Taxes are a little challenging to understand and manage, especially if you are in the cannabis industry. The industry has a set of regulations your business needs to follow to stay ahead and in business.
With the help of experts or professionals, you can navigate the tax world easily. For those living in Maryland, the state has its guidelines and restrictions that involve taxes.
How do you find the tax help you need in Maryland?
We’ll explore how you can find tax help to elevate your business to the next level. Who wouldn’t want that?
Maryland’s Cannabis Tax Landscape
Maryland’s cannabis tax landscape has its ups and downs, but today, state law requires a 9% sales and use tax on retail sales of adult-use cannabis and its products. The tax is about as high as the taxes on alcoholic beverages, so there is no surprise that cannabis has the same tax rate.
The challenge is whether businesses can maintain the frequency of recording and reporting sales tax to the local tax authorities. Not only this, but you also need to keep records of your cannabis sales. That’s a lot of recording, especially if you are doing it all yourself or have an amateur worker trying to keep up.
Another thing to note is that a cannabis business should or needs to file frequently, according to the Comptroller, which is typically monthly or quarterly based on the sales volume.
If you have more than one business in Maryland, it’s more challenging since you have to do separate recording and single sales and use tax returns for each location.
This sounds like quite a hurdle to go through, but with the right tax help, you won’t have to do all the tax work yourself.
What You Need To Know To Find Tax Help
When you’re looking to find an expert or professionals to help you with taxes, it’s best to make sure they check all these boxes here:
- Know Their Experience Level: The expert should have years of experience, especially within the cannabis industry. That way you can trust them to help with your taxes, without missing a beat.
- Expertise In Cannabis: They should also know about cannabis taxes, regulations, and dynamics.
- Know Types Of Tax Professionals: Know the type of tax professional you want to work with. They can be cannabis-specific accountants, enrolled agents (EAs), Tax Attorney’s, CPA’s, and potentially cannabis consultants.
- Know Their Approach To Tax Planning: You need to know how they approach the tax planning process which can give you knowledge about whether they work well with your business, or not.
- Verify Their Credentials And Certifications: Another factor; is they need to have certifications and training in cannabis accounting and tax issues.
Looking for tax help from a professional should check these boxes to ensure your business is in good hands.
Without these points, you risk jeopardizing your business with a professional who may not know how to handle your cannabis business taxes.
Where To Find Tax Help In Maryland
Finding tax help in Maryland is a relatively simple task that requires you to do your research.
You can look online to find the tax help you need in Maryland by reviewing websites and then verifying their credentials. You can also book a consultation with professionals, specifically cannabis accountants since they are premium experts.
Work With Cannabis Bookkeepers Or Accountants
If you’re not sure who to work with, consider Green Space Accounting. We are professional cannabis accountants who understand the lay of the cannabis industry. We’ve helped countless cannabis businesses, including dispensaries.
When you work with us, you get a free consultation after you book on our company website. We get a feel for what your cannabis business needs and how we can help you with your taxes.
Benefits Of Getting Tax Help
What happens when you get tax help for your cannabis business?
You receive these benefits;
- Business Growth
- Potential for higher tax benefits
- Maximize Deductions
- Maintain Stable Business Operations
- Save More By Unnecessary Avoiding Fees
- Avoid Penalties
- Saves Time
These are the benefits you can get from using tax help that can enhance your business operations and save more in taxes.
Final Thoughts
There’s a lot to consider in thinking about getting tax help for your business. But the best thing you can do is work with a cannabis accountant.
When you have tax help from an accountant, they can help you manage your finances better and help you save for taxes.
They can also get to know your business inside and out to make smart decisions that can financially increase your cash flow and avoid tax penalties.
Get Started Today
Contact Green Space Accounting by booking a consultation that’s free of charge.
FAQS
How To Manage Taxes When You Can’t Find Tax Help?
There are some factors you should do to manage your taxes if you can’t find or don’t want tax help.
Here are some things to consider:
- Maximizing Deductions Under Section 280E: Make sure you maximize your deductions by looking at what you can deduct, specifically under cannabis cost of goods sold (COGS). The more you can deduct, the more money goes to your business.
- Compliance and Reporting Requirements: You need to have regular reporting of finances and taxes directed toward the state authorities, especially come tax season. Different states may require different compliance and reporting requirements.
- Tax Planning and Strategy: Getting a decent tax planning and strategy set in place can help your business grow financially and identify opportunities.
These are some of the considerations to think about when you want to manage your taxes in your business.
What If I’m A New Business With No Knowledge Of Taxes?
If you’re a new business, taking the time to develop habits of tracking your finances from costs, sales, expenses, and so forth, can set your business up for success. It’s best to start reviewing your local state’s compliance requirements to ensure you follow the correct regulations before dialing down your taxes.
Can I Deduct Cannabis As a Business Expense?
No. You can’t deduct cannabis as a business expense since it’s a Schedule 1 Drug.
What Is IRS 280e?
IRS 280e is where cannabis companies can’t deduct normal business expenses since many of the expenses have to do with selling the plant. Anything that doesn’t relate to selling cannabis can be deducted from the cost of goods sold (COGS). These include electricity, security, and anything to do with the cost of your business inventory. There’s a way to follow 280e well by making smart legal decisions like the 280e loophole.
