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Marijuana Startups Handling Millions Of Dollars Are Forced To Hide Cash And Use Secure Vaults Because They’re Shut Out Of The Banking System
Twice a week, Emmett Reistroffer carefully watches his array of security cameras. When the coast is clear, an armed guard walks into his facility.
When the guard — a former law enforcement officer — enters, Reistroffer sits down with an accountant and the guard to count stacks of cash.
[…] Because of a section of the federal tax code that doesn’t allow cannabis companies to deduct business expenses, these startups end up paying an effective tax rate “3.5 times higher than their neighboring businesses,” Keegan Peterson, the CEO of Wurk, a Colorado-based payroll and compliance firm, told Business Insider.