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finance

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 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...
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Filed Under: Finance, Accounting

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 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...
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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...
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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...
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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. 

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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...
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Filed Under: Taxes, Finance, Investing

July 23 2019

What to Know About Cannabis Joint Venture Deals

 

A joint venture can give you access to new markets, new sources of revenue, and lower your risk profile. 

  • A joint venture is when two or more business entities enter an enterprise agreement for the purpose of advancing a specific project or business activity.
  • Partners are tied...
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Filed Under: Finance