When Maryland Gov. Wes Moore signed a law on April 22 exempting employee stock ownership plans (ESOPs) from the state’s strict five-year license-hold requirement for cannabis businesses, he opened up an exit strategy for founders.
He also created a strategy that enables marijuana companies to bypass Section 280e of the Internal Revenue Code.
ESOPs are a tool that cannabis businesses in other states have been taking advantage of since about 2023, when Massachusetts-based Theory Wellness put its program into place. Another Massachusetts cannabis company, The Vault, followed a few days later.
“An ESOP is just another way to sell your company,” said Darren Gleeman, managing partner of New York-headquartered ESOP investment bank MBO Ventures, who worked with both companies on their deals. You can sell to a private equity firm, a strategic buyer or to employees via an ESOP.”
This article was originally published on MJBiz Daily, click here to continue reading.
The post How Cannabis Businesses are Using Employee Stock Ownership Plans to Avoid 280e Tax appeared first on Business of Cannabis.
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He also created a strategy that enables marijuana companies to bypass Section 280e of the Internal Revenue Code.
ESOPs are a tool that cannabis businesses in other states have been taking advantage of since about 2023, when Massachusetts-based Theory Wellness put its program into place. Another Massachusetts cannabis company, The Vault, followed a few days later.
“An ESOP is just another way to sell your company,” said Darren Gleeman, managing partner of New York-headquartered ESOP investment bank MBO Ventures, who worked with both companies on their deals. You can sell to a private equity firm, a strategic buyer or to employees via an ESOP.”
This article was originally published on MJBiz Daily, click here to continue reading.
The post How Cannabis Businesses are Using Employee Stock Ownership Plans to Avoid 280e Tax appeared first on Business of Cannabis.
Continue reading...
