ABSTRACT
This chapter discusses the first question that cannabis companies face when starting up: what kind of entity should they form and where should it be incorporated? The chapter begins with an analysis of the pros and cons of the two most common entity types for startups, limited liability companies and corporations, and explores how this analysis is impacted by unique considerations for cannabis companies. Then it covers the most appropriate jurisdiction choice for domiciling the newly created entity. Founders need to consider both investor expectations as well as the enforceability of contracts and statutory issues if equity holders need to be removed in the future (something that can be necessary to protect cannabis licenses).
