Non-Profit Setup
Arizona Marijuana Dispensaries are required to be Non-Profit. Naturally, our most common "How Do I Open a Marijuana Dispensary?" discussions start with Non-Profit Registration.
Hopefully here, we will be able to answer a few of your questions.
Please Note: We are not lawyers. We worked through the process just like you are, naturally, consulting lawyers. However, to avoid problems, please verify your plans with your lawyer.
What do I need to get started? To get started processing your organization you are going to need 2 major pieces of information. Who your partners are, and where you will do business.
You will Need...
- Name, Address, Phone Number, SSN, and a small Bio of All Partners.
- A Brief Description of the Duties for Each Partner and Their Roll in the Organization.
- A Brief Description of Your Goal as an Organization. (i.e. To produce and sell medicinal marijuana as provided by law.)
- The Complete Address of Where you will do Business.
Do It Yourself Types May Like the Arizona corporation Commission FAQ's.
More Information on Non-Profit Setup at KeytLaw.com/az/nonprofits
What will it cost? The costs of preparing the non-profit organization will vary based on what county you live in. In Maricopa your lawyer may charge around 1200-1500 to prepare and file your paperwork and write your bylaws including all the submission fees and costs that go directly to the county or state, but in Phoenix or Chandler, you are looking at $500 to $900 more. This is due to the increased filing costs of different counties.
There can’t be a profit? Because you are listed as a non-profit organization does not necessarily mean you are not allowed to make a profit, after all you are still a business. It does however mean that your product must sell for a reasonable price, and your board of directors must be paid reasonably for the time or service provided to the non-profit. In other words, you can't sell for $1,000 a gram, and you can’t pay your CEO $100k because he showed up for a meeting once. You will be taxed for any moneys earned above the “Costs of doing business” just like any other venture.
Will my corporation be tax exempt? No. Just because you are a non-profit organization, does not necessarily make you a non-taxable entity, in fact, it is better to not even apply for the tax exemption, as then the rules change both for the company and the board of directors when it comes to where the money goes.
For More Information, please feel free to Contact Us or the list of lawyers below or on the Recomended Lawyers page.
Phoenix, Arizona 85016
Phone: 602-906-4953
Fax: 4602-297-6890
More Information on Non-Profit Setup at KeytLaw.com/az/nonprofits
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