Conflict between state and federal laws have created ongoing logistical challenges for cannabis business owners. Asset protection is a particular challenge for marijuana businesses. First, assets subject to search and seizure by federal authorities, because marijuana remains a Schedule I drug under federal law. Both the cannabis itself and all cash or assets of the business are subject to seizure. Secondly, federal regulation of banks means that most financial institutions are not able to provide banking services to cannabis businesses. Many business owners are left to operate an entirely cash-based business, which leaves the business vulnerable to violent crime. Luckily both of these problems can be addressed with creative business planning and logistics solutions. Learn more about the ways in which California cannabis business owners are meeting these challenges.
The Transportation Niche
Hardcar Security has found a way to help cannabis owners protect their assets. The Desert Sun reports that the armored car service has about twenty-five regular clients, mostly in Northern California, who hire their drivers to transport cash for payment of suppliers, taxes, and other expenses. The drivers are also hired to transport inventory for cannabis businesses. Hardcar anticipates its business will triple or quadruple in size in 2018 once business licenses are issued for legal sales of recreational marijuana. The company’s founders met while working in security technologies in China. The two closely followed the marijuana market, and decided to set up shop in California after observing the expanded cannabis market here. They prioritize the hiring of military veterans, due to veterans’ unique understanding of security needs, and their ability to respond to hostile threats and environments. Continue reading