What you need to know about Cannabis Taxation
If you’re thinking about joining the cannabis industry as a business, one of the most important things that you can do is get ahead of your cannabis taxes.
One of the biggest challenges facing cannabis entrepreneurs today is how to navigate the complex landscape of cannabis taxes.
In this post, we’ll be discussing some important points to keep in mind when it comes to cannabis taxes, as well as sharing some highlights from the latest podcast interview with a cannabis law and tax specialist.
Cannabis Taxes: What You Need to Know
Cannabis businesses are subject to a unique set of tax rules and regulations under IRC 280e, due to the fact that cannabis is still classified as a Schedule 1 drug under federal law. This means that cannabis businesses are unable to take advantage of many of the tax deductions and credits that other businesses can use to reduce their tax liabilities.
To make matters more complicated, as a cannabis business, you will need to understand the set of state and local cannabis taxes. Make sure that you have a process in place for staying up to date on your state and local cannabis tax laws.
The way you structure your cannabis business matters
Because cannabis is unique and is a highly regulated industry, there are different options to structure your business, to both minimize your liability and your taxes.
Each structure has its own advantages and disadvantages, and the right choice will depend on a variety of factors, including the size of the business, the level of risk involved, and the entrepreneur’s long-term goals. Make sure that you work with a qualified cannabis tax professional. If you need one, let us know.
Check out this Episode of Cannabis Business Minds
If you’re looking to stay up-to-date on the latest trends and insights in the cannabis industry, be sure to check out the latest podcast interview on Cannabis Business Minds. The interview is a must-listen for anyone interested in the world of cannabis business, and offers valuable insights and advice for both new and established entrepreneurs.
In this episode, host Simone Cimiluca-Radzins continues her conversation with Paula Collins, CEO and Founder of The Morton Street Group and co-founder of the New York Consortium of Cannabis Accountants (NYCCA), to discuss the challenges and opportunities facing cannabis entrepreneurs when it comes to cannabis taxes.
The takeaway
As the cannabis industry continues to grow and evolve, it’s important for cannabis entrepreneurs to stay ahead and informed about cannabis accounting and cannabis taxes. By staying on top of the latest developments in cannabis taxation, and by taking advantage of resources like the Cannabis Business Minds podcast and our Cannabis Finance Bootcamp, you can build a profitable business in cannabis.
