Category: Financial

The IRS is Looking

April 10th, 2017

Somewhere along the line, you made the difficult choice to become a part of the cannabis industry, which is fraught with risk of both criminal prosecution and excessive IRS scrutiny (read: disproportionate audit risk and huge tax rates). While we cannot predict what the current administration will do, we have…

Read More >

Three ways to reduce taxable income

April 4th, 2017

Taxes are one of many conflicts between state and federal laws pertaining to the cannabis industry. States that have legalized cannabis for medical or recreational use treat all business alike, allowing the same deductions and credits for business expenditures. Under federal tax laws, however, most cannabis-related businesses are prohibited from…

Read More >

Succession planning

March 1st, 2017

Most commercial cannabis businesses, whether they are “touching the flower” or providing ancillary services to the industry, are small, family-owned businesses. In this article, I hope to impress on small family business owners the importance of succession planning with four tips entrepreneurs should consider in succession plan development. Succession Planning…

Read More >

Weighing investments in an exploding industry

February 23rd, 2017

Early in 2016, industry leaders worried that too many marijuana ballot initiatives could spread resources too thin, leading to losses at the polls. November’s election, though, saw recreational or medicinal measures pass in eight of nine states. With multiple other states authorizing medical marijuana or new regulatory structures earlier in…

Read More >

Cannabis Industry Tax Tips

February 21st, 2017

Anybody involved in the cannabis industry has probably heard about Internal Revenue Code Section 280E, which was originally developed in response to a famous U.S. Tax Court case. Craig W. Smalley is the CEO and co-founder of CWSEAPA (www.cwseapa.com) and Tax Crisis Center (www.taxcrisiscenter.com), which both have locations in Florida,…

Read More >

Making a budget

January 23rd, 2017

After a bruising election season, most Americans are relieved it’s finally over. And if you listen carefully, you’ll hear the engines of business revving up, especially in the eight new legal cannabis markets. Cannabis growers in these states have been waiting with bated breath for new opportunities to expand their…

Read More >

Tip your budtender?

December 26th, 2016

    Tipping has always been a standard practice in the service industry. It allows customers to express gratitude to servers and rewards those who provide excellent service. And from an employer’s perspective, encouraging customer tipping is an excellent way to augment employees’ wages without incurring additional operating costs. But…

Read More >

A Greener Industry

December 2nd, 2016

It’s no secret that the cannabis industry is growing quicker than the plants themselves. As cultivation facilities develop and expand across the country, energy consumption in states like Colorado and California are on the rise. Keeping the cannabis industry green is a challenge in itself and it’s important for brands…

Read More >

Cannabis Business Valuations

November 23rd, 2016

Valuing a cannabis-related business would not be much different from valuing any other business except that this business is based on a product that is illegal to grow and sell under current federal law. How this challenge is dealt with in states that have legalized it is the focus of…

Read More >

The importance of paying taxes

November 2nd, 2016

  With the recent news that the IRS is going after Colorado cannabis companies, taxes should be at the forefront of every business owner’s agenda in order to help mitigate the risks of state or IRS tax audits. For marijuana businesses, the risk of an IRS audit comes with more…

Read More >