The current landscape of the cannabis industry is exciting and dynamic, ripe with innovation and possibility, as well as challenges and obstacles from regulatory, social and economic perspectives. It has attracted attention from investors due to the economic boom resulting from more states in the U.S. legalizing cannabis for adult use. These developments in the cannabis space have impacted other industries including beauty, health, food and beverage, agriculture, technology and real estate. There is an inspired culture within the cannabis community with priorities such as sustainability, inclusivity and representation. As legalization and cutting-edge research continue, the result is a better educated public and growing mainstream knowledge about the benefits of cannabis-derived products.
The Complexities of Cannabis
In order for companies to succeed in the cannabis industry, it is essential that they align with advisors who know the space, and have an understanding of the regulations and legal intricacies. This includes a knowledge of evolving regulations and use of original thinking in applying tax knowledge to craft reasonable and defensible positions in this uncharted territory. Cannabis companies need key advisors who go beyond compliance, helping them better operate and plan for the future of their businesses. Proactivity is crucial as legislation continues to evolve, since a failure to capitalize on any new monetary opportunities could be catastrophic to an industry challenged by cash flow strains.
Anchin’s Cannabis Industry Group has experience and extensive knowledge of tax and accounting rules, which enable us to think critically about how regulations should be applied in this unique area. We are proactive advisors who keep abreast and ahead of law changes and their impact. Our experience serving privately held companies in this and other emerging areas enables us to apply proven strategies to effect savings and efficiencies. Our team has expertise in assessing and applying the optimal entity structure with your goals in mind, and the attention to detail required to implement processes for vital record-keeping, as establishing separation between activities can be the difference between tax eligibility and missed opportunities. In an industry where federal law tremendously challenges the ability to be profitable, our advice on tax strategy, making sound spending decisions, and cash-flow planning can go a long way.
Anchin’s Cannabis Industry Group consists of forward-thinking, tax-savvy professionals who are committed to getting it right – with expertise in providing guidance and good advice in a rapidly growing industry that needs it.
Services that Anchin’s Cannabis Industry Group can perform include:
- Tax compliance and consulting
- Tax credits and incentives
- State and local tax services including nexus analysis
- International tax
- Advise on entity structure and agreements
- Accounting Services
- Financial projections and cash flow management
- Business process improvement
- Business valuations and related services
- Forensic accounting and litigation support services
- Regulatory compliance
- Assistance with the preparatory work for the license and license application process
- Transaction advisory and due diligence services
- Succession and estate planning
- Pre-IPO services
- Cybersecurity protection and technology efficiency
- Key employee retention and attraction strategies
- Wealth management and personal financial planning
- Overhead cost reduction
- Ongoing advice to founders