So you want to grow legally under 502?

Two Year Old Sasquatch

Two Year Old Sasquatch

Well-Known Member
deebickle said:
Yeah, you're right, they can do what they want ultimately. But, under that reasoning, no one should get into 502 industry, because (regardless of 99 plant minimum sentencing) the Feds can bust your chops for any 'bogus reason', and deliver some severe penalties. A la Montana MMJ just recently. So why should anyone feel safe under 502?
Click to expand...
The feds have a hands off policy right now and as long as you keep it legit you'll be OK.
 
Two Year Old Sasquatch

Two Year Old Sasquatch

Well-Known Member
nyzhia said:
Great info, im in seattle area and trying to get my ducks in line so i can get my producer and processor lic. from what ive read you have to have a location to gow at befor you can get your lic, thats whats killing me right now :(
Click to expand...
I have acreage in Spokane and working on two Producer and one processor license. Message me if you like.
 
D

deebickle

Member
Other than what the regulations say directly, is there any other guidance from the LCB about what they are expecting to be in the Operating Plan? When I submit I would like it to be complete and thorough in their eyes.
 
D

deebickle

Member
Here's a youtube link that shows how to use the PICOL (Pesticide Information Center Online) database to find WSDA-approved pesticides for cannabis grown under I-502. You can look up by pest or whatever, and export to spreadsheet. Pretty cool, looks like mainly organic materials? Narrator's voice, lol, brings you back to high school.
 
G

Grassineed

New Member
deebickle said:
Alright, I hate the bullcrap and rules I see being proposed for Washington 502 adult marijuana use. But, I mean really, this is a chance to be a legal grower, pretty much a first in the world. Hard to pass up, and I think the rules might be doable. So I think I'll throw my hat in the ring and apply for producer/processor ($500 to apply), and $2000 for the two licenses. If I want to quit after one or two harvests, I should be able to cover costs. I want to keep it small, entire space needed would be about 1500 sq ft. My big unknown is our county zoning is undecided, if they don't come out with something soon, it'll be too late. I want to do it on my place, 20 acres of forestland with house. I don't know if the LCB would consider that as at a 'place of residence' or not. If they zone indoor growing in industrial only, then I'm looking at pretty serious rent, and hard to come by too, with everybody and their cousin thinking like me.

Anybody else thinking of doing this please join in with ideas. Like the required operational plan that needs to be included with the application. I think the LCB will give more guidance about what should be in the plan besides what's in the rules, but not sure.

I'm confused how the producer is supposed to sell without a distributor system, but I think that will sort itself out.

Any other people thinking seriously about being a 502 grower?
Click to expand...

HI,
Im planning on moving to seattle and start a grow operations. Would you be able to assist with information?
im planing to rent a home would that be safe with the landlord?
if you could also give me some more info on:

electricity problems?
growing in basement or no basement?
And ways to start the grow operation, that'll be great thanks.

Basically as much info as needed to start my own grow operations in a rented home.
Thank you so much
 
Dannoo93

Dannoo93

Well-Known Member
Grassineed said:
HI,
Im planning on moving to seattle and start a grow operations. Would you be able to assist with information?
im planing to rent a home would that be safe with the landlord?
if you could also give me some more info on:

electricity problems?
growing in basement or no basement?
And ways to start the grow operation, that'll be great thanks.

Basically as much info as needed to start my own grow operations in a rented home.
Thank you so much
Click to expand...

Dddummmbbbbb asssssss ....how bout u use google and read up on wadhington laws u lasy fuck


Dannoo93
 
S

Stegjven

New Member

  • I guess if you're in an agriculture zone, you might figure you'll be safe no matter what. But I would check with your county planning department.




 
colonuggs

colonuggs

Well-Known Member
Before you even apply to get your mj license... you have to have a business address in a zoned area with a lease agreement and carry liability insurance

You also have to present your business plan to the LCB ..... they have to approve it

OH yea 1 other thing ..... Plan on being audited by the IRS....Lifestyle audit they call it.

No grows in homes...police, LCB or a agriculture agent are granted entry at any time without notice during business hours
 
mustang519

mustang519

Well-Known Member
Application is in..... now time to jump thru some hoops. You do not need insurance to apply but will it need before operation starts. whoot whoot
 
mustang519

mustang519

Well-Known Member
I don't know for sure, but I would think all of that will be public record. They post in the local paper when applications for liquor license are pending. Part of doing business.
 
D

deebickle

Member
Hmm, yeah, I'm on the listserv and got that too. So location being public kind of makes sense, but really not. The state is giving anyone the information of where the Tier 3 growers are, and everybody else. For 30,000 sq ft at say 30 grams/sq ft that is over 2 million dollars sitting there at harvest time (at $1200/lb). And you can't have firearms involved for protection. Methinks there be some danger for those going big.

But is the operating plan and financial info part of public record also?
 
mustang519

mustang519

Well-Known Member
Thanks for the link purplebuz. I found myself on the list. I also found out today, that Grant county is not going to oppose the process. Wow, I do believe this is going to happen. I have to get my ass in gear and get the rooms finished. Full speed ahead.
 
colonuggs

colonuggs

Well-Known Member
mustang519 said:
Thanks for the link purplebuz. I found myself on the list. I also found out today, that Grant county is not going to oppose the process. Wow, I do believe this is going to happen. I have to get my ass in gear and get the rooms finished. Full speed ahead.
Click to expand...
Call me when the tax man audits you..:)
Don't take any business tax deductions
 
D

deebickle

Member
Why do you say that, about not taking any business tax deductions? The IRS 280E clause does nail a business for expenses, but not for cost of goods sold (COGS). So for a producer, almost all of the business expense can be allocated to COGS. For a retailer, it's going to be tougher. Bad enough to make it just not work at all, unless something changes. We'll have to wait and see if the IRS or congress will give something up.
 
colonuggs

colonuggs

Well-Known Member
It doesn't matter if your a grower, producer or retailer ...you still have to have licensed address with all required security right?

paying rent ??? have any employess? that's not deductible

I'm looking at 8000 sq ft warehouse @ $4000 month thats almost $50K out my pocket for the year...plus all utilities

then 25% taxes to the state plus B&O and 30% to the Feds shittttt what we get to keep out of a $1?? .25......(End Rant)

write-offs disallowed by the IRS include standard operating costs such as rent, utilities, payroll, employee health insurance and licensing fees.
Click to expand...
 
D

deebickle

Member
Colon, I think you have it wrong. Check out what Cost Of Goods Sold(COGS) means. Here's the deal - the IRS has allowed cannabis businesses to deduct COGS despite the 280E clause. From the Forbes article: "What about the cost of the actual illegal product, the marijuana? Interestingly, that was okay. For purposes of figuring the tax, it was considered the cost of goods sold and therefore properly an adjustment to income – not a deduction or credit subject to §280E. The IRS allowed it."

So this means for a producer, virtually all your costs (rent, labor, insurance, materials, utilities) are all allowed expenses, because they are required to produce your goods. Your delivery, marketing and sales cost are not allowed, from what I understand, but those will be a small percentage. So a grower is good to go on that front.

For a retailer, the cost of purchasing marijuana would be allowed, but labor, insurance, etc. are not, because they are not part of a retailer's COGS. Basically, that kills the retail business, if you can't deduct those expenses you run in the red. That's why I was saying something in the regulations have to change or it won't be a viable business model. This is explained in the consultant's 'white paper' on the LCB site.
 
You must log in or register to reply here.
Top