The State of Independent Contractors after Dynamex and AB5: Where do we go from here?
Independent contractors are a beneficial tool for companies, especially new or growing organizations that are not yet equipped to manage employees. However, recent rulings and the legislature have severely restricted the ability to properly classify workers as independent contractors in California. Companies are encouraged to seek legal advice for any independent contractor relationships. Because independent […]
Your Cannabis Business – What to Look For in a Management Agreement
As with any other industry, owners of licensed cannabis businesses often determine that their limited time and resources require utilizing the services of an experienced third-party management company to maximize the profitability of a business. This is particularly true when owners decide to expand their businesses by obtaining additional locations and/or license types to maximize […]
Can You Save On Income Tax? (And Other Taxes Too!)
Written by Abraham Finberg CPA and Simon Menkes CPA As most people in the industry already know, due to Internal Revenue Code (IRC) 280E, cannabis businesses may only reduce their income with cost of goods sold (the cost of the product) to lower gross profit and save on taxes. Most tax planning involves legally increasing […]
Navigating the BCC’s “Change of Ownership” Rules
In The Art of Selling a Cannabis Business, we covered how to address some of the hurdles involved in selling a cannabis business. Arguably the single most important hurdle is complying with “change of ownership” rules. Indeed, navigating the convoluted “change of ownership” rules under the Bureau of Cannabis Control (BCC) can make or break a deal. […]
The Art of Selling a Cannabis Business: Top 3 Tips on How to Prepare
“By failing to prepare, you are preparing to fail.” Benjamin Franklin Selling a licensed cannabis business is by no means a simple feat – it’s a science and an art. Due to the industry’s legal and regulatory baggage, the process of selling a cannabis business can be difficult and challenging, so preparation is critical. If […]
Tax Issues Surrounding Arm’s Length vs. Non-arm’s Length Transactions
Written By Simon Menkes CPA and Abraham Finberg CPA When we meet non-cannabis people at Hollywood parties and they find out the industry we serve, their reactions are pretty typical: “Do you get free weed?” and “Can you explain that 280E law? It’s so confusing!” While we just smile at the first question, those of […]
Cannabis Leases: Top 10 Things to Consider
There’s no such thing as a “basic” cannabis contract — and commercial cannabis leases are no exception. Unlike with standard commercial leases, cannabis landlords and tenants must navigate the inconsistencies (indeed, outright conflict) between federal and state law, the complexities of state and local laws and regulations, and unpredictable licensing timelines. With that said, here […]
THE (CANNABIS) CLONE WARS
By Abraham Finberg CPA and Simon Menkes CPA “A long time ago, in a galaxy far, far away …” It is a time of civil war, and the REBEL CANNABIS BUSINESS OWNERS are fighting battles on all fronts with the STORMTROOPERS from the federal, state, and local TAX AUTHORITIES. This article is about one such […]