Hmmm. Probably not!
That’s the easy answer.
I can’t fathom a universe in which, unless it’s for an extremely low amount of money (under $1,000) where hiring a consulting business makes any sense. If you need someone to structure your business for you – marijuana is not the business for you.
If you need to hire a consulting firm, you will not be able to operate a cannabis business in a matter commensurate with the required detail-oriented management that a cannabis business requires.
What do I mean by that?
I mean that there are over 1600 Cannabis regulations for medical marijuana and recreational marijuana in Colorado, combined, the violation of any one of them could cost you your license, either local or state. If you need someone to hand hold you through the process, and you don’t have a compliance officer on staff – the regulated substance market (Whether it be alcohol or cannabis) is going to eat you alive.
Cannabis Consulting firms prey upon the unknown. There is nothing that a consulting firm can tell you for $15,000-$50,000 that I can’t cover, for free, in a one hour phone call.
You want to discuss higher yields? Your Cannabis attorney should be able to discuss that with you – I can. You want to discuss how to best structure your company? Your attorney should be able to discuss that with you – most of these consulting firms don’t even have attorneys on staff.
Furthermore, they are not legally allowed to discuss risk mitigation with an LLC vs a Corporation, whether you should form as a C or an S Corp, the tax benefits of a pass through structured organization versus taking a salary, etc. Taking legal advice from a consultant would be like taking taking archery advice from Stevie Wonder.
A good cannabis attorney should be acting as your realtor, your HR director, discussing marketing strategy, and most importantly connecting you with his other clients when its appropriate and you have complementary offerings to one another.
In short, don’t give your money to a cannabis or marijuana consulting company. At best they are practicing law without a license, and worst you are wasting your money.
