Anecdotally, we know that foreign investment in the US Cannabis industry is very commonplace. This is a growing market that’s attracting lots of attention from firms in Canada and overseas. However, partnering your cannabis operation with foreign investors comes with additional tax reporting requirements. IRS Form 5471 and Form 5472 are two such requirements that come with steep penalties if not filed accurately and on-time. A lot of foreign investors don’t know about these specific filing requirements. If you’re a cannabis entrepreneur with ties to the US market, make sure you avoid high f ..read more

A new federal watchdog report says cannabis businesses owe vastly more in taxes to the federal government and more audits would uncover it. ​The owner of Uncle Ike’s cannabis dispensary in Seattle, Ian Eisenberg, sees a lot of would-be entrepreneurs enter the marketplace with lofty visions for how they want their business to look and operate.  Eisenberg told The Daily Beast in 2017 that he’d love for his own business to be configured more like a cannabis boutique with stations dedicated to concentrates, big-name growers, edibles, and more. But the exceptional tax burden faced by canna ..read more

Anecdotally, we know that foreign investment in the US Cannabis industry is very commonplace. This is a growing market that’s attracting lots of attention from firms in Canada and overseas. However, partnering your cannabis operation with foreign investors comes with additional tax reporting requirements. IRS Form 5471 and Form 5472 are two such requirements that come with steep penalties if not filed accurately and on-time. A lot of foreign investors don’t know about these specific filing requirements. If you’re a cannabis entrepreneur with ties to the US market, make sure you avoid high fe ..read more

A new federal watchdog report says cannabis businesses owe vastly more in taxes to the federal government and more audits would uncover it. ​The owner of Uncle Ike’s cannabis dispensary in Seattle, Ian Eisenberg, sees a lot of would-be entrepreneurs enter the marketplace with lofty visions for how they want their business to look and operate.  Eisenberg told The Daily Beast in 2017 that he’d love for his own business to be configured more like a cannabis boutique with stations dedicated to concentrates, big-name growers, edibles, and more. But the exceptional tax burden faced by cannab ..read more

There are tons of articles out there detailing the cannabis licensing processes, the high valuations of cannabis companies, and the astronomical costs associated with getting started in this industry. As an entrepreneur new to this space, you may read blog posts and see videos about how licenses are probably one of the most expensive costs of the business.  Some even call cannabis business licenses the golden ticket to the industry. But in most cases, it couldn’t be further from the truth.   Our experts field plenty of phone calls from clients and prospective clients who are ..read more

An employee handbook, like any standard operating procedure (SOP), is useful for a variety of reasons. It can help you onboard new employees and train them on your company culture; it can create a common bond for cannabis dispensaries with multiple locations; and, worst-case scenario, it covers you in legal matters in the event you need to fire someone.  ​ What few cannabis operators know is that there are actually some tax advantages to having a well-thought-out employee handbook. Here are some ways that having a great employee handbook at your cannabis business can save you money. ​Be ..read more

Cannabis operators have been known to be incredibly creative in their quest to protect their cash and reduce their tax liability. From management company structures, packaging markup deals, and even multi-entity setups, we’ve seen it all.  But, there are instances where setting up a multi-entity structure can alleviate some of the tax burden caused by the 280E regulation. And let’s be honest, you want to be able to take some money out of your company and not get hammered on taxes at a personal level too. In this article, we’ll walk you through an example of how a cannabis cultivation c ..read more

The cannabis market is kind of like the Wild West. As more states approve adult-use cannabis, companies are scrambling to adhere to regulations, be the first to reach new customers, and stake their claim in the market. In the process, many cannabis operators enter into vendor agreements or partnerships that may not serve them in the long-term.  Our experts frequently work with cannabis operators who are seeking to remedy – and, more likely, exit –  contracts that have gone sour. Here are your options if you’re stuck in a bad contract that doesn’t work for your cannabis busine ..read more

The cannabis market in California is expected to reach $5.1 billion in market value. As cannabis companies begin to grow and the industry becomes more mature, this sector looks more and more appealing, even to risk-averse investors. There are many investment opportunities still available; but how can investors evaluate which opportunities are winners and which are bad bets?  Our experts have a clear line into what an investor must evaluate before working with a cannabis operator. As the cannabis market stabilizes, here are the three main areas and some other factors to consider when i ..read more

Cannabis delivery is legal thanks to California’s new permanent regulations passed earlier this year.  The state-wide legislation makes it possible for cannabis operators to deliver to a customer, even when they live in a municipality that prohibits cannabis. Non-storefront delivery companies are able to serve these “cannabis deserts,” adding a lucrative new revenue stream to their business.  Adding delivery and online shopping can be a great way to reach new customers, increase your revenue, and build your business. But, it’s important to price your delivery servic ..read more