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Blog

January 08 2020

Case Study: Alternative Health Care Advocates Tax Penalties

A recent court ruling in Alternative Health Care Advocates et al. v. Commissioner of Internal Revenue offers some significant tax implications for cannabis operators and management companies. The case, which was filed at the end of December 2018, is a cautionary tale for any cannabis...

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Filed Under: Case Studies, Taxes, Accounting

December 18 2019

Understanding Cannabis Nursery Businesses

Cannabis operators seeking to diversify should consider a cannabis nursery; this business model is slightly less involved than a full cultivation operation, but still lets entrepreneurs work with plants and seeds. Here’s our quick guide to learning more about starting a cannabis...

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Filed Under: Taxes, Business, Finance, Operations

December 11 2019

Optimizing Multi-Unit Cannabis Business Operations

As the cannabis industry matures, some companies are emerging as clear winners in this competitive market. They’ve managed to stabilize and expand their operations, often while merging with similar brands or acquiring smaller shops to build their market reach and in-house capabilities....

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Filed Under: Case Studies, Finance, Operations

December 05 2019

CDTFA Cannabis Excise Tax Update for 2020

Last month, the California Department of Tax and Fee Administration announced an increase in the cannabis excise tax. Starting January 1, 2020, the new markup rate will be 80%, an increase from the original markup of 60%.  

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Filed Under: California, Taxes

November 29 2019

Using Functional Interviews to Reorganize Your Cannabis Company

The cannabis market is maturing, and with that growth comes many changes for cannabis operators who are merging, adjusting, and reorganizing to improve their operations. Labor costs – employee wages, payroll, benefits, and taxes – can total up to 70% of total business costs. When a...

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Filed Under: Business, Finance, Operations

November 12 2019

How to Leverage Real Estate, Assets, and Cannabis Licenses for Better Cash Flow

Cannabis is an expensive industry to be a part of, and cannabis operators seeking to make a profit sometimes have to get creative. As this highly-regulated industry continues to stabilize, savvy entrepreneurs are using all available resources to stay competitive. 

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Filed Under: Compliance, Licenses, Finance, Investing, Operations

November 06 2019

Can Cannabis Businesses File for Bankruptcy?

The Bureau of Labor Statistics reported this year that about 20% of small businesses fail in their first year. In the cannabis industry, operators face more obstacles than other new businesses. High licensing fees, taxes, and lack of access to traditional banking create high barriers...

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Filed Under: Compliance, Taxes, Finance, Operations

October 18 2019

Best Practices for Managing Your Cash on Hand

The 280E regulation requires cannabis operators to deal with an inordinate amount of cash. The term “cash flow” takes on new meaning for businesses in this cash-heavy industry. Cash is the oxygen of any business, and when you’re just starting out, it’s likely that you may have some...

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Filed Under: Finance, Accounting

October 11 2019

Opportunity Zone Credits for Cannabis Investors & Operators

Opportunity zones are some of the best investments available for anyone with the funds seeking to lower their tax responsibility. Praised by some as a “more socially conscious form of real estate investing,” opportunity zones offer a way to do good while saving money on your taxes....

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Filed Under: Taxes, Investing