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Financial Reporting Requirements for a Marijuana Business

The importance of maintaining up-to-date financial records cannot be emphasized enough. You will not be able to keep your commercial medical marijuana license for very long unless you can keep excellent records. It can be helpful to hire someone with the organizational skills and work ethic to keep detailed records, in order to assure you are meeting the financial reporting requirements for a Michigan marijuana business. Contact a qualified medical marijuana attorney that can give you more information.

Methods of Keeping Record

A cloud-based computer system will certainly help those who want to keep financial records, but like any successful business, business owners must adopt systems and processes that will help them track all of their income and expenses. A good business lawyer and/or business consultant can help an individual develop these systems and processes.

Such detained records are an absolute necessity because business owners are required by the Act to transmit to the board and to the municipality, once per fiscal year, financial statements of their total operations. Not only must they keep good records, but these records must be reviewed by a certified public accountant. Obviously then, a person would need a great CPA on their business team as well.

Compliance with this part of the Act is just one more business expense that a medical marijuana business must be prepared to assimilate into their overall operating budget and business plan. Especially, if an individual wants to abide by the financial reporting requirements for a Michigan marijuana business.

Violations of the Act

A state granted commercial medical marijuana license does not give a person a property right.  It is a revocable privilege, meaning the State of Michigan can take an individual's license from them, especially if they do not comply with the financial reporting requirements for a Michigan marijuana business.

If a person violates the Act, or another applicable and relevant law, then their license can be revoked, suspended or restricted. Their license is also exclusive to them as the licensee.

Activities Resulting in the Suspension of a License

Certain activities will result in the revocation, suspension or restriction of a commercial medical marijuana license. For example, if someone fails to comply with the Act or if they fail to properly utilize a tracking system, or if the person fails to continue the eligibility requirements under this Act, then the State may act against their license.

Also, if an individual fails to provide information the board requests to assist in any investigation, inquiry, or board hearing, the board may deny, suspend, revoke, or restrict a license. The same is true relative to that business owner's employees.

Consequences for Violating the Act

If someone is found to be in violation of the Act, then they may be fined up to $5,000.  Also, you may be fined based on an amount equal to your daily gross receipts or up to $10,000, whichever is greater.

Such fines are applicable to each violation, so it is quite possible for fines to reach numbers high enough to devastate your business.

Also, being fined or paying a fine does not necessarily get you out of trouble. The assessment of a civil fine will in no way act as a legal bar to the investigation, arrest, charging, or prosecution for any other violation of this act.  This means the fines assessed may only be the beginning of your legal troubles, which is why you should contact a qualified marijuana attorney that can protect your legal rights and can answer any questions you may have concerning financial reporting requirements for a Michigan marijuana business.


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