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Non Profits

J

JackTheGrower

I'm not sure if I am on topic for this form discussing business formation so I'm cool moving this if I am not.

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Non Profit organizations. ( NPO )


NPO is a legal way to grow and sell cannabis in California. I like the idea that the NPO can provide a service to it's members. I'm all for that.

What I want is a good paying job with medical care and retirement plan.. That's not a lot to ask.

So Wikipedia has a good link on the cooperative

So can the NPO be a little less democratic? I mean I want to invest my life in this and don't want to be voted out. I want to keep my job once I have it.

So if you will.. Post some thoughts on this.. Maybe you have experience in starting or running a NPO.

I can use all the input I can get..

Maybe you would like to see some services in your local area if so what would a Cannabis NPO do for you. What would you like to see as a Member of a NPO Cannabis Corporation.
 
Pythagllio

Pythagllio

Patient Grower
Veteran
Sign a long term contract. It can still be totally democratic, and you'll be locked in. Future BODs could vote you out the door, but they'll have to buy out your contract.
 
zenoonez

zenoonez

Active member
Veteran
Set up a cooperative with a voting board where the membership doesn't have democratic vote. Make sure that you are one of those board members. It would probably be a good idea to have the growers for the collective be the board members.
 
J

JackTheGrower

http://www.sec.state.vt.us/tutor/dobiz/forms/definitions/mutben.htm


"'Mutual benefit corporation' means a domestic corporation which is required to be a mutual benefit corporation pursuant to section 17.05 of this title or is formed as a mutual benefit corporation pursuant to chapter 2 of this title." 11B V.S.A. § 1.40(23).

A mutual benefit nonprofit corporation is formed solely for the benefit of its members. An example of a mutual benefit nonprofit corporation is a golf club. Individuals pay to join the club, memberships may be bought and sold, and any property owned by the club is distributed to its members if the club dissolves. The club can decide, in its corporate bylaws, how many members to have, and who can be a member. Generally, while it is a nonprofit corporation, a mutual benefit corporation is not a charity. Because it is not a charity, a mutual benefit nonprofit corporation cannot obtain 501(c)(3) status. If there is a dispute as to how a mutual benefit nonprofit corporation is being operated, it is up to the members to resolve the dispute since the corporation exists to solely serve the needs of its membership and not the general public.
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J

JackTheGrower

FreedomFGHTR said:
Jack thats a great find... for more info check this out http://kepler.sos.ca.gov/corpdata/ShowLpllcAllList?QueryLpllcNumber=200602810173

lol I am more Legal than Richard Lee... oh I fucking love it. Time to kill myself now!
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Before you whack yourself what type of organization did you select if you don't mind sharing.

I'm confused as to what is really legal.. You know the Oakdale guy had charges dropped on him and he wants to reopen his dispensary in Oakdale.
 
Danknuggler

Danknuggler

Active member
I went to a Church of Rastafari collective in Hollywood.I think they are operating under that title of religious non profit.The place was real lame and they were filming a reality TV show when I was there LOL.nuggler
 
Pythagllio

Pythagllio

Patient Grower
Veteran
You have to remember that any corporation you form no matter its structure is a completely separate entity. This entity is subject to the law, and can be convicted of a crime. Obviously you can't send a corporation to prison, but it can be fined and disbanded. This is important because a corporation can't get a doctor's rec therefore can't be protected under Prop 215.

If your confused about the law don't be mad at yourself. The way it's written that's quite right, as you should be. Sheesh, 215 mentions collectives, but there is no such thing defined under CA law. WTF is a 'collective'? Well it's whatever you want it to be.

I59 for DC specifically protects NPOs and authorizes dispensaries. Shit, you don't even have to be a patient to open a dispensary under I59, just a DC resident. I sure hope it gets implemented because I'm so tired of the arguments.

I find this thread interesting, because Jack's plan is very similar to my own, but I won't do it here in CA or even CA because the laws in both places are so open to 'interpretation'.
 
J

JackTheGrower

R. Lee is a part of an LLC?

R. Lee is a part of an LLC?

So can we be a LLC and sell cannabis?

I saw a blurb in a story..

The only other major contribution so far is $10,000 last month from S.K. Seymour LLC, which controls Oaksterdam University and other cannabis-related businesses. Perata in September endorsed a marijuana-legalization ballot measure co-authored by S.K. Seymour partner Richard Lee. Perata said Monday he sees no conflict in supporting a cancer research and smoking prevention measure and a marijuana legalization measure at the same time; marijuana need not be smoked, he said.
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Pythagllio

Pythagllio

Patient Grower
Veteran
Blue Dot said:
equity.

anything else is why america is failing.
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What is the definition of the word 'equity' in the Blue Dot alternative dictionary? I hope you don't mean equitable ownership, because there is no such thing for a non-stock corporation.
 
J

johnnyla

Active member
Veteran
blue dot doesn't believe in sales.

well too bad the State of CA has been collecting mandatory SALES TAX hence destroying that whole line of reasoning. If sales are banned then pay back all of those mills in Sales Tax payable immediately. it was illegal money.

hahaha. too bad LA county saw through the City Attorney's smoke and mirrors and narrow interpretation of the law.

now prohibitionists like BLUE DOT will have nothing to whine about except for overpriced mids laced with RAID. lol.
 
fatigues

fatigues

Active member
Veteran
Pythagllio said:
Sheesh, 215 mentions collectives, but there is no such thing defined under CA law. WTF is a 'collective'? Well it's whatever you want it to be.
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I think if you go and read the text of Prop 215 again, you'll see that it makes no mention of collectives.
 
fatigues

fatigues

Active member
Veteran
Jack,

If you are looking for specific practical legal advice - then the place to obtain that advice is from an attorney licensed to practice in the State of California. You need to dig into your pocket and pay a lawyer for this advice. Stop screwing around.

I might add that this is one of those times where "being from California" actually does mattter.

This isn't only about SB420. It just looks that way to you and most of the people responding here. It is, in fact, about a much larger question which relates to the overall treatment of various forms of corporations in the State of California. I might add that simply being a corporation that is set up as a business which can profit from its business, does not necessarily mean that the underlying services carried on by it are "for profit". Non-profit organizations are treated differently for tax purposes and are usually treated differently in terms of internal corporate governance. To qualify as a charitable organization, they may also be required to be set-up pursuant to various schemes to meet different requirements of the Tax Code. While most people may think a non-profit organization and a charitable organization are the same thing: they are not.

There is nothing I have seen in SB420 which requires an organization to meet a test as a charitable organization - simply that its business does not realize a profit. There is a tremendous distinction between those two concepts in many jurisdictions. (And to be clear, I don't know if that distinction is also recognized in California, or if so, under which conditions). That, in turn, greatly impacts upon which forms of corporate orgnization are available to you. I would point out that it is not at all clear that SB420 requires that a business be carried on by a corporation organized as a non-profit. It may simply requires that profits not be realized. There is dramatic distinction between those two concepts as well.

If you don't want to pay a lawyer for specific legal advice, then don't. But if you think you are getting reliable advice here - you are not. Moreover, if you want specific legal advice but won't pay for it -- don't then complain about being "confused". This is the sort of advice that people pay lawyers for every day of the week. Criminal law may appear to be a big deal on a discussion forum such as this, and it gets all the hype on TV and in film, but reality is very, very different. In the grand scheme - criminal law is a very tiny sliver of what lawyers actually do for a living.

What you are asking here for, for free, is the sort of advice that lawyers are paid to give. You should be paying for this advice from your own lawyer, licensed to practice in California. And if that advice is defective - you will have someone to sue in the event that defectve or negligent advice causes you to sustain an avoidable financial loss in the future.
 
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