OUR STORY
Redbud Advisors LLC is an accounting firm whose staff has many years of experience servicing small business owners and helping them minimize their tax loads and providing tax planning, consulting and bookkeeping. Redbud Advisors LLC exclusively serves the cannabis industry and provides professional services that will enhance your compliance, transparency and accountability. We don’t view our services as a cost to you, but as a value added. Our goal with every client is to keep them in compliance while saving you time and money.
We know accounting and tax and we know cannabis.
OUR SERVICES
Marijuana is legal in your state, but still illegal on the federal level. This has created an unusual culture where the potential profits are high, but the risk is also very high.
The IRS is a Federal Agency, and to them, cannabis entities are operating an illegal business. They have set the tax code to specifically stack the deck against your company. Every other type of business can deduct ordinary and necessary business expenses, however, cannabis companies cannot! The only allowable REDUCTION of income is Cost of Goods Sold (COGS).
With no firm guidance from the regulatory boards, most established CPAs and accounting firms are not interested in servicing the market. While many of the ones that are getting in are not fully versed in the nuances and enormous requirements that faces these businesses. This is potentially creating a world of trouble with the IRS and the law for their cannabis clients.
STRATEGIES
You will have year round access to accounting professionals specializing in cannabis business tax code. We can provide and teach regulatory compliance and accounting strategies to limit your exposure to IRC Section 280E. This will keep more money in your pocket and less likely to lose in an audit.
DEDUCTIONS
Ganja-prenuers are faced with the most unfriendly tax code. The IRS doesn’t allow ordinary and necessary business expenses in this industry, but does for every other business! The only allowable deduction is for costs of goods sold. We know how to strategically account for your expenses to maximize cost of goods sold.
CORPORATE STRUCTURE
Splitting your business up into several companies could be an effective legal strategy, but that doesn't necessarily mean tax savings. We can work with your existing business model or we can refer you to a cannabis attorney who can help set up your organization to minimize exposure.
BOOKKEEPING
Save more time to focus on what you love doing by outsourcing bookkeeping and payroll. You’ll know that you have accurate, auditor and investor ready financial statements.
What exactly is Cost of Goods Sold?
This download will provide you with a solid understanding of the three major tax codes that implicate cannabis business owners.
You will be provided with specific examples of:
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Indirect costs
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Direct costs
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What you can do to minimize the effects of IRC 280E