Canna Business Legal Requirements
Setting up a canna business in California? An important part of the “Guidelines for the Security and Non-diversion Of Marijuana Grown for Medical Use” issued in August 2008 by then Attorney General Brown states: Non-Profit Operation: Nothing in Proposition 215 or the MMP authorizes collectives, cooperatives, or individuals to profit from the sale or distribution of marijuana. (See, e.g., § 11362.765(a) [“nothing in this section shall authorize . . .any individual or group to cultivate or distribute marijuana for profit”].
Non-profit medical marijuana collectives legal guidelines
The Guidelines provide the following additional details: “Any monetary reimbursement that members provide to the collective or cooperative should only be an amount necessary to cover overhead costs and operating expenses…Permissible Reimbursements and Allocations: Marijuana grown at a collective or cooperative for medical purposes may be: a) Provided free to qualified patients and primary caregivers who are members of the collective or cooperative; b) Provided in exchange for services rendered to the entity; c) Allocated based on fees that are reasonably calculated to cover overhead costs and operating expenses; or d) Any combination of the above.”
In order to be in compliance with California medical marijuana laws, it is required that the business operate on a non profit basis. E. Wicker Law Office works with a team of CPA’s who specialize in the cannabis business. Guidance is provided to correctly establish corporate bookkeeping and tax records. Reasonable salaries may be paid and certain business expenses deducted by a cannabis business provided that non profit requirements are met. It is our objective that your business stays in complete compliance with all applicable laws.
E Wicker Law is ready to set up your Medical Marijuana Canna Business. Call us at 760 735-6100 for a free consultation