Our firm has held off on posting an official statement in response to COVID-19. Until late last week we were operating business as usual during tax time, with little time to spare for much else during the crunch that March and the first half of April always are. We know too that everyone was probably…
MMFLA CPA Attestations for Applicants and Operators – What to Know and How to Prepare Michigan’s Medical Marijuana Facilities Licensing Act (MMFLA) requires marijuana businesses to submit two types of CPA attestations. The first attestation focuses on the operator’s initial ability to meet stated capitalization requirements. The second acts as a monitoring tool for…
Hemp Accounting vs. Marijuana Accounting: What are the differences? Until recently, hemp and marijuana businesses generally applied similar accounting methods and assumptions. Both cannabis sativa, in general hemp plants have less than .3% THC and marijuana plants have more. Producing and selling industrial hemp is legal in the United States under the 2018 Farm…
Accounting Considerations for the Cannabis Industry Presented at the West Michigan Cannabis Expo on October 5th, 2019. See the presentation outline here: WMCE Presentation Operating in the cannabis industry requires considering many accounting issues and requirements. This presentation outlines a broad range of accounting considerations to plan for when operating a cannabis business…
Benefits of Working with a Professional Bookkeeper for your Cannabis Business Cannabis businesses should work with a professional bookkeeper and CPA who understand their industry niche thoroughly. Complex tax laws, state legislation, and increased scrutiny require successful companies place a high priority on applying accounting best practices. A professional bookkeeper specializing in the cannabis…
Social Equity, Opportunity and Strategic Tax Planning The below updates provide additional clarity on the considerations needed prior to investing in a QOF for a MRB. Entrepreneurs intending to operate an adult use (recreational) business under the Michigan Regulation and Taxation of Marijuana Act (MRTMA) may be able to combine features of the state’s…
Section 280E and The Marijuana Industry Section 280E & the Marijuana Industry: This presentation was originally presented at the Small Firm Practitioners Conference, hosted by the Michigan Association of CPAs on August 14, 2019. Learn about the application of Internal Revenue Code §280E for marijuana businesses and how costing for inventories under §471 effects…
Seed to Sale Inventory Management Software Considerations Cannabis businesses have countless options to choose from when selecting a seed to sale inventory management software. In states utilizing METRC, businesses can choose from just as many approved integrated software providers. With all of these options available, how do you choose what is best for your…
Business entity structure and tax considerations for a cannabis business. A common question when setting up a new business is what entity structure the business should be. Should it be an LLC? A Corporation? What other options are there and what are the differences between each one? A cannabis entrepreneur may have even more questions. …
This article was originally written for Marijuana Micro Business. Please visit MarijuanaMicroBusiness.com for more information. Are you considering operating a marijuana microbusiness under the Michigan Regulation and Taxation of Marihuana Act (MRTMA)? If so, having an understanding of financial and tax implications in this regulated industry is critical for success. Tax regulations, such as IRS…