A Must Read:10 Commercial Grows, Get Rid Of Medical. Pgt

[Highlander]

That means nothing, it's just a tax dodge. The NFL is a non-profit organization.

 

Yep - Let me run a non-profit organization that can grow 10% of Michigan's cannabis.  I'll draw a $500,000 salary and then take annual bonuses as needed to keep profit at zero.

[slipstar059]

Yep - Let me run a non-profit organization that can grow 10% of Michigan's cannabis. I'll draw a $500,000 salary and then take annual bonuses as needed to keep profit at zero.

I'm a millionare, but my business's profit margins are in the tank, sort of thing.

[semicaregiver]

it says the disps have to be non-profit (just not the 10 grows haha)

Interesting.   The little info I have seen so far seems to suggest that MRC is only interested in the wholesale side of the business.   Is there more definitive info out there?

[Highlander]

I'm a millionare, but my business's profit margins are in the tank, sort of thing.

 

Yep.  I was just recalling talking to a guy named Morris Rice a few years ago.  He came home from WWII and bought a bulk petroleum plant in Saginaw.  Then he proceeded to open multiple gas stations in the Saginaw/Bay City/Midland area.  If you bought gas at a Shell station in the tri-cities prior to about 2007, you were a customer of Rice Oil.  When I met him in about 2006, he had already sold all of his many gas stations. He said, point blank, "In all these years, Rice Oil has never made any profit."  So that's about 60 years of running a business with no profit.  Wealthy people like to say "I don't make any profit" because "profit" is kinduv a fluid term. 

 

Smart businessmen learn the tax loopholes.  Morrice Rice owned Rice Oil.  Then, Rice Oil maybe owned a couple dozen gas stations - all under different corporate names.  Probably each gas station was a wholly-owned subsidiary of the larger Rice Oil umbrella.  Consider that Mr. Rice could set up a new gas station under a new business name - put the property under one business name and the operating entity under another.  He could charge $5,000/month rent or more, as needed, to prevent that business from actually showing any profit.  ...so there were multiple gas stations that showed no profit because the rent was too high - but the money all went to the same place.  It is all an accounting game.  At then end of the tax year, the employee/owner/president of the company got huge bonuses...so no corporate profit, but a lot of profit to the guy in charge.

 

In short, "non-profit" status means nothing unless you look at where the money goes.

[semicaregiver]

Yep.  I was just recalling talking to a guy named Morris Rice a few years ago.  He came home from WWII and bought a bulk petroleum plant in Saginaw.  Then he proceeded to open multiple gas stations in the Saginaw/Bay City/Midland area.  If you bought gas at a Shell station in the tri-cities prior to about 2007, you were a customer of Rice Oil.  When I met him in about 2006, he had already sold all of his many gas stations. He said, point blank, "In all these years, Rice Oil has never made any profit."  So that's about 60 years of running a business with no profit.  Wealthy people like to say "I don't make any profit" because "profit" is kinduv a fluid term. 

 

Smart businessmen learn the tax loopholes.  Morrice Rice owned Rice Oil.  Then, Rice Oil maybe owned a couple dozen gas stations - all under different corporate names.  Probably each gas station was a wholly-owned subsidiary of the larger Rice Oil umbrella.  Consider that Mr. Rice could set up a new gas station under a new business name - put the property under one business name and the operating entity under another.  He could charge $5,000/month rent or more, as needed, to prevent that business from actually showing any profit.  ...so there were multiple gas stations that showed no profit because the rent was too high - but the money all went to the same place.  It is all an accounting game.  At then end of the tax year, the employee/owner/president of the company got huge bonuses...so no corporate profit, but a lot of profit to the guy in charge.

 

In short, "non-profit" status means nothing unless you look at where the money goes.

In most states, the liquor laws prohibit a producer from owning any other part of the chain, i.e distributor or retail store or on-premise.   This is what held up the micro brewery industry for many years.  They were too small to sell beyond their production facility, but they were prohibited from holding a retail or on-premise license.