My question involves business law in the state of: michigan
Hello, I would like to start a marijuana trimming business. It is now legal in my state to grow up to 12 plants. A LOT of people are growing and I know quite a few growers who know quite a few growers and so on.
As this will be a mostly cash and word of mouth business what are the tax implications? I would hopefully be depositing 1k a week cash in my business bank account. I will have no employees and the equipment is minimal, I would be purchasing a $6000 trimming machine and a few other items, my total startup cost will be less than 10k. I will be going to people's houses grow sites and trimming their finished product.
What kind of receipts would I need If the IRS started asking questions? A lot of growers wouldnt want their name being put on receipts and would only pay with cash. Despite the legality most growers are still pretty leary of having names named.
I know that a lot of people dont like trimming their product because it is a very tedious process, they have to hand trim for hours and days unless they invest in the trimming machine.