Owning and operating a marijuana business can be very risky. This is the reason you may need to seek the help of professionals to handle the various aspects of your business. There are a number of reasons why you may need to seek help from a marijuana business accounting firm as well. The number one reason is to understand the tax, state and industry laws so you can comply with them and prevent yourself from getting into legal troubles.
When you are running a marijuana business, you must ensure that you operating legally at all times. The CPA or attorney who will assist you must be knowledgeable and have experience in the marijuana industry. It may sound simple, but the marijuana industry is still at its infancy. Education on this subject is narrow and so is awareness. A good marijuana business accounting firm will be able to help you understand about the entities that are permissible under the laws. They can help you become familiar with all the marijuana business laws that exist in your state.
One of the most important things that the firm or its representatives must be aware of is the IRC section 280E. This is a specific category of law which deals with the taxation of income that comes from illegal sources such as marijuana business.