The Cannabis industry takes many forms including medical marijuana, hemp, and CBD. Few industries have received the attention cannabis has in recent years, putting a spotlight on the range of attitudes about the famous plant. As Maine joins the growing number of states that have legalized recreational cannabis, it’s important for those in the industry contemplating a business expansion to get ready by selecting an advisor who can help them navigate the many and disparate state and federal laws.
How We Do It
ARB helps businesses in Maine and Massachusetts that are cultivating, packaging, distributing, or retailing cannabis products to navigate federal, state, and local compliance challenges, develop strategies and plans for the interaction between cost of goods sold and IRC Section 280E, and benefit from relevant tax incentives and credits. ARB assists in determining proper entity formations and helps clients stay ahead of changing technical accounting requirements. We also collaborate with attorneys, consultants, and bookkeepers who are experienced in this emerging market to provide our clients with the best services.
Utilizing effective inventory methods.
Maximizing allowable deductions under IRC Section 280E and minimizing tax liabilities.
Establishing and reviewing accounting systems to maximize profitability.
Collaborating with other professionals to determine which structure works best.
ARB Cannabis Industry Focus Areas
Marijuana: Dispensaries, businesses, and caregivers with marijuana inventories must remain vigilant to comply with local, state and federal laws. The shifting regulatory environment around marijuana allows for potentially significant profits for those willing to enter this high risk, high reward space. Limited options for banking means that accounting methods, internal controls, and operating procedures must be well thought-out and precisely applied.
Industrial Hemp: Industrial hemp has its own set of accounting challenges. Now legal under the 2018 Farm Bill, industrial hemp is better situated to compete with other more conventional businesses. Whether business owners are inexperienced, established, or simply investors, ARB is ready to be a guide in the emerging industrial hemp market.
CBD: Businesses selling CBD oil and CBD-infused products are quickly growing in popularity. Depending on the method of processing, proper tax treatment can vary. Whether hemp-derived or marijuana-derived, CBD companies must be aware of which accounting methods work best. Close attention to responsible business practices is increasingly important as Maine implements recreational marijuana.
How We're Helping Our Cannabis Company Clients
Business Tax Planning: We’re helping cannabis companies understand how to navigate IRC Section 280E such as implementing the method of inventory accounting.
Compliance: We ensure that businesses and individuals comply with federal, state and local tax regulations.
Entity Structure: Determine what type of entity structure would be most beneficial for a start-up, a second business, holding property and equipment or those investing in the industry.
Cannabis Advisory Services Team Leaders
Karla J. Brannen, CPA | Senior Tax Manager
Cannabis Advisory Services Team Leader
Karla Brannen has over 13 years of experience in public accounting. She specializes in tax compliance and planning and works with cannabis companies of all kinds, from hemp and CBD to marijuana. Karla provides services including entity selection, tax compliance, and consulting for cost accounting, banking methods, operating procedures, and changing state regulations.
Barton D. Haag , CPA | Principal
Cannabis Advisory Services Team Leader
Bart has over 22 years of experience in public accounting and provides services in the emerging market of cannabis. He provides industry insight, technical expertise, and state resources to help companies comply with changing regulations and develop their business to support rapid growth.