Discover How Northstar Financial Can Help Your Cannabis Company
By disallowing deductions such as employee wages, rent, and office space, the federal government has imposed an effective tax rate on cannabis companies that’s 350% higher than any other businesses. We can help.
Structure your business for tax savings
During our initial consultation, we will evaluate your business structure to determine its impact on your tax liability under 280E. By selecting the best structure for your company, you’ll avoid paying tax on “phantom income” while staying fully compliant.
When you choose Northstar, you will minimize the detrimental impact of 280E:
- We’ve saved clients over $30 million in taxes with our 280E optimization strategies.
- We have a 100% penalty-free success rate with IRS audits.
- Using our 280E tax strategies, our cannabis clients save an average of 6% of their annual revenues.
Other tax considerations include:
EXEMPTION FOR COST OF GOODS SOLD
280E includes an exemption that allows growers and dispensaries to curb their tax liability. This “COGS” exception lets you deduct expenses that are directly related to production.
REFUNDS FOR LOSS AND THEFT
If you’ve paid cannabis excise tax to your distributor and your product was stolen, you may be eligible for a tax refund or a deduction.
ACCOUNTING FOR EVERY WORKER
Your team members may have different employee classifications. Without proper tracking, you could face serious fines and forfeit significant tax savings.
ALIGNING WITH EXCISE TAXES
Unless you maintain total transparency and conduct proper excise-tax collection, you may face stiff penalties for noncompliance.