Are You Ready to Be a Cannabis CEO?
For those cannabis-touching businesses who have taken the courage in changing and shaping society, we hope our insights, experiences and stories about cannabis finance may be useful in helping you continue to grow into a successful and legal business.
Basic Financial Definitions CEO’s Must Know!
GAAP: Generally Accepted Accounting Principles – which is the accounting standards set nationwide for CPA’s to follow. This is nationwide, not state-driven law.So, that is why we can work nationwide.
IRC 471-11 and 471-3
This is the key section of the IRS code that has to be applied long before 280E occurs.They are hand-in-hand, but without IRC (Internal Revenue Code) 471-11 or 471-3, for a cultivator or dispensary, respectively, 280E may end up with more taxes than if 471 was not applied, ornot applied correctly.
Management Companies & Multiple Legal Entities
If you have many dispensaries or cultivation sites, there is value in setting up a parent or holding company and having those separate businesses and locations in their respective legal entities and having a management company has legal and tax merit.
Managing the Key Risk: Product Pricing & Margins
Since I have also worked on commodity pricing strategies, traded commodities and energy, and managed the price fluctuation for mega-billion dollarcorporations down to $2 million dollar businesses, I would like to share some basic thoughts.
When It Is Often Too Late!
The onerous taxes officially known as the Internal Revenue Code (IRC) 280E adds another layer of challenge to creating a successful cannabis business.When 280E is clearly understood, many realize the delusions of this supposed get-rich industry called cannabis. They quickly realize they were not being realistic.
Why §280E Punishes Your Cannabis Business?
Why §280E Punishes Your Cannabis Business? If this you, reach out anytime……. CALL (541) 786-6989 Question: Who in the world is Jeffrey Edmondson? Answer: The guy we can blame for the punitive tax law, §280E. In 1974, Mr. Edmondson was convicted for selling large quantities of meth pills, coke and weed; then the IRS immediately attempted to collect […]