View Padgett President Roger Harris' congressional testimony on the impact of the Corporate Transparency Act and the BOI reporting requirements here.
Choosing the Right Business Structure: Is an S Corporation Right for You?
March 12th, 2025 | Business Growth and Strategies, Tax Insights
If you’re starting a business with partners, choosing the right legal structure is a critical step. An S corporation (S corp) might be a great option, offering tax benefits and liability protection. But is it the right fit for your business? Here’s what you need to know. Liability Protection: A Key Advantage One of the biggest benefits of an S corp over a partnership is that it protects shareholders from being personally responsible for business debts. To maintain this protection, you’ll need to: Ensure the corporation is properly funded, Keep the corporation as a separate legal entity, and Follow state requirements, such as filing articles of incorporation, adopting bylaws, electing a board of directors, and holding regular meetings. Managing Early […]
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Harmonizing business and passion: Riverfront Studios’ growth with Padgett Toledo
In the heart of Waterville, Ohio, nestled in a historic downtown building full of charm and character, Riverfront Studios has become a vibrant hub for music and art education. Founded by Michael and Claire, a husband-and-wife duo with a shared passion for the arts, the studio has grown from a small home-based operation into a thriving business that welcomes over 300 students a week. But their journey to success wasn’t without its challenges, and having the right financial partner made all the difference. Michael, a trained music educator, and Claire, an art teacher, initially started Riverfront Studios as a virtual endeavor during the pandemic. Michael transitioned his private piano lessons online, while Claire introduced virtual art classes to engage a […]
Read More >>How a business owner’s home office can lead to tax deductions
If you run a business from home, you may be able to claim a tax deduction that lowers your taxable income. However, it’s important to understand the IRS rules to ensure compliance and avoid potential audit risks. There are two ways to claim this deduction: the actual expense method and the simplified method. Here’s what you need to know. Who qualifies for the Home Office Deduction? You may qualify for this deduction if you use part of your home regularly and exclusively as your principal place of business. Even if your home is not your main place of business, you may still be eligible if: You regularly meet with clients, customers, or patients in your home office. You use part […]
Read More >>Are tips tax-free? What small businesses should know
If your business employs staff who receive tips—such as in restaurants, hotels, or salons—it’s crucial to understand and comply with tax regulations regarding tip income. Here’s a straightforward guide to help you navigate these responsibilities. Are Tips Tax-Free? There have been discussions about eliminating taxes on tips, but as of now, no legislation has been enacted. Therefore, tips remain taxable, and businesses must adhere to existing IRS guidelines. What Qualifies as a Tip? A tip is a voluntary payment from a customer to an employee. Tips can be: Cash Tips: Direct payments from customers, including those distributed through electronic means or tip-sharing arrangements. Noncash Tips: Items of value other than cash, like tickets or passes. For a payment to be […]
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Understanding IRAs: your retirement savings guide
With the recent passing of the SECURE 2.0 Act of 2022, you may have questions about the different types of Individual Retirement Accounts (IRAs) available. How do you choose what retirement plan is right for you? IRAs are a powerful tool for retirement savings. They are savings plans that come with tax advantages to help taxpayers build a retirement fund. Each type of IRA has its own set of regulations and deadlines. Here’s a quick overview of the most common kinds: Traditional IRA: Contributions to a traditional IRA may be tax deductible and earnings grow tax-deferred until distribution, which means you won’t pay taxes on your traditional IRA funds until you make a withdrawal. The contribution limit for 2022 is […]
Breaking Down the SECURE Act 2.0
Roger and Annie discuss the changes in the SECURE 2.0 Act of 2022 and how this impacts small business owners with regards to offering retirement plans to their employees. They also talk about recent changes in IRS regulations that could prove …
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