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taxes

December 18 2019

Understanding Cannabis Nursery Businesses

 

Learn whether a cannabis nursery is the right investment for your business. 

  • Nurseries are a great way to diversify your cannabis operation.
  • Nurseries can be quite lucrative if you focus on perfecting a strain. 
  • Cannabis cultivation, excise, and sales taxes apply differently to ...
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Filed Under: Taxes, Business, 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 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 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...
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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...
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Filed Under: Compliance, Taxes, Finance

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 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

August 09 2019

How Filing Los Angeles Cannabis Excise and Use Tax Incorrectly Will Cost You

As a cannabis operator, you’re probably sick of having to contend with the many, frequent taxes due to the state and local government. Cannabis distributors, cultivators, and manufacturers are all responsible for different taxes, in addition to federal taxes required of all business...

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Filed Under: California, Taxes

August 02 2019

Everything Cannabis Distributors Need to Know About Taxes

Cannabis distributors play a big role in collecting and paying taxes in California's cannabis industry

  • Distributors are responsible for collecting cannabis tax from the cultivators and manufacturers with whom they work.
  • Distributor licenses are tricky to obtain to variable zoning...
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Filed Under: California, Taxes