Money, Taxes & Banking

Cannabis banking relationships are continuously underwritten. Banks review beneficial ownership disclosures, deposit patterns, regulatory history, and internal control systems. This page explains how ownership transparency, revenue consistency, compliance records, and bookkeeping strength influence a dispensary’s risk rating and banking stability.

IRS 280E prevents cannabis businesses from deducting normal operating expenses, which inflates taxable income and increases effective tax rates. This page explains how dispensary taxes are calculated, why quarterly estimated payments are required, how to determine a weekly tax set aside, and the common mistakes that create cash flow crises.

This page explains how the cash cycle operates for licensed adult-use dispensaries in New York State. It details the 30-day credit payment requirement under 9 NYCRR §124.2, how delinquent payment reporting and the C.O.D. list function, why revenue does not equal available cash, and how inventory velocity and operating expenses affect compliance risk.

Federal law continues to regulate critical aspects of cannabis business operations, even in states where cannabis is legal. This section explains how Schedule I status, IRS tax rules (280E), federal banking compliance, ADA accessibility requirements, FTC advertising standards, OSHA workplace rules, payment processing restrictions, and other federal frameworks affect New York cannabis operators on a daily basis.

Most NY dispensaries underestimate working capital. This page shows how to calculate the real number using payroll, inventory cycles, taxes, and volatility.

Reordering too early traps cash. Reordering too late loses sales. This page shows how to set reorder timing using sales velocity, lead time, and the 30 day NY wholesale credit window so you stay in stock without creating a payment crisis.

Cash management is not just a security issue. Banks monitor pickup frequency, vault balances, reconciliation patterns, and armored transport contracts. This page explains what they look for and how to avoid red flags.

Cannabis businesses face elevated tax, banking, regulatory, and litigation risk. This page explains what an LLC protects, when personal assets can still be exposed, how liability spreads when all assets sit in one entity, and how layered operating, real estate, and holding company structures are used to reduce risk in regulated cannabis markets.

IRS Section 280E prevents cannabis businesses from deducting ordinary operating expenses because cannabis remains Schedule I under federal law. This page explains what can be deducted, how taxable income is calculated, and why dispensaries often pay federal tax on gross profit rather than true net income.