Regulated industries like the cannabis industry require careful planning when drafting corporate governance documents. Boilerplate agreements fail to address many of the most important and specific issues for cannabis businesses. Whether it is a limited liability company operating agreement for an LLC or a shareholders’ agreement and bylaws for a corporation, it is a good idea to make sure your cannabis business’s governance documents address the following marijuana-specific points.

1. Licensing Cooperation. Most states that have legalized cannabis require massive amounts of paperwork to secure a cannabis industry license. In addition to mandating the company seeking the license execute documents discussing its floor-plan, its product offerings, its security policy, and overall operational plan, most states also require all of the members of the LLC and all of the corporate shareholders go through criminal and financial background checks. For example, in Washington State any financier, LLC member, or corporate shareholder must submit...