Tax reform and the cannabis industry

Thinking about getting into the cannabis business?

Then our new article makes must reading.

Why? Because we’ll explain how the Tax Cuts and Jobs Act impacts an important decision you’ll have to make… which form of business entity to choose.

Want your new business to get off on the right foot and keep Uncle Sam happy?

Read my new article titled Q&A: Tax Reform and the Cannabis Industry.

Three ways our fact-filled article can help you:

1. We’ll explain what happens to your Section 199A deduction. To put it bluntly (no pun intended), you won’t get one. It’s true that the IRS hasn’t offered any guidance on the subject, but we’re pessimists. We believe Code Section 280E denies you all deductions and credits because you’ll be trafficking in a controlled substance. You’ll get all the details when you read the full after-tax-reform article.
2. We’ll suggest the right form of business entity to choose. Generally, for most small-business owners an S corporation makes the most sense. But if you’re going into the cannabis business, you absolutely should consider creating a C corporation. We’ll tell you why when you read the full after-tax-reform article.
3. We’ll back up our reasoning with hard facts. We’ll run the numbers and show you when the C corporation is the smart choice for cannabis business owners. For starters, the C corporation traps the “phantom income” created by Section 280E inside the C corporation. We’ll explain this in easy-to-understand language when you read the full article.