Cannabis: five questions to John Pelliterri de Grassi
Grassi Advisors & Accountants
CPA, Partner, Head of Cannabis Practice
What aspect of the cannabis industry does your business specialize in (compliance, growth, distribution, etc.)?
“Grassi’s Cannabis Group specializes in business advisory, tax planning and compliance services that help entrepreneurs and investors navigate the complexities of the industry and overcome the obstacles that impede their profitability and success. Utilizing strategies tailored for cannabis businesses, our professionals advise growers, dispensaries, distributors and other industry professionals on how to structure their businesses, maximize tax savings, secure funding, manage cash flow, implement new technologies and comply with complex industry regulations.”
Tell us something someone new to the industry needs to know – that they probably haven’t thought of?
“Operating a business in the cannabis industry is unlike any other business venture you have ever pursued. With marijuana still being classified as a Schedule 1 substance at the federal level, cannabis business owners are limited to many of the tax benefits, traditional funding sources, bankruptcy protection and other benefits enjoyed by their peers in other industries.This poses significantly more financial risk that must be planned for and mitigated from the outset. It is essential to work with advisors and service providers who know the sector and its many rules and limits.”
Give us a key element or factor to obtain a license.
“The social equity component of the application should be well thought out before you even begin your license application. In an effort to create more diversity and opportunity in the industry, states are placing a strong emphasis on this expectation and prioritize applicants who demonstrate that their cannabis businesses will positively impact communities most disadvantaged by marijuana prohibition and the war on drugs.”
How do you see the industry growing/changing over the next 12 months?
“I believe the cannabis industry will continue the upward trend we have seen in recent years, in terms of size, geography, sales and economic impact. We will continue to see a lot of merger activity and Acquisitions, as multi-state and vertically integrated operators, companies seek to make more strategic acquisitions and increase market share, but I believe that the challenges for the industry will increase along with the opportunities. For example, we’re going to see more and more IRS audits of cannabis companies as the agency cracks down on companies that don’t follow Section 280E tax restrictions and deducts ineligible expenses.”
Give us your elevator pitch: Why should someone hire your company?
“In an industry that is far from conventional, cannabis businesses need more than traditional tax and accounting services to succeed. Our industry advisors provide the advice that cannabis, industrial hemp and cannabis businesses CBD need to make business decisions with confidence, grow their businesses and minimize As legalization increases, but tax savings and financing options remain limited, our advisors show our clients how to make the right choices at every turn, from structuring their business for maximum tax advantage to planning their exit strategies, domestically and internationally and leveraging strategic partnerships in the United States, Canada and abroad to help our clients. »