Why would you consider converting a non-profit to a for-profit? There are two big drawbacks to being a non-profit to consider:
Therefore, if you’re interested in building a business and selling it, or making a profit that you don’t need to reinvest back into your business, a for-profit would be the way to go.
Sound like a promising model? Here’s what you need to know to convert your cannabis non-profit into a for-profit.
Who does this apply to?
Next, if you’re an existing nonprofit — a mutual benefit corporation or a cooperative corporation — and you wish to convert to a for-profit entity, you must register this change with the Secretary of State starting January 1, 2018. This applies to any businesses looking to become a Corporation, Limited Liability Company (LLC), Limited Partnership (LP) or limited Liability Partnership (LLP). If you’re a new business, you are required to register with the Secretary of State before applying for any license(s) with other local and state agencies.
Not sure what business structure is right for you? Luckily, there’s a guide for that. The California Secretary of State has this overview of the different forms your canna-business can take. Of course, if you have any questions about the differences between a corporation, LLC, LP, or any of the other options, GreenGrowth CPAs are here to help.
Steps for Registering Your Cannabis Business
Follow these simple steps to get your business registered correctly.
Here are some other recent posts by CA Cannabis CPA
- Everything you need to know about California’s Cannabis Excise and Cultivation taxes
- New Rule Alert: California Cannabis Operators Must Pay Taxes to Get Seller’s Permit
- 5 Tax Questions To Ask When Structuring Your Canna-business
- Cathedral City, CA – Cannabis License Opportunities
- Best Practices for Cannabis License Applications
- New California Cannabis Taxes Begin January 2018
- Commercial Cannabis Permits Available in Arcata, CA
- Medical Cannabis Applications Available in Adelanto, CA
- Internal Revenue Code 280 and its application to California Corporations