Medical Marijuana Business Law
A medical marijuana business operating as a mutual benefit corporation must be in compliance with all state and local laws. In addition to the requirements of following the California Corporations Code, medical marijuana businesses have requirements unique to their industry. Among these requirements are that (1) Members of the collective be qualified based on the recommendation of a physician; (2) Collectives may acquire, possess and distribute only lawfully cultivated marijuana from other members of the collective; (3) Distribution and Sales to Non-Members are prohibited.
E. Wicker Law Office provides the necessary corporate contracts and documents necessary to comply with California medical marijuana law.
Medical Marijuana Businesses must operate as non-profits
Although a California medical marijuana business must be operated on a non-profit basis, this does not mean that it is a 501(c)(3) organization that is exempt from taxation. To the contrary, “the State Board of Equalization has determined that medical marijuana transactions are subject to sales tax, regardless of whether the individual or group makes a profit, and those engaging in transactions involving medical marijuana must obtain a Seller’s Permit.” (Quoting from then Attorney General Brown’s August 2008 Guidelines.) A medical marijuana business should keep accurate records and follow accepted cash handling practices, including regular bank runs and cash drops, and maintain a general ledger of cash transactions.
E. Wicker Law Office works with a team of CPA’s who specialize in the cannabis businesses. Determining the correct tax for a canna business is an essential legal requirement. It is our objective that your business stays in complete compliance with all applicable laws.