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Keep your cannabis compliance in motion

Top action steps Ways we can help Industry insights Work with us
Top action steps Ways we can help Industry insights Work with us
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Top action steps Ways we can help Industry insights Work with us
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Top action steps Ways we can help Industry insights Work with us

Adopt a balanced approach to overcome cannabis compliance challenges

You’re trying to grow your cannabis business, yet regulatory compliance issues pull you away, consuming tremendous time and resources. How can you find balance?

Cannabis compliance isn’t getting any easier, even as the industry matures and grows. Your business must navigate complex federal and state tax laws, seed-to-sale tracking, and a multitude of other rules, cannabis regulations, and licensing requirements that can change in an instant. If you’re looking for support, you’re not alone. 
The effective tax rate on state-legal cannabis businesses under IRC Section 280E.

70%

The effective tax rate on state-legal cannabis businesses under IRC Section 280E.1


1Source: "IRC Section 280E: An Unjust Burden on State-Legal Cannabis Businesses," National Cannabis Industry Association.

Top action steps to stay ahead of cannabis compliance challenges 

Stay current on cannabis regulations and tax issues

Monitor industry and governmental news sources to keep up to date on cannabis regulations. Bookmark digital sources and check them regularly. Explore all the ways that regulatory changes could affect your cannabis business. 

Prioritize risk-management planning

Be proactive about cannabis risk management. Assess your organization’s risks – including shortcomings with your compliance processes – and incorporate risk-management strategies into your existing goals and plans. Determine KPIs and set up dashboards to monitor and report on progress. Understand what tools can help you automate these processes to make you more efficient. 

Invest in the right expertise 

Collaborate with tax or risk management specialists who are well versed in the latest guidance. They can save you time and help you avoid expensive errors with complex issues like Internal Revenue Code Section 280E. 
Monitor industry and governmental news sources to keep up to date on cannabis regulations. Bookmark digital sources and check them regularly. Explore all the ways that regulatory changes could affect your cannabis business. 
Be proactive about cannabis risk management. Assess your organization’s risks – including shortcomings with your compliance processes – and incorporate risk-management strategies into your existing goals and plans. Determine KPIs and set up dashboards to monitor and report on progress. Understand what tools can help you automate these processes to make you more efficient. 
Collaborate with tax or risk management specialists who are well versed in the latest guidance. They can save you time and help you avoid expensive errors with complex issues like Internal Revenue Code Section 280E. 

Help is here: Crowe services for cannabis companies

In an ever-changing regulatory environment, your cannabis business can access the expertise of the Crowe team. Our industry knowledge can help you maintain cannabis compliance through the following services: 


Tax services

Access our industry-recognized expertise and innovative tax technology solutions. Get help with entity structuring, transfer pricing, cost allocation, and transactions. Navigate local, state, federal (including IRC Section 280E), and international tax compliance. 

Risk and compliance consulting

Receive detailed assessments of your regulatory compliance risks, business and technology risks, internal controls, and SOX compliance. Work with Crowe to develop approaches and process improvements. 

Audit services

Maintain cannabis compliance and operational excellence with accurate financial reporting. Crowe audit and assurance specialists can objectively evaluate your organization’s risk of financial misstatement, whether due to error or fraud, and uncover valuable insights to help you assess your internal controls.

Work with cannabis industry leaders 

Learn more about the Crowe team’s risk-based approach and services for your cannabis business.  


View cannabis services

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Cannabis compliance questions? Reach out today  

The Crowe team is committed to helping you manage cannabis compliance, tax, and regulatory challenges. We understand the rapidly changing dynamics of the cannabis industry. Contact us today.

Marc A. Claybon
Principal, Tax
phone phone +1 303 831 5035 cancel mail
Mike Varney
Partner, Consulting
phone phone +1 216 623 7553 cancel mail

Qualified organizations only. Independence and regulatory restrictions may apply. Some firm services may not be available to all clients. Given the continued evolution and inconsistency of various state and federal cannabis-related laws, any company should seek competent legal advice relating to its involvement in the cannabis industry, including when considering a potential public offering as a cannabis-related company.