Question about collective/co-op/growers association

plant11

New Member
I have been doing my research and from what I have gathered there are three ways about forming a collective. I am personally interested in forming what I believe is called a growers association between myself and a few others.

Am I right in assuming that all we need to do is write up a form with our mission statement, bylaws, stating that we are in accordance with the laws, etc. and have each other sign one of these? Am I right in assuming that by doing this we do not need to register as a non profit with the state / go through a lawyer?

If you have any insight or helpful links please help us out here we want to make sure we are doing this right.

Thanks!
 

ReefBongwell

Well-Known Member
You don't have to hire a lawyer to form a nonprofit, it's just recommended. It's $30 to file for a nonprofit.
 

Rusty Shakelford

Well-Known Member
Yep, then you will need a Sellers Permit so you can pay State Sales Tax on donations that are supposed to ONLY help recoup expenses :confused:
 

ReefBongwell

Well-Known Member
Rusty Shakelford that's right about the sales permit for sales tax but actually not true if you have a mutual benefit about donations covering just expenses. You just are not supposed to use the proceeds for personal enrichment -- you are allowed to pay yourself and others reasonable salaries out of the proceeds the mutual benefit takes in. The proceeds are to be reinvested and not for profit, but they do not need to be only just to 'recoup expenses'. With a mutual benefit it is fully expected you will have what most companies would call a profit, however for mutual benefits it is to be reinvested and held in keeping for future needs. If the mutual benefit is shut down all the proceeds need to go to another mutual benefit/charity.
 

Rusty Shakelford

Well-Known Member
Actually my statements are correct. As far as California is concerned, we are to charge only enough to recoup our operating expenses (salaries, utilities, rent, etc.). Now does that mean we wont actually make a profit at the end of the year? Probably not, and if we do, then YES, you are correct, they must be reinvested into the Nonprofit, or donated.

California forces us to create the Nonprofit Corporation so they can get their $800 minimum corporate franchise tax, whether we make money or not.
 

colonuggs

Well-Known Member
non profits........just means ur hiding the profits :) At this time there's to much $$$$ in marijuana not to make a profit
 

ReefBongwell

Well-Known Member
Reinvesting, not hiding... ;) Well maybe some people hiding... what you mean I can't pay my dog for guard duty???
 
Top