Application

Application for a Cannabis business checking account

You are applying for a Cannabis Business Checking Account. We provide these special services for our customers and are very particular about the kinds of customers we accept. In the following we will ask you for specific information about you, your company and anyone that may play an important role in the day to day operations of your company.

Please read the following information so that you and others in your company that will be responsible for your banking relationship understand the importance of our relationship. This Cannabis business checking account application is designed to capture the information and data needed to measure the acceptability of the applicant.

IMPORTANT NOTE: In the following, please create one type of file for each submission request.

Do not perform multiple file submissions for each category. Multiple file submissions will force you to complete the contact fields over and over for each submission.

Here are instructions of how to create a single file type for uploading your documents in each category 1 through 7. When possible, upload the original continuous document such as a word file .doc, a excel file .xls or a pdf file .pdf.

HOW TO CREATE A SINGLE PDF FILE
1. For each category 1-7 begin by Scanning or taking a picture of each or your documents to be uploaded into a category
2. Go to https://smallpdf.com and upload all of your word file .doc, a excel file .xls or a pdf file .pdf files that pertain to a single category. Save and download.
3. Perform this same operation for each of the categories providing all such documents as requested for submission.

DO NOT CLICK ON THE "SUBMIT" BUTTON AT THE BOTTOM OF THE PAGE UNTIL YOU HAVE COMPLETED PROVIDING ALL OF THE INFORMATION REQUESTED ON THE FORM

1. Last three (3) years business tax returns, including balance sheets and/or financial statements

If you have a new business that has been in business for less than a year, please provide the most current last 3 monthly bank statements.

2. Interim Financial Statements, with prior year comparison

3. Last three (3) years personal tax returns for each Guarantor (if applicable)

4. Personal Financial Statement for each Guarantor (if applicable). The form is available online.

5. Articles of Incorporation, Partnership Agreement, Trade Name Certificate, Business Resolution (one or more as applicable)

6. Last three months bank statements for the business

7. Copy of driver’s license and/or passport

Accounting

Welcome to TM.G Accounting Services. if you have already registered with TM.G for accounting and bookkeeping services and support,  please click here to add your company’s record keeping documents.

Register with TM.G and let’s get started on your company’s accounting

Cannabis distributors, retailers, and delivery services are required to file income, sales, and payroll tax returns as are all companies. Retail sales of many cannabis products including medical cannabis and accessories are subject to sales tax.

It’s important that your company remains complaint with all of the cannabis industry state laws and taxes. Although the cannabis industry is not current recognized by the federal government that doesn’t mean that your cannabis business does not have to pay income or social security taxes.

TM.G, The Management Group is in business specifically to support companies in the cannabis industry just like yours to ensure that your company meets all of the federal and state requirements to maintain safe and correct business operations.

If you have a current bank and banking relationship where you are "Vaulting" your funds please provide the bank(s) name(s)
Taxes

If your company is in the early stages, pre-funding, now may not be the right time to worry about 409A valuations or top-down financial projections. But it is the time to set up your simple accounting function—if you haven’t already. You don’t want to get too far in the game without establishing a simple accounting system, but you also don’t want to make it too complicated. The early stages are the time when you need to establish the structure that will support your company finances, and help define your financial strategy, as you grow.

To set up your accounting function for your pre-funded startup, consider the following:

1. Set up a simple accounting system. In the beginning, you just need a simple, low-cost accrual-based accounting structure. There are many light-weight options available, such as Mint or InDinero. While these aren’t true “accounting systems,” they are great for tracking expenses. More substantial are low-cost, easy-to-use systems such as Quickbooks, which 80% of our clients use. There are also high-end options available, of course. While these are great in many ways, honestly they are just too much effort and cost for an early-stage startup.

2. Set up your Chart of Accounts. I’ve addressed this in detail in a previous post, Creating Your Chart of Accounts for Your Startup. Suffice to say that at the core of whatever accounting system you use will be your chart of accounts (COA). It’s essentially an accounting system, designed specifically for your company, that aligns with your financial structure and helps you to track and report your income and expenses.

3. Open a business banking account. A business banking account with online component will help you to eliminate unnecessary manual processes and better manage your cash flow. Your bank account should automatically invoice your customers and help you to avoid cash shortfalls, by pulling in receivables and stretching out payables. Also, your account should seamlessly integrate with your accounting software.

4. Separate personal and business expenses. It seems obvious that you’d want to keep your business expenses distinct from your personal ones, but, as I wrote about in a previous article (7 Biggest Tax Mistakes Startups Make), it’s surprising how many entrepreneurs conflate the two. At best, this leads to confusion. At worst, you could be sued and forced to pay additional taxes. Your company could even be stripped of its corporate status. Avoid this by establishing corporate checking and savings accounts and maintaining a separate income statement and balance sheet. Use checks from your business banking account, or separate business credit/debit cards to pay for all of your business transactions.

5. Keep records of receipts and invoices. While the IRS regulation requires you to keep records for all receipts over $50, I always recommend recording all receipts, period. You can keep physical copies or in the cloud, but be sure to keep track of your records so you’re not trying to dig them out come tax time.

6. Be mindful of tax obligations. Speaking of taxes…make sure that you start thinking about taxes before you start earning revenue. This starts at the very beginning when you select the best legal entity for your company. You’ll also want to do your due diligence to understand all of your federal, state, and city tax obligations, including regional fees and registration. Since you’ll be separating your business expenses and keeping records, this will make it easy for you to deduct business expenses. Stay on top of your payroll taxes and 1099s and pay quarterly taxes. Hiring a tax professional is the best way to stay on top of your tax situation.

7. Set up a system to collect payments. Setting up a formalized accounts payable system early helps you to maximize cash flow and create essential financial reports. Work with a professional to identify the best tracking system for your needs. Once the system is set up, you’ll need to enter every expense and establish your invoice AP schedule. Place vendors on net 30 payment terms and work hard to ensure that you always pay your bills on-time and up-front. This will help you to build a reputation for financial stability.

Contact Early Growth Financial Services for help with accounts payable/accounts receivable.

8. Create a payment collection process. Setting up an AR process will help you to improve cash collections. Your system should allow you to list all open invoices and balances. For new clients, put your payment terms in writing. Establish credit guidelines and create a collection timeline so clients know what is expected. In these early days, your payment collection process should be simple, so you can just accept checks or use Stripe or Paypal to accept online payments.

9. Select a payroll provider. If you have employees in these early stages, you’ll need a payroll provider. Depending on your needs, you may choose a provider who offers piecemeal services or one that provides a full-service HR solution, including employee benefits. Whichever solution you go with, make sure you cover worker’s compensation and payroll taxes as well.

10. Forecast expenses. Record all of your anticipated expenses to help you to manage your cash burn. (If you’re looking for ways to reduce your cash burn, check out my previous post: Reducing Your Burn Rate.) If you can see that you will run out of cash, that’s when you’ll need to start raising funds…and move on to the next level of financial management and planning.

Staff

If your company is in the early stages, pre-funding, now may not be the right time to worry about 409A valuations or top-down financial projections. But it is the time to set up your simple accounting function—if you haven’t already. You don’t want to get too far in the game without establishing a simple accounting system, but you also don’t want to make it too complicated. The early stages are the time when you need to establish the structure that will support your company finances, and help define your financial strategy, as you grow.

To set up your accounting function for your pre-funded startup, consider the following:

1. Set up a simple accounting system. In the beginning, you just need a simple, low-cost accrual-based accounting structure. There are many light-weight options available, such as Mint or InDinero. While these aren’t true “accounting systems,” they are great for tracking expenses. More substantial are low-cost, easy-to-use systems such as Quickbooks, which 80% of our clients use. There are also high-end options available, of course. While these are great in many ways, honestly they are just too much effort and cost for an early-stage startup.

2. Set up your Chart of Accounts. I’ve addressed this in detail in a previous post, Creating Your Chart of Accounts for Your Startup. Suffice to say that at the core of whatever accounting system you use will be your chart of accounts (COA). It’s essentially an accounting system, designed specifically for your company, that aligns with your financial structure and helps you to track and report your income and expenses.

3. Open a business banking account. A business banking account with online component will help you to eliminate unnecessary manual processes and better manage your cash flow. Your bank account should automatically invoice your customers and help you to avoid cash shortfalls, by pulling in receivables and stretching out payables. Also, your account should seamlessly integrate with your accounting software.

4. Separate personal and business expenses. It seems obvious that you’d want to keep your business expenses distinct from your personal ones, but, as I wrote about in a previous article (7 Biggest Tax Mistakes Startups Make), it’s surprising how many entrepreneurs conflate the two. At best, this leads to confusion. At worst, you could be sued and forced to pay additional taxes. Your company could even be stripped of its corporate status. Avoid this by establishing corporate checking and savings accounts and maintaining a separate income statement and balance sheet. Use checks from your business banking account, or separate business credit/debit cards to pay for all of your business transactions.

5. Keep records of receipts and invoices. While the IRS regulation requires you to keep records for all receipts over $50, I always recommend recording all receipts, period. You can keep physical copies or in the cloud, but be sure to keep track of your records so you’re not trying to dig them out come tax time.

6. Be mindful of tax obligations. Speaking of taxes…make sure that you start thinking about taxes before you start earning revenue. This starts at the very beginning when you select the best legal entity for your company. You’ll also want to do your due diligence to understand all of your federal, state, and city tax obligations, including regional fees and registration. Since you’ll be separating your business expenses and keeping records, this will make it easy for you to deduct business expenses. Stay on top of your payroll taxes and 1099s and pay quarterly taxes. Hiring a tax professional is the best way to stay on top of your tax situation.

7. Set up a system to collect payments. Setting up a formalized accounts payable system early helps you to maximize cash flow and create essential financial reports. Work with a professional to identify the best tracking system for your needs. Once the system is set up, you’ll need to enter every expense and establish your invoice AP schedule. Place vendors on net 30 payment terms and work hard to ensure that you always pay your bills on-time and up-front. This will help you to build a reputation for financial stability.

Contact Early Growth Financial Services for help with accounts payable/accounts receivable.

8. Create a payment collection process. Setting up an AR process will help you to improve cash collections. Your system should allow you to list all open invoices and balances. For new clients, put your payment terms in writing. Establish credit guidelines and create a collection timeline so clients know what is expected. In these early days, your payment collection process should be simple, so you can just accept checks or use Stripe or Paypal to accept online payments.

9. Select a payroll provider. If you have employees in these early stages, you’ll need a payroll provider. Depending on your needs, you may choose a provider who offers piecemeal services or one that provides a full-service HR solution, including employee benefits. Whichever solution you go with, make sure you cover worker’s compensation and payroll taxes as well.

10. Forecast expenses. Record all of your anticipated expenses to help you to manage your cash burn. (If you’re looking for ways to reduce your cash burn, check out my previous post: Reducing Your Burn Rate.) If you can see that you will run out of cash, that’s when you’ll need to start raising funds…and move on to the next level of financial management and planning.

Customer

If your company is in the early stages, pre-funding, now may not be the right time to worry about 409A valuations or top-down financial projections. But it is the time to set up your simple accounting function—if you haven’t already. You don’t want to get too far in the game without establishing a simple accounting system, but you also don’t want to make it too complicated. The early stages are the time when you need to establish the structure that will support your company finances, and help define your financial strategy, as you grow.

To set up your accounting function for your pre-funded startup, consider the following:

1. Set up a simple accounting system. In the beginning, you just need a simple, low-cost accrual-based accounting structure. There are many light-weight options available, such as Mint or InDinero. While these aren’t true “accounting systems,” they are great for tracking expenses. More substantial are low-cost, easy-to-use systems such as Quickbooks, which 80% of our clients use. There are also high-end options available, of course. While these are great in many ways, honestly they are just too much effort and cost for an early-stage startup.

2. Set up your Chart of Accounts. I’ve addressed this in detail in a previous post, Creating Your Chart of Accounts for Your Startup. Suffice to say that at the core of whatever accounting system you use will be your chart of accounts (COA). It’s essentially an accounting system, designed specifically for your company, that aligns with your financial structure and helps you to track and report your income and expenses.

3. Open a business banking account. A business banking account with online component will help you to eliminate unnecessary manual processes and better manage your cash flow. Your bank account should automatically invoice your customers and help you to avoid cash shortfalls, by pulling in receivables and stretching out payables. Also, your account should seamlessly integrate with your accounting software.

4. Separate personal and business expenses. It seems obvious that you’d want to keep your business expenses distinct from your personal ones, but, as I wrote about in a previous article (7 Biggest Tax Mistakes Startups Make), it’s surprising how many entrepreneurs conflate the two. At best, this leads to confusion. At worst, you could be sued and forced to pay additional taxes. Your company could even be stripped of its corporate status. Avoid this by establishing corporate checking and savings accounts and maintaining a separate income statement and balance sheet. Use checks from your business banking account, or separate business credit/debit cards to pay for all of your business transactions.

5. Keep records of receipts and invoices. While the IRS regulation requires you to keep records for all receipts over $50, I always recommend recording all receipts, period. You can keep physical copies or in the cloud, but be sure to keep track of your records so you’re not trying to dig them out come tax time.

6. Be mindful of tax obligations. Speaking of taxes…make sure that you start thinking about taxes before you start earning revenue. This starts at the very beginning when you select the best legal entity for your company. You’ll also want to do your due diligence to understand all of your federal, state, and city tax obligations, including regional fees and registration. Since you’ll be separating your business expenses and keeping records, this will make it easy for you to deduct business expenses. Stay on top of your payroll taxes and 1099s and pay quarterly taxes. Hiring a tax professional is the best way to stay on top of your tax situation.

7. Set up a system to collect payments. Setting up a formalized accounts payable system early helps you to maximize cash flow and create essential financial reports. Work with a professional to identify the best tracking system for your needs. Once the system is set up, you’ll need to enter every expense and establish your invoice AP schedule. Place vendors on net 30 payment terms and work hard to ensure that you always pay your bills on-time and up-front. This will help you to build a reputation for financial stability.

Contact Early Growth Financial Services for help with accounts payable/accounts receivable.

8. Create a payment collection process. Setting up an AR process will help you to improve cash collections. Your system should allow you to list all open invoices and balances. For new clients, put your payment terms in writing. Establish credit guidelines and create a collection timeline so clients know what is expected. In these early days, your payment collection process should be simple, so you can just accept checks or use Stripe or Paypal to accept online payments.

9. Select a payroll provider. If you have employees in these early stages, you’ll need a payroll provider. Depending on your needs, you may choose a provider who offers piecemeal services or one that provides a full-service HR solution, including employee benefits. Whichever solution you go with, make sure you cover worker’s compensation and payroll taxes as well.

10. Forecast expenses. Record all of your anticipated expenses to help you to manage your cash burn. (If you’re looking for ways to reduce your cash burn, check out my previous post: Reducing Your Burn Rate.) If you can see that you will run out of cash, that’s when you’ll need to start raising funds…and move on to the next level of financial management and planning.

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