aBIZinaBOX – Tax, Tech. for the California Cannabis Industry. Our commitment to the commercial business in California has caused us to create an industry-centric practice group. The group has professionals in Evanston, IL HQ and Oakland, California.
We have devoted several years of study to the application of our regulatory compliance, tax, tech, reporting and accounting experience and services to the unique requirements of the industry.
The practice is limited to California businesses at this time. The complexity of the issues facing commercial businesses, we have concentrated on being CPA’s so we do one thing well rather accept mediocrity in several. We have added a new summary page on Paying Taxes With Cash.
We have substantial experience and expertise in the industry:
- The unique financial record-keeping needs of cultivators, retailers, extractors,
- processors, and distributors.
- Experience with the selection of optimal operating structures for each participant in the industry.
- Experience in adjusting structures and modifying financial record-keeping to comply with a rapidly evolving regulated California market.
- An understanding of the challenges presented by a long history in the industry of “doing business in cash” and the associated problems.
- A practical understanding of the banking, card processing, and anti-money laundering issues applicable to this industry.
- Substantial hands-on experience with the relevant Regulators.
- Both of our Managing Directors have over thirty-five years of professional practice experience.
We have established practices and procedures that address the unique issues of tax reporting and tax collection for California’s marijuana industry relating to the Internal Revenue Service (“IRS”); the Franchise Tax Board (“FTB”); the California Dept. of Public Health (“CDPH”), the California Dept. of Food and Agriculture (“CDFA”), the California Department of Tax and Fee Administration (“CDFTA”); the Economic Development Department (“EDD”), and the Bureau of Cannabis Control (“BCC”).
Our experience includes issues relating to permitting, licensing as well as reporting and paying marijuana excise tax and gross receipts tax at the municipal and county level.
We have developed effective strategies for addressing the onerous impact of the limitation on the deduction of ordinary and necessary business expenses imposed by Internal Revenue Code section 280E on businesses engaged in “trafficking” in a controlled substance.