Emerging Companies Group: Guiding Fast-Growing Companies on Important Business Decisions

In 2022, Anchin launched the Emerging Companies Group (ECG) which specializes in helping founders navigate complex challenges that growing businesses endure, including those around state, local, and international taxes.

The Emerging Companies Group is co-led by Senior Managers, Vera Mittiga and Kamila Gosiewski, and is comprised of professionals that are experienced in developing financial strategies for fast-growing companies including M&A and transaction advisory services, financial reporting analysis, valuation consulting, employee incentive plans, and tax credits and incentives (including the research and development tax credit).

We sat down with Vera and Kamila to discuss what makes the Anchin Emerging Companies Group unique. See their responses below:

WHAT MAKES ANCHIN’S EMERGING COMPANIES GROUP UNIQUE?

The ECG team develops a lasting relationship with each of our clients including with each company’s founders, shareholders, C-suite executives, and partners to ensure that all financial decisions are made collaboratively and in an effective manner. Working with these businesses at an early stage enables our team to guide them in making informed decisions around proper entity structuring, financial projections, and tax strategies, while also providing them with the support they need to help their business grow in the most advantageous ways. Our ability to guide them with business decisions, at all stages, as well as our hands-on approach to mitigating their pain-points and positioning them for success ultimately sets us apart from our competitors.

CAN YOU DESCRIBE THE TYPES OF CLIENTS YOU WORK WITH AND WHAT MAKES THEM DIFFERENT FROM OTHER ANCHIN CLIENTS?

The Emerging Companies Group works with a diverse range of clients across several industries including technology, food and beverage, health and beauty, public relations, and professional services. What sets each of these clients apart from others at Anchin is their need for more involvement and regular guidance on operations to move their business forward. The Anchin team provides a wide range of services for these clients including guidance on bank financing, developing key performance indicators, tax planning and projections, tax returns and compliance, tax credits and incentives and more. Our team schedules regular touchpoints with the key executives at the company, which results in a more robust and continuous service. Our level of interaction is scalable based on their needs.

CAN YOU DESCRIBE SOME OF THE MAJOR PAIN-POINTS YOUR CLIENTS ARE CURRENTLY FACING?

We have found that each industry we work with has their own unique set of challenges. For example, the consumer products industry is currently facing supply chain issues and shelf space concerns, while the technology space is experiencing concerns with cashflow management. Many businesses are experiencing state and local tax issues, due to the sourcing of their revenue being at times nationwide, along with employees living in different states. In addition, some of the pain-points across the board are increased wage and benefit costs coupled with employee shortages. These challenges can be particularly tough for businesses, especially in today’s economy. Our team helps clients tackle each of these pain-points and offers solutions to mitigate these issues effectively and efficiently.

ARE THERE ANY CURRENT TAX OPPORTUNITIES / INCENTIVES TO BE ON THE LOOKOUT FOR RELATED TO THESE TYPES OF BUSINESSES?

Many taxpayers should consider taking advantage of Pass-Through Entity Taxes (PTETs) as a way to bypass the federal cap on state and local tax deductions. There are many states who participate in PTETs and there are possibilities of electing into multiple regimes depending on where the entity is doing business and is subject to income taxes. Modeling out various scenarios to identify the savings and costs will allow for a better understanding of the overall tax saving strategy. For more information, please read this Anchin Alert.

The Research and Development (R&D) credit is another incentive that businesses should consider. Businesses that invest in qualified research and development activities may be eligible for a general business tax credit. In addition, eligible businesses that have under $5 million in gross receipts in the past five years might be eligible for a R&D tax credit of up to $500,000 per year against their payroll taxes, essentially making the R&D tax credit refundable. For more information, please read this Anchin Alert.

WHAT IS YOUR FAVORITE PART ABOUT WORKING WITH THESE EMERGING BUSINESSES?

Our favorite aspect of working with our ECG clients is building lasting relationships with each client’s team, while watching their companies grow. Each client has their own unique set of challenges and opportunities, and we find it very rewarding to be able to work closely with them to find the best solutions to advance their business.

For more information about the Emerging Companies Group, please contact Kamila Gosiewski.