Posts By :

Herban Creative

Can Email Marketing Help Your Cannabis Business Flourish?

Can Email Marketing Help Your Cannabis Business Flourish?

Can Email Marketing Help Your Cannabis Business Flourish? 2000 1282 Herban Creative

Tips for Email Marketing When You’re Unsure of the Regulations

Email marketing is an amazing way to reach your target audience. With a single list – you have the power to connect your message with the eyes that need to see it. Email marketing takes most of the guessing work out of who might be the appropriate audience, allowing you to focus on your campaign with no time wasted.

What happens when you’re in the business of cannabis and cannabis-related products? Things get a little bit more complicated. State and federal laws are still ironing out the legality of cannabis marketing. The discrepancies on a state-by-state basis still leave certain digital marketing platforms with restrictions and an inability to support the cannabis industry, including email marketing.

Who’s out

We already know the highly restrictive selling environments of Facebook advertising, Instagram, Twitter, Google AdWords, and more. Unless you are providing organic content with an educational light – the hard sell is out.

What about email marketing? It seems that the big email marketing guns are out as well. Providers such as Constant Contact, MailChimp, and Aweber will not allow any content related to cannabis products, services, or business. There are even restrictions on providing cannabis licensing information for regulators, journalists, researches, and more. Any activity regarding marijuana, its products, and the industry could result in account closure.

What’s the solution?

One company who was threatened with account closure chose to build email marketing into their own database. Working with a digital cannabis agency could help alleviate any questions you may have regarding the restrictions and laws that are still present. The good news is we are headed in the right direction.

Once you’ve established the right tool to accomplish your email marketing needs – it’s important to offer solutions to your users. The challenges with direct mail and print advertising also rest on your ability to build a rapport with your current and prospective customers, and know where they’re at in their buying cycle.

Customize your emails

The members of your target audience are not all in the same stage of consumption. Some individuals have not yet displayed any interest in cannabis but fit the growing demographic of those who do partake. Others may be beginning the search for a dispensary and have not yet found the appropriate location or product. Some may be in the throes of research and evaluation. It’s possible that you may need to address an audience who has already established a brand or dispensary they like and may need some persuading to consider your brand.

Lastly, there are those that are ready to make a final decision and ready to buy. Each stage of the buying cycle requires a different message. It’s so important to address the needs at each stage so you can direct them to the appropriate solution – ultimately getting them to the last stage.

Email marketing is just one of many challenges present when it comes to digital marketing for the cannabis industry. Luckily, if you’re in the business of hemp and need help defining your brand and navigating the correct practices of digital marketing – we’re here! At Herban Creative, we’re skilled in content creation. We can create content for your brand that informs consumers and drives sales. Contact us today to learn more!

2019 Trends in the Cannabis Industry

2019 Trends in the Canabis Industry

2019 Trends in the Canabis Industry 2560 2560 Herban Creative

What 2019 Trends Can We Expect for Cannabis?

We are on the horizon of significant change with the cannabis industry in the United States. According to SevenFiftyDaily 1, as it stands, recreational use is legal in 10 states, 1 U.S. territory, and the District of Colombia, and legal for medical use in 33 states, 4 U.S. territories, and the District of Colombia. As with any growing industry, more and more individuals are looking into the world of cannabis as a lucrative market with great earning potential.

With the market already inundated with cannabis vape pens and edibles, the 2019 trends are heavily predicting a shift in the nature of cannabis products, a differing target audience, and an effects-based outcome approach to selection. These are the 2019 trends we are looking out for.

It’s all about CBD

Ryan Malkin from SevenFiftyDaily explains that cannabidiol (CBD) is one of the most popularized cannabis products available on the market. Used in a number of forms – more and more this product is becoming the number one choice to relieve a multitude of health ailments. CBD oil has been used for pain relief, anxiety, diabetes, seizures, insomnia, cancer, and more. With its tetrahydrocannabinol (THC) properties at less than 0.3% – the psychoactive effects are imperceptible. Hemp-derived CBD has moved into a less stigmatized zone due to the removal of Hemp on the list of Schedule 1 controlled substances. Hemp is no longer seen as having a high potential for abuse and is now regulated by the Department of Agriculture.

With these changes, CBD has been popping up in other forms such as beverages and sodas. It appears that over half of the consumption of hemp-CBD products in 2018 were in some ingestible form. It also shows that this growing market is beginning to impact the alcoholic beverages industry – showing dips in alcohol sales over recent years.

It’s all about low-potency

The 2019 trends are showing us that on average, most people are moving towards health-conscious options. The term microdosing has been circulating in recent years – which indicates taking a drastically lower dose, with almost undetectable physiological responses. Consuming a nonalcoholic beer infused with a low-potency dose of CBD will create just the right amount of impact, without feeling the full effects. Individuals are beginning to see the benefits of moderation and learning how to adapt the current products already on the market.


An interesting trend of 2019 is that individuals are purchasing cannabis products based on their effects. As it stands, there are products that can give you all different kinds of sensations. It’s amazing that someone could go into a dispensary and decide what kind of a mood they want to be in. The targeting approach here suggests offering your users a desired outcome. The names of cannabis products of the past may have been well-known to a select few, but it would be more efficient to take the guessing work out of the shopping experience and tell your customers what sensation comes from any respective product.

Target audience

Who’s buying these products? SevenFiftyDaily mentions a report by Cowen & Co. explaining, if we were to take a poll and see which demographics of the population would be frequenting these dispensaries – odds are the majority of people would say younger males. It turns out, we are seeing an increasing number of older women. On average, approximately 17% of the consumer population is 55 years in age and over. Because of the changes in legality and health benefits, the stigma has lessened for many individuals.

We are seeing some very interesting trends for 2019. People are starting to change the way they look for products. Are you unsure of your targeting tactics or need more information on purchasing behavior? At Herban Creative, we’re skilled in branding, SEO, design work, and social media. We can create content for your brand that informs consumers and drives sales. Contact us today to learn more!

New Jersey Laws: The Latest in Cannabis News

New Jersey Laws: The Latest in Cannabis News

New Jersey Laws: The Latest in Cannabis News 1280 853 Herban Creative

How Far has Cannabis Come When It Comes to New Jersey Laws in 2019?

According to The Hill 1, the legalization of marijuana for recreational use has helped many states in the U.S. create new jobs and boost the economy. Massachusetts’ new industry is creating an estimated 19,000 new jobs and in Colorado, legalization fostered an industry that has an annual statewide economic impact measured at $2.4 billion with 18,000 new jobs. Although it’s nice to hear about other states succeeding in the cannabis industry, what we want to dive into is how far along New Jersey Laws have come.

New Jersey’s Legal State on Cannabis

Currently, New Jersey laws prohibit the recreational use of marijuana but allow the use for medical purposes. On January 15th, 2019, Government Phil Murphy spoke about these existing laws in his State of the State address and called for legalizing the recreational use of marijuana by adults.

“By legalizing adult-use marijuana – first and foremost – we can reverse the inequality and unfairness left from years of failed drug policies and shift public safety resources to where they can do the most good,” Murphy stated in an interview with The Hill.

It’s safe to say that our Gov. is on board with the legalization, and besides the positive economics and new jobs, he’s also focusing on making sure New Jersey law enforcement starts to focus on the illegal, life-threatening drugs.

According to 2, as of February 11th, 2019, an updated legalization bill and renewed debate in the State Legislature could come “any day now.” However, when a new measure might be introduced and when a vote could be held, remains unclear as of today.

New Jersey, just like other states, could use that extra tax revenue to fix our roads, bridges, communities, etc. On a positive note, recent progress on taxes and regulation, plus a push to act on legal cannabis before the Legislature gets caught up with the state budget and other legislation in the next few months, has pushed negotiations close to a resolution.

“Once we get out of the first quarter, we get into budget world,” New Jersey Cannabis Industry Association President Hugh O’Beirne said to writer, Payton Guion from, referencing the June 30th deadline for the state to enact a budget. “If it’s going to happen, (legalization) has to happen in the next few weeks.”

To keep yourself updated on New Jersey cannabis laws and where they stand when it comes to legalization, check our Herban Creative’s blog. We’re here not only to inform, but to help those in the cannabis industry market their business. Contact us today to enhance your website, branding, social media, SEO and more!

Staying Original in Cannabis Industry Branding

Staying Original in Cannabis Industry Branding

Staying Original in Cannabis Industry Branding 2560 1314 Herban Creative

Find Your Niche Within the Cannabis Industry

Marketing any brand usually begins with a vision and goal. The goal is to make your brand shine, and this is usually done by answering four questions that are on every consumer’s mind. Always ask yourself: what are you offering, why are you offering it, what makes you different than your competitors, and why should we choose your product or service? Marketing your brand in a legal industry can be a challenge; getting the right target audience, setting your tone, exploring the appropriate mediums, and getting users to engage with your brand.

Now, let’s consider the challenges of branding when your market has varied federal and state rules regarding its legality. The cannabis industry falls into some interesting territory with the limitations and regulations for social media platforms, and with the existing content of cannabis critics. Let’s explore some ways to tackle branding in the cannabis industry.

Change what they’re saying

It’s time to change the conversation. With all the content in opposition of the cannabis industry out there, it’s your turn to enlighten and engage your readers with new and informative content. Educate your readers about cannabis, the evidence-based benefits, and be prepared to be responsive to any inquiries they may have. Writing blogs and creating organic social media content is a great start.

The hard sell on social media

Social media and its various platforms have differing regulations regarding cannabis content. The common denominator is that it is prohibited to advertise any forms of illegal recreational drugs or their paraphernalia. Organic content, however, if used in an educational or artistic style is authorized. Choose wisely when you decide on your content, and how you plan to work around the limitations, without losing your bottom line.

Think outside the advertising box

Displaying ads are a little easier when you have a completely legalized industry. The cannabis industry requires more legwork. To make up for the limitations of digital marketing, utilizing some old-fashioned methods may be beneficial. Advertise your brand by hosting educational events and speaker panels. Consult with medical doctors and gather the appropriate research underlining the benefits of medical cannabis use. Allow people to see the face behind your brand and let them know you have done your homework.

Know what you’re selling

If you are in the business of producing or dispensing cannabis, you should know more about the market and its respective products than your potential consumers. It’s suggested that you become the go-to expert regarding cannabis, its upcoming laws and policies, and its overall impact and risks. If you’re well-informed, this may just be enough to put you ahead of your competitors.

Keeping it real

The reality of branding within the cannabis industry is that you will occasionally hit some rough ground. Owning up to any issues with your marketing strategy, content, and targeting is your best bet. Be real with your mistakes and don’t think for one second that you are immune to setbacks. The truth is that the industry in question is brand new, and being open to trial and error allows you to learn from your mistakes.

As with all industries, maintaining a loyal client base and netting new ones is the goal. It’s up to you to be responsible with your content. Try and be genuine with your marketing strategy and always continue to educate and inform. If you are looking for ways to have your brand in the cannabis industry stand out, contact our specialized team at Herban Creative today!

License Requirements and Permits Needed to Start a Cannabis Business

License Requirements and Permits Needed to Start a Cannabis Business

License Requirements and Permits Needed to Start a Cannabis Business 2011 2495 Herban Creative

Are You Aware of the License Requirements Needed in the Cannabis Industry?

Looking to other countries, such as Canada, Australia, New Zealand, Norway and more – medical marijuana consumption has become legal. A quick Google search will bring you to a colorful chart of each country – and where they are at regarding the legalization of marijuana for recreational and medical purposes.

According to SevenFifty 1

, we can comfortably say that the United States may be following suit, as recreational use is legal in 10 states, 1 U.S. territory, and the District of Colombia, and legal for medical use in 33 states, 4 U.S. territories, and the District of Colombia. Both medical and recreational use, however, are illegal at the federal level. Where there’s legality, there is also opportunity.

If you are interested in starting a cannabis business, be weary of the license requirements and permits, collected by FindLaw 2

, on a state-by-state basis. We broke down key regulations for states in our area to help you better understand what to expect.

The Tri-State Area

For those considering opening up a cannabis business in the Tri-State area, there are discrepancies in licenses and permits if you are a retail marketer of marijuana, or if you are looking to run a dispensary. As with other states, there are limits and restrictions to how many dispensaries are allowed, as well at the actual size of the business location.

New York

The Medical Marijuana Program is governed by the New York Department of Health. You must be a registered organization, in which you are allowed up to four dispensaries. The manufacturing of medical marijuana is limited to indoor, enclosed, and secure locations within New York State. The Commissioner of Heath must approve the products in regulation, in addition to the routes of administration. The Department is not accepting any applications to register organizations at this time.

New Jersey

The Medical Marijuana Program is overseen by the New Jersey Department of Health. Alternative Treatment Centers (ATCs) are what the state considers licensed businesses in the production and distribution of medical marijuana. An ATC permit allows you to grow and dispense medical marijuana after two screening tests and a background check of all parties involved – including regular maintenance of your practices. At this time, there are six ATCs in the state and they are not issuing any more licenses.


The Connecticut Department of Consumer Protection supervises the Medical Marijuana Program. Producers and dispensary facilities of medical marijuana are licensed through an application process on an intermittent basis. On average, approximately 3-10 applications are granted licenses for both producers and dispensers. At the present time, there are nine licensed dispensaries in the state.


The Marijuana Business License is available for Cannabidiol (CBD) and medical programs. The Pennsylvania Marijuana Business Plan Package follows numerous templates for the business and operation aspects – all of which need customization to the various regions, for the bargain price of $8,259. In the state, there is a limit of 50 dispensaries with stipulations that include proof of funds, annual renewal fees, and a non-refundable application fee of $10,000. Applications are not being accepted at this present time.


As you can see, the license requirements and permit potential vary across states. Because we are still in an illegal zone at the federal level, there are some potential risks associated with producing and dispensing. Make sure you weigh your risks and prepare for the respective regulations of your state, including high application fees and management requirements that you must follow to become licensed.

If you are in the business of medical or recreational marijuana, the team at Herban Creative can help you establish your brand. Contact us today to see how we can guide your business to its full potential.

What Are the Rules When Advertising Cannabis on Social Media?

What Are the Rules When Advertising Cannabis on Social Media? 1800 1200 Herban Creative

Make Sure You Stick To These Rules When It Comes to Advertising Cannabis on Social Media

It’s clear that we are moving in the direction of more progressive times. If you are in the business of cannabis, it’s safe to say you should be looking at some prosperous growth over the next few years, no pun intended. And like any business – you are not excused from your digital footprint. Advertising cannabis on social media allows your business to reach your target audience, permitting further explanation of the benefits and rewards of using your products. Because we are working with marijuana on a commercial scale, it’s important to know the advertising policies and limitations of each platform according to Green Entrepreneur 1.

What is Pinterest pinning?

The limitation with Pinterest is using the platform for the commercial sale of cannabis. Advertisements which encourage or boost the usage of any form of illegal recreational drug is strictly prohibited. Fortunately, Pinterest does allow users to post advertisements promoting the health benefits of Cannabidiol (CBD) and hemp products. However, the only cannabis products deemed appropriate are the byproducts of CBD-only oils and hemp which do not contain tetrahydrocannabinol (THC). Pinterest also permits organic cannabis content with a more artistic or educational nature.

What is Twitter tweeting?

Drugs and drug paraphernalia are out. There are some hard rules regarding drug use, dispensaries, accessories associated with drug use, and herbal drugs. Therefore, the use of Twitter to solely advertise your cannabis on social media may be more on the limiting side. Twitter does permit organic usage of the word “marijuana” and there are pages with marijuana themes in which users could tweet about cannabis use and culture. If the agenda seems more organic and it’s not just about the hard sale – promoting medical cannabis could be permitted as well.

What are we Snapping?

The rules and regulations are less clear when it comes to Snapchat. The one thing we do know is that any advertisements regarding illegal or recreational drugs and their paraphernalia are prohibited. You can take Snapchat out of the race if you’d like to run any cannabis ads on a social media platform. Like its other social media family members – content regarding marijuana and cannabis are found on Snapchat, but there is no solid promotion of selling cannabis and its byproducts.

What are we watching on the Tube?

Youtube is substantially more flexible than the others. There are no specifications regarding the advertisement of illegal drugs but it does dictate that dangerous or harmful content is off limits with a “not suitable” disclaimer. Sharing any content on the topic of medical marijuana use and its benefits is allowed – including cannabis material for documentaries, education, and artistic purposes.

What’s streaming on Reddit?

Reddit has more general guidelines in which the platform does not allow particular content. Any content that promotes illegal activities will include an advertising policy with a disclaimer stating that ads promoting recreational drugs and substances will not be tolerated. It does not specify if cannabis itself – medical or recreational alike – are prohibited. Promoting cannabis content and products in an educational and informative light should be okay. 

How’s trusty old Facebook?

Facebook appears to be on board with its other social media comrades. This means zero promotion of illegal or recreational drugs. It will carry your business page with cannabis or marijuana content if it’s tasteful, educational, and organic. If there is even a hint of a promotional nature – Facebook will put a stop to it.

What are we Googling?

Oh Google, why so serious? Dangerous products and services – including recreational drugs of the chemical and herbal form are a no. There are no clear indications if educational or artistic content on cannabis is acceptable in their policies either. It’s safe to say that advertising cannabis on this platform may be tricky. However, Google Bloggers writing on your behalf could publish content related to the herb, so long as there’s no promotion or encouragement of dangerous and illegal content.

Where does this leave you?

We are living in very interesting times. With cannabis, we are somewhere between glorifying the medicinal herb and struggling over its national legality. While most social media platforms may not be on board to promote cannabis today, with continued exposure on the subject we are certainly moving in the right direction.

If you’re in the business of hemp and need help defining your brand, contact us for help. At Herban Creative, we’re skilled in branding, SEO, design work, and social media. We can create content for your brand that informs consumers and drives sales. Contact us today to learn more!

Herban Creative Marketing Agency

Turn Your Cannabis Logo Ideas Into A Reality

Turn Your Cannabis Logo Ideas Into A Reality 2100 1400 Herban Creative

Keeping Your Logo Ideas Unique in a Growing Industry

One of the fun attributes of the cannabis industry is the inventive logo designs that represent the brands. Across the market, the designs for these businesses are often visually appealing.

However, cannabis related businesses are popping up all over the place these days, and every business is trying to establish a spot in its local market. In order to be competitive in a crowded market, a logo that allows you to stand out holds precedence.

If you’re getting ready to design a logo for your cannabis related business, take a look at these considerations:

Try experimenting with color. It’s natural to gravitate toward the color green in your designs, but know it’s not essential. Don’t be afraid to work with other colors and see what truly captivates the brand you are looking to achieve.

Experiment with a serif font. Currently, the typography trend in cannabis logo designs is heavily sans serif fonts. It does look great with a simplistic design, but there’s a ton of interesting serif fonts out there waiting to make an appearance in the cannabis world. Since not that many companies are utilizing serif fonts, it might be a good way to make your logo stand out. Typography started with serif fonts, and we all know what’s classic never really goes out of style.

Know what your competitors’ branding is like. In order to stand out, you must know what you’re up against. Do an analysis of the competitors in close proximity. What does their logo design look like? How does their logo reflect their brand image?

It’s vital you differentiate creatively from your toughest competitors. Craft your logo design to uniquely represent your own company. Although, if you have a similar voice and audience as a competitor, one up them with a unforgettably stellar design.

Craft your design around your brand identity. It’s necessary that all aspects of business are consistent. To evaluate brand identity, examine your target audience. If the audience is 22-28 year olds, you’ll likely have more free reign when drafting your logo. On the other hand, if your target audience is young mothers, you’ll certainly need a more professional, clean-cut appearance. It’s likely mothers won’t be as keen on a business with cannabis plants plastered all over their branding due to their children.

In short, know your audience and dissect the way they think and feel about a brand like yours. By taking a look at their interests, motivations, and way of life, you should gain a better understanding of what they look for in a business like yours.

Don’t fret if you feel stuck in your design, as there are several tools out there to help you. As an experienced marketing agency, Herban Creative has members of our team who specialize in logo design. We would love to design a logo for you that makes your business stand out. Contact us for assistance, we’d love to hear from you.


What Differentiates Hemp from Marijuana?

What Differentiates Hemp from Marijuana? 1800 1200 Herban Creative

Hemp 101: Know Your Cannabis

The cannabis industry isn’t simply comprised of products from marijuana. Of course there’s the popular CBD oil, but what about the overlooked market of hemp? By no means is hemp, a particular cannabis plant, new to market, or that similar to marijuana. Hemp has been around since America was discovered as the New World.

In Colonial times, hemp was a valued material. Like most things, it’s role and value changed over time, and the usefulness of hemp became overshadowed by other issues.

When did we get hemp mixed up with marijuana?

Back in the 70s, when the war on drugs was declared, hemp got grouped in with marijuana, which was classified as a Schedule I drug. In this effort to stop a drug that became so popular among young people, the plant in its entirety was framed as harmful. It didn’t help that the ban of marijuana made it near impossible to get approval to grow hemp for its multitude of uses. Hemp does not provide the same effects as marijuana, although both hemp and marijuana derive from cannabis sativa plants.

Hemp and Marijuana: Not exactly two of a kind

As a matter of fact, marijuana and hemp are grown from two different types of cannabis sativa plants. The physical features and uses of each plant differ. For one, the cultivation of each plant is dramatically different. The plants that grow marijuana require a lot of attention and regular control over the atmosphere throughout the cultivation process. On the other hand, hemp requires minimal attention, and is able to grow in most climates. Not only that, but the physical appearances of both plants show they’re more like cousins than brothers.

A Different Chemical Makeup

A huge distinction between the chemical properties of the two plants is the difference in its psychoactive effects. As known, marijuana has psychoactive properties, ranging anywhere from a low to high percentage of THC (5%-35%). Alternatively, hemp has no psychoactive properties, with <.3% of THC. Therefore, hemp isn’t meant for the use of getting high, and the slight amount of THC isn’t relevant for the products it’s used for.

So what is hemp used for?

Interestingly enough, hemp is used for a whole slew of products. Americans have used hemp for centuries to make clothing, rope, and other various textiles. Since those days, it’s also been used in nutrition, building materials, fuel, beauty products, and other consumer clothing or accessory products.

It’s obvious hemp and marijuana aren’t the same, and the grouping of the two was a result of other legal issues from many years back. As previously stated, hemp products have been around for a long time, and it’s likely they’ll just keep evolving. Hopefully, hemp finds its voice in the market and is identified for its unique purposes separate from marijuana.

If you’re in the business of hemp and need help defining your brand, contact us for help. At Herban Creative, were skilled in branding, SEO, design work, and social media. We can create content for your brand that informs consumers and drives sales. Contact us today to learn more!


The History of Cannabis Use in the US

The History of Cannabis Use in the US 1800 1200 Herban Creative

A Look Back at the History of Cannabis in Our Country

Cannabis is a trending topic in America these days. It seems like every day you hear more of your coworkers and friends discussing the CBD oil that dissipates their stress and combats their post-workout soreness. In the news, you hear more about approved marijuana laws and talk from more government officials promising future legalization. Of course, cannabis wasn’t always the positive talk of the town. Throughout its presence in the United States, cannabis has gone through a wild ride, and the opinions and laws around it have been ever changing. Take a look back at the history of cannabis in our country and see how far the popular plant has come since its earlier days.

[nft_timeline_shortcode nft_timeline_theme_style=”nft_til_t4″ nft_timeline_number_post=”20″ nft_timeline_content_length=”FULL” nft_timeline_base_color=”#eaa100″ nft_timeline_show_random_color=”” nft_timeline_random_color_1=”#16392c” nft_timeline_random_color_2=”#16392c” nft_timeline_random_color_3=”#16392c” nft_timeline_body_font_size=””]

The cannabis timeline doesn’t end here. 2019 is expected to bring new changes on cannabis laws from states all over the country. The cannabis plant has come a long way since its introduction to the New World, and it still has a long way to go.

Looking for more news and updates in the cannabis industry? Check out the rest of our blog today!


What Cannabis Business Owners Need to Know About Tax Deductions and Section 280E

What Cannabis Business Owners Need to Know About Tax Deductions and Section 280E 1800 1436 Herban Creative

The Impact of Cannabis on a Business’ Tax Deductions

It’s critical any cannabis entrepreneur understands that the cannabusiness world is different from any other business. It’s not just the business model or supply chain, it’s the tight wiggle room from several laws and regulations on all sectors of business. Filing taxes on a cannabis business is certainly a part business owners must pay close attention to. According to Forbes, due to unchanged federal laws on marijuana and strict guidelines by the IRS, tax deduction laws are quite unique to the cannabis industry. It’s important business owners know and understand tax section 280E, as it directly applies to them.

Tax Section 280e

This tax section requires that cannabis businesses file federal taxes under this tax code. All Schedule I and II trafficked controlled substances are directed to, and according to the federal government, marijuana falls under this category as a Schedule 1. This includes the growing, buying, and selling of marijuana. Essentially, this tax code means cannabis businesses need to pay taxes on all of their revenue. Therefore, making them ineligible from using business expenses as tax deductions.

In its totality, section 280E states: “No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of Schedule I and II of the Controlled Substances Act) which is prohibited by federal law or the law of any state in which such trade or business is conducted.”

What Does This Mean for Cannabis Business Owners?

Simply put, business owners in the cannabis industry pay tax on their gross income. Since marijuana is a Schedule I substance, this section prohibits them from the tax deduction benefits of a typical business owner. State legalization hasn’t wavered the federal regulations of marijuana, thus putting cannabis businesses under extreme scrutiny by the IRS. Previous cannabusiness owners have faced harsh repercussions for disobeying the tax act and failing to efficiently fill taxes.

The punishments are costly, and the IRA is certainly paying attention to the financial workings of all cannabis businesses. To the business owners in this industry, you need to abide by section 280E and thoroughly understand your legal tax expectations to clear yourself and your business from an attack by the IRS.

There are a lot of hoops to jump through in the cannabis industry. Even business owners from the states with seven years of recreational legalization aren’t fully experts. Many mistakes have been made in industry due to the high regulations surrounding marijuana. For the vets and the newbies, pay close attention to the laws that surround your industry, they’re changing all the time. Through attention to the fluctuating laws on regulations, you can learn how to market and craft your business accordingly in this highly-censored industry.

For assistance on marketing your business, contact us at Herban Creative. We have all the marketing and digital experience necessary to grow your cannabusiness from the ground up.