The Dilemma of Hiring an Attorney

It appears that many applicants seeking guidance throughout the entire process of acquiring their cannabis license are turning to lawyers for assistance. However, this is usually not the best option.

Lawyers can charge several hundred dollars per hour for their services. Ironically, many attorneys, even those who claim to be well-versed in cannabis, frequently outsource much of the application work to consultants.

Instead of paying one price for complete services, clients are often hit with additional charges to cover consultant fees. By hiring an attorney to handle the licensing application process, applicants can end up overpaying for an underperforming service.

What about cannabis licensing and applications? 

Firstly, lawyers typically have busy practices and cannot devote the necessary time and energy to write a winning application and manage the process. This process involves several other professionals, including architects, security and equipment firms, financial analysts, HR and insurance professionals, as well as attending city meetings and working with city hall staff. As a client, you are among many for most successful lawyers.

Secondly, the legal principles in play are currently basic and undefined, especially in cities considering applications for the first time. There is simply no precedent or common practices to rely on at this point. The state of the law is new and unrefined at best, and it could be argued that it is not yet established on so many levels, including tax, banking, and federal issues, including intellectual property. Therefore, no one can be entirely certain of anything in this space.

Thirdly, the application process is not traditionally legal in nature. The cannabis business is not being built in courts of law; rather, it is being formed in the meetings and chambers of the City Council, subject to often turbulent political pressure and uncertainty. Those applying for a local permit must use creative writing, complex premise design, and business plans to persuade city staff and paid evaluators to select them for processing. Once they win, they become applicants for Conditional Use Permits and go through a process with the Planning Commission that focuses on the project itself, including the layout, the neighborhood, and rarely the law.

While some lawyers focus their billable hours on land use and development, they are likely to lack the necessary expertise in the other areas mentioned above and be too expensive to be proper project managers.

When to Engage an Attorney

In the end, attorneys are best suited for offering their specialized knowledge on matters concerning contracts, IP and trademarks, partnership agreements, corporate structure, and IRS codes, such as section 280E taxation. It makes sense to work with an attorney for these specific parts of a cannabis licensing application.

Clients should seek the support of a consultant to handle the majority of the application legwork. The consultant will alert clients to any sections that need a more specialized eye. Then an attorney, CPA, or another expert should be hired to fill in the gaps with their expert knowledge.

Choosing the Right Cannabis Consultants to Handle Your Licensing Application

If a lawyer is not the best choice for leading your cannabis application team, then it is important to consider certain criteria when selecting a cannabis consulting firm. Look for the advantages that consultants have over lawyers.

You need to choose a firm that can provide a comprehensive team, led by an experienced project manager, who can manage and allocate all necessary resources to not only meet deadlines but also address any objections from local officials with a highly detailed application. 

This firm should have experts in the application process, including all necessary elements to win and earn a Conditional Use Permit (CUP) afterward. Your application needs to be more than just a narrative, pitch deck, or presentation; it needs to be substantiated enough for the city to believe it can be implemented professionally and effectively without causing any embarrassment.

Your consultants must maintain transparent communication with you and provide feedback throughout the process. It is not uncommon for clients of lawyers or other consultants to be kept in the dark for too long, resulting in a lack of detail necessary for a successful application due to poor time management and leadership.

Conclusion

We strongly believe that hiring a cannabis consultant and a few lawyers who specialize in corporate, tax, and intellectual property laws is the ideal option. This is due to their in-depth knowledge and experience in these fields. While your lawyers will be essential in specific areas, they may not be the most suitable individuals to manage your operation or licensing application as a project manager.