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jordan10
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Hey wingnut!

Would you know how I would go about finding out about filing?

It would b a business then? EIN# needed?

I'm a newby at this as I am sure u r.

Any input will will b greatly appreciated.

Thanks so much!

I am planning on setting up as farm LLC. 1) LLC provides some cheap insurance (mainly protection from debtors including law suit collections)should you have any assets. 2) Say absolutely nothing about marijuana or caregiver services (hence farm - I live in a rural area).

 

Otherwise it is a business like any other with receipts,bookkeeping,taxes (don't forget social security) and a chance to go to jail for being shady. When it comes to accounting what may appear to you as reasonable while not quite accurate will likely appear as a felony to an auditor. In this case "felony" is defined as a very powerful negociating tool for separateing you from your money. Hire a CPA for an hour or 2 to get advise on how to keep records and to get a feel for how business people think about accounting. It will almost always be better for you to seek out standard definitions for accounting terms and phrases than coming up with your own.

 

You might want to find AND READ a copy of "Small Business for Dummies".

 

You should still probably make arrangements with a trusted friend who is not likely to be arrested at the same time as you to bail you out should the need arise.

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This again. Do not try to get away without paying your taxes. The IRS got Al Capone for tax evasion. Not for the murders he committed or thousands of other crimes he was involved with. Do most small business people keep two sets of books? You bet they do but it is unlikely the guy that owns the 7/11 is going to get the scrutiny that the guy growing marijuana will.

 

From my understanding the real problem is you have to pay taxes on your income but the feds do not allow you to write off your expenses on growing because it is federally illegal. Also know that some if not all of the dispensaries are sending out 1099 forms at the end of the year so you had better set that money aside.

 

I think the smart thing to do is cash sales at clubs and then claim the income as misc day labor or something like that. Of course be aware that this does not speak to the legality of such transfers. Look in the caregiver area for a interesting thread on that question.

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It's from the records of one's gross sales and expenditures that one's paid preparer (another indirect businesss expense) files the necessary 1040(taxes), and from which he or she or you annually determines the "hard" costs or "direct" costs per ounce. Independent small businesses file a Schedule C. There can of course be much more involved, both in forms and filing expense, depending upon your type of organization, sole proprietorship--the one to file if all there is to the business, is you; LLC; C corporation, and whether there's been an issue of stock (pay your lawyer here, and probably your accountant too--indirect expenses). This is one venue where coming clean completely, is best. The government depends upon these filings for its counting (There are X number of pluumbers in Y state). A false filing, not just of numbers but of the type of enterprise you are engaged in could be a bad (and prosecutable) act. Nursery operations are such a broad category of tax classification that it is not necessary (or wise) to state farming when the catch-all government provided category "nursery" is sufficient (farming operations often qualify for government subsidies).

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