Profit accounts: Converting to a profit account

Practitioners

In this article:

Converting to a profit account
Tax implications 
Receiving payouts
Dispensary & patient discounts

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 highly recommended speaking to a tax professional to understand your tax obligations as we're unable to provide tax advice. Depending on your sales volume, you may be eligible to receive tax forms from us at the end of the tax 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:

1. From the practitioner menu, select the Set up a margin account button. On mobile devices, select the mobile menu (   ) then tap your name to view this button.
   
   
   
   
2. On the Payouts & tax page, click Switch to profit account.
   
   
   
   
3. Under Business information, select a Business type and complete the business name and business number. Select Individual if you're not affiliating your dispensary with a business.
4. Enter your personal information including your first and last name (as it appears on government issued ID), date of birth, and last 4 digits of your SSN number.
   
   
   
   
5. Add a bank account to receive direct deposit payouts. Payouts are deposited every 30 days and may take 1-3 business days to appear on bank statements once transferred.
   

   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.

6. Next, enter your financial address. 
7. Finally, review the Stripe Connected Account Agreement and click Become a profit account to accept the terms and convert to a profit account. If the button isn't clickable, review the page and complete any required fields you may have missed.
   
   
   
   
8. Once submitted, you'll be taken to the Store margin tab where you can set a store profit margin. Increasing your profit margin decreases the dispensary discount extended to all patients in the dispensary and vice versa. Patient discounts can't exceed the maximum discount available in your region (35% for US accounts).
   
   

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:

1. From the practitioner menu, select the Set up a margin account button. On mobile devices, select the mobile menu (  ) then tap your name to view this button.
   

   

2. On the Payments page, click Set up payouts.
   
   
   
   
3. Under Business information, select a Business type and complete the business name and business number. Select Individual if you're not affiliating your dispensary with a business.
4. Enter your personal information including your first and last name (as it appears on government issued ID), date of birth, and full SIN number.
   
   
   
   
5. Add a bank account to receive direct deposit payouts. Payouts are deposited every 30 days and may take 1-3 business days to appear on bank statements once transferred.
   

   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.

6. Next, enter your financial address. 
7. Finally, review the Stripe Connected Account Agreement and click Become a profit account to accept the terms and convert to a profit account. If the button isn't clickable, review the page and complete any required fields you may have missed.
   
   
   
   
8. Once submitted, you'll be taken to the Store margin tab where you can set a store profit margin. Increasing your profit margin decreases the dispensary discount extended to all patients in the dispensary and vice versa. Patient discounts can't exceed the maximum discount available in your region (25% for Canadian accounts).
   
   

Note: Though Fullscript maintains the responsibility of collecting and remitting retail sales tax at the provincial level, profit account owners 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.

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 Payouts & tax page (US dispensaries) or the Payments page (Canadian dispensaries).

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. Both 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.