How CJBS Helps Your Cannabusiness Manage Your Challenges
Dear Clients & Friends,
There’s no doubt that cannabis is a big business, and the industry continues to grow by leaps and bounds. A recent study forecasts that legal cannabis sales in the U.S. will reach $43 billion by 2025. Also by 2025, 42% of the total annual U.S. demand is projected to be met by legal purchases in regulated marketplaces — up from 24% in 2020.
What Does This Mean For You?
As your cannabusiness continues to evolve and grow, we understand the vast hurdles your business can face, including complying with tricky tax laws and avoiding IRS audits. Another not so welcoming challenge: funding and banking. With traditional banking services regulated by federal law and marijuana sales remaining illegal on the federal level, this uncharted industry has very limited access to banking services. As a result, most state-regulated cannabusinesses are forced to operate largely in cash. That means it can be challenging to accept credit cards, set up deposit accounts, write checks, run payroll, or quickly and easily pay taxes — a big obstacle to staying competitive in the global marketplace.
Without traditional banking options and with large cash transactions, some cannabusinesses must submit IRS Tax Form 8300 to record cash handling for amounts of $10,000 or more. Unfortunately, many businesses are unaware of their obligation to complete this form — and that’s where we see the IRS pursuing them for failure to file penalties. Thankfully, helping clients complete this form late is far better than not completing it at all — potentially saving them hundreds of thousands of dollars in IRS penalties.
Whether you’re just starting off and need assistance with licensing, multistate tax filings and Form 8300 compliance, or need help scaling and growing your operations, our CJBS Cannabis team works hand in hand to help you navigate the ins and outs of this industry.
Partnering with the right cannabis expert can also alleviate the financial burden of hiring an internal CFO, especially if you have limited resources. Let us know how we can help add to your business success, with expertise and knowledge leading the way.
Stay safe & healthy,
The CJBS Team