How To Keep Your Cannabis Business Safe And The Legal Situation In Business

The cannabis market made huge progress over the last several years. The increase in the number of users boosted the industry’s value. Thanks to premium platforms like Askgrowers.com, anyone interested can learn about cannabis strains and brands quickly. Even most governments seem readier than ever to adjust the laws and legalize cannabis.

It seems like this is the best time to start a cannabis business. If that’s what you’re thinking, it’s imperative to keep your company safe. This article explains what to do to ensure your business remains legal and safe. Whether you only launched a brand or have been in the industry for decades, this information can be important. Here’s what you should know about the marijuana business safety!

Get a Detailed Understanding of the Legal Situation of Cannabis

It was a huge event for the cannabis industry when the 2018 Farm Bill was introduced. The document legalized cannabis that contains no more than 0.3% of THC on a federal level. However, it’s worth noting that hemp production still comes with special requirements. The punishments for violating the law can potentially be severe, so it’s crucial to stay legal. That includes everything from paying taxes to other aspects of the business.

Although the Farm Bill legalized cannabis on a federal level, states still have the right to decide for their territories. That’s why Idaho, Iowa, Kansas, and several other states consider marijuana illegal, even for recreational use. Before you decide on starting a company, it’s vital to confirm cannabis businesses are legal in your location.

Check Which Regulations You Need to Meet

New and existing marijuana businesses must meet all relevant laws and regulations. These largely vary from one location to another, so the best move to make is to consult the local authorities. Here is a list of states that have a clear legal framework:

Alaska

Massachusetts

Vermont

California

Michigan

Washington

Colorado

Nevada

Maine

Oregon

Be Honest with Your Bank

Among other things, it will be necessary to open a bank account. It might feel tempting to refuse to reveal that you are in the cannabis industry. Perhaps the fees for marijuana businesses are higher, or you don’t want to risk the bank rejecting you.

The good news is that there will always be a bank that will accept managing your account. There’s no need to hide, especially because that can have serious implications. And even if you manage to open an account, you might have problems down the road. What if someone in the bank finds it suspicious that you had so many cash payments? What if something else raises a red flag and an investigation starts? It’s not worth the risk because the penalties could be severe and influence even your personal financial situation.

Credit Card Payments Aren’t an Option - Don’t Look for a Solution

Here is something that many entrepreneurs don’t know – major credit card chains don’t accept cannabis transactions. Visa, MasterCard, and similar platforms operate at an international level. That’s why they don’t approve marijuana-related credit card payments.

Some vendors offer to bypass this restriction, which creates confusion. The alternative paths they offer might work, but they aren’t legal. You can even find reports where those who tried these schemes were convicted. If you become a part of this scheme, you are under the same threat. That means you might even go to prison, and jail time isn’t worth this risk. You can surely find sufficient legal ways of payment for your customers.

Keep Your Cannabis Grounds Secure

You might be unaware, but taking care of the area where you grow cannabis is another legal requirement. The areas that you need to consider including video surveillance, access control, and system documentation.

High-Quality Video Surveillance

Many states require video footage of a specific resolution. And even if they don’t, it’s in your interest that everything is transparent. That’s why your video surveillance system should cover every area where you grow cannabis. It’s necessary to be able to see every corner clearly.

Apart from live streaming 24/7, it’s necessary to store the recordings for a certain time. It depends on the location, but you might need to keep the footage for at least a month. Additionally, many states require having personnel monitoring the videos around the clock.

Access Control

An access control system is necessary for your cannabis premises. Only selected personnel should be allowed in the area where you grow the plant. You should also install a working alarm system. If a breach occurs and someone trespasses the property, you should alert the authorities immediately.

The regulations also imply keeping comprehensive system documentation. That includes information about the personnel, inventory, production process, etc.

The Danger of Employee Theft

Employee thefts are more frequent than you think, and the cannabis industry is particularly vulnerable to them. That’s why it’s strongly recommended to conduct a detailed background check before hiring an employee. 

You should also have trustworthy workers who will have access to sensitive areas, products, and information. A well-functioning system of keeping track of products and inventory can help to prevent employee thefts. If you find a way to deal with these internal threats on time, you can minimize financial losses and other problems that could occur.

Transport and Delivery

Some states have regulations that don’t allow transport companies to handle cannabis products. That means it’s necessary to organize transport yourself. That’s a risky job, which is why you want to equip every delivery car with a GPS. It helps to have a trained driver who knows to recognize a problem and react properly to a dangerous situation.

Please note that delivering cannabis across state borders can be illegal. The regulations vary from one state to another. If you plan to deliver your product in other states, consult professionals to confirm you meet all relevant laws.

The Imperative of Staying Legal

If you read the article carefully, you understand the main message we want to send. However, allow us to underline it one more time. Your business should become and stay legal. We understand you want to maximize your profit, and alternative paths might be tempting, but they aren’t worth it. If you get caught, you’ll pay hefty fines and be pegged as a cheater in the future. That’s why the only way to stay safe is that your cannabis business stays legal in all its aspects.