Human Resources
Our process inherently accounts for diversity and inclusion by establishing your policies and procedures to increase employee engagement and productivity while satisfying Equal Employment Opportunity (EEO) requirements.
We do this through:
- Leveraging our track record of successful diversity recruiting for fortune 100 companies
- Having leadership programs and development opportunities that are intentionally cross cultural and cross functional.
- Setting KPIs that align the diversity strategy with your corporate strategy.
Accounting
Developing and managing your accounting practices based upon IRS section 280E is important when establishing a business in the cannabis industry. The following is a simplified example of its impact:
- Sec. 280E, was established well before any states legalized marijuana, prohibits the deduction of expenses incurred in a business of trafficking in a controlled substance; therefore, the businesses selling marijuana generally cannot deduct their expenses. However, this prohibition does not apply to deductions for costs of goods sold. The complexity occurs when considering indirect costs for producers and resellers (retail) can only deduct cost related to taking possession of product (Ex. Transportation).
|
Average Business |
Cannabis Business |
| Gross Revenue |
$2,000,000 |
$2,000,000 |
| Cost of Goods Sold |
$1,300,000 |
$1,300,000 |
| Gross Income |
$700,000 |
$700,000 |
| Deductible Business Expenses |
$400,000 |
$0 |
| Taxable Income |
$300,000 |
$700,000 |
| Tax Rate (30%) |
$90,000 |
$210,000 |
| Effective Tax Rate |
30% |
70% |
