looking to incorporate and wondering if the same incorporating protections granted by these states remain in tact for hemp/cbd companies?
Same rules apply, CBD companies are just like other companies.
We are out of Texas, but Delaware is usually your best bet. Where you plant your operations is probably more important than your incorporation, though.
looks like Wyoming may have the greatest privacy laws. would operate out of Maine though.
I hope you consider an llc as an option, too. They are often simpler and cheaper, while giving the same protections.
An LLC is a pass through and offers very little protection… same as an S-Corp. A C-Corp offers the most personal protection but there are more requirements to maintain that C-Corp status.
I have had multiple LLC’s … currently only three but I do maintain 2 C-Corps and believe me, when it comes to peace of mind the C-Corps are well worth the work
Edit: My Recreational Cultivation License is held by a Colorado based LLC and the C-Corp owns 100% of the LLC. The C-Corp was formed in Delaware and operates in Colorado registered as foreign entity doing business in the state
it would be a Wyoming 2 member mananged LLC
I don’t know where you get that idea. It can be slightly different by state, but the advantage to a Corp is when taking on outside investors as shareholders. For a private company, there is not much difference. Both offer virtually identical liability protections. The st Louis cardinals baseball team is an llc, as one example.
what about pass through tax structure makes it not offer protection?
Not here to argue, I am just speaking from my personal experience and directions I have been pointed by both accountants and attorneys.
I have been on both sides of numerous lawsuits over the last 30 years and my personal experience is that LLC’s offer little if any protection and C-Corps… as long as you don’t co-mingle funds an follow C-Corp protocal (annual meetings and documented/timely corporate resolutions) are extremely difficult to penetrate.
Academically speaking, there should be no extra liability protection from one versus the other. The samples aren’t random to compare to each other, in that people with less money get the llc because it is often cheaper. And those same people are less likely to be able to purchase expensive lawyers and accountants, and also less likely to understand the law in the first place. Most people don’t even grasp concepts like not co mingling funds. “No one will know” is not a legal defense, but I hear it a lot.
To me that term means that this is the way it works in the classroom and the way you read about it in books.
I have been through a lot of trials and tribulations in my 67 years (most were self-inflicted) and I have found that life often doesn’t mimic what reads well in the classroom or sounds good theoretically on paper.
Over the last 30 years I have sued 4 LLC’s and 2 Corps. I won all 6 lawsuits but when going after the individuals in control… all 4 LLC’s Managing Members/Managing Principals were subsequently held liable for the findings of the court against the LLC’s. In both of the Corp lawsuits I tried to penetrate the Corporate veil and was unable to get a judgement against the individual officer/officers of the Corp.
I have had one of my LLC’s sued and one of my C-Corps sued and I don’t know how that would have been to penetrate because I didn’t lose the suits
I guess it is just a matter of the circumstances that dictate the vulnerability but my experience is my experience and that is what I will base my opinion on… Wikipedia probably doesn’t hold the same opinion
What ever anyone decides I hope their future is everything they want it to be!!
Great question. My understanding is the differences in LLC’s between different states has reduced a lot over the last decade.
However I expect hemp laws etc could be very different.
Also Sales Tax is surely a biggie.
What about Oregon?
Plusses - business friendly, no sales tax, strong hemp/cannabis culture.
Possible Negative - sometimes these cannabis pioneer states properly regulate hemp earlier than others, so eg: they regulate things like edibles, conversions, hot flower etc (perhaps into the METRC market).
Holding a hemp license somewhere is important - which state is best for that both in terms of price, culture, protections etc.
I think discussion of these factors would be helpful
The market in each state has developed differently, and each state has implemented different regulatory structures.
You can check this article, hope it will help you.
not necessarily wanting a license in one of the high asset protection states like wyoming or nevada, simply forming the business managing or asset owning entities there for protection then registering that llc in the state of Maine where we conduct business.
Delaware, lol, if any of yall actually come over here I will give you a high five!
Delaware blows bro, just chicken shit and cancer from coal fired powerplants.
And thanks to Biden our roads now suck, due to “improvements”
Lol, biggest joke of a state.