So you're ready to start a business. Which entity type is right for your goals? Many types of business entities depend on how many partners hold equity, what kind of tax protections are important, and how long the business venture is intended to last. This article will discuss several entity types, the filings required with the state, and their internal operating documents. Please note that there are additional, more complex entities that this article does not discuss but still stand as options for incorporation. Further, each state's definitions and specifications differ for properly forming business entities. Therefore, be sure to check your state's requirements.
Determining which corporate structure is best for your cannabis business is completely dependent on your specific circumstances. There is not one corporate structure for a cannabis business that works better than others. The perfect entity choice for one company could be terrible for another operation. Therefore, the best corporate structure will depend on each business owner's specific needs, financial position, and business goals. This article dives into the types of entity types available, the pros and cons of each type, and the tax implications. If you have any questions about which corporate structure is right for you, our experienced cannabis lawyers can help you understand the legal ramifications of choosing an entity. Contact us today to understand your options.