Key Points:
A certified public accountant who focuses on the cannabis sector. These CPAs are well-versed in the unique financial and tax laws applicable to cannabis businesses, including the complex restrictions under Section 280E of the Internal Revenue Code.
CPAs and Accounting Firms Offering Services to Cannabis Businesses in RI |
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CannaCPAs |
Puff Puff Accounting |
Understanding Rhode Island’s taxation structure is crucial. The general sales tax rate is 7%, applying to most goods and services, including medical cannabis. For recreational cannabis, an additional excise tax brings the total to 20%, which includes the 7% sales tax, a 10% state excise tax specifically for cannabis, and a 3% local excise tax.
Aspect | Hemp & CBD | Cannabis |
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Tax Deductions | Full range of business expenses deductible | Limited to COGS due to IRC Section 280E |
Cost Accounting | Standard cost accounting | Detailed cost accounting required |
Regulatory Compliance | Compliance with state regulations (hemp program) | Compliance with state and federal regulations |
Cannabis businesses in Rhode Island must adhere to strict state regulations, covering areas like licensing, reporting, and inventory management. Meeting these compliance requirements demands detailed attention, especially given the intricate tax obligations unique to the cannabis industry, which call for specialized expertise to help minimize tax liabilities effectively.
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