Financial Operations Insights, Guides, and Tools

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Pass-Through Entities in the Cannabis Industry: Structure Smart, Stay Compliant, and Save on Taxes
Cannabis & 280E Kate Dymedenko Cannabis & 280E Kate Dymedenko

Pass-Through Entities in the Cannabis Industry: Structure Smart, Stay Compliant, and Save on Taxes

Structuring a cannabis business as a pass-through entity is—at least on the surface—an excellent way to reduce the tax burden for cannabis businesses. When a company is structured this way, it is not subject to federal income tax as the tax burden is passed on to the owners, who report the income on their personal returns and pay the applicable taxes, avoiding double taxation. 

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What a Sample Cost Segregation Report Looks Like—and Why It Could Save Your Cannabis Business Thousands
Cannabis & 280E Kate Dymedenko Cannabis & 280E Kate Dymedenko

What a Sample Cost Segregation Report Looks Like—and Why It Could Save Your Cannabis Business Thousands

Cannabis businesses are constantly challenged by federal and state tax laws that limit business deductions and over-inflate taxable revenue. Cost segregation is a tax-planning strategy that enables any cannabis business that has purchased new real property or has expanded or remodeled existing real estate to reduce taxes, increase cash flow, and accelerate depreciation, effectively deferring federal and state taxes payable. 

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High-Level Guidance: How Cannabis Business Coaching Can Elevate Your Operation and Your Profits
Cannabis & 280E Kate Dymedenko Cannabis & 280E Kate Dymedenko

High-Level Guidance: How Cannabis Business Coaching Can Elevate Your Operation and Your Profits

If you are thinking about launching a cannabis business—or looking for ways to improve your current operations—cannabis business coaching can help you in many ways. Coaching delivers niche expertise and insight into what makes a cannabusiness profitable, helping you develop the mindset and best practices you need to succeed. 

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Dispensary Bookkeeping Done Right: Stay Compliant, Maximize Deductions, and Know Your Numbers
Cannabis & 280E Kate Dymedenko Cannabis & 280E Kate Dymedenko

Dispensary Bookkeeping Done Right: Stay Compliant, Maximize Deductions, and Know Your Numbers

The cannabis business may be booming, but profits are always tight—thanks in no small part to the rigors of IRC 280E. Despite cannabis’s legal status in almost every state, it is still classified as an illegal substance, meaning that cannabis companies can’t deduct “normal” business expenses, like payroll, security, and marketing—virtually any expense that can’t be attributed to cost of goods sold (COGS). 

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Cannabis Accounting 101: How to Stay Compliant, Reduce Risk, and Maximize Profits
Cannabis & 280E Kate Dymedenko Cannabis & 280E Kate Dymedenko

Cannabis Accounting 101: How to Stay Compliant, Reduce Risk, and Maximize Profits

Cannabis operators are challenged at every turn. Regulatory and tax compliance are essential to business continuity, but stringent requirements often come at a cost. Considering the limitations placed upon the industry by IRC 280E, which prevents cannabis businesses from deducting even the most basic business expenses at the federal level, margins are tight (a gross understatement). To ensure success in this challenging environment, operators must apply diligence with their accounting to stay compliant, minimize risk, and maximize profits.

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A Local Guide to Southern California Cannabis Taxes: What LA, San Diego, and Riverside Dispensaries Need to Know
Cannabis & 280E Kate Dymedenko Cannabis & 280E Kate Dymedenko

A Local Guide to Southern California Cannabis Taxes: What LA, San Diego, and Riverside Dispensaries Need to Know

Cannabis dispensaries in Southern California have unique tax concerns. In addition to federal taxes and the onerous burdens of IRC 280E, they must maintain separate accounting for state taxes to maximize deductions, while adhering to local cannabis tax legislation that varies significantly from jurisdiction to jurisdiction. Today, we’ll discuss California cannabis taxes, with a particular focus on Los Angeles, San Diego, and Riverside dispensaries, and how local retail taxes can impact their accounting.

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Choosing the Right Business Structure: A New York CPA’s Guide for Cannabis Entrepreneurs 
Cannabis & 280E Kate Dymedenko Cannabis & 280E Kate Dymedenko

Choosing the Right Business Structure: A New York CPA’s Guide for Cannabis Entrepreneurs 

The cannabis industry in New York is both challenging and rewarding. Startup costs can be high, but choosing the proper business structure strategically can be the key to maximizing profitability, reducing your tax burden, and streamlining operations. In this guide, we’ll explore what cannabis entrepreneurs and their financial teams need to know about structuring a business for success in New York State.

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