Cannabis is growing industry that shows promising growth in more than just direct manufacturing and retail spaces. The ancillary legal, accounting, and consulting services need to support the burgeoning market are preparing for opportunities that will arise from the industry's logistical and regulatory needs.
Partner Bob Lickwar has actively been establishing a cannabis practice in UHY's Farmington office since the legalization in July and has begun pitching early business services to potential clients. Even in the early stages, starting a legal marijuana business involves scaling a number of regulatory hurdles, Lickwar said. This includes figuring out complicated state and federal tax questions, in addition to dealing with capital raising, municipal land use and numerous other issues.
“I see [cannabis] becoming a very big practice area here in Connecticut, no question about it,” said Lickwar. “The reality is people need the tax work, there’s compliance work that needs to be done.”
Drawing from the experiences of the established Michigan practice which has been tackling cannabis industry challenges since 2017, Lickwar is anticipating a comparably-sized practice developing in the Farmington office. “I think it’s a great opportunity for us here in the Connecticut market because we have developed expertise through our Michigan office,” Lickwar said. “What’s going to distinguish us is our ability to provide services even before the business is up and running.”
That could include anything from setting budgets and deciding whether to establish a company as an LLC or corporation, to separating certain parts of the business for tax purposes, according to Lickwar.
Read the full article published by Hartford Business Journal.