Skip to main content

California
Cannabis Business Formation & Transactions

At Seligson Law, we help cannabis entrepreneurs and operators build businesses that are legally sound, strategically structured, and well-positioned for growth. From forming your entity to drafting contracts and closing deals, our California cannabis legal team will provide practical, business-focused legal support rooted in deep cannabis industry knowledge.

Get started today: 213-293-6692

Legal Foundations for Cannabis Businesses in California

Launching a cannabis business in California requires more than passion and a plan. It takes a solid legal foundation that protects your interests and meets the demands of a high-stakes, highly regulated industry.

At Seligson Law, we help cannabis clients form new entities, negotiate critical contracts, and structure deals that make sense now and hold up as you scale. Whether you’re building a brand, acquiring a license, or entering into a partnership, we’ll help you think several steps ahead.

We advise retail dispensaries, delivery services, cultivators, manufacturers, and investors across the full spectrum of business needs, including:

  • Entity formation and ownership agreements
  • Internal governance and investor rights
  • Commercial contracts, including supply, distribution, and service agreements
  • Joint ventures, mergers, and acquisitions
  • Business and asset sales
  • Risk assessment and regulatory review

Transactional Counsel You Can Rely On

In this industry, no two deals are the same. Whether you’re bringing in a new investor, setting up a distribution partnership, or buying out a co-owner, the legal details matter, and they need to match the reality of how you actually do business.

At Seligson Law, we assist cannabis clients in structuring clear, functional agreements that accurately represent the deal they’re truly making, not just what appears appealing on paper. We ensure that roles and responsibilities are clearly defined, finances flow as they should, and your compliance and licensing obligations are taken into account.

We’ll walk you through every stage of the process, flag issues that could create problems down the line, and make sure you’re not signing onto something you’ll regret later. You’ll always know what your agreements mean and what you’re agreeing to.

High-Level Cannabis Agreements We Draft

At Seligson Law, we regularly draft and negotiate the high-impact agreements that drive cannabis businesses forward. These contracts shape how your business operates, generates revenue, and scales in a tightly regulated environment.

Examples include:

  • IP Licensing Agreements – for cannabis brand licensing, strain rights, formulations, and other proprietary assets
  • Management Services Agreements (MSAs) – defining operational control, profit allocation, and day-to-day management responsibilities between operators and license holders
  • Master Services Agreements – setting the framework for ongoing service relationships with defined scopes, deliverables, and pricing
  • Financial Services Agreements – including investor agreements, revenue share deals, convertible notes, and secured loans
  • White Labeling Agreements – establishing rights and responsibilities for manufacturing, packaging, and selling products under another brand’s label

We tailor every agreement to your business model, license status, and growth goals, always with an eye toward compliance, enforceability, and long-term strategic alignment.

Our California Cannabis Business Law Process

At Seligson Law, we help cannabis clients through every phase of business formation and deal-making. Here’s how we support you:

Consultation & Strategy Session

We start with a focused conversation to understand your business plan, structure, and goals. Whether you’re forming an entity, onboarding investors, or preparing for a deal, we make sure we’re aligned on the right path forward.

Legal Formation or Deal Preparation

We draft and review the core legal documents that establish your business or govern your transaction, from articles and operating agreements to NDAs, LOIs, and term sheets.

Negotiation & Documentation

We help you structure terms, negotiate favorable positions, and finalize agreements that accurately reflect the deal you desire—clear, enforceable, and fully compliant with cannabis laws.

Ongoing Support & Growth Planning

As your business evolves, we stay involved, helping you revise agreements, onboard partners, prepare for funding, or plan your exit. Our job isn’t done when the paperwork’s signed.

Get started today: 213-293-6692

FAQs

What type of business entity should I use for my cannabis company?

LLCs and corporations are common choices, but the right structure depends on your goals, ownership group, and tax strategy. We help you weigh your options and establish the structure that best suits your business and licensing requirements.

Do I need a written agreement with my business partners or investors?

Absolutely. A clear, well-drafted operating or shareholder agreement can prevent serious disputes down the line. It’s one of the most important documents in your business.

Can I buy or sell a cannabis license in California?

Not directly, but you can structure deals to buy or sell the legal entities that hold licenses, subject to approval from state and local authorities. We help you understand how those deals work and navigate the process smoothly.

What contracts do I need for my cannabis business?

At a minimum, you’ll need supply agreements, service contracts, employment documents, and internal governance agreements. We tailor each to your specific operation.

How can I protect myself in a cannabis business transaction?

Begin with due diligence. Ensure the deal terms are clear, the licenses are in good standing, and your interests are safeguarded. We assist you in examining the details, identifying red flags, and negotiating the appropriate protections.

Contact Seligson Law for Cannabis Business Legal Support

Whether you’re launching a new venture, bringing on a partner, or closing a deal, we’re here to help you move forward with clarity and confidence. We’ll handle the legal side so you can focus on building the business you’ve worked hard to grow. Reach out today to get started.

Get started today: 213-293-6692