Who knew cash could be so expensive? The IRS recently paid a consulting company $1.7 million to help process the billions of dollars in taxes that cannabis businesses were paying … in cash. Most businesses write a check when they pay taxes, but federal prohibition continues to prevent many cannabis businesses from getting back accounts.
Billions of dollars flow through the legal cannabis industry every year, much of it cash by necessity, and financial institutions and Wall Street want in. In the U.S., the fear of regulations and reputational damage is continuing to keep many investors out of this market. But that isn’t the case everywhere. Over 30 states have
The American Bankers Association (ABA) is reaching out to its members to learn more about their operational struggles working with the cannabis-related industries across the U.S. Over 30 states in the U.S. have legalized medical or adult-use cannabis in their borders, and the last several election cycles have seen a few more make that decision
Getting a bank account as a cannabis company has remained difficult with federal prohibition still in place, even as more states open the doors for medical and adult-use cannabis. But if you’re in the right state (and willing to go through the paperwork), opening an account is absolutely possible. The key is complete transparency, which
Two steps forward, one step back: That continues to be the story for cannabis banking in California. State legislators keep talking loudly about creating a state-licensed bank to service the cannabis industry, but no bill has yet made it through the long process to become official. The latest attempt was from Sen. Bob Hertzberg of
"CASH ONLY." That’s not a sign you see often in the digital age. It means more work for retailers (not to mention annoying your customers). But most cannabis businesses are operating on a cash-only basis out of necessity. Over 20 states have cannabis regulations, but federal law deters most banks from offering accounts to this
Cannabis brands have been longing for access to banking since California began decriminalization in the 1990s, but few banks have been willing to take them on as customers. Access to basic banking services -- like checking accounts, merchant accounts, and business loans -- has been limited due to the restrictions that federal authorities continue to
Many of the arguments for the legalization of marijuana are based on its claimed value in the treatment of specific illnesses or easing of the symptoms of illnesses. Proponents of marijuana legalization also frequently cite its benefits with regard to easing the side effects of cancer treatment such as chemotherapy. There is also evidence that
San Francisco is ground zero for the revitalized legalization effort in California, as a national cannabis advocacy organization began raising funds for a campaign that they hope would result in the legalization of recreational marijuana in the state. One of the most hotly-debated political issues in recent years, the recreational marijuana use issue is expected