This article originally appeared in the December 2017 print edition of Cannabis Business Times. To subscribe, click here.
The cannabis industry has many thorns in its side, not the least of which is taxation. Taxes can be frustrating and daunting. Most cultivators/owners are not CPAs, and the complexities brought about by IRS code 280E make matters worse. Even CPAs familiar with the ins and outs of this complex industry can be challenged by a cultivator’s tax returns. But you can take steps to help yourself and your business prepare for tax season.
Here are 9 tips to get you started.
1. Hire Quality Professionals Familiar With the Cannabis Industry and Its Unique Characteristics, Including Your:
- Attorney
- Accountant
- Payroll service
- Other consultants, as needed.
2. Address Your Entity Structure Up Front
Most entities start as LLCs due to the flexibility it allows. LLCs can elect to be taxed as corporations or S corporations. Consult your professionals to determine what best fits your situation, ownership structure and unique operating conditions.
To read the full article in Cannabis Business Times' December issue, click here.
Top image: © Wutwhanfoto | iStockphoto
