By Liya Cox.
As the cannabis industry continues its progress in the U.S. and abroad, there are several entrepreneurs showing interest in getting involved in this line of business. Several existing businesses are also looking to expand their horizons and get into the cannabis business. There are certain risks you need to take into account though. Although several states have legalized the use of cannabis for medicinal and adult-use it is still federally illegal. Due to this, you need to be vigilant about the federal law regarding cannabis. Here are some key aspects you need to consider before getting into this business.
1. There may be banking problems
As dealing in cannabis happens to be a federal crime, the majority of the banks are unlikely to give you an account. They might even close your existing accounts and there may be difficulty in getting cannabis financing. 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. Even the companies that do not touch the plant can be a risk. Many such companies lose their account because they are doing business with weed makers. Therefore, ensure that you are clear about your business plans with your bank or consider switching to a cannabis-friendly bank.
2. Several business expenses are not deductible
When a Minneapolis drug dealer …