Weeding the News – a breakdown of the month’s cannabis news, important events, and top-notch accounting tips – aims to entertain and inform you as we watch the cannabis industry transform before us.
What’s on the Docket
November 26, 2024/Volume 1, Issue 2
Following the recent election, there is a slew of news related to cannabis throughout the country. We cover the story of a Californian man who has been arrested for using a teenage accomplice to sell various drugs to minors. We’ll run you through some upcoming events, offer important tax info, and have another industry insider share their thoughts.
Cannabis in Los Angeles and Beyond
Nebraskans voted to legalize and regulate medical cannabis. Read more.
Meanwhile, Floridians voted against an amendment that would have legalized recreational cannabis in their state. Read more.
However, Kentuckians largely supported medical cannabis ordinances. Read more.
South Dakotan voters were less kind to our favorite plant, shooting down a cannabis legalization initiative (for the 3rd time). Read more.
In Dallas, voters were again on the side of cannabis, approving a cannabis decriminalization proposition known as the “Dallas Freedom Act.” Read more.
And in Ohio, legislation has been introduced to ban “intoxicating” hemp products. Read more.
A reminder that January 1, 2025, is the last day the Department of Cannabis Control (DCC) can renew provisional licenses. Read more.
The new deadline, for the license and application records renewal payment is Monday, December 2, 2024, courtesy of the Department of Cannabis Regulation (DCR). Read more.
FinCEN / Beneficial Ownership Information (BOI)
We are now offering FinCEN Beneficial Ownership Information Reporting (BOIR) services.
Reminder: The Corporate Transparency Act applies to all businesses. The due date for companies is 12/31/24.
Filed your Beneficial Owner Information Report yet? If not, contact us ASAP. Please don’t hesitate to call (818-225-8022) or email.
Upcoming Events
MJBizCon
The 13th annual MJBizCon is coming to Las Vegas, December 3-6. Cannabis professionals from all aspects of the industry will be present for forums, exhibits, and conferences.
Bruce and Thomas will be at the Association’s Day event on Monday 12/2. We’re attending the following evening events: the NACAT Pros event on 12/3, Tuesday night, and the Emjay Awards ceremony on 12/5, Thursday evening.
The Situation Report
On November 5th, cannabis businessman David Heldreth filed a lawsuit against the Department of Justice, imploring the federal court to stop a rescheduling process. Heldreth says there are many issues with how the DEA has carried on with its hearing to change cannabis to a Schedule III narcotic from a Schedule 1. Read more.
On November 6th, three people in Long Island, New York, were charged with criminal possession of cannabis after police allegedly found over 850 pounds of cannabis in the N.Y. apartment. Read more.
In Livermore, California, a man was arrested for allegedly using teenagers to sell various drugs at middle and high schools in the area. The drugs included nicotine vapes, cannabis vapes, and psilocybin-laced chocolates. Read more.
November 24th, in New Jersey, an Uber Eats driver called authorities when they noticed that the “burrito” they were set to deliver was giving off a distinct cannabis aroma. Lo and behold, when the police pried it apart, they indeed found over an ounce of cannabis. Read more (for the emoji-filled article).
Abroad
A man in Wales reported a missing bag (of drugs) and in doing so brought down a crime syndicate once it was found. Read more.
On November 20th, In Dovecot (a district in Liverpool, England), the strong odor of cannabis brought authorities to an apartment that had several cannabis plants, other drug paraphernalia, and several swords. Read more.
In Western Australia, authorities uncovered a cannabis operation worth around $700,000 sitting among a pumpkin patch. Read more.
Industry Insight: Home Cultivation
Cannabis home cultivation offers individuals the opportunity to grow marijuana for personal use, a practice gaining traction due to increasing legalization across various regions. As demand for premium, locally grown cannabis rises, home cultivation provides cost savings and access to high-quality strains. The home grow market is booming, with a surge in equipment sales like grow lights, nutrients, and tents, projected to be valued at over $4 billion in the U.S. by 2030, according to Forbes.
With evolving regulations and a growing DIY culture, cultivating cannabis at home not only empowers users but also reduces reliance on commercial supply chains. As consumer interest deepens, the home cultivation industry will continue to thrive.
Joseph Ortiz
Founder & CEO
Private Caregivers Collective, LLC
Year-End Planning
Entity Types and Tax Considerations for Cannabis Businesses
Year-End Business Review
As we enter the final quarter of the year, it’s an ideal time to evaluate your cannabis business structure and tax strategy. Two critical questions to consider:
1. Is your current tax filing method optimal for your business entity?
2. Does your entity structure provide appropriate legal protection?
Important Considerations
- Entity changes are significant decisions with long-term implications
- Annual switching between entity types is not permitted
- Consult legal and tax professionals before making structural changes
- Consider both immediate and long-term tax implications
- Evaluate legal liability protection needs
Note: This should be taken as general information and should not be considered legal or tax advice. Consult qualified professionals for guidance specific to your situation.
Much-Needed FAQs
Instead of answering questions that have been asked all the time, we offer a few questions that should be asked. If asked, the questions would save you a lot of time and trouble. Trust us.
