Overview
Cannabis is one of the most highly regulated consumer goods in the world and keeping up with the rapidly changing legal and regulatory landscape can prevent your company from focusing on product development and running a successful business.
KOLA’s team of experienced professionals includes legal, accounting and business executives who will help guide you through the maze of regulatory requirements governing your business. Whether you’re just starting out and looking for a state license or an existing company trying to manage the regulatory and compliance chaos, KOLA can help solve your problems.
Tax & Accounting Plans
The cannabis industry is highly regulated by federal and state laws and cannabis in all forms is currently illegal under federal law. What this means is that a number of tax deductions otherwise available to traditional businesses are not available for cannabis companies. Under regulation 280E, the IRS disallows all business deductions other than the cost of goods sold so it’s critical to understand what deductions are allowed and the best method to maximize tax benefits. There are also a wide variety of state and local taxes applicable to all cannabis companies so establishing an effective tax and record-keeping system is essential for your business’s success. Our accounting professionals will work with you to analyze your business and structure a tax program that best suits your company while maintaining compliance with all state and federal requirements. We can also help provide audited financial statements which are usually required for the state licensing procedures.
License & Permit Applications
Kola will provide extensive details about the specific requirements for your company’s state cannabis license and prepare professional-quality applications and related materials for licenses and permits, develop company protocols for state required employee training programs, quality control, safety/security procedures and waste disposal plans that all must be submitted with state cannabis license applications.
Development of Banking Relationships
Very few companies in the cannabis industry know that the Department of Justice for the United States government has established specific banking guidelines through FinCEN for banks seeking to do business with cannabis companies. FinCEN is short for the Financial Crimes Enforcement Network which monitors illegal activity in federal banks and establishes guidelines for safe banking transactions.
Although the guidelines are somewhat cumbersome and confusing and the bank fees may be steep, it’s well worth the time and effort to establish a valuable long-term banking relationship with a federally insured bank. KOLA will explain the FinCEN requirements and develop a company-wide system to ensure compliance with all of the rules that have been set up by the DOJ.
Kola Partners will also work with you to identify and meet with bank representatives and to create a comprehensive system for ongoing reporting between you and the financial institution to help ensure a successful long-term working relationship.
Risk Management Programs & Insurance Coverage
The importance of developing a comprehensive risk management program is often overshadowed by the multitude of business and regulatory issues facing cannabis companies. A well-designed risk management program will not only help meet those requirements, but can also reduce the risk of every part of your business operations. Although there are different levels of consulting services, our most comprehensive risk management consulting involves examination of everything in your business from start to finish. This includes reviewing and improving your contracts and vendor agreements, analyzing and enhancing insurance coverage, creating workplace safety programs and personnel/sexual harassment training, point-of-sale and accountability procedures and compliance with state and local regulations. Once your potential risks have been identified, Kola Partners will work with you to minimize your exposure from these risks by developing an effective risk management program so that your company’s energies will be focused on creating a successful business enterprise.
Product & Brand Expansion
KOLA’s brand expansion program helps you find qualified partners in other states where cannabis is legal who are interested in licensing the rights to manufacture your product for a licensing fee and royalty payments from sales revenue related to your product. We’ll analyze your product for brand expansion potential, evaluate your intellectual property rights, locate qualified partners who meet our thorough due diligence requirements and help with licensing and royalty agreements to make your expansion as easy and successful as possible.
Loyalty & Reward Programs
One of the new and emerging trends in the cannabis industry is the implementation of loyalty and reward programs to increase customer retention and improve sales revenue. By using extensive data and analytics to determine the best program for your business, our professionals will design a loyalty program that is both effective and compliant with your state’s legal requirements. Examples include cash back programs, discount cards, points for purchase and customer referrals, check-in bonus points, gift vouchers, free gifts, targeted product messages and a variety of innovative methods to enhance your customer’s experience and keep them coming back to your business.
Regulatory Compliance
Working with your company to help you and your management team understand all of the legal requirements for your business, develop a regulatory compliance plan and training program for employees, monitor new and proposed legal changes impacting your business and assist your companies response to regulatory infractions and proceedings.