Last modified: November 27, 2024
Set up a profit account
Converting to a profit account
By converting to a profit account, you become the seller of record and can earn a margin of the sales placed through your dispensary. To do so, you’ll need to enter your tax information and add a bank account to authorize direct deposit payouts. Converting to a profit account can be done at any time.
Note:
We recommend consulting a tax professional to understand your tax obligations, as we don’t provide tax advice. Based on your sales volume, you may qualify to receive tax forms from us at the end of the year. Learn more about Form 1099-K (US) and T4A form (Canada) eligibility thresholds.
Instructions for US dispensaries
To convert a no-profit account to a profit account:
- From the avatar menu, select Set up profit account.
- On the Profit account setup page, select your dispensary discount (%) from the drop-down menu.
Note:
Adjusting the dispensary discount impacts your profit margin. You can update the dispensary discount anytime by returning to this page. The maximum discount you can offer is 35%.
- Optional: You can also choose to set up an auto refills discount for your patients.
- Click Confirm.
- Select your Business type and complete all required fields to provide your tax information. This is used to verify your identity and set up an account with our payment processor (Stripe). Select Individual if you’re not affiliating your dispensary with a business.
Note:
By default, the financial address that you provide will appear on patient invoices. You can add a different address for patient invoices by unchecking the Same as financial address checkbox and providing an alternative address.
- Further down the page, add your banking details to authorize direct deposit payouts.
Note:
Even if you’d like to provide your patients with the full discount (resulting in no earnings), you’re still required to add direct deposit information. Orders can’t be placed until a bank account has been entered.
- Click Continue.
- Review Stripe’s Connected Account Agreement, then select Confirm your profit settings at the bottom of the page to submit.
Note:
Though Fullscript maintains the responsibility of reporting sales tax at the state level, owners of profit accounts are fully responsible for all other tax obligations applicable to them. We highly recommended speaking to a tax professional to understand your tax obligations as we’re unable to provide tax advice.
Instructions for Canadian dispensaries
To convert from a no-profit account to a profit account:
- From the avatar menu, select the Set up a profit account button.
- On the Profit account setup page, select your dispensary discount (%) from the drop-down menu.
Note:
Adjusting the dispensary discount impacts your profit margin. You can update the dispensary discount anytime by returning to this page. The maximum discount you can offer is 25%.
- Optional: You can also choose to set up an auto refills discount for your patients.
- Click Confirm.
- Select your Business type and complete all required fields to provide your tax information. This is used to verify your identity and set up an account with our payment processor (Stripe). Select Individual if you’re not affiliating your dispensary with a business.
Note:
When choosing Corp, LLC, or sole proprietor, we require a CRA program account Number instead of a BIN. If you don’t have a CRA program account number, you will have to complete the setup as an individual.
- Next, enter your financial address.
Note:
By default, the financial address that you provide will appear on patient invoices. You can add a different address for patient invoices by unchecking the Same as financial address checkbox and providing an alternative address.
- Further down the page, add a banking details to authorize direct deposit payouts.
Note:
Even if you’d like to provide your patients with the full discount (resulting in no earnings), you’re still required to add direct deposit information. Orders can’t be placed until a bank account has been entered.
- Finally, review the Stripe Connected Account Agreement and click Confirm your profit settings to accept the terms and convert to a profit account.
Tip!
If the button isn’t clickable, review the page and complete any required fields you may have missed.
Tax implications
Profit account holders become the ‘seller of record’, inheriting the responsibility to report income earned from Fullscript to the Internal Revenue Service or Canada Revenue Agency come tax season. Sales tax responsibility at the state level is maintained by Fullscript.
Note:
You should consult with a tax professional to understand the tax responsibilities that apply to you and your business (if applicable). Our Support and Sales teams are unable to provide tax advice. Financial reports will be made available in your account after your first successful payout to help you complete your tax obligations and we recommend sharing these reports with a tax professional to facilitate required tax filings.
Receiving payouts
As orders are shipped, earnings accumulate and are later deposited directly into your bank account. By default, available earnings are paid every 30 days to the active bank account in your dispensary. You can view your current balance, bank account details, and next scheduled payout date from the Business financials page.
After your first payout, financial reports are generated to assist with filing your taxes and/or allocating payouts to staff members. Learn more about managing your reports for yourself and staff members in our Payout reports article.
Dispensary & patient discounts
Dispensary discounts apply to all patients in your dispensary and are stackable with individual patient discounts. All discount types apply to all products in your dispensary; discounts can’t be customized for specific products, brands, or protocols. The maximum discount extended to patients cannot exceed the maximum discount available for your region (35% in the US, and 25% in Canada).
Tip!
See Dispensary & individual patient discounts to learn more.