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How Cannabis Companies Use ESOPs for Tax Savings and Ownership Transition

By Charles Alovisetti, Jack Crain
Aug 7, 2025

As the cannabis industry matures, more operators are exploring alternative ownership structures that support both long-term growth and successful exits. One powerful yet underutilized option is the Employee Stock Ownership Plan (ESOP). In this article, we discuss how cannabis companies can use ESOPs to create tax-efficient exit strategies, reduce the impact of Section 280E, and build long-term value through employee ownership. We also outline the structure, tax benefits, regulatory considerations, and practical execution of ESOP transactions in the cannabis space.

[Webinar] Cannabis Rescheduling: Timeline, Tax Strategies & 280E

Oct 17, 2024

Watch this Vicente session to learn about how rescheduling may impact 280E and tax planning! Vicente attorneys, along with special guest tax attorneys from HBK CPAs and Jones & Keller, provide an update on the rescheduling process, including the timeline to a final rule and potential obstacles, along with a deep dive into 280E and tax strategies.

[Vicente LLP Event] Minnesota Hemp & Cannabis Seminar

Sep 18, 2023

Join the Vicente LLP team in Minneapolis for another can’t-miss hemp and cannabis legal and business seminar on October 19, 2023. The event will feature Vicente LLP hemp and cannabis business attorneys Michelle Bodian, Travis Copenhaver, Jeremy Shaw and Jason Tarasek, along with special guests Sen. Lindsey Port and cannabis accountant Angela L’Esperance of Ms. Jane Accounting.