A normal tax profile in an abnormal industry
Ancillary companies generally deduct ordinary and necessary business expenses like any other Missouri business. Where ownership overlaps with a licensed operator, or where an arrangement resembles a share of cannabis revenue, that conclusion needs a documented analysis.
Customer credit is the main risk
Selling to cannabis operators means concentrating receivables among customers with high tax burdens and constrained capital. We help set credit policy, deposit requirements and collection procedures sized to that reality.
- Credit evaluation of licensed customers before terms are extended
- Deposit and progress billing structures for large orders
- Receivables aging and concentration monitoring
- Revenue recognition on multi-element and service contracts
Banking and payment processing
Even non-plant-touching companies encounter banking friction because of industry association. Choosing institutions and processors that knowingly serve the sector avoids account closures at inconvenient moments.
Real estate and equipment lessors
Landlords leasing to Missouri licensees, and lessors financing cultivation or extraction equipment, face specific questions around lease classification, tenant credit and property tax. We model those arrangements before the lease is signed.
Frequently asked questions
Does 280E apply to ancillary cannabis businesses?
Generally no, provided the business does not sell cannabis or share directly in cannabis revenue in a way that makes it a participant in the trade or business.
Why hire a cannabis-focused CPA if we are not plant-touching?
Because your customers' economics are unusual. Understanding how 280E constrains their cash directly improves credit, pricing and collection decisions.
