TAX PREPARATION
The Calyx team is licensed and experienced at preparing all tax returns, including C Corporations, S Corporation Partnerships, and Schedule C (Sole Proprietorships), as well as Schedule F tax forms for Farms and Schedule E forms for real-estate, among others.
Not only do we advocate for you to get the best possible tax outcome, we do it accurately using tried and true systems practiced by larger accounting firms.
Planning is essential. The greatest tool a business owner can use to prepare and adapt to their tax liability, is planning. We frequently hear from taxpayers that because they did not prepare well in advance they are shocked at the amount of taxes they owe. While scrambling to get caught up with what they owe in the current year, they find themselves quickly getting financially buried in anticipation of the following year's tax liability. New businesses need to be prepared for at least a 15% tax debt, for even the smallest amount of income, and up to 40% or higher depending on which state tax jurisdiction you are in. Tax planning enables you to prepare ahead of time for your tax liability while taking measures to either reduce your tax burden or save for it.
Nowhere is planning more important than for companies in the cannabis industry. How much planning you’ll need depends a lot on the type of business. For example, producer growers are less impacted by 280E while dispensaries are unbelievably impacted. Producers with significant advertising and sales commissions costs may be impacted by 280E. But, for the most part, all other inputs including facility expenses and payroll can be deducted as long as it is a part of the production of the product. Whereas dispensaries are not allowed any deductions for overhead. Facility costs and most, if not all, of a dispensaries wage expense is also non-deductible per 280E, putting dispensaries in a negative cash position and still having to pay taxes on income that they did not actually produce. Cannabis business owners need to be prepared for these kinds of topsy-turvy results.
“Calyx CPA has been very helpful in getting our financial records running with QuickBooks along with training, so you don’t feel like you are lost. Even when I need a refresher on the program someone is always there to assist me. Calyx CPA like the calyx of a flower, there to provide that protective covering for your growing business. There has not been an issue or question that the Calyx team has not been able to handle, even with my constant pestering questions.”
Tyler Rolen, Owner of Rolen Stone Farms
