skip to main content
X

Industries

Cannabis

Our dedicated team of seasoned professionals will help you navigate the ins and outs of a dynamic, evolving industry.

MEDICAL AND RECREATIONAL CANNABIS MARKETS SEE RAPID GROWTH AFTER SLOW START

MEDICAL AND RECREATIONAL CANNABIS MARKETS SEE RAPID GROWTH AFTER SLOW START

As of early July, Michigan has licensed growers to cultivate over 500,000 plants for both medical and recreational purposes. Between both markets, nearly 9,000 pounds were sold in May vs approximately 3,000 in January 2020, representing substantial growth in the industry. The majority of the recreational market supply continues to come from marijuana plants originally licensed under medical marijuana licenses, due to the ability to transfer medical marijuana for recreational sales after 30 days in inventory.

Early estimates indicate that in the next several years the adult-use industry alone will surpass $3 billion in sales annually, creating thousands of jobs and providing a boost to the state economy. Such projected rapid growth can present challenges in cash flow planning especially when coupled with tax considerations related to section 280E. Our dedicated team of cannabis accounting specialists is here to answer your cannabis questions. Call 248 355 1040.

Hide Firm Disclaimer

©2020 UHY LLP. ALL RIGHTS RESERVED.

UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc. and its subsidiary entities. UHY Advisors, Inc. provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of "UHY Advisors." UHY Advisors, Inc. and its subsidiary entities are not licensed CPA firms. UHY LLP and UHY Advisors, Inc. are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. "UHY" is the brand name for the UHY international network. Any services described herein are provided by UHY LLP and/or UHY Advisors (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.

On this website, (i) the term "our firm", "we" and terms of similar import, denote the alternative practice structure conducted by UHY LLP and UHY Advisors, Inc. and its subsidiary entities, and (ii) the term "UHYI" denotes the UHY international network, in each case as more fully described in the preceding paragraph.