Cannabis Services

Cannabis Business Entity Formation and Startup

Cendrowski Corporate Advisors can help cannabis businesses with entity selection and company formation, critical decisions from both legal and tax planning perspectives.

In just one example of how important those decisions are, each license is exclusive to the licensee in Michigan, and conveyance of interest of more than 1% is prohibited without prior board approval. It is essential to determine the license ownership upfront, as changes down the road require additional regulatory scrutiny.

The Medical Marijuana Facility Licensing Act (MMFLA) and the Michigan Department of Licensing and Regulatory Affairs (LARA) require licensees to develop and maintain accounting and inventory control systems specific to the state’s regulations. Depending on the type and size of the business, these might be reasonably simple, or they could be more complex.

Accounting Procedures and Systems for Cannabis Sales

For startup entities, Cendrowski Corporate Advisors can provide the basic building blocks to set up and organize the business, including monthly checklists, accounting procedures, and templates for an accounting system. We can access critical information to inform decisions related to the initial application, accounting, and tax return preparation in the future, including 280E considerations.

Cannabis Product Inventory Control Procedures

For cannabis businesses, the state of Michigan requires a third-party inventory control system that can interface with the statewide monitoring system. Cendrowski Corporate Advisors can help develop these procedures to ensure inventory data is accurately captured for compliant reporting to the state.

John Alfonsi to Speak at Sept. 28, 2022 Strafford Live Webinar on Capital Accounts

CCA’s John Alfonsi will speak at the upcoming Strafford live webinar, “Capital Accounts: 704(b) vs. GAAP vs. Tax Basis, Comparing and Contrasting Annual Allocations,” on Wednesday, September 28, 2022 from 1:00 pm-2:50 pm EDT. Properly maintaining partners’ capital accounts may be the most critical aspect of partnership taxation. Among some of the topics covered will […]

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Are gifts for clients tax deductible?

Tax specialist Catherine Raker answers the question: Are gifts for clients tax deductible? Transcript: Dave Lorenzo: And now it’s time for another Cendrowski Business Minute. With us today, we have Catherine Raker. So Catherine, are gifts for clients tax deductible? Catherine Raker: Well, like everything, there’s an exception and there’s a rule. The maximum limit […]

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John Alfonsi Moderates Pre-Sale Estate and Wealth Planning Panel

At the 2021 Smart Business Dealmaker’s Conference in Chicago, John Alfonsi moderated a discussion titled, “The Complexity of Pre-Sale Estate and Wealth Planning.” Participants on the panel include Pitcairn’s Andy Busser and Mark Petrosky of DP+. “You’ve decided to sell your company, you’ve grown this baby, you’ve nurtured it, now’s the time to sell,” said […]

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