moss law counsels cannabis clients on selecting, registering, and forming the proper business entity type.

Choosing the Correct Business Entity 

Choosing the correct business entity is a crucial first step to ensure future success in your entrepreneurial endeavor.  California recognizes a number of different business entity types including corporations, LLCs, and non-profits, among others.  The type of cannabusiness you are starting will determine the proper type of business entity to form.  To properly register a California business, you must file the correct forms and fees with the California Secretary of State. 



The most common corporate types are S corporations, and C corporations. Both provide limited liability to shareholders, but may differ on tax treatment and outside investment opportunity.


A limited liability company provides its members with limited liability, the option to be taxed as a partnership or a corporation, and fewer formalities than a corporation. 


The type of non-profit activity you engage in will determine which form of non-profit entity to register with the Secretary of State.  Options include a tax exempt 501(c)(3), and mutual benefit corporations, among others.