Money, Taxes & Banking

This page explains how IRS 280E blocks normal expense deductions, inflates taxable income, increases tax bills, and impacts your dispensary’s cash flow and banking stability.

A commercial insurance lapse in New York creates an immediate coverage gap. This page explains how cancellation for nonpayment works under NY law, what a lapse means for claims, leases, and OCM compliance, and what to do immediately to prevent uninsured exposure.

Inventory looks like growth on your menu and your balance sheet, but it is cash you cannot use. When product sits too long, overbuys pile up, or SKUs multiply without turnover, your bank account shrinks even if revenue stays strong. This page explains how inventory traps liquidity, how to measure turnover and days on hand, and how to control purchasing before it becomes a cash crisis.

This section explains the License to Launch phase that begins after OCM issues proximity protection. It clarifies the difference between provisional and final licensure and outlines the required sequence before opening, including buildout approval, security installation, ADA compliance, document submission, inspection, and final license issuance. Most opening delays occur in this phase if requirements are incomplete or inconsistent.

In New York cannabis retail, your lease can expose you to more risk than regulators do. Indemnification clauses shift liability to you. Landlords often require higher limits than OCM mandates. Insurance does not automatically override contract language. This page explains how lease risk transfer works and how to prevent signing a clause that bankrupts you.

New York cannabis retailers must collect and file both state sales tax and cannabis excise tax through the Department of Taxation and Finance (DTF). This page explains registration requirements, filing deadlines, POS and inventory reconciliation expectations, recordkeeping standards, and how mismatches trigger audits and penalties.

The OCM C.O.D. (Cash on Delivery) List is an enforcement tool that restricts retailers with unpaid invoices from purchasing cannabis on credit. This page explains how delinquent payments are reported, how C.O.D. status affects wholesale transactions, how suppliers submit resolutions, and how retailers are removed from the list.

New York dispensary owners can fund their business in only two clean ways: as a capital contribution or as a documented loan. This page explains how each structure works, how repayment is treated, how banks and the IRS view owner transfers, and the documentation operators need to avoid audit, banking, and ownership risk.

Cannabis dispensaries that accept debit cards must comply with PCI DSS payment security standards. This page explains when PCI applies, required POS and network safeguards, cardholder data handling rules, physical device inspection requirements, and the financial and operational risks of noncompliance.