Applying for Federal EIN - MMJ Business in California

Discussion in 'Legal Edge' started by MrBoard, Oct 23, 2017.


    MrBoard Well-Known Member

    I want to apply for an EIN with the IRS for my MMJ Business. We are going to produce bubble hash in California for resale at CA dispensaries. So, to be clear, we will be buying material to process into bubble hash and then vending it to dispensaries throughout the state.

    I want to make sure I fill the application out correctly.

    My main question is about this section:

    What does your business or organization do?
    Choose one category that best describes your business. Click the underlined links for additional examples for each category.

    Casino hotel, hotel, or motel.

    Building houses/residential structures, building industrial/commercial structures, specialty trade contractors, remodelers, heavy construction contractors, land subdivision contractors, or site preparation contractors.

    Banks, sales financing, credit card issuing, mortgage company/broker, securities broker, investment advice, or trust administration.

    -Food Service
    Retail fast food, restaurant, bar, coffee shop, catering, or mobile food service.

    -Health Care
    Doctor, mental health specialist, hospital, or outpatient care center.

    Insurance company or broker.

    Mechanical, physical, or chemical transformation of materials/substances/components into new products, including the assembly of components.

    -Real Estate
    Renting or leasing real estate, managing real estate, real estate agent/broker, selling, buying, or renting real estate for others.

    -Rental & Leasing
    Rent/lease automobiles, consumer goods, commercial goods, or industrial goods.

    -Retail store, internet sales (exclusively), direct sales (catalogue, mail-order, door to door), auction house, or selling goods on auction sites.

    -Social Assistance
    Youth services, residential care facility, services for the disabled, or community food/housing/ relief services.

    Air transportation, rail transportation, water transportation, trucking, passenger transportation, support activity for transportation, or delivery/courier service.

    Operating warehousing or storage facilities for general merchandise, refrigerated goods, or other warehouse products; establishments that provide facilities to store goods but do not sell the goods they handle

    Wholesale agent/broker, importer, exporter, manufacturers’ representative, merchant, distributor, or jobber.


    The logical choice seems to be manufacturing, which leads to follow up question of

    You have chosen Manufacturing.
    Please specify the type of goods that you manufacture and the primary materials used
    (such as “wood furniture”):


    I want my business to be fully legitimate and everything filed correctly.

    Should I choose manufacturing and then put "Bubble Hash", "MMJ Extracts", or "Cannabis Products" in the type of goods? Or is that a bad idea?

    Should I put something else? I have considered using the Other as a response. This leads to follow up question as well:

    You have chosen Other.
    Please choose one of the following that best describes your primary business activity:

    Organization (such as religious, environmental, social or civic, athletic, etc.)
    Sell goods
    Other – please specify your primary business activity: __________

    Thanks ahead of time for any community help with my question.

    BarnBuster Virtually Unknown Member

    Icemud420 and DemonTrich like this.

    MrBoard Well-Known Member

    I have considered this, but was hoping that maybe i could get an answer from someone who has dealt with this already. In the long run, I definitely want to hire an attorney, but currently, I have limited funds and am just trying to get off the ground.
    botanistprime likes this.

    Fadedawg Well-Known Member

    Not an attorney, but I would write Essential oil extraction and formulation.

    Icemud420 Well-Known Member

    In all honesty, If hiring a lawyer is too expensive and you have limited funds...then most likely you have nowhere near the capital to get started legally in CA... just being honest.

    Have you secured real estate in a city that is offering permits for cannabis? and is this real estate within a zone the city permits for manufacturing license types? just right here you probably will need over a million dollars to spend.... If you have this you are lucky but its very unlikely as probably 90% of the cities in CA are banning cannabis business. That is the first step to even being locally permitted.

    I would highly suggest getting legal advice from a lawyer that is involved and knows the current (maucrsa) laws and regs. The amount of regulations and hoops to jump through is absolutely ridiculous and each one comes with a lot of costs...
    fdd2blk likes this.

    DHenderson New Member

    I am an attorney and it is a bit complex sometimes. The EIN number can be tricky - but they are really only interested in taxing you. It would be important to be consistent in all your docs and applications and to be vague and cautious re: wording. Right now they ask about where your may do your banking - not where you do your banking. Things will change over the next few years. Good luck
    botanistprime likes this.

    botanistprime Active Member

    I'm in the same boat right now. Pretty sure I'm going to end up hiring the CPA I already talked to. I was just hoping to file for my LLC before having to out down a 2500 retainer. I wish someone would answer this question.

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