<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=157958514840961&amp;ev=PageView&amp;noscript=1">

Blog

November 06 2019

Can Cannabis Businesses File for Bankruptcy?

The short answer: no. But there are other options.

  • Federal regulations outlawing the sale of cannabis mean cannabis operators can’t file for bankruptcy.
  • Garvin v. Cook and the case of Way to Grow, Inc. indicate the courts won't change their mind. 
  • Cannabis and hemp operators facing...
[Read more...]

Filed Under: Compliance, Taxes, Finance, Operations

October 18 2019

Best Practices for Managing Your Cash on Hand

Learn what expenses to prioritize and ways to optimize your cash flow to stay in business. 

  • Pay your cannabis taxes first, and rent and utilities expenses thereafter. 
  • Know your inventory restock cycle to plan ahead for unforeseen expenses. 
  • Build a rainy day fund with any extra cash...
[Read more...]

Filed Under: Finance, Accounting

October 11 2019

Opportunity Zone Credits for Cannabis Investors & Operators

Investing in an opportunity zone is a great way to support the community while taking advantage of tax credits.

  • Opportunity zones are those where the poverty rate is at least 20% or median family incomes are no greater than 80% of those of their surrounding areas. 
  • The IRS offers...
[Read more...]

Filed Under: Taxes, Investing

October 01 2019

Everything Cannabis Operators Need to Know About Form 8300

IRS Tax Form 8300 must be submitted by any business that receives $10,000 or more in cash in a single transaction or multiple related transactions.

  • The IRS has been auditing cannabis businesses that do not submit Form 8300.
  • This form needs to be filled out any time a business collects...
[Read more...]

Filed Under: Compliance, Taxes, Finance

September 24 2019

Mergers & Acquisitions in the Cannabis Industry - Business Combination & Integration

This post is the second in a two-part series on mergers and acquisitions in the cannabis industry. Read the first part, “Mergers & Acquisitions in the Cannabis Industry - Due Diligence” for things to know about performing due diligence on an M&A deal between two cannabis operators.

  • There...
[Read more...]

Filed Under: Finance, Investing

September 12 2019

How Are Taxes Covered Under Cannabis Partnership and Operating Agreements?

Set up a formal partnership agreement to protect your business interests and make sure your taxes are allocated equitably. 

  • A partnership agreement covers things such as ownership, distribution of profit and loss, length of the business relationship, and the roles and responsibilities for...
[Read more...]

Filed Under: Taxes, Finance

September 03 2019

Managing Cannabis Employee and Contractor Payroll with Cash

The 280E regulation forces cannabis operators to pay their employees in cash – here's how to do so safely.

  • Whether members of your workforce is classified as "employee" or "contractor" impacts how you pay them and what taxes you take out.
  • Make sure every employee signs a receipt verifying...
[Read more...]

Filed Under: Compliance, Taxes, Finance, Operations

August 26 2019

Weekly Licensing Update - August 26

This week’s cannabis updates from the state of California come from Los Angeles, Hesperia, Sacramento, and Oceanside. Plus, an important update in regards to starting a hemp business in the US. 

[Read more...]

Filed Under: California, Licenses, Finance

August 23 2019

Mergers & Acquisitions in the Cannabis Industry - Due Diligence

In the first of a two part series, learn how to do your due diligence on all aspects of a company's financial records and licenses.

  • Hire a due diligence team of lawyers, CPAs, operations engineers and any other experts to learn about the state of the company you’re purchasing. 
  • Use...
[Read more...]

Filed Under: Taxes, Finance, Investing

August 19 2019

Weekly Cannabis Licensing Update - August 19

Check out this week’s California cannabis news from Lassen County, Hemet, Bellflower, and Los Angeles. 

[Read more...]

Filed Under: California, Licenses