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Corporate

Selecting the appropriate legal entity and adapting to growth are critical steps for businesses, especially those involved in the beverage-alcohol and cannabis industries. The Danow Group recognizes the multidisciplinary nature of this process, considering both legal and regulatory factors.
Diverse group of smiling businesspeople discussing paperwork together during a meeting around a table in a modern office

Corporate Overview

Entity Selection

  • Comprehensive analysis for choosing the most suitable legal entity for licensed businesses, whether a business is new or taking the next step in its growth.
  • Experience in navigating residency requirements imposed by beverage-alcohol laws and regulations in various states.
  • In-depth understanding of entity treatment and limitations under the Internal Revenue Code. For example, Subchapter S corporations have restrictions on who may own them and how stock can be classified and issued.
  • Guidance on the flexible rules governing LLCs, balancing flexibility with potential formation costs. Assistance with meeting publication requirements associated with forming LLCs.

Business Growth and Maintenance

  • Assistance with compliance with federal and state laws regarding reporting changes to a licensed entity’s structure.
  • Crafting shareholders’ agreements and membership agreements to anticipate and address potential issues. For example, strategic drafting can prevent business owners and investors from losing a license due to the actions of a single shareholder or member.

Regulatory Considerations

  • Providing assistance and advice when planned changes require notice to or approval from regulatory entities.
  • Analyzing disclosure requirements for regulated businesses and strategizing corporate structures to maximize client goals.
  • Collaborative support for businesses and tax advisors in navigating regulatory processes.

The Danow Group is committed to helping businesses and their tax advisors select, grow and maintain a legal structure aligned with their goals, particularly those operating in highly regulated industries.

Latest News

Stay informed on the critical current issues related to Corporate Law

Storefront with cannabis leaf graphic and text advertising licensed sales.

Too Close For Comfort

Recently the State Office of Cannabis Management (“OCM”) notified 152 cannabis dispensaries and applicants that the location of their businesses were too close to a school or house of worship to qualify for a license. New York Cannabis Law §72(6) provides, “No cannabis retail licensee shall locate a storefront within five hundred feet of a school grounds as such […]

Woman selecting a bottle from shelves in a liquor store.

Wine Products Are Something Else

There seems to be a great deal of confusion surrounding the concept of wine products. In New York, “wine product” is a term of art that must be distinguished from “Wine”, “low alcohol wine”, and “wine specialty items.” Pursuant to §3 (36) of New York’s ABC Law, “Wine” means the product of the normal alcoholic […]

Person typing on a laptop displaying a formatted document.

Create a Retail Compliance Check List

Every retail on or off premise licensee should develop a compliance checklist and review it often and add to it from time to time.  Below is an outline of some of the points that should be included. Check to see if your license and the mandatory signs are properly posted and are visible to your […]