As mentioned earlier, cannabis businesses must still contend with banking and compliance issues.
Most licensed marijuana operations are all-cash businesses because the majority of banking institutions are not willing to support a federally illegal industry. A small number of state-chartered banks and credit unions have stepped in and offered financial services to compliant state-licensed operations, but establishing these relationships continues to be a significant challenge for many.
After licensure, it is even more crucial that marijuana ventures stay up to date on proposed rule changes; anticipate how these changes may affect and impact business; and adapt company practices accordingly. Doing so will help these businesses maintain a clean track record of regulatory compliance and stave off fines, sanctions, and the possibility of loss of license.
With the benefits of § 471 clarified, however, cannabis businesses have one less thing to worry about when it comes to taxes.
Please note, this treatise is designed to provide general information on marijuana operations. It is not intended to serve as legal, tax, or other financial advice. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances, from an attorney, CPA, and/or other advisor.