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Three Ways a Massachusetts Tax Attorney Can Help Your Cannabis Business

Articles/News, Hot Topics

Posted on December 17, 2019 |

If you are one of our state’s cannabis entrepreneurs, you are most likely focused on developing your business, growing your customer base and providing a quality product at a competitive price. Like many other business owners, paying taxes may be an afterthought. Unfortunately, failing to give the appropriate time and consideration to your tax obligations cannot only result in financial penalties but may even result in criminal prosecution. Hiring an experienced Massachusetts tax attorney is an investment in the current and future success of your business.

A Massachusetts Tax Attorney Can Ensure That You Are Paying the Proper Taxes

Cannabis retailers must comply with complex tax schedules. All sales are subject to the following current tax rates:

  • A state sales tax of 6.25%
  • A state excise tax of 10.75%
  • A local sales tax of up to 3%

Depending on where your business is located, you may therefore be obligated to pay both state and local taxes on all sales. Furthermore, you need to pay these taxes by the 20th of each month. Failure to pay taxes can result in penalties and interest being assessed against you, eating into your business’s profits. A Massachusetts tax lawyer can help you understand which rates apply to your business, ensure that you are paying the correct amount, and develop procedures to ensure that your taxes are paid on time.

A Skilled Tax Lawyer Can Help You Minimize Your Tax Liability

While you may not be able to deduct necessary and ordinary business expenses like other businesses, you can deduct any direct costs you have in selling cannabis. A Massachusetts tax attorney can identify those costs to minimize your tax bill. Conversely, they can also make sure that you are not taking any improper deductions to avoid potential legal issues down the road.

It’s also important to note that the marijuana tax rates apply only to the sale of marijuana. Any other products you sell are taxed according to the standard sales tax rate. Your lawyer can also help you structure your business to make sure that you are paying the appropriate tax rates on all of your products.

A Massachusetts Tax Attorney Can Defend You Against Challenges

If you do run into legal problems, an experienced Massachusetts tax attorney can defend you against challenges from the Massachusetts Department of Revenue or the IRS. Tax cases are prosecuted aggressively and can carry serious consequences. Having a lawyer who knows you and knows your business can pay considerable dividends in the event that either Massachusetts or the federal government claims that you owe more taxes.

Contact the Thorn Law Group - Massachusetts Tax Lawyers Helping Cannabis Retailers

Don’t wait until the authorities are claiming you didn’t pay your taxes - invest in the success of your business by speaking with Kevin E. Thorn, an experienced Massachusetts tax attorney today. Call us at 617-692-2989 or contact us online or email ket@thornlawgroup.com to learn more about how the Thorn Law Group can help your marijuana business.

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