CHECKLIST OF 20 THINGS YOU NEED TO DO TO BE READY FOR A NEW YORK BUSINESS IN THE RECREATIONAL MARIJUANA INDUSTRY AS SOON AS IT BECOMES LEGAL AND APPLICATIONS CAN BE FILED FOR LICENSES AND PERMITS

1. Perform a trademark clearance search on your intended business or brand name
and obtain professional guidance on what can be protected as a trademark when
it comes to cannabis given the federal stance on marijuana

2. Launch an entity such as a corporation or LLC to protect your personal assets in
this high-risk business

a. include provisions in the bylaws or operating agreement that limit equity
owners to those over 21 and qualifying for a license
b. consider distributing equity to qualify for woman owned or minority owned
business

3. Apply for a woman-owned or minority owned business certification, if applicable,
or get prepared to file after one year of operation

4. Prepare a business plan

5. Collect census statistics on the town or city where you will locate your business
to identify if you qualify as a “community of color”

6. Research whether the town or city where you will locate your business might “opt
out” of legalizing recreational marijuana

7. Apply for a certificate of relief of disabilities for any felony convictions for any
equity owners or investors in the business

8. Clear up any tax issues and be sure all of your tax return filings are up to date

9. Apply for a Certificate of Authority to collect sales taxes if you will engage in retail
sales

10. Collect copies of supporting documents that will be needed to accompany
applications:
a. Birth certificates or passports
b. Certified dispositions of any arrest records or proof that records are sealed
c. Obtain copies of deeds and surveys for any property where a business will
be located

d. Prepare a lease to the business entity that will be operating at the location
and be sure it recites that marijuana related activities will be performed at
the leased premises

11. Secure your financing and proof of the source of all funds being used to start the
business; gift letters or promissory notes for any personal loans; bank loans will
not be possible given the federal laws on marijuana – a home equity loan might
be possible if you don’t disclose use for a marijuana related business

12. Consider trademark registration of your trademarks

13. Register your domain name and social media accounts

14. Launch your website

15. Start to create media buzz and some of your promotions so they are ready to go

16. Research certifications such as “grown in New York,” “non-GMO,” and “certified
organic,” if applicable

17. Consider including charitable component in your business such as donating 5%
or 10% to causes that are related to marijuana such as sealing old records,
dismissing charges, industry advocacy, or R&D of marijuana for medicinal
applications

18. Research any limitations you may face in banking and credit cards for marijuana
related business activities

19. Identify an accountant who will be up to speed on the tax issues in this heavily
taxed industry

20. Create your procedures and policies for regulatory compliance; security, record-
keeping and measurement of product at each stage will be essential

Please feel free to contact our team if you are a cannapreneur and want to discuss a
new business opportunity in the cannabusiness space.

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