You’ll Need to Stay on Your Toes to Stay Ahead
There’s no more simple way to put it. Cannabis isn’t legal on a federal level, the taxes and the banking are a convoluted headache, every state has their agenda, and even every county and township has its say. Navigating the legal landscape in the cannabis industry is a unique challenge you won’t find in any other industry.
There’s nothing out there like it.
And because of that, getting experts in your corner who know what’s what is critical in this turbulent time. We’re in the wild west of the green rush, and it’s as scary as it is exciting.
It won’t always be this way. Once cannabis is legal federally, which will only be a matter of time – the government will want their share of that 50 billion dollar pie – we’ll start to see standardized federal regulations and possible FDA requirements. The ATF might even become the ACTF, but that’s all up in the air for now. Right now, there are a few critical aspects to keep your eye on.
Respect your state law. There’s no other way to put it. With no federal oversight and the federal government sending mixed messages, things are hectic. Every state is making its own laws that suit their own needs. Sometimes these legislators are cannabis savvy, and the laws are fair and make sense and everything runs smoothly.
If you want to make it in the long run, you must play by the rules.
Other times you get stuck in a bureaucratic nightmare of a traffic jam and can’t help but facepalm forehead and say, “Whose idea was THAT?!?” It’s a tricky landscape to navigate, and you’re going to need the right people in your corner to make sure all your ducks are in a row. If we can’t provide you with exactly what you need, we’ll know someone who can, and they will be one of the best in their field.
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Right now, cannabis is not legal at the national level. Engaging in the cannabis business exposes you to liability for a violation of the Controlled Substance Act, as ridiculous as that seems. Don’t worry – that’s going to change. In the meantime, the federal government has only been acting on it against people who blatantly abuse state laws, and don’t fall in line with the legal requirements in their state.
This helps those of us who are above board to do business in the light of day and become valued members of our community.
The winds of change are coming. The fact that over half of America (29 states and the District of Columbia) has legalized cannabis in one form or another is too much for Congress to ignore forever, not to mention the massive amount of taxes the industry will bring in. Currently, 280E hamstrings the cannabis industry, and knowing how to circumvent the damages 280E does is critical to maintaining your business’s viability. Legally minimizing the damage 280E does to your company can make or break your business.
Banking laws are also affected. Most banks are federally insured and worried they may run afoul of federal money laundering laws by assisting the cannabis industry.
This creates the challenge of running a cash business, which causes headaches, issues with regulators, and a safety risk for your employees.
There are banks you can work with, and we can show you how to find them and set yourself up so you’re not holding all your assets in cash on-site, minimizing your risk of audits from regulators and the dangers of foul play.
Hemp, CBD, and THC
As these terms become more mainstream, hemp and CBD products are becoming more common and distributable across state lines. They are helping to counteract with the opioid crisis with pain management, used in skincare, in tinctures to help with mental health, and even as dog supplements. The possibilities are endless. But so are the pitfalls if you’re not following state and federal laws. We can teach you what is legal and what is not, as well as how to produce a consistent product that falls in line with regulations.
We mentioned 280E before, and we’ll mention it again. It’s a big one. Originally instituted in 1982 after a cocaine dealer asserted his rights to deduct ordinary business expenses, 280E now unintentionally punishes legal cannabis companies and has even forced some out of business. There are ways to circumvent many of the issues 280E creates, and you can see our Taxes and Formation pages for more details on how we can help you with those. Or better yet, get educated at one of our seminars, and talk to us in person to find out how you can keep your business afloat even with all the legal and financial land mines out there.
Like them or not, the laws are there for a reason.
Public Safety and Testing
This is a big one. As more and more cannabis products make their way to shelves and are sold legally, questionable growing and processing techniques of the past are going to come into question. Certain pesticides are now being testing for, and states are starting to introduce rigorous testing protocols to make sure the cannabis is safe and healthy for end users.
The legal landscape around cannabis is treacherous, and you’re going to need help navigating it. Not all help is the same, and there are many people out there looking to cash in on ancillary green rush activities. You need someone you can trust. CTN has been working with industry experts for years, and we have some of the best on hand, and referrals for experts in every state and field. Come to our free seminar and see what we can do for you.
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