article thumbnail

Understanding Cannabis Banking Challenges and How to Overcome Them

Connor & Connor PLLC

Since cannabis remains federally illegal, many banks, who run on a risk-based assessment, refuse to do businesses with cannabis companies. and Guam having fully legal operating cannabis markets under their own laws, banks are put in an awkward position because of the inconsistencies between state and federal law.

Banking 52
article thumbnail

Why Cannabis LLCs Need Operating Agreements

Canna Law Blog

Cannabis LLC operating agreements don’t have to break the bank Cannabis entrepreneurs often worry about legal costs, especially in the early stages. Without an operating agreement, cannabis LLCs can face serious issues: Banks and financial institutions may refuse to open accounts without basic governance documents.

Banking 83
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Illinois State Treasurer issues RFP for cannabis tax banking services

Illinois News Joint

The Office of the Illinois State Treasurer (Treasurer) this week issued a Request for Proposals (RFP) for banking services for cash processing of medical and recreational cannabis tax payments. The Contractor must be authorized to do business in Illinois as an Illinois bank or a national bank with a presence in Illinois.

Banking 62
article thumbnail

Licensing Cannabis Trademarks: What You Need to Know

Canna Law Blog

And dont forget: many cannabis businesses still operate on a largely cash basis due to banking restrictions. Some states, such as New Jersey, may also require that the deal reflect fair market value, adding another layer of compliance. Do your due diligence Due diligence matters on both sides of the agreement.

article thumbnail

How a Lawyer Can Aid Cannabis Entrepreneurs in Starting and Growing their Business

Connor & Connor PLLC

Due to the federal status of cannabis, many traditional financing options, such as bank loans, are unavailable to cannabis businesses. This is an important step in avoiding delays or complications that might arise from incomplete or improperly prepared paperwork.

article thumbnail

Federal Shifts and Future Outlook: U.S. Cannabis Industry Updates

MaxQ Cannabis

Federal Rescheduling and Banking Access The new administration has expressed support for reclassifying Cannabis from a Schedule I to a Schedule III substance under the Controlled Substances Act. The new administration’s approach to Cannabis policy presents a complex landscape for the U.S.

Banking 66
article thumbnail

How Inflation is Affecting Cannabis: Prices, Closures, and the Job Market

Veriheal

Another factor at play for cannabis consumers is that dispensaries are cash-only businesses due to current federal banking laws , eliminating the option to use credit to make their purchases. Oversight and Insurance Access to banking isnt the only thing affecting cannabis business profits.