Cannabis Startup & Entity Formation Consulting in Michigan

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.

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UPREITs: Unique Real Estate Investment Structures

Real estate investors always seek opportunities to build, diversify, and maximize their property portfolios. One increasingly popular but complex structure – the UPREIT or umbrella partnership real estate investment trust – offers unique tax incentives for contributing property in exchange for ownership shares. But UPREITs require navigating intricate partnership agreements and tax considerations. This guide […]

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Key Components of Business Valuation: Exploring the Methods and Approaches

Business valuation is crucial for establishing deal terms and pricing during mergers, acquisitions, or capital-raising activities. An objective company valuation provides the foundation for negotiations. When selling a business, owners want to maximize the sale price while minimizing tax implications. For potential buyers, smart deal pricing is essential. Accurately valuing a company is essential for […]

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How To Calculate Business Valuation

Knowing your company’s worth provides critical insight for making strategic decisions and charting the optimal path forward. However, accurately valuing a business requires in-depth financial analysis using proven approaches. While quick online calculators can generate ballpark figures, serious leaders turn to the main valuation methodologies accepted by the finance community. Mastering these techniques helps set […]

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