IRS 280e Tax Code Impact on a Cannabis Financial Model


IRC-280E really reduces the profitability of cannabis dispensaries. The cannabis businesses are allowed to deduct the cost of goods sold (COGS) from gross receipts under IRC 280E. Most cannabis entrepreneurs or operators face financial hurdles when it comes to defining the complex structure of  “280E” and its impact on the taxes of the cannabis business. […]

How to read a cash flow statement

How to read a cash flow statement

Knowing how to read and interpret a cash flow statement may help you extract valuable information about a company’s financial health, whether you’re a working professional, business owner, entrepreneur, or investor. Is your cash balance higher or lower than it was a year ago? What caused it to rise in the first place, and why […]

Cannabis Real Estate

Cannabis and Real Estate

Marijuana for medical and recreational purposes has skyrocketed in recent years. Despite the plant’s status as a Schedule I substance under federal law, the legal marijuana business in the United States was valued at $13.6 billion in 2019, according to New Frontier Data, with 340,000 employees dedicated to plant handling. Further, the global legal marijuana industry size […]

How to Make Financial Projections for your Cannabis Dispensary

How to Make Financial Projections for your Cannabis Dispensary

Financial Data and Cannabis Business plans The innovative Financial Dispensary Models in cannabis are essential for business success. This particular industry is dynamic in nature, and the apt projections can make it smoother to navigate. It is vital for businesses to utilize a financial forecast in the right manner.  The cannabis sector is one of […]

Illinois Cannabis Lottery – How to calculate the odds of winning multiple licenses.

Illinois Cannabis Lottery

Illinois Cannabis Lottery – How to calculate the odds of winning multiple licenses. Starting 2020, Illinois became the 11th state to legalize recreational cannabis, letting adults 21 years or older buy cannabis from medical dispensaries while applicants prepared their applications to obtain an adult-use cannabis license. In this sense, the state established a system in […]

Cannabis Licenses and Due Process Protection

Cannabis Licenses and Due Process Protection A cannabis license is a legal document that allows the licensee to engage in business in the legal cannabis industry of the state for which the license was granted. Nowadays, such licenses are a highly valued commodity, with application fees costing tens of thousands of dollars, and in some […]

What are valuation caps?

Valuation Caps

A valuation cap is a term of a convertible note or a SAFE. It is also a great way to attract investors to any startup, providing them with an incentive to invest. Starting a successful financing round for your business will expose you to a slew of new terms. It is essential that you grasp […]

How to add a new member to an LLC

How to add a member to an LLC

Generally speaking, to add a new member to any LLC, you must first follow the operating agreement (“OA”) or the state law regarding LLCs. Though there are some additional things to take into consideration before adding a new a new business partner to your multi-member LLC. Most OAs lay out how to add a new […]

Subscription Agreements

Subscription Agreements

A subscription agreement is an investor’s request to become a member of a limited partnership (LP). It also serves as a two-way warranty between a corporation and a new shareholder (subscriber). The company intends to sell a specific number of shares at a fixed price in exchange for the subscriber’s promise to buy the shares at […]

Stock Warrant Purchase Agreements

Stock warrant purchase agreements

Stock Warrant Purchase Agreements What is a stock warrant? According to Investopedia, warrants are derivatives that give the right -but not the obligation- to buy or sell a security at a certain price before expiration. The price at which the underlying security is sold is referred to as the exercise price or strike price. In […]

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