All You Care Givers Out There, Do You Pay Your Taxes?

Per my lawyer here in SD this is how to be legal, which I am:

1 Incorporate and set yourself a salary, this must be a dollar amount, not a percentage.
2 Hire an accountant, make them your treasurer or CFO.
3 Be sure that you are in compliance with local ordinances and regulations, such as being too close to schools and the such. This includes having the proper grow permits for the size of your grow, here in SD you just need the cultivators license from your doctor, about $200 and it allows 99 total plants, this is root structures so clones count.
4 Pay all taxes, accountant will merely withhold from your check the applicable state and federal taxes and each quarter they will be paid.

That is all there is too it, the incorporation costs about 800 to 1k but be sure the lawyer knows your local MMJ laws. Its also a good idea to have an accountant that has similar clients so they will know how to keep it legal. In some places you have to open your grow up to local law enforcement inspection, but if your legal, like I am, its no problem.

They just come in and verify your plants then leave, the frequency depends really on your attitude. Be friendly and helpful, hell I've had them ask about different ways of growing, what strains are best for MMJ, all sorts of questions. If your friendly so will they be, they are just doing their job.

Peace out

In Canada, Care Givers can deduct the price of there lights, electric bills, and all the supplies they use to grow the weed from their taxes. + They alsoo sell the bud for profit too. Awesome system lol.

Thanks for this!!!! This is what I want to do with my life! This is my calling hopefully in 2 years or so I will be in business for myself. +Rep

K062706 said:

Thanks for this!!!! This is what I want to do with my life! This is my calling hopefully in 2 years or so I will be in business for myself. +Rep

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Outstanding, I myself quit my career in IT (20+ years) and am now fully committed to this industry. The main thing that I have learned is being legal and above board, if your like that in Cali and don't sell across state lines your golden. The DEA won't go after you if your paying taxes since this is revenue for the Fed, as long as your legal by the state. If however they can get you on Federal charges, then all bets are off. A prime example of this is going above the 99 plant limit, that is an automatic 5 years in federal prison. 99 plants and less are prosecuted at the state level so they really have no interest in messing with those operation as long as they are legal.

In my opinion all growers should be legal so that we can bring this out of the back alleys and onto main street, which some of us are accomplishing. The more of us that do that the better it will be in the long run, eventually the Fed will want a slice of the pie. That will just mean more taxes and regulations but that's the price of doing business with the feds.

As always peace out

Notice I'm saying WRITTEN law, and there is NO WRITTEN law that clearly states one HAS TO PAY

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FAIL

Wrong, the 16th amendment - Congress passed it, allows them to levy tax's.

Why would you pay taxes in the USA on some thing the goverment fails to even recognize as legal?..They gets theres on the other end...JAIL..PRISON..LAWYERS..AND THAT WHOLE SYSTEM!

TreeOfLiberty said:

I used to hear old timers when I was a kid growing up that there was no actual written law that said one must pay taxes on their income. I thought they were crazy, that is until I got around 30 yrs old and started digging into income tax protest websites and digging deep. The first guy that really caught my attention was a man named Joe Banister that worked for the IRS and was fired when he started pressing his supervisors to show him where it was a written law that a U.S. citizen is LAWFULLY required to pay income tax.

Notice I'm saying WRITTEN law, and there is NO WRITTEN law that clearly states one HAS TO PAY. All these people who get prison time and their assets taken by the courts are being RAILROADED. The income tax DOES NOT go to the running of the U.S. GOVT. , it goes solely to paying the INTEREST on the Federal Reserve. Most people just assume that it is a law because they know someone or know of someone that has been audited or jailed over income taxes and their parents paid and grandparents paid so they just assume that it's the right thing to do by paying income tax. It is a corrupt set up against the people on paying income taxes, we never had an income tax until 1913 and America ran just fine over a hundred years before then.

The authority of the federal government to collect its income tax depends upon the 16th Amendment to the U.S. Constitution, the federal income tax amendment, which was allegedly ratified in 1913.The 16th Amendment was not ratified by the required 3/4 of the states, but nevertheless Secretary of State Philander Knox fraudulently announced ratification.

You won't see the facts in mainstream media about the truth behind the income tax. A good video with credible and valid sources, interviews with former IRS agents and attorneys is America Freedom to Fascism >

http://video.google.com/videoplay?docid=-1656880303867390173#

Now as far as paying income taxes as a grower...why the hell should you ? Even if you refuse to believe the truth and believe it is right to pay taxes or if you fear going to jail for not paying them, why would you want to pay an income tax on providing Cannabis to patients when the Federal Govt constantly locks up caregivers and dispensary owners for selling Cannabis and then refuses to allow the people they railroad to use the term "medical" in any way in Federal court. They never let the jury hear the term MEDICAL marijuana.

I don't pay and I won't pay and if anything paying an income tax on something that the FED's deem illegal anyway is opening more doors for them to bust you.

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lol

http://docs.law.gwu.edu/facweb/jsiegel/Personal/taxes/JustNoLaw.htm

but he does have a good point about automatically incriminating yourself of a federal crime by paying tax on it.

Okay after reading some of these posts I feel that this has to be set straight, keeping in mind this is CURRENT policy per the Fed.

1 As long as you run your business within state guidelines concerning MMJ then the Fed probably will not mess with you. This means especially not going crazy growing all that you can, DO NOT break the 99 plant Federal limit for root structures. For our local delivery business we buy from other growers to make up for our shortages.

2 Ca guidelines states that it must be operated as a non-profit, that is the key.

3 You the owner are allowed to make a living wage from your product even in a non-profit, keep in mind what I just said, a LIVING wage. Now this can be open to interpretation but the gist is if your working 12 hours a day 7 days a week on your business then set a fair salary for that rate for the area that you live in, an accountant can be of great help here and is almost required.

4 As a non-profit if you make excess monies then you must dispose of these funds via legal means, this means DONATE the monies left over to various charities, I prefer local ones. Keep in mind this is monies left over after all operating expenses of the corporation for the year including new equipment purchases for the following year.

5 The corporation will take care of all taxes, your wages will have withholding's just as if you were working a normal job, you can even have the corporation pay unemployment taxes for you if you would like. Also your SS payments are continuing so your are earning retirement.

6 Now when you file your income taxes you are showing your wage coming from a non-profit as an officer of the board. The corporation helps keep you clean in the eyes of the feds for the most part, very low profile this way.

7 The last thing is never ever sell to anyone that is not a MMJ card holder or sell across state lines, that will get you busted quick. Always verify paperwork, that's why I love Ca with the system that's set up, very easy and anyone can verify via a computer.

If you follow these rules you will be okay as far as the state is concerned and once you get a circle of followers for your product you don't even need a store front or anything else. You will sell all that you can grow

When reading about dispensaries getting busted I usually notice one of two things, either very large amounts of money or 100+ plants, either of which is red flags for law enforcement. 100 plants is important because that is automatic Federal court with no MMJ defense, under that it reverts to the state to prosecute.

Edit: Almost forgot but another thing with doing it this way is that when someone asks you what you do for a living you can say that your an officer on the board of a local non profit helping out cancer patients. No one will real really try to get into specifics and it sounds like your doing the world a favor

Let the detractors roll in, peace out