Three entities and one checking account is never a good idea. Especially in cannabis.
That's what I found when I opened a new cannabis client's books, and what made it worth writing about is that the structure itself was right. An attorney had built it. Property sat in one entity, the licensed dispensary in another, and an ancillary entity handled online merch so the payment processing stayed clean. It was exactly what I'd have told them to do.
Let me back up, because how a correct structure ends up operating like that is the part worth talking about.
This is such an important topic that I wanted to make sure to cover it on Your Numbers Are Talking.
Some of the key takeaways / things to watch for are:
1. A correct legal structure only protects you if you actually operate inside it.
2. Clean books and defensible books are not the same thing.
3. Setting up the right structure is a one-time act. Operating inside it is a practice with no finish line.
Want to get the full details? Head here to read up.
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Your Number are Talking is my LinkedIn Newsletter, published 2x a month, where I share some of the most important things I wish business owners knew about along with real-world scenarios I see.
Your Numbers are Always Talking… but do you know what they’re saying?That’s exactly what I break down.