Multi-Entity Accounting & Tax

Most serious cannabis operators end up with more than one entity — an operating company, a real estate holding company, a management company, maybe a brand or IP entity, sometimes licenses in several states. Done right, the structure legitimately reduces 280E exposure and isolates risk. Done wrong, it's a pile of intercompany transactions no one documented, books that can't be consolidated, and a structure that collapses under examination. We build and run the right version.

Structure with substance

The Tax Court has been clear: multi-entity cannabis structures survive when the entities are real — market-rate leases and fees, written agreements, separate books and bank accounts, services actually performed. We design structures to that standard and, just as importantly, decline to paper fictions. The difference is everything: one is planning, the other is a penalty case.

The accounting layer nobody budgets for

Every entity needs its own clean books, and the group needs eliminated, consolidated reporting so owners can see the true picture. Intercompany balances must reconcile month to month — matching payables and receivables, documented transfers, no mystery due-to/due-from balances growing quietly. We run monthly closes across the group as one process, so every entity's books agree with every other's.

Coordinated returns

Multiple entities mean multiple returns that must tell one consistent story: intercompany charges deducted in one place and recognized in another, allocations that match the written agreements, and owner K-1s and basis tracked across the whole group. One preparer across all entities isn't a convenience — it's how the story stays straight.

Common questions