With the sale of medical marijuana and recreational cannabis in States that have legalized their sale, I am often asked whether a seller must pay federal tax on its sales proceeds. As a former IRS Agent, I tell them that the sale of marijuana generates taxable income. They respond by saying "how can this be? It is still illegal under federal law to sell marijuana! Do I really have to report those sales to the IRS?" The problem for these sellers is that the Internal Revenue Code (the "Code") taxes all income, even if derived from the "trafficking in controlled substances." Then I tell them the really bad news. Not only do businesses selling marijuana have to pay taxes on their sales revenues, but Section 280E of the Code prohibits tax deductions for ordinary and necessary business expenses such as rent, wages and other such expenses.
Hertz Schram franchise attorney Gary Remer is hosting a free Q&A session to help current and prospective franchise owners get the information they need to make successful business decisions. To learn more and to register for the event, check out the Eventbrite page for the session.
Recently, I've read a few articles about how entrepreneurship is losing its cachet among millennials. Really? I guess the authors of these articles have missed a real "boots on the ground" story in Detroit. I can attest that the entrepreneurial spirit is alive and well and even expanding into the practice of law.
Women make up half of the population and therefore make up half of the consumers in the economy. This is why companies in all industries and sectors have a financial interest in targeting women in their marketing campaigns to promote products and services in Michigan or in any other state. However, many companies in the software industry may be having trouble targeting women and may have to adjust their business planning strategies in order to do so.
A university is meant to be a place where new ideas and concepts are created and explored. One way this manifests is through the start-up companies which emerge from the business formation efforts of students applying what they learn to the real world. Michigan universities and colleges have recently been focused on the start-up scene, particularly in the technology sector.
In many types of musical genres, drums act as the backbone to the music. However, when starting a business, financing is the backbone of business formation . Start-up financing is what one entrepreneur is now looking for in his plan to start a new custom drum-making company. The 60-year-old entrepreneur has already started operating in a modest shop space in Michigan and is currently in the business planning process to expand the company.
Starting a new business can have a variety of challenges such as developing a sales strategy or obtaining funding to fulfill startup requirements. Many times new entrepreneurs who have good ideas but have little business experience will need help with the legal process of business formation . One new business accelerator in Michigan is attempting to provide new businesses with all of these needs as well as many other benefits.
The more experience one has in his or her chosen field, the more successful he or she will likely be in business. One family in Michigan knows this all too well and, with 45 years of experience in retail, the family is now running a respected and successful appliance and furniture business. Now, the family is attempting to enhance its success through a franchising venture with Art Van Furniture.
Being an entrepreneur is almost like being an artist. Whatever one entrepreneur can imagine, he or she can often make it an actuality in the business world. However, it may take a certain amount of business planning in order to turn an idea into reality. One entrepreneur in Michigan has discovered this secret which she has used to start a commercial real estate consulting firm which has evolved into a variety of other creative business ventures.
Before Chrysler was bought by Daimler, the company had plans to produce a car especially made for the Third World which utilized a two-piece body which had been injection molded out of specialized thermoplastic polyester. The company even went as far as to begin test production of the vehicle in Michigan, but ultimately the new vehicle was never brought to market. However, now an entrepreneur has came up with a new business planning idea for a lightweight vehicle that would utilize similar plastic technology.