by California Cannabis Biz – Check Consultants
California Cannabis Biz – Check Consultants is our small effort to make sure that any of the advisors that you might be using in your business play by similar rules that the State of California is asking you to accept. Let’s face it, the price you are paying to be a participant in the legal cannabis industry in California is HUGE! Do you think it is unfair is some growers, extractors, distributors or dispensaries don’t play by the rules and there aren’t any consequences? We would be mad as hell about it!
Our firm is licensed in California, I am licensed as a CPA in California, our firm practices in California thru an entity which is incorporated in
California. The rules that apply to the practice of public accountancy in California can be found here. The firm’s entity and I personally are California taxpayers on the income we earn in California.
The State of California Franchise Tax Board [“FTB”] has very specific rules that apply to payments to nonresidents of California. If you have questions or concerns about those rules, you can find answers to most questions here.
- California Revenue and Taxation Code Section 18662 and the related regulations (18662-1 through 18662-14) require the withholding of California income or franchise taxes from payments made to nonresident independent contractors performing services in California.
- Withholding is also required on other payments of California source income to nonresident payees and on distributions of California source income to nonresident beneficiaries.
- Revenue and Taxation Code Section 18668 makes the withholding agent liable for any tax required to be withheld. Revenue and Taxation Code Section 17951 contains the provision requiring nonresidents to be taxed on all income from California sources.
- Payments made for personal services performed in California are California source income. Where the nonresident lives, the location where the contract for services is entered into, or the place of payment does not determine the source of income from personal services.
- The source of income from personal services is the location where the services are performed. Nonresidents must include in California gross income the gross payments for all services performed in California.
If you want to know if an entity is qualified to do business in California, you can verify that here.
If you believe that an individual or a business is paying California taxes and should be, you can report that here.
The success of the legal cannabis market depends on everyone…and includes the businesses, business owners, their advisors and consultants, and the agencies that regulate all following the rules.
If we can help your California commercial cannabis business, please contact us. California Cannabis Biz – Check Consultants
You can learn more about how virtual your CPA firm or prospective firm might be, at
CPA Firms – Virtual versus Reality
