Profit dispensaries

By converting to a profit account, you 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.

With a profit account, you unlock additional patient discounts and take on responsibility for reporting your income at the end of the tax year.

What you need to get started

To start earning a margin of patient orders, we’ll need the following to set up an account with our payment processor, verify your identity, and enable payments:

• Your legal name, date of birth, and physical address for identity verification purposes.
• US accounts: Last 4 digits of your Social Security number (SSN). Be aware that you may be required to enter your full SSN to verify your account successfully.
• Canadian accounts: Full social insurance number (SIN).
• Business accounts: Employment identification number (EIN) or business number (BN).
• Your tax classification.

Dispensary & patient discounts

Dispensary discounts apply to all patients in your dispensary and are stackable with individual patient discounts. Both discount types apply to all products in your dispensary. The maximum discount available to patients can’t exceed the maximum discount available for your region (35% in the US and 25% in Canada).

Patient discounts are applied individually to specific patients from the Patients list. You can edit patient-level discounts in bulk using the Bulk discounts editor.

An auto refills discount, which is applicable only to patients who activate auto refills, can be set up from the Profit account setup page. It’s also stacked with dispensary, patient, or promotional discounts, up to the maximum discount in your country. Providing the maximum discount means you’ll earn 0% profit on those orders.

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. Fullscript maintains sales tax responsibility at the state level.

While account holders are responsible for reporting their income, Fullscript handles all applicable sales tax on patient orders. Providers do not need to remit sales tax on their accrued payouts.

Receiving payouts

Earnings accumulate as orders ship and are deposited directly to your active bank account on your next payout date. View your current balance, payout bank account details, and your next payout date on the Payout and tax tab of Financials and discounts.

After your first successful payout, financial reports are generated to assist with filing your taxes and/or allocating payouts to staff members. To access the Reports page from the Analytics dashboard:

1. Click Analytics in the navigation bar.

2. Click View financial reports.
3. Click View payout reports.

Setting up a margin account (make a profit)

New accounts start as no-profit accounts, giving your patients 10% off all orders from your dispensary. To earn a margin, set up direct deposit payouts and customize your discount options.

For US dispensaries:

1. Click Analytics in the navigation bar on the left.
2. Click Set up a profit account.

3. On the Profit account setup page, select your dispensary discount (%) from the drop down menu. You can also set an auto refill discount for your patients. These discounts stack on applicable orders and will affect your margin.

4. Click Confirm.
5. Choose your Business type, and complete all required fields to provide your tax information. This information is used to verify your identity and connect your account to our payment processor (Stripe). Select Individual if you’re not affiliating your dispensary with a business.

6. Further down the page, add your banking details to authorize direct deposit payouts.
7. Click Continue.
8. Review Stripe’s Connected Account Agreement, then select Become a profit account/Confirm your profit settings from the bottom of the page to submit.

For Canadian dispensaries:

1. Click Analytics in the navigation bar on the left.
2. Click Set up a profit account.

3. On the Profit account setup page, select your dispensary discount (%) from the drop-down menu.

Optional: You can also choose to set up an auto refills discount for your patients.

4. Click Confirm.
5. 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.

6. Next, enter your financial address.
7. Further down the page, add your banking details to authorize direct deposit payouts

8. Finally, review the Stripe Connected Account Agreement and click Confirm your profit settings to accept the terms and convert to a profit account.

Profit disclosure settings

You can let patients know that you earn a profit from orders placed through your Fullscript dispensary. This helps you stay transparent and build trust with your patients.

To enable the Profit disclosure:

1. Click Settings in the navigation bar.

2. On the Dispensary settings page, click Permissions and disclosures.
3. Click the Patient tab.

4. Scroll down to the Email Disclosures box.
5. Click the Profit Disclosure toggle to turn it on.

Patients see the profit disclosure in the footer of communications sent through Fullscript.

Video: Setting up a profit account