If you are an entrepreneur in the cannabis industry, you may have questions about what type of business entity you should be. Are you required to be a non-profit? Can you be a for profit business?

After the legalization of marijuana in California, businesses in this industry can elect to be a sole proprietor, an LLC, a C corporation, and S corporation, a partnership, a non-profit organization, a collective/cooperative, and possibly others.

Existing non-profits or collectives/cooperatives may want to change their business entity. Those without a business entity may be interested in forming a business entity.

The type of business entity that is right for you depends on a number of factors and circumstances. The attorneys at Weed Law, PC can discuss your options with you.

This website includes information for purposes of compliance with California law. NOTE: Cannabis, including medical cannabis remains a Schedule I drug under the Federal Controlled Substances Act and is wholly illegal. Individuals and businesses interested in the cannabis industry should make sure they are fully informed of the Federal laws related to cannabis.