Tarshus Law Firm You Know Your Business. We know how to Fortify it. 2022-08-22T18:56:53Z https://www.tarshuslaw.com/feed/atom/ WordPress /wp-content/uploads/sites/1201600/2021/09/cropped-site-identity-32x32.jpg On Behalf of Tarshus Law Firm <![CDATA[Legally Growing and Selling Cannabis in New York]]> https://www.tarshuslaw.com/?p=48398 2022-08-22T18:56:53Z 2022-08-22T18:56:53Z

MRTA

The time has come. New York passed the Marihuana Regulation and Taxation Act in 2021 paving the way for legal production and use of Marijuana in the State of New York. Adults can now smoke weed without criminal consequences, but growing “pot” still has a plethora of rules to follow.  There is a regulatory board in charge of setting the rules for cannabis. The first wave of farmers have been given the go-ahead to start growing in order to build up the legal supply.

What to Know Before You Grow

Please note that for all licenses you must have an LLC or some other business entity. The Office of Cannabis Management has preliminarily created three different licenses:
  • Cultivator
  • Processor
  • Dispensary

Cultivator License

Cultivation licenses are running through a trial period currently. The application process closed in June of 2022 and licenses were only given to people who already have legal hemp operations. It is not clear when these applications will reopen, but speculation is within the next year. There will be A TON of competition when it comes to getting licensed, so it is crucial to start preparing now. This first wave required applicants to have a detailed business plan, site plan, documents proving the legality of your original operation, and financial disclosures. If the license is granted, you can grow up to 46,500 square feet (1 acre) of plants outdoors OR 25,000 square feet of plants in a greenhouse. You can grow both indoors and outdoors, but there are further crop restrictions. These restrictions may change in the future. If you do have a hemp operation, it needs to be separate from the marijuana operation. Cultivators are allowed to do “minimal processing” with the current licenses. When the new licensing opens, cultivators will not be allowed to do any processing. A processor license will be required. As the law stands, you cannot have an ownership interest in cultivation and retail sales. This may change.

Processor

Processor licenses were originally only for current cannabinoid hemp processors. The application process has reopened and closes August 31st, 2022. In order to apply for this license, you need a business plan, primary place of business, extraction methods, documentation of your cannabis source, GMP audit, and more. There are two types of licenses. One allows for manufacturing only, while the other allows for extraction and manufacturing. As a processor, you are not able to grow any cannabis, but you can manufacture it into a usable good. As part of your ongoing requirements there are limitations to how the product can be branded. The branding cannot be attractive to people under 25 years of age and this applies to the terminology on, and coloring of, the packaging. There are also strict manufacturing guidelines, data collection procedures, and identification requirements.

Dispensary

These are sometimes referred to as CAURD licenses. The applications are not currently live, but when they are they will be processed through New York Business Express online portal. The licensing board has already made it very clear that they will be accepting a limited number of applications and your application should be competitive. You can qualify as a business or as a non-profit. If you are applying as a business, 30% or more of the business has to be owned by individuals who meet the following criteria:
  • Justice Involved
  • Qualifying Business Experience
  • Sole Control of the Business
  • Significant Presence in New York State
So what does that mean? A justice involved individual is someone who was impacted by a marijuana offense in the State of New York. More specifically, the individual, their dependent, or someone they were dependent on (such as a parent or spouse) must have been convicted of a marijuana related offense. This person also has to have experience owning at least 10% of a qualifying business prior to applying for the license, and must have at least 30% ownership of the dispensary business. A qualifying business is any business that turned a profit at least 2 years they were active. This individual also has to have control of the business, meaning they have the power to make major decisions. Finally, to satisfy the significant presence requirement, the qualifying individual just has to have some sort of connection to the State of New York. This can be residency, assets, real property, or anything also that will show a connection to the state. This is an intense application process with some strange requirements. To sum this all up, in order to get a dispensary license you have to be a person who was impacted by marijuna laws, has business experience, has control over the business, and has connection to New York.

Where Can I Operate?

The first dispensaries to open with CAURD licenses will be spread throughout the state. There are 14 regions and applicants will be able to rank their top 5. You will be granted a location by the licensing board and cannot move that location for 4 years. In addition, you will have 12 months after being granted a license to begin operations. As for processing licenses, your license is only good through your existing hemp processing license. This means you will have to use the same facility. There is a process to add additional processing facilities and request location changes. If you are applying for a cultivation license, you do not have to grow in the same location as your hemp operation. Although, you are required to grow in the same county or an adjacent county in which you are authorized to grow hemp.

Why Does This Seem So Complicated?

The truth is: It is complicated. New York State is being particularly precautious about the introduction of the marijuana industry. No one knows how much that will change in the near future, but the expectation is that the application process will be less stringent and more accessible soon. For the time being, you will only be able to take advantage of this new industry if you have some existing connection. That does not mean it is impossible. There are partnerships that can be formed and ways to enter the industry. The law is also constantly changing, so be sure to check back with us for any updates to the legal requirements of applications. The current application process is rigid and difficult and it helps to have someone on your side who has been through the process and can assist you every step of the way. Click here to speak with an attorney who can make your marijuana dreams come true. The information included in this blog post is for educational purposes only and is not intended to confer legal advice. Tarshus Law Firm - 86 The Commons, Grand Island, NY 14072.]]>
On Behalf of Tarshus Law Firm <![CDATA[How to Get a Liquor License in New York]]> https://www.tarshuslaw.com/?p=48389 2022-08-15T10:46:45Z 2022-08-01T10:30:26Z

The Basics

New York State requires a liquor license in order to manufacture or sell any alcoholic beverages in the state. Whether you want to open a brewery, a restaurant, or sell beer at your corner store, there are hoops you have to jump through to get your business up and running as soon as possible. This article will give you a detailed guide on everything you need to know.

Licensing Types

New York has 4 different types of liquor licenses:
  1. On-Premise
  2. Off-Premise
  3. Manufacturing
  4. Wholesale
Once you know what type of license you need, there are multiple sub-categories with different licensing requirements and restrictions.

On-Premise

This is the license you need if you plan to open a bar or restaurant that will sell alcohol to customers for consumption at the business. Depending on the type of establishment you plan on running, you will need to apply for the proper license. There are over 25 different on-premise licenses, including hotel, restaurant, club, concession, vessel, train and more. The license is also specific to the type of beverage you plan to sell. For example, you can get a license to sell only beer and wine at your restaurant and not liquor.

Off-Premise

This is the license you need if you plan to open a store to sell alcohol to customers for them to take home, such as a wine or liquor store. There are 8 different off-premises licenses available. These include grocery, drug store, wine store, liquor store, farm market, and vendor. With this license you will not be able to serve open alcohol for consumption at your store.

Manufacturing

This is the license you need if you plan to open a brewery, distillery, or other location where the alcohol will be manufactured. There are 20 different manufacturer licenses for distillers, brewers, cider makers, mead producers, and more.

Wholesale

This is the license you need if you plan to import or wholesale alcohol to businesses throughout the state. There are 7 wholesaler licenses depending on the type of alcohol you will be wholesaling.

How to Apply

New York State offers an online application portal. In order to apply online, you are required to meet a series of pre-requisites. For on-premise and off-premise licenses you cannot have any interest in wholesale or manufacturing business, must be 21 years old, must be a US citizen (with exceptions), and you must get fingerprinted. The requirements for manufacturing and wholesale are the same, except for these licenses you cannot have an interest in a retail liquor business. In addition to the above stated requirements, you must have a series of documentation ready prior to filling out your application. The items required at filing vary depending on the type of license you are applying for, but typically include fees paid, photographs of the location, proof of property ownership, investment records, municipal approval, and more. For a comprehensive list of required items visit New York State business express website.

Costs of Applying

As you probably expect, the fees associated with a liquor license also vary widely depending on the type of license you need. The fees also vary by county. For this reason, it is not easy to give an estimate of total cost without having a better idea of what you are trying to accomplish. To give an example, an on-premise liquor license in New York County to serve liquor, beer, wine, and cider costs $4,352 plus a $200 application fee. The same license in Niagara Falls costs $2,432 plus a $200 application fee. Off-premise licenses are typically cheaper, and you can also seek a seasonal license if you do not plan to serve year round.

Renewing and Transferring Liquor License

If you are approved for an off-premise liquor license it is valid for 3 years before needing to be renewed. On-premise licenses for beer only are good for 3 years, but other on-premise licenses must be renewed every 2 years. Seasonal licenses must be renewed annually. Renewal periods for manufacturers and wholesalers vary. Transferring a liquor license in New York is complicated. Liquor licenses in New York are not technically transferred. Instead, you can “transfer” your liquor license by selling your business that already has a liquor license. There are situations where the purchaser of the business can get a temporary liquor license while the purchase is pending. The State of New York is very strict when it comes to business sale requirements so it is important to be thorough. Renewing and Transferring Liquor License

Conclusion

The decision to apply for a liquor license is a big deal for your business. For many small business owners, it can be make or break. There are an arduous amount of requirements and one small mistake can lead to months of delay. Having a firm with experience with liquor licensing in New York can save you tons of time and money in the long run. If you need assistance with your application or would like to schedule a consultation to discuss the best options for you, please give us a call today and we would love to assist you! The information included in this blog post is for educational purposes only and is not intended to confer legal advice. Tarshus Law Firm - 86 The Commons, Grand Island, NY 14072.]]>
On Behalf of Tarshus Law Firm <![CDATA[What are the Requirements of a Contract?]]> https://www.tarshuslaw.com/?p=48382 2022-08-02T08:06:45Z 2022-07-26T06:42:25Z

The Basics

We have all been in a situation where we tell ourselves “but we had a deal!” What is it that makes that deal legally binding? In this article we will break down the basics of a contract and how to protect yourself while making deals, whether you are mowing your neighbor’s lawn or buying a Fortune 500 company.

The Big 3

Specifics of contract law vary by state to state, but the overarching requirements are the same. Every contract needs:
  1. Offer
  2. Acceptance
  3. Consideration
Offer An offer is exactly what it sounds like. You are offering to either perform a service or sell/buy goods. To keep things simple, we will use a real world example. Say you want a neighborhood kid to cut your grass. You may offer him $20 for him to complete the job. It is important to note that the governing law is different whether it is a contract for services or a contract for the sale of goods. The offer is the first step towards having a valid contract. Acceptance Acceptance comes after the offer. Simply put, this is the other party accepting your offer. In the example above, the neighborhood kid agrees to mow your lawn. He performs the service you requested in anticipation of being paid the $20 afterwards. Once we have an offer and acceptance, an obligation or duty is created. Once there is an offer and acceptance, we have mutual assent. Two parties have agreed to terms on a service to be performed and the parties have agreed on payment. This is not technically enough in the eyes of the law, though. We also need to satisfy one more major element. Consideration Consideration is the benefit each party is receiving from the agreed upon terms. In our example, you are getting your lawn mowed. This is your benefit or consideration. The neighborhood kid is getting $20 for performing the act. The $20 is his benefit or consideration. Both parties must be getting some sort of benefit in order for there to be a valid contract. If all three of these elements are satisfied, you have a basic contract in the eyes of the law. Although, that is just the beginning. As we know contracts are long, confusing, and filled with legal jargon. So what else should we look for?

The Terms of the Contract

As a basic note, the two other major elements we need to ensure are in the agreement are capacity and legality: Capacity means that the person you are contracting with is actually able to understand that they are creating a legal obligation to perform. For example, pretend you tried to make a sales contract with a 4-year-old to buy her American Girl Doll for $1. Even if she agrees and takes your dollar, we do not have a binding agreement. This is to protect incapacitated indivdiuals from being taken advantage of. Legality involves product, good, or service the contract is actually being created for. You cannot have a legally binding contract for something that is illegal. For example, in some states the sale of marijuana is illegal. In those states, an agreement to purchase marijuana would not be enforceable in a court of law.

Common Questions and Terms

These are some common questions we encounter in our day-to-day operations as contract negotiation attorneys,
  1. Does the contract have to be in writing?
There is no simple answer for this. In theory, there are unwritten contracts that will be enforceable. Oral contracts do exist, but there are so many difficult factors involved. It is always best practice to have any agreement in writing. This is essentially necessary to have hard evidence of the agreement.
  1. Does the contract have to be signed?
Similar to the contract being in writing, this is not a simple answer. The governing law and the type of contract matter. There is a complicated statute called the “statute of frauds” that has certain requirements for specific types of contracts. For this reason, it is always best practice to have your contract signed and dated by both parties. It is an extra layer of protection for both of you.
  1. What do all of these clauses mean?
There are clauses common in almost all contracts. These range from indemnification, choice of law, severability, and many more. Each clause has its own specific purpose and its important to make sure you understand each of them. Discuss this with your lawyer and they will be happy to break each section down for you to make sure you fully understand your rights and obligations. If you want to do a little more learning on your own, there is a helpful chart going into a little more detail on the next page. Common Contract Clauses

Conclusion

If you are entering into a contract, most likely it is because you are about to make a major life decision. It could be a major purchase such as a home or car. You may be starting a business with a partner or family member. You may be accepting a new job. No matter what the case is, it is important to make sure you are protected. You want to thoroughly understand the rights and obligations you have under the contract. If you feel that you want someone to help you look over your contract and guarantee you maximum protection, feel free to contact us to schedule a 1-hour consultation with one of our attorneys who can answer any questions you may have. The information included in this blog post is for educational purposes only and is not intended to confer legal advice. Tarshus Law Firm - 86 The Commons, Grand Island, NY 14072.]]>
On Behalf of Tarshus Law Firm <![CDATA[Legal Tips Every Small Business Owner Should Know]]> https://www.tarshuslaw.com/?p=48110 2022-07-05T12:34:45Z 2022-06-09T07:13:59Z ]]> On Behalf of Tarshus Law Firm <![CDATA[Grand Island Chamber names Tarshus to Board]]> https://www.tarshuslaw.com/?p=47825 2022-02-16T06:16:29Z 2022-02-10T09:45:49Z www.tarshuslaw.com. Grand Island Chamber names Tarshus to Board

Andrea Tarshus takes her oath of office to the Grand Island Chamber board of directors at a Jan. 24 ceremony. (Submitted photo)

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On Behalf of Tarshus Law Firm <![CDATA[GI Chamber Names Tarshus to Board]]> https://www.tarshuslaw.com/?p=47819 2022-02-08T09:38:16Z 2022-02-08T09:36:38Z Supporting local businesses helps prevent robots from taking over the world. Excited about my new role and helping businesses and business owners make 2022 one for the books! Need help starting or running your business? Your local Chamber of Commerce is a great place to start! Lots of free resources, and best of all the people at the Chamber are passionate about helping others succeed in business.]]> On Behalf of Tarshus Law Firm <![CDATA[Virtual Networking Workshop]]> https://www.tarshuslaw.com/?p=47804 2022-01-25T08:35:03Z 2022-01-25T08:32:38Z ]]> On Behalf of Tarshus Law Firm <![CDATA[A Guide to Power of Attorney for Elderly Parents]]> https://www.tarshuslaw.com/?p=47795 2022-01-18T10:05:57Z 2022-01-18T10:05:57Z The Jeter Law Firm, PLLC, advises, “It always makes sense to have a power of attorney in place, regardless of any situation. It is better to be prepared than to have to scramble to think of what an elderly parent would really want.”...Read More]]> On Behalf of Tarshus Law Firm <![CDATA[How to Start a Business]]> https://www.tarshuslaw.com/?p=47733 2022-07-05T11:16:43Z 2021-11-04T19:58:11Z
  1. Check your employment contract for a non-compete clause. Have an attorney make sure you are good to go.
  2. Form your legal entity: LLC, Corporation, Partnership.
  3. Track expenses and file taxes. Leverage write-offs!
  4. Get insurance: for your assets, against claims, and as required under NYS law for your employees.
  5. Get going! The biggest hurdle is you. Don't make excuses, don't let time pass. Just. Get. Started.
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On Behalf of Tarshus Law Firm <![CDATA[How to Get Out of a Legally Binding Contract:]]> https://www.tarshuslaw.com/?p=47541 2021-09-08T16:54:41Z 2021-09-08T16:22:41Z
  • Review your written agreement; is there a "termination" clause? This outlines steps to take.
  • If it's impossible to perform your end of the deal for reasons outside of your control, you may be entitled to extend, or end, your contract. Ask an attorney to review.
  • Some states offer a period to rescind a contract, such as 3 days for the purchase of a car. Check the regs.
  • Still stuck? Negotiate. No one wants to be in business with a sour apple. Propose something reasonable and fair to make it easy for the other side to agree.
  • *This chart is for informational purposes only. Attorney advertising.

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