Deep Dive Into Cannabis Legal Entity Selection

Cannabis Legal Entity Selection: Navigating Compliance and Optimizing Structure

Choosing the right legal entity for a cannabis business can be the difference between success and costly mistakes. Join us for a deep dive into Cannabis Legal Entity Selection, a critical decision that affects taxation, liability, compliance, and business growth in the cannabis industry.

We’re going LIVE on Thursday, May 19th at 4 PM PT for an insightful discussion tailored specifically to cannabis accounting professionals and advisors. Whether you’re helping clients launch a cannabis startup or advising established operators, this session will equip you with the tools to guide them through the complex process of entity selection.

Why Cannabis Legal Entity Selection Matters

Entity selection is not just a box to check—it’s one of the most strategic decisions cannabis entrepreneurs will make. Cannabis businesses operate in a highly regulated and federally restricted environment, and each legal structure brings its own set of pros, cons, and tax implications.

This webinar will demystify the process of Cannabis Legal Entity Selection and explain why entity choice plays a pivotal role in long-term compliance and profitability.

What You’ll Learn in This Session

We’re diving deep into the nuances of selecting the right legal entity for cannabis businesses. Here’s what we’ll cover:

1. How to Assist Clients and Attorneys with Entity Selection

Understand the role of accountants in supporting entity selection alongside legal counsel. We’ll explore how to interpret the implications of each entity type and how to communicate risks and benefits clearly to your cannabis clients.

2. How IRC Section 280E Impacts Cannabis Legal Entity Selection

IRC Section 280E is one of the most important—and challenging—considerations when it comes to Cannabis Legal Entity Selection. This section of the tax code disallows deductions for ordinary business expenses for cannabis companies due to federal illegality. We’ll unpack how different entities are impacted and how to mitigate exposure.

3. Entity Characteristics Affected by 280E

Each legal structure—from sole proprietorships to C corporations—has unique characteristics that interact differently with 280E. We’ll help you identify the key characteristics that can impact compliance, tax liability, and audit risk, including:

• Flow-through taxation vs. double taxation

• Owner liability

• Ability to raise capital

• Deductions and credits limitations under 280E

4. Risks and Uncertainties of Cannabis Entity Types

There’s no one-size-fits-all when it comes to Cannabis Legal Entity Selection. We’ll explore the legal, tax, and financial uncertainties that come with different structures and how to factor in state-specific regulations and business models when making a recommendation.

Who Should Attend?

This live session is designed for:

• Accountants and tax professionals working with cannabis clients

• Cannabis business consultants

• Legal professionals seeking to collaborate with accountants on entity structures

• Cannabis entrepreneurs looking to make informed decisions about their business setup

Whether you’re new to the industry or already working with cannabis clients, this training will deepen your understanding of how entity selection can support strategic planning and reduce regulatory exposure.

Key Takeaways

By the end of this session, you’ll be able to:

• Confidently explain the pros and cons of each entity type for cannabis businesses

• Identify how IRC 280E affects different structures

• Collaborate effectively with attorneys on Cannabis Legal Entity Selection

• Recognize warning signs and risks associated with poor entity choices

This Training Qualifies for CPE Credits

LEARNING OBJECTIVES: Deep Dive Into Cannabis Legal Entity Selection

INSTRUCTIONAL DELIVERY METHOD: Group Internet Based

RECOMMENDED CPE CREDIT: 1 hour

FIELD OF STUDY: Specialized Knowledge

PROGRAM LEVEL: Basic

ADVANCED PREPARATION: None

PREREQUISITES: Accounting professional (CPA not required)

FEE: None*

Green Leaf CFO, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

*For more information regarding administrative policies, refund information, or any other feedback, please contact us at naomi@greenleafcfo.com.

Presented by:

Brian Whalen, CPA & Steven Berley, CPA

Brian Whalen, CPA

Tattooed and occasionally cursing like a sailor (he was a sailor in the Nuclear Navy), Brian is not your typical CPA. He has no problem serving Cannabis Entrepreneurs; it’s his calling. Corporate America’s competitive advantage lies within their finance and accounting functions. Green Bean CFO was founded to level the playing field for established cannabis businesses and newcomers alike by providing an affordable finance/accounting department. We help you navigate the corporate landscape, survive IRS audits, maintain compliance with state regulators and absolutely minimize the taxes that cannabis touching businesses pay under the punitive §280E tax law. We help you grow your profits!

Steven Berley, CPA

Steven Berley is a licensed CPA and MBA with over 20 years of accounting and finance experience in major corporations to cannabis companies worldwide. Steven has published books, via Amazon, on commodity risk management and financial risk management systems (type ‘Steven Berley’ in Amazon) and has authored audit articles in IIA .In his rare spare time, Steven can be found in the backcountry of Oregon, Colorado and California.