Despite the fact that many states have legislated some form of legal marijuana use, it is still illegal on the federal level. Here are just a few of the challenges that face businesses in the marijuana industry:
- Location Complications
Landlords are subject to losing their properties from lenders or the Feds if they rent to marijuana businesses. - High Cash Volume
Majority of banks & credit unions in the U.S. do not accept cannabis cash, leaving it susceptible to theft and robberies. - Cannot File Bankruptcy
Marijuana businesses cannot seek relief from their debt by filing bankruptcy. - Federal Prosecution
No real legal comfort for entities dealing in the industry including businesses, banks, accounting firms, and landlords. - Federal Tax Burden
Taxed on gross profits & cannot deduct expenses. - Federal Reserve
Will not accept money made from the sale of marijuana.
The challenges facing the marijuana industry in Arizona are compounded by a complex lottery system. Click below for our full report.