Taxes in the Cannabis Industry
Step 5 – Taxes
“In this world, nothing can be said to be certain, except death and taxes.”
– Benjamin Franklin
You never think about taxes very much until you start making money. They can become extremely complicated unless you have the right team to help you navigate through them. One of the greatest mistakes I made was to not prioritize them when I started my company. I think it was because you don’t really deal with taxes until the end; and 99% of the time, it was most challenging to see the end in sight—and that end to which I am referring to is the payday. Somedays, I would think that that day would never come. It can become quite a grind, but I will tell you that it is worth it. Once you start digging into taxes, they can become consuming, and during those times of anxiety, you have to be smart about who you allow to influence your decision.
In 2010, when I started my commercial grow, I was unfamiliar with the tax law, 280E. If you’re not familiar with this, you need to study up on it. I will give you the straight and narrow by providing the latest IRS memorandum of how it can affect your business decisions.
For IRS memorandum, visit my website, BlackMarketBook.com.
This is quite a large subject to take on by yourself, so I would suggest that you look for some tax help to navigate this area.
There are hundreds of thousands of CPAs and firms to choose from, but there are only a few groups that specialize in cannabis specifically. These are few and far between. You need to feel comfortable with your team because, at some point, there will need to be someone that represents you in front of the IRS. This requires a high level of trust. You need to be 100% honest with your CPA or team. I mean it. You can’t hide anything from your team. There are also protections for you, the client, that are very similar to your attorney. This should help you sleep a little easier.
To be continued…
To continue reading please purchase your copy of From Black Market to The Man:
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- BONUS Video: – The Ideal Harvest Optimized Cultivation Facility
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