As a lawyer for the Cannabis industry, Steve Schain says he helps entrepreneurs, “dodge landmines” and hold onto their revenue. He works on marijuana finance and business issues including application submission, regulation interpretation, and lawsuits. Here he lays out five important things for any budding entrepreneur to remember when they embark on a cannabusiness venture.

If You “Touch The Product” Things Are Much Stricter.  

The cannabis industry is divided into two main groups: Those who “touch the product,” like growers, processors and dispensers, and those who don’t, like sellers of ancillary products like vaporizers, lab testing services and cultivation products.  Businesses that touch the plant are intensely regulated and must strictly follow additional rules and precautions, so be ready to track details.

Under Federal law, Marijuana is still 100% illegal.  

While legal in some way in 23 states and the District of Columbia, marijuana like heroin, is listed as a “Schedule 1 Controlled Substance.” This classification empowers the Feds to swoop in, shut down, seize funds and imprison those “touching the product.”  Under the Obama administration there has...