Step 3: Consult a lawyer
Since cannabis still falls within a legal grey area you’ll need the guidance of an experienced lawyer to ensure your business isn’t operating illegally and that every department is above board.
If you take the US state laws into consideration, South Africa’s laws will likely follow suit, which means they’ll be challenging and nuanced. You don’t want to be fined or jailed because you misinterpreted the law.
Navigating a fluctuating legal system while avoiding prosecution can be a daunting task. A knowledgeable and experienced lawyer can help to simplify the legal processes and ensure your business is protected against potential legal risks.
“Rules will continue to change quite often as regulators get a better sense of how to regulate the industry,” says Sturges Karban, CEO of MJIC. “We are the canaries in the coal mine. So, don’t assume that because you’re in compliance with one set of regulations today, you will be tomorrow, because those regulations may no longer be in place.”
What else do you need a lawyer for?
You’ll need your lawyer to help you with taxes, fees, licensing arrangements, and a significant number of permits. Not to mention all the usual legal elements a start-up business needs such as trademarks, copyrights, setting up tax paperwork and registering as a business entity.
Even if you think you have all your bases covered, retaining the services of a legal professional is vital to your new cannabis business’ success.
Is having an attorney on staff a reasonable expense?
Using marijuana in the privacy of your home is now not illegal, but there are many aspects of the weed industry that are still considered illegal and this creates a significant amount of risk for your business.
Given the high cost of starting a business, you may consider that not having a lawyer on staff is a reasonable risk. If you were operating in any other industry you could outsource your legal advice, but in the cannabis industry there is a great risk to your business.
“Whether it’s a vendor, a client, a partner, a supplier, or an advisor, you need to check they’re compliant as well because they impact your own business and compliance,” says Karban. “Also, in this line, another trip wire hiding in plain sight is advertising. Even if you sell ancillaries, be careful.”
If you don’t want to employ a lawyer full-time, you should at least have one on retainer that will help you navigate the current marijuana legal grey area and the future legal decisions yet to be made by parliament.