Cannabis Business And Taxes In Florida

Florida legalized medical marijuana in 2016 and since then it has seen exponential growth within the state. However, because marijuana is still an illegal substance on the federal level business owners have to navigate through a litany of rules and regulations that make it very difficult for many. Running a cannabis business in Florida, or anywhere in the country, requires expert guidance from an accountant to lower tax liability and ensure compliance for potential tax audits.

Challenges for Cannabis Business Owners

• 280e Clause: The IRS tax code includes the 280e clause which states that a business involved in the sale or trafficking of illegal substances cannot take advantage of deductions and credits as others can. This is marijuana is still considered a Schedule I drug under federal law, regardless of states that have legalized it. 
• Banking: Many banks still cannot allow cash from a cannabis business
• Operations: “From seed to sale” there are strict guidelines that vary from state to state for every aspect of the business.

How Greenlight Financial can help your Cannabis Business

• Company Setup: we are experts in creation of new entities in Florida, from applying for an EIN to opening a bank account. 
• Tax Planning: a tax strategy that will minimize the impact of the 280e clause when the time comes to file returns and help revenue growth 
• Cashflow: with our ongoing accounting support you can have peace of mind knowing all expenses and incoming cash is accounted for while remaining compliant and maximizing profits.