The cannabis industry has experienced rapid growth across the United States, and Oklahoma is no exception. Many would-be cannabis entrepreneurs are rushing to the Sooner States. However, starting a business is more complex than growing a product and opening your doors. There are plenty of laws that you need to consider so that you can protect your cannabis business in Oklahoma. Let’s take a look at a few points.
Licensing and Compliance
The first step in protecting your cannabis business in Oklahoma is getting the necessary licenses and permits. The Oklahoma Medical Marijuana Authority (OMMA) oversees the state’s medical cannabis program. Compliance is extremely important. If you don’t follow the rules, regulations, and other procedures, the OMMA could shut down your business. You need to:
- Have regular inspections
- Maintain accurate records
- Adhere to all packaging and labeling guidelines
Failure to comply can result in fines, license revocation, or even criminal charges.
Unfortunately, the state has suspended all new licenses until 2026. If you are looking to start a new business, you may have to wait. For those who are renewing their license, they can continue with their businesses.
Secure Your Intellectual Property
When it comes time to protect your cannabis business, the steps go beyond licenses and permits. Intellectual property can set your brand apart. Registering trademarks for your cannabis products and business name can protect your brand’s identity. In turn, that will prevent others from using similar names or logos. You might also want to patent any unique cultivation or extraction methods you develop.
Contracts and Agreements
For any business, you need legally sound documents. These contracts and agreements will protect your interests in the cannabis industry. You will want to cover all aspects of the business, including:
- Partnerships
- Employment
- Distribution
- Sales agreements
You will always want to make sure that the contracts are clear, comprehensive, and compliant with Oklahoma’s cannabis laws.
Tax Compliance
In Oklahoma, medical marijuana businesses are subject to specific tax regulations. Medical marijuana purchases are subject to a 7% excise tax and a 4.5% statewide sales tax. In some cases, additional local municipal taxes may apply. If you fail to comply with these tax obligations, it could result in severe penalties and jeopardize your business.
Cannabis remains federally illegal. That can pose major challenges for accessing banking and financial services. However, Oklahoma has made efforts to address this issue by creating a state-chartered bank for cannabis businesses. You will want to learn more about these options to avoid dealing solely in cash, which can put you at risk.
Find the Right Legal Counsel
When you work with an experienced attorney who understands cannabis law, they can offer guidance on compliance, help navigate complex regulations, and represent your business in all legal situations. Along with that, they can often prevent legal issues from escalating and protect your business’s interests.
Take Steps to Protect Your Cannabis Business Legally
Operating a cannabis business presents unique challenges and opportunities. With the right approach and professional guidance, you can legally protect your cannabis business in Oklahoma. If you would like to learn more, please schedule a consultation with Brune Law. Call to set up an appointment with our legal team.
Contact the Brune Law Firm today to ensure your business thrives amidst these transformative changes. Contact us or call (918)372-3021 to schedule a consultation.