Legal Question in Business Law in Colorado

This is not really a matter of choice like selecting an entity form (corporation, LLC, partnership, association, so on). Either the dispensary is setup and follows all requirements necessary to become and be maintained as a non-profit under state and federal law or it is a for-profit venture. There are many requirements and limitations, but generally a 501(c)(3) nonprofit organization must be established and operated for one or more of the following purposes: religious, charitable, scientific, testing or public safety, literary, educational, fostering national or international amateur sports competition, or prevention of cruelty to children or animals. To avoid taxation your nonprofit must file and qualify for an exemption from federal income tax under section 501(c)(3) of the Internal Revenue Code.

You are advised to contact a business attorney to discuss your planned venture to avoid common mistakes at start-up and operation. Good luck.

DISCLAIMER�This answer is for informational purposes only and is not legal advice regarding your question. This answer does not establish an attorney-client relationship.