in the 2016 state elections, California law enforcement has struggled to strike a balance between regulatory oversight and freeing up the marijuana market for new growth. Until recently, most California cannabis collectives and co-ops had been grandfathered into the new regulatory models, as part of a legal “grace period.”

However, as of January 9th, that grace period has officially come to a close – meaning that all unlicensed California cooperatives and collectives now risk serious fines, citations, and even full shut-downs from law enforcement. At Purdy & Bailey, LLP, we’re committed to helping California entrepreneurs navigate the marijuana market and become fully licensed in accordance with the law. When you work with our San Diego cannabis lawyers, we can review your current situation, and help you find a path to legal business ownership.

Why Is the Cannabis Shut-Down Only Starting Now?

California Proposition 64, which legalized marijuana for adult recreational use, did not officially go into effect until January 1st, 2018. Once it did, there was state-wide chaos as licensing and lab testing facilities became slammed with far too many requests. After reports of cannabis raids and unmonitored shut-downs across California, the Bureau of Cannabis Control released a formal guidance on the legal grace period for unlicensed sellers, which would end exactly one year after its issue date: January 9th, 2019.

Although many of the legal problems surrounding Prop 64 have since been resolved, California’s marijuana businesses suffered from slow growth for most of 2018, and many pre-existing cooperatives and collectives were simply unable to get licenses. The steep fines associated with licensing and testing, coupled with a flagging marijuana market, made it incredibly difficult for some nonprofits to meet the baseline legal requirements.

Get Help from Our Skilled San Diego Cannabis Lawyers

If you’re a dedicated cannabis business owner facing the prospect of shut-down, don’t panic just yet. Our team at Purdy & Bailey, LLP, can help you with both local and state regulatory compliance issues. Although legal protections for unlicensed collectives have now been lifted, you’re still entitled to full legal representation, and to fight for the success of your business. With our connections throughout both the cannabis market and criminal defense community, we can help you find a proactive solution.

Ready to speak with one of our experienced cannabis law attorneys? Contact us at (858) 360-7080 to request a courtesy evaluation.

Post Title: When Should I Consider a Joint Venture for My Business?

Meta Title: Pros and Cons of a Joint Business Venture | Purdy & Bailey, LLP

Meta Description: Considering a joint venture ownership model for your business? Get the pros and cons from our San Diego business lawyers, at Purdy & Bailey, LLP.

Social Title: When Should I Consider a Joint Venture for My Business?

Social Description: Starting a joint venture can be exciting, but there are also some things you should keep in mind before you begin. At Purdy & Bailey, LLP, our San Diego business law attorneys can help you understand the pros and cons of a joint business venture. Learn more on our blog!

FB: Joint business ventures can come with some great advantages – as well as downsides. Learn about the pros and cons of a joint venture on our blog, at Purdy & Bailey, LLP:

GMB: Looking into a joint business venture? On the blog, our San Diego business lawyers discuss some of the potential issues with a joint venture, as well as the potential positives. Click below to read more.

Twitter: Joint business ventures bring unique advantages – and downsides. Get a better understanding of the pros and cons at Purdy & Bailey, LLP:

Although often confused with a business partnership, a joint venture agreement looks very different. Unlike a partnership, your joint business venture will allow both parties to maintain a distinct and separate business identity, rather than merging both parties together under the same broad umbrella.

At Purdy & Bailey, LLP, we have decades of combined experience helping business owners throughout the San Diego area. From resolving major business disputes to guiding clients through complex high-level mergers, our business law attorneys can act as a “one-stop-shop” for all your legal needs.

In this post, we’ll share a few of the legal advantages to embarking on a joint venture, as well as the potential disadvantages.

Key Advantages of a Joint Venture Agreement

Because a joint venture is really more like a strategic alliance than a true partnership, it can empower you to seek out new opportunities, all without sacrificing creative and financial control over your business. Much like the adage “two heads are better than one,” a joint business venture allows both parties to gain new technical expertise, resources, and markets that they may never have accessed otherwise. It also has a definite end date and clearly-defined terms, which are spelled out in the agreement itself.

Here are a few of the biggest advantages to starting a joint venture:

  • You can build your credibility, by working with a more experienced or recognizable brand.
  • You can greatly extend the reach of any marketing campaigns and initiatives.
  • You’ll gain access to markets, personnel, and knowledge that you wouldn’t normally have.
  • You’ll split the risks for your project with another party.
  • Any shares accrued during the joint venture will have value, even after the agreement ends.
  • You won’t have to file information returns.

Downsides to Joint Venture Agreements

Of course, in spite of the benefits, there are some situations where your joint venture could cause more problems than it solves. Because each business maintains their distinct identity in a joint venture, you may experience a true clash of cultures that leaves your employees demoralized, and your monetary gains at a stand-still.

These are the biggest potential downsides to a joint venture:

  • You’ll have to share any profits equally with another business.
  • If communication breaks down, it can be expensive and painful to re-align on your goals.
  • In the face of major cultural differences, your joint venture may turn into a battle of wills between employees.
  • Your hard-won intellectual property and resources may be used against you later on, especially if the relationship sours.

50+ Years of Experience in Business Law

Still not sure whether a joint venture agreement may be right for your business? No matter the nature of your project, our experienced San Diego business lawyers can help you decide on the ownership model that works for you. At Purdy & Bailey, LLP, we pride ourselves on securing real results for local entrepreneurs, and giving them the comprehensive legal service they need to succeed and grow.

Contact us at (858) 360-7080 for a free evaluation, or contact us online!

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