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compliance

September 08 2020

Cannabis CPA vs Local General CPA

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...

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Filed Under: Compliance, Taxes, Accounting

April 24 2020

Role of a Receiver and the Benefits of Receivership

This post is part 2 in a series about economic receivership. Catch up on the first part, “Receivership for Cannabis Businesses” for more information. 

  • Cannabis businesses can't file for bankruptcy; receivership is an alternative solution.
  • A "receiver" is someone appointed by the court...
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Filed Under: Compliance, Business, Finance, Accounting

November 12 2019

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

Investments in real estate, licensing fees, and partnership agreements offer the opportunity for new revenue streams – here's how. 

  • Lease a bigger space and invite other operators to open a business under your license, and use space in your location. 
  • You may not sub-license cannabis...
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Filed Under: Compliance, Licenses, Finance, Investing, Operations

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...
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Filed Under: Compliance, Taxes, Finance, Operations

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...
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Filed Under: Compliance, 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...
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Filed Under: Compliance, Taxes, Finance, Operations

March 06 2019

Partnership Audit Rules for Cannabis Companies

Businesses that are structured as partnerships for federal income tax purposes have seen their audit activity increase – here's what you need to know.

  • The general rule under the new partnership audit rule is for partnerships to be taxed at the entity level.
  • Companies should factor in new...
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Filed Under: Compliance, Taxes

February 04 2019

Everything You Need to Know About METRC Cannabis Tracking, Reporting & Compliance

 

Learn how to use METRC to comply with state reporting and track and trace requirements. 

  • Cultivators, manufacturers, retailers, distributors, testing laboratories and micro-businesses – must comply with the METRC reporting standards.
  • METRC uses standard Radio Frequency Identification...
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Filed Under: California, Compliance

January 31 2019

Tax Preparation Checklist for Cannabis Operators

Follow this checklist to gather everything you need to fill out your  cannabis tax return.

  • You will need your tax returns for prior two years, plus copies of your sales, excise, and local tax returns. 
  • Make sure you have your income statements ready as well as your P&L and balance sheets. 
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Filed Under: Compliance, Taxes

January 24 2019

What to Expect in a Tax Audit

Tax audits are relatively common in the cannabis industry – here's how to prepare for one at your business. 

  • Make sure your sales, inventory, employee, and tax records are detailed and thorough. 
  • Be prepared with historical financial records, receipts, tax returns, and anything else you...
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Filed Under: Compliance, Taxes, Finance