p3s7
- 27
- 1
I was thinking about this subject for a while now and I seemed to have found a solution to all the problems associated with the industry and prosecution cases.
I've been growing for nearly 7 years now and wish so to do it for a living. Growing for a living is no where near the same as selling marijuana for a living.
I want to set up a LLC, I will be self employed under this LLC. Just for argument sake, lets say I name this company, Farmers for Medical Marijuana (FMMJ). Then I will form a collective/co-op. This collective/co-op will be formed as a non-profit organization. The collective/co-op will then hire me to grow their patients medicine. Everything that I produce (smokable flowers) will be given to the collective for free at no charge for the marijuana itself.
As a grower employed under FMMJ, I will be asking an hourly wage of say $100 an hour. At the end of harvest, FMMJ will calculate how many hours I worked and calculate all out of pocket expenses assumed by the grower (ALL RECEIPTS MUST BE AVAILABLE. If the receipt for materials is not kept then the grower cannot get reimbursed for it) to keep the garden healthy and safe. After calculating the total expense assumed by FMMJ to create the medicine, FMMJ will bill the collective for this exact amount. FMMJ will then issue payment to the grower/me for the service. The collective will then distribute the medicine they got for free amongst its patients but charge accordingly for the expenses assumed to create the medicine.
This way everything will be documented and because the grower is an employee for a company and will be getting paid income, the grower will need to pay income tax. FMMJ will not own any of the medicine and therefore cannot and will not charge for the medicine. Only for the resources and expenses directly related to making the medicine.
The problem with this is that collectives/co-ops won't be purchasing their medicine at prices related to units and this could be a problem for the market because different strains go for different prices and is usually based on weight. Under this way the collective/co-op will be paying generally a set amount for their medicine regardless of strain or quantity. So for example with all expenses and wages added up say it comes out to 12,000 and the grower is only able to produce 1.5lbs then that is how much the medicine will cost. On the other hand if costs were 12,000 and I produced 5lbs then that will still be how much the medicine will be. But under this method it would be the most legal because the grower is no longer growing marijuana and selling it to collectives for massive profits and undocumented. I'd be more than satisfied making 12,000 a month (4hrs a day x 30 days x $100/hr.) regardless if I produced 5lbs or 10lbs. It will be a job and it will be taxed, documented, and compliant.
It's kind of like say you have a house with a front lawn you need to take care of. You hire a company to do your landscaping, the employees of the company will work on your landscaping. The company pays the employees and bills the homeowner.
The reason I am going to set up an LLC for FMMJ is because FMMJ is not going to be a collective, it does not have patients and it does not sell anything. Its like me having my own landscaping/gardening business.
I hope all of this makes sense and any feedback will be greatly appreciated.
I've been growing for nearly 7 years now and wish so to do it for a living. Growing for a living is no where near the same as selling marijuana for a living.
I want to set up a LLC, I will be self employed under this LLC. Just for argument sake, lets say I name this company, Farmers for Medical Marijuana (FMMJ). Then I will form a collective/co-op. This collective/co-op will be formed as a non-profit organization. The collective/co-op will then hire me to grow their patients medicine. Everything that I produce (smokable flowers) will be given to the collective for free at no charge for the marijuana itself.
As a grower employed under FMMJ, I will be asking an hourly wage of say $100 an hour. At the end of harvest, FMMJ will calculate how many hours I worked and calculate all out of pocket expenses assumed by the grower (ALL RECEIPTS MUST BE AVAILABLE. If the receipt for materials is not kept then the grower cannot get reimbursed for it) to keep the garden healthy and safe. After calculating the total expense assumed by FMMJ to create the medicine, FMMJ will bill the collective for this exact amount. FMMJ will then issue payment to the grower/me for the service. The collective will then distribute the medicine they got for free amongst its patients but charge accordingly for the expenses assumed to create the medicine.
This way everything will be documented and because the grower is an employee for a company and will be getting paid income, the grower will need to pay income tax. FMMJ will not own any of the medicine and therefore cannot and will not charge for the medicine. Only for the resources and expenses directly related to making the medicine.
The problem with this is that collectives/co-ops won't be purchasing their medicine at prices related to units and this could be a problem for the market because different strains go for different prices and is usually based on weight. Under this way the collective/co-op will be paying generally a set amount for their medicine regardless of strain or quantity. So for example with all expenses and wages added up say it comes out to 12,000 and the grower is only able to produce 1.5lbs then that is how much the medicine will cost. On the other hand if costs were 12,000 and I produced 5lbs then that will still be how much the medicine will be. But under this method it would be the most legal because the grower is no longer growing marijuana and selling it to collectives for massive profits and undocumented. I'd be more than satisfied making 12,000 a month (4hrs a day x 30 days x $100/hr.) regardless if I produced 5lbs or 10lbs. It will be a job and it will be taxed, documented, and compliant.
It's kind of like say you have a house with a front lawn you need to take care of. You hire a company to do your landscaping, the employees of the company will work on your landscaping. The company pays the employees and bills the homeowner.
The reason I am going to set up an LLC for FMMJ is because FMMJ is not going to be a collective, it does not have patients and it does not sell anything. Its like me having my own landscaping/gardening business.
I hope all of this makes sense and any feedback will be greatly appreciated.