Cannabis Business Accountants in North Carolina

Legal Framework for Hemp, CBD, and Cannabis in North Carolina

North Carolina has legalized hemp cultivation and the sale of CBD products containing less than 0.3% THC, in line with the federal 2018 Farm Bill. However, medical marijuana legalization has been limited to narrowly defined medical uses, and recreational cannabis remains prohibited. These distinctions are critical because they determine the applicable tax laws, compliance requirements, and accounting practices for businesses operating in the state.

• Are you a North Carolina-licensed CPA offering services to cannabis-related businesses? Request to be listed .

Taxation of CBD and Hemp in North Carolina

In North Carolina, the taxation of CBD and hemp products follows general state tax laws rather than cannabis-specific regulations, as these products are federally legal under the 2018 Farm Bill. However, businesses in this sector must navigate a unique set of tax considerations to ensure compliance and optimize their financial practices.

Sales Tax on CBD and Hemp Products

1. State Sales Tax

   • Retail sales of CBD and hemp products are subject to North Carolina's state sales tax, which is 4.75%, plus any applicable local sales taxes.

2. Exemptions

   • Agricultural hemp products sold directly by farmers may qualify for specific agricultural tax exemptions, provided they meet the state's criteria.
   • Finished products, such as CBD oils, tinctures, and edibles, typically do not qualify for these exemptions and are taxed as consumer goods.

Tailored Services for Cannabis Enterprises in NC

Specialist accountants offer a range of services designed to address the unique challenges of the cannabis industry:

• Tax Strategy and Filing: Navigating 280E and other tax rules to minimize liability.
• Financial Management: Ensuring accurate bookkeeping, cash flow monitoring, and performance analysis.
• Regulatory Guidance: Staying compliant with North Carolina’s evolving laws.
• Strategic Advisory: Supporting business planning, expansion, and operational efficiency.
• Audit Representation: Assisting with IRS inquiries or disputes.