Blog

The IRS has clarified guidance for the cannabis industry.

• 280E applies to all cannabis businesses no matter if the business is legal or illicit
• Form 8300 must be filed with every transaction that is $10,000+
• Cannabis businesses should calculate CoGS based on Internal Revenue Code 471

As tax extensions are coming due, we wanted to share some ‘insider’ thoughts about choosing a CPA to prepare your cannabis business tax returns.Over the past 45 days, our team has been increasingly getting on calls with cannabis operators that chose to go with a local, generalist CPA firm...

Special Purpose Acquisition Companies are one way to take your cannabis business public – here's how they work.

• The SPAC pools money from investors – known as a blind pool – into the public company. 
• The SPAC goes public, and then makes acquisitions or investments based on a...

Here's how to draw a salary from your cannabis business – and how it impacts your business and personal taxes. 

• How you draw a salary – and the taxes – depends on the type of entity you've set up.
• A C-Corp cannabis venture pays taxes on any income, meaning the entity itself is...

Learn some strategies for writing off bad debt, as well as how to avoid the risk to begin with. 

• Bad debt gets recognized as a business expense when an account receivable is no longer collectible.
• In the cannabis industry, you should never extend credit – it's simply too risky.
• If you do...

An accurate cost per pound is the basis for setting up a sustainable, profitable cannabis cultivation business. 

• Improve the value of your cultivation business by keeping detailed SOPs for each employee's job description. 
• Implement strong tracking systems to see the trajectory of...

A financial forecast is a roadmap for growing your business sustainably – here's how to build one. 

• A financial forecast helps you to track your progress month to month and know how your business is performing compared to the plan.
• Track variables such as seasonality, tourism, weather...