Although several states have legalized the use of cannabis for medicinal and adult-use it is still federally illegal.
Although technically they can provide their services, the requirements for a bank to deal with a company involved in illegal activity can be cost-prohibitive.
When a Minneapolis drug dealer in 1981 sued the IRS successfully for deducting his scales, car, and baggies as business expenses during the filing of tax returns, Congress passed legislation that banned the companies dealing in illegal drugs from deducting anything apart from the costs of the sold goods.
All states have their micro industries and you have to separate the business operations according to the state and legal ramifications involved.
If you mention pot, cannabis, or weed in your promotions it is not possible to advertise on Google, Facebook, and several other platforms. However, most of them will allow you to post content that can promote cannabis products and services.
There is another implication involved in cannabis being federally illegal in America and that is the USPTO will reject the application for registering the cannabis-related products and services.
Despite a lot of challenges, you can also find many opportunities in this line of business for those who can get various details right, manage the risks, and navigate through a changing landscape.
Alan Brochstein’s 420 Investor is the go-to community for investors to learn, explore, and profit from the marijuana companies.
are not responsible for each other’s services and products.