Choosing an entity type under 280E constraints
S-corporations, C-corporations and partnerships each interact differently with Section 280E's disallowed-deduction mechanics, and the right choice depends on your ownership structure, profitability profile and long-term exit plans. We model the after-tax outcome under each entity type before you file organizational documents, since converting entity types after MED licensing adds unnecessary complexity and cost.
Structuring around MED's ownership disclosure requirements
Colorado's marijuana licensing framework requires disclosure of owners and, in many cases, individuals or entities with a financial interest in the license. We build ownership structures that satisfy MED's transparency requirements while still accomplishing your goals around liability protection, estate planning and investor participation, coordinating directly with your cannabis attorney throughout the process.
Separating plant-touching and non-plant-touching operations
For operators who also generate revenue from non-plant-touching activities — consulting, branding, equipment leasing or real estate — a properly documented separate entity can keep that income and its associated deductions outside the reach of Section 280E. We build and price these arrangements at arm's length so the structure withstands scrutiny rather than reading as a shell designed purely to dodge 280E.
Structuring for MED's ownership disclosure rules
Colorado's ownership and financial-interest disclosure requirements mean your entity structure has to satisfy MED's transparency rules while still achieving the tax and liability protection goals of your ownership group. We coordinate structuring decisions with your cannabis attorney so both objectives are met without conflicting.
