Vending To Dispensaries

I would like to do this legally and pay taxes. When filing a DBA and obtaining a business lic how to I go about stating my business? Looking for advice from someone who is a legitimate vender paying taxes doing it right.

I think the only thing you can do is file a non-profit.

The key word is "Donation". We cultivate cannabis to be donated to collectives. They pay you in return for your expenses. Light, water, nutes and what not. Its not a business to be incorporated or taxed.

Why would you want to hand your money to the state??

Id rather be legit then caught up..Non prof still pay taxes if that was the case dispensaries would not pay taxes either..You’re also required to file if you had net earnings i.e., after expenses in self-employment income of at least $400.

Yeah, a while ago someone posted the federal IRS code that more or less says you can't pay taxes on any form of illegal drug transaction, and since selling to dispensaries is still federally illegal, you can't pay taxes on it. Therefore I would forgo paying taxes on it (while retaining the rough equivalent of what you would owe just in case), and if the government ever comes after you for tax evasion then rub the IRS code in their face and tell them how you would have loved to pay taxes but they prevented you from doing so.

sorry to dig up an old thread, but since this was link #1 on a google search (for something else of course..), thought i'd chime in and keep some poor bastard out of hot water.

You cannot pay tax on transactions involving pot. Not yet anyway.
However, you MUST pay income tax. Income to you from whatever source, donation, reimbursement of expenses, whatever you want to call it .. it's income, and to be legit you need to report and pay tax on it. Remember Al Capone?

To really be legit it can get a little murky here depending on what you are doing. If you are making worthy enough cash then you should really have a CPA who specializes in this field.

What really screws you is paying the income tax on this and not being able to deduct your grow expenses. Being federally illegal, you cannot deduct one single dime of it, not even as Cost of Goods Sold.