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Author: Gene Marks

Philly business owners could save thousands with this little-known resource

If you own a business in Philadelphia and you’re looking for financing, one little known resource is the Philadelphia Industrial Development Corp. or PIDC. Don’t be put off by the word industrial. The public-private organization was formed as a nonprofit by the City of Philadelphia and the Greater Philadelphia Chamber of Commerce to provide financing to all sorts of businesses to create jobs and revitalize neighborhoods.

For example, Milk Jawn, an ice cream shop in East Passyunk used PIDC financing to help with its expansion.

“PIDC was our first type of institutional financing,” said Amy Wilson, Milk Jawn’s founder. “Our early growth was friends and family and some crowdfunding. PIDC then helped fund our build out and kitchen construction.”

The organization says it’s focused on helping companies expand, and many different types of businesses would qualify for financing.

“PIDC is Philadelphia’s partner for business growth,” said Kevin Lessard, a senior vice president at the organization. “We help businesses, nonprofits, and developers overcome barriers to expansion by providing financing and real estate solutions that make starting, staying, and scaling in the city possible.”

To qualify for a loan through PIDC, your business must be located within the city, have operated for at least two years, and earn at least $100,000 in annual revenues. Special considerations may be made based on what the funds will be used for (i.e. building in a low-income area) or whether you’re a “disadvantaged” business owner. Personal guarantees and collateral are also normally required.

Loans can be used for equipment and property as well as working capital needs and “soft” costs like legal, accounting, permits, and appraisals. One of the more popular uses of the loans is for commercial real estate financing, where financing can be used to acquire and renovate property or to fund new construction.

Philly success stories

For Alexander Sherack, a co-owner of Korea Taqueria, an eatery with several locations in Philadelphia, PIDC financing fit the kind of deal he was looking for.

“We needed a property that was zoned commercial and mixed-use plus working capital so it wasn’t a typical path for a traditional bank loan,” he said. “We went with PIDC because it helped us replace rent with ownership — and our property turned out to be a hidden gem.”

Businesses can apply online and will then go through an underwriting and due diligence process which usually includes submitting financial reports, bank statements, and tax returns, along with a business plan and forecast. Corporate documents such as bylaws and articles of incorporation are also required. Once the loan is received, there’s ongoing reporting and other compliance requirements, which include regular submission of financial information and updating any major changes in the business.

Kia Jones owns Past Your Bedtime childcare in West Philadelphia and used PIDC financing for both working capital and renovations.

“The staff there made it very easy,” she said. “Any questions that I had, they were right on it.”

Pros of PIDC loans

PIDC funding can be a great bridge to a traditional bank loan. Some applicants who may find themselves turned down for a bank loan may still be able to receive funding from the PIDC.

PIDC takes more of a holistic, mission-driven approach. If a traditional bank turns you down, PIDC may still structure a deal — particularly if your project creates jobs or revitalizes neighborhoods. Getting PIDC involved may also encourage traditional banks to offer additional funding both now and in the future.

PIDC loans generally have much lower interest rates than a traditional bank loan. Milk Jawn’s Wilson, for example, accessed a special 0% interest program in early 2022 through PIDC, a major cost savings in a time of rising interest rates. (This was part of a one-time pandemic relief program.)

Finally, the PIDC provides education, support, and networking programs to help their community of borrowers manage and grow their businesses. And the connections can pay off.

“We were able to meet partners of the PIDC,” Jones said. “One partner program called Boost Your Business got us a $50,000 forgivable loan. The organization is also very familiar with city grants and other local funding options.”

Real talk

As helpful as the organization can be, business owners shouldn’t expect to get immediate funding.

Sherack recommends starting early and “building a transaction timeline” into any agreement where property is being purchased.

“Don’t assume quick money,” he said. “Submit your documents fast and press for clarity on timing so you don’t lose the deal.”

Wilson agrees and said she had to get a loan from a family member while she waited for the application process to complete.

“We’re a mission-driven lender using public and public-private capital, so every deal requires careful underwriting and a clear path to economic impact,” Lessard said. “Unlike conventional lenders, we tailor each financing package to the business.”

February 17, 2026
Expecting a big tax refund? One missing detail could freeze your money for weeks

Thanks to new changes in the tax law caused by 2025’s One Big Beautiful Bill — specifically with regard to new deductions for tipped and overtime income — the U.S. Treasury Department expects many taxpayers to receive refunds this year.

“The bill was passed in July [and many] working Americans didn’t change their withholding, so they’re going to be getting very large refunds in the first quarter,” Treasury Secretary Scott Bessent said in a December interview broadcast on NBC10. “So I think we’re going to see $100 [billion]-$150 billion of refunds, which could be between $1,000 to $2,000 per household.”

Sounds great. But be careful. If you’re in line to get your tax refund, you better make sure you’re prepared to share your bank account information with the Internal Revenue Service. Otherwise you could experience significant delays.

A new IRS rule that affects 2025 tax returns is now requiring taxpayers to provide their bank account and routing numbers to receive refunds timely via direct deposit.

The IRS will still process individual income tax returns (Form 1040 series) filed without bank account information. However, the agency will temporarily freeze the refund until the taxpayer provides direct-deposit information or requests a paper check. More importantly, if incorrect bank account information is submitted, the IRS will freeze those direct deposits until the issue is resolved.

“Many taxpayers haven’t fully grasped that shift yet,” said Mitchell Gerstein, a senior tax adviser at Isdaner & Company in Bala Cynwyd. “If you are hesitant to share bank information with the IRS, we explain that electronic payments are now the default.”

Some may not feel comfortable sharing their bank information with the government, and ultimately providing this information is voluntary. But, according to Philadelphia CPA Jacob Cohen, not doing so will create headaches and delays.

“If a taxpayer does not want to share the information, their refund will take longer to process and the IRS will still attempt to collect banking information before they issue a refund check,” he said. “The refund could be delayed several weeks at a minimum, but likely longer.”

Not everyone will be affected by this rule. The IRS says international taxpayers, minors, prisoners, taxpayers with religious exceptions, and decedent taxpayers will receive paper check refunds as in the past.

And the IRS will still be making payments by check for now for those who request it. But they do plan on phasing out that ability in the coming years.

“If you do not have an account, we’d recommend setting up a basic no-fee checking account in person at a reputable bank, or even online with certain banks like Ally Bank or Discover Bank,” Cohen said. The IRS offers the ability to split your refund into up to three accounts for retirement, savings, and checking.

What if you don’t have a bank account and don’t want to open one?

There are other options for those without bank accounts.

Treasury does offer alternative options such as prepaid debit cards, credit cards, or approved digital wallets such as PayPal, says Gerstein. Many reloadable prepaid cards like Netspend and Bluebird provide a routing and account number that you can use for direct deposit.

Make sure to check with your mobile app provider or financial institution to confirm which numbers to use.

The IRS also recommends visiting the FDIC website or using the National Credit Union Administration‘s Credit Union Locator Tool to find a bank or credit union and how to choose the right account for you. If you are a veteran, you can use the Veterans Benefits Banking Program (VBBP) for access to financial services at participating banks

If you decide to go fully digital, Philadelphia CPA David Lopez recommends setting up your online account and also creating an account on ID.me. This program is used by several government and non-government agencies and allows you to track the status of your tax refund.

“For the IRS, you can use the ID.me platform to review your tax documents for the past seven years, run reports on your income and wages, and obtain tax documents that you may have displaced,” he said. Users can see “if you owe, if you have a refund, and [can] even make payments in installments if needed.”

Typical refunds are processed within 21 days for an e-filed return and six weeks or more if sent by mail, according to the IRS. Refunds will take even longer if corrections are needed or bank information isn’t included. Where’s My Refund will have the latest information on your return.

Why is the IRS pushing so hard for electronic payments?

Gerstein says the real benefit for both individuals and businesses is faster, more secure refunds and fewer lost checks with an immediate payment confirmation. Most accounting experts say that the IRS does process refunds via direct deposit faster than by check and that it’s the quickest way to do business with the agency.

“Our advice is simple,” he said. “Set up an IRS online account, double-check your bank routing and account numbers, and don’t ignore IRS letters.

February 10, 2026
Philly-area marketing experts on how to succeed on LinkedIn| Expert Opinion

LinkedIn now has more than 1.3 billion members by its own count. That includes millions in senior roles and C-level executives, according to a recent report from Search Engine Journal, “making it a hot spot for those aiming to connect with folks who have the power to hire your company, stock your product, or partner with your brand.”

I’ve personally used LinkedIn for years and have built up a large number of followers. The platform has helped me grow my business, find prospects, connect with potential employees, and create new relationships.

But, like many small-business owners, I could be doing more to increase my engagement and meet more people. Here are a few thoughts from local experts on how to maximize LinkedIn’s potential.

Engage thoughtfully

As with most social media sites, succeeding on LinkedIn is all about engagement. Just using the platform as a billboard for your product or services isn’t going to cut it. A LinkedIn relationship will grow when information is shared and conversation is open.

Kevin Homer, president of Navitas Marketing in Trooper, recommends taking the time to interact with other LinkedIn users’ content and leaving thoughtful comments.

“When you create real dialogue, LinkedIn expands your reach and strengthens your relationships,” he said.

“Fostering conversations is the most important thing,” said Courtney Thomas, who specializes in social media at locally based communications agency Aloysius Butler & Clark.

“If you’re regularly commenting — whether on your own posts or on other people’s or company pages’ posts — you’ll see your engagement rise,” Thomas said. “LinkedIn rewards people who participate, not just those who publish.”

Be authentic

Sometimes people treat LinkedIn like a vehicle to trumpet their personal and professional accomplishments. Experts warn that treating the platform in this manner can hurt your credibility and create the risk of public ridicule, which is not a good strategy for professional growth.

It’s important to treat this platform for what it’s meant to be — a business networking site. Be professional. Be real. Be humble, and don’t be a fake.

Nick Quirk, chief operating offer at digital marketing agency SEO Locale in Montgomeryville, says LinkedIn users should not “just broadcast information” but instead invite discussion.

“Engagement is a two-way street, and growth happens when you stop trying to sell and start trying to connect,” he said. “People don’t come to LinkedIn to be pitched — they come to learn and relate.”

If you’re not posting content people actually want to engage with, your engagement will tank, Thomas said.

“People can tell immediately when something is too salesy or reads as fake,” she said. “LinkedIn isn’t the place for constant promotion; it’s where you establish credibility, demonstrate expertise, and build relationships.”

Be consistent

What you get out of LinkedIn will depend on what you put into it. You can’t just post something once in a while or appear and then disappear for significant lengths of time. This is a community, and you’re expected to be involved.

“Both the algorithm and your audience reward consistency,” Quirk said, so you can’t build a following by just posting once a month.

Homer suggests posting at least once a week, which “creates more opportunities for engagement.”

“Helpful content that shows up regularly trains your audience to expect value from you, and engagement on those posts leads to even more visibility,” Homer said.

Use LinkedIn tools, but don’t go overboard

LinkedIn provides many tools for its users to accumulate more followers and spread awareness. These include video images, articles, and labels to optimize your profile, enormous amounts of online content for skill development, as well as functionality to help you create automatic replies and messaging, referrals, recommendations, and endorsements that will get you noticed and help to bolster your credibility.

The platform is a popular place to recruit talent and, with its Sales Navigator add-in, find and then nurture leads.

“Take advantage of everything LinkedIn lets you do,” Thomas said. ”Long-form articles, PDFs, videos, polls — there are so many features people ignore. The platform prioritizes content that keeps users engaged on LinkedIn instead of sending them elsewhere.”

Adding images and video to posts significantly enhances them and helps boost visibility, Homer noted.

“Think about keywords and hashtags the same way you would SEO on your website,” he said. “LinkedIn search works similarly.”

These capabilities are helpful, but it’s important not to be robotic. For example, Quirk’s biggest pet peeve is when someone sends a connection request and then follow it with an instant, multi-paragraph sales message.

“It’s spammy, disrespectful of time, and burns bridges,” he said. “Always personalize connection requests. Once they accept, you’ve earned a follower, not a lead.”

Homer says it is a “major mistake” to ignore replies and rely on automatic LinkedIn messages.

“Nothing turns people off faster than connecting and immediately receiving a generic sales pitch,” he said. “Real relationships require real conversations.”

LinkedIn is a great place to start and build relationships that could lead to new business or profitable partnerships. In my experience, people who use it every day to both get and share knowledge, without doing a hard sell, are the most successful.

“The businesses that get the most value out of LinkedIn understand that it’s a long game,” Thomas said. ”When you focus on contributing meaningfully instead of selling aggressively, you build an audience that actually wants to hear from you, and that’s far more valuable.”

February 3, 2026
How Philadelphia merchants can get help paying for improvements, equipment, and security| Expert Opinion

Running a retail or restaurant business in Philadelphia isn’t easy.

But some local programs can provide much-needed cash for specific purposes like equipment purchases, store improvements, and security.

Here are four to consider.

The Storefront Development Program

Operated by the Philadelphia Department of Commerce, the Storefront Development Program provides as much as $15,000 in matching funds to upgrade and beautify your storefront, including masonry and brick pointing, exterior painting, new windows or doors, facade lighting, signage and awnings, see-through security grills, cornices, and similar enhancements. Only businesses in certain commercial corridors are eligible and projects must be planned and approved in advance.

Justin Coleman, owner of Bake’n Bacon in South Philadelphia, used the program to replace deteriorating windows, update doors, and repaint his storefront’s exterior.

“The program helped us cover half the expenses for our 11-foot windows, which was a tremendous assistance,” he said. ”The new paint made a significant difference, and the upgrades to the exterior of my business improved visibility and curb appeal.”

InStore Forgivable Loan Program

Also administered by the city’s Department of Commerce, the InStore Forgivable Loan Program offers forgivable loans of up to $100,000, which are interest-free for the first five years. They can be used for interior build-outs, equipment purchases, and other improvements.

Forgiveness is given if the business is open and operating at the same location for the full five-year term. Like the Storefront Development Program, only businesses located in certain areas of the city are eligible.

Business Security Camera Program

The city’s Department of Commerce also provides up to $3,000 in matching funds for businesses and property owners that install exterior security cameras through the Business Security Camera Program.

Companies that participate must register their cameras with the Philadelphia Police Department’s SafeCam system, so police can request access to footage when needed. Participants must either own the property or have permission from the landlord and can only use contractors approved by the city. The application process also requires photos and cost estimates.

“I wanted to have as many exterior security cameras around my storefront, as there can be a lot going on out there,” said James Singleton, owner of men’s clothing store Smooth Like That in Olney. “These cameras are good for the commercial area, making everyone feel safer.”

Stabilization grants

The Merchants Fund was founded in 1854 in Philadelphia to initially support retired merchants with pensions. But today the fund aids active small businesses with financial needs.

The fund offers stabilization grants, which are intended to help stabilize a business when it can identify a specific issue or challenge that it doesn’t have the financial means to address, said Jill Fink, the fund’s executive director.

“Often these are capital expenses — equipment, repairs, or improvements — that have a real shelf life, and small businesses simply don’t have the thousands of dollars needed to replace them,” she said. “Our goal is to make an investment that actually fixes something so that the business can keep operating, serve its neighborhood, and in some cases create a new revenue stream.”

The fund provides one-time grants of up to $10,000 to eligible Philadelphia-based small businesses. They must be independently owned; have a physical storefront, food truck, or kiosk; have been in business for at least two years; and demonstrate financial need, with annual revenue between $50,000 and $750,000. Professional services firms, nonprofits, and real estate, childcare, and eldercare businesses are not eligible.

At the Link Studios in Old City, which sells hair and beauty products and services, the fund helped owner Carla Clarkson turn an unused space into something functional. She used the grant to buy shelving, storage, air purifiers, heating and air, and paint. She was also able to access coaching and mentorship from other business owners.

“The networking alone was incredibly valuable,” Clarkson said. “I met other entrepreneurs and nonprofit leaders, and that directly led to new opportunities for my business.”

Fink, a former business owner, stresses the additional resources that her fund provides beyond just grants.

“We work to try and find ways to connect businesses with each other because being a small-business owner can be a very lonely place,” she said. “There’s lots of times in their business they might have friends or family that don’t necessarily understand the stress and pressure that a small business is under.”

When machines at the NV Optical store in West Philadelphia went down, owner Tiffany Easley said, the business couldn’t afford the necessary repairs, and the Merchants Fund was an enormous help.

“It was less than 30 days from application to repair. The timing lined up perfectly and made a huge difference for our business,” she said. “They don’t just give you money. They understand small business struggles and connect you to resources that are vital to long-term growth.”

The Merchant Fund’s next enrollment period opens March 15.

Whether you’re pursuing a City of Philadelphia program or a stabilization grant from the Merchants Fund, your business is expected to be licensed, registered, and have all necessary permits from the city and state. And it must be current on both federal and local taxes or enrolled in an approved payment program.

January 27, 2026
Philadelphia is a top place to launch a start-up — but success requires more than passion | Expert Opinion

It seems that Philadelphia’s reputation as a good place to start a business got a boost this past year.

The city ranked 13th among 350 “start-up ecosystems” worldwide in Startup Genome‘s 2025 Global Startup Ecosystem Report, which considers educational resources, labor, taxes, and funding opportunities.

The region attracted over $900 million in equity funding and acquisitions in 2024-25, according to the Greater Philadelphia Chamber of Commerce; expanded biotech and robotics facilities; and launched AI education initiatives — all supported by public-private partnerships and university-led R&D.

Chamber CEO Chellie Cameron said the Startup Genome ranking “affirms our region’s emergence as a global destination for innovation, business, and opportunity.”

From 2019 to 2024, the U.S. saw more than 21 million new business applications, marking the largest-ever spike.

Software giant Intuit recently reported that and “33% of U.S. adults plan to start a business or side hustle next year — a 94% year-over-year increase.” LinkedIn says the number of “founders” listed on the platform grew 69% last year.

Are you thinking of starting a business this year? Before you quit your job, here’s some practical advice.

Get your finances in order

When I started my business, I did so while having a full-time job. I worked a lot of hours. But that’s because I needed to build up an income stream to support me for when I eventually left the corporate world.

Smart entrepreneurs know their finances. They’re good at math or have advisers that help them. They recognize the importance of accounting.

Gabriella Daltoso, a founder and CEO of Philadelphia-based medical device start-up Sonura, recognized the importance of understanding her numbers and embarked on a program to learn the basics of accounting. A trained scientist, she sought out help from people with business expertise at the University of Pennsylvania, where she spun out the business.

“I got a freshman finance textbook, learned the terms, and then learned from other founders’ experiences,” Daltoso said. “I found mentors and professors who would help me at Penn. People can be incredibly helpful when you reach out.”

Sonura founders Gabriella Daltoso (left) and Sophie Ishiwari at the Hospital of the University of Pennsylvania in November.

Start-ups need capital, and for financing, it’s important to have a solid business plan with realistic projections of revenues and expenses. You need to establish relationships with banks, investors, family members, friends, venture capitalists, or anyone else that could be a source of financing. You should have enough money in the bank to support yourself and your family for at least two years because it will likely take that long to get your business cash positive.

James Massaquoi, a board member at the Seybert Foundation and former analyst at Philadelphia venture capital firm Osage Partners, emphasizes planning capital needs early, ideally before launching. Massaquoi urges founders to deeply understand their cost structure and assumptions before getting in too deep.

“Talk to bankers and other sources of capital before you really start the business, so it’s a conversation — not another checklist,” he said. “Spend more time modeling out costs than forecasting profits because costs fluctuate dramatically, especially in the first two years.”

Make sure your family is on board

Think you’re busy now? Wait until you start a business.

You will spend much more time launching, running, and growing your enterprise than you expect. You will work nights, weekends, and crazy hours. People will be happy for you and supportive, but in the end, it’s all on your shoulders.

This kind of stress could put a strain on your personal life. You will not succeed unless your family members understand this and are ready to support you.

“Work-life balance is really about how much work you need to do for this to be successful — and how much pressure you feel to make it succeed,” Massaquoi said.

Be realistic

Passion for your business venture is important, but profits are just as important. Your model needs to be satisfying a market need if it’s going to have a legitimate chance.

The typical life span of a start-up is two to five years, with 70% going out of business before reaching their fifth year. The odds are against you.

The ones that do survive fix problems and do so better than their competitors. They watch their pennies and are open to change based on what their customers need.

Take your business seriously

Talk to a tax and legal adviser and form a company — maybe a corporation, partnership, or limited liability company. Use these advisers to help you register your business with the state and the federal government.

Create a professional website. Establish a commercial mailing address (not your home) and a toll-free phone number.

Pay in your estimated taxes, and file your tax returns on time.

As you hire employees, create policies and procedures and try to offer the types of benefits that established businesses provide like health insurance, retirement plans, and flexible time off.

If you are truly running a business (and not just a hobby), you need to act like a business.

Lean on local resources

As a start-up founder in Philadelphia, you’re not alone. The area has a number of great resources to help your small business get funding and grow.

Introduce yourself to the Small Business Development Center at Temple University’s Fox School of Business. Reach out to SCORE, which is part of the Small Business Administration. Get involved with nonprofits that provide education, financing help, and mentorship to start-ups, such as: the Philadelphia Alliance for Capital and Technologies, Venture Lab (University of Pennsylvania), Broad Street Angels, Startup Leaders, Entrepreneur Works, and Urban League Entrepreneurship Center.

Take advantage of the free space and other resources offered by the Free Library of Philadelphia.

Also, surround yourself with as many experts as you can afford. Have a good accountant, lawyer, coach, and advisers on hand to help you make decisions. Build these costs into your business plan and projections because these people are critical for your business success.

“Your expertise isn’t having all the answers; it’s learning from anyone who’s willing to share,” Daltoso said. “It’s really important to hear everyone, synthesize what’s useful, and move forward with confidence.”

January 13, 2026
Side-gig advice from people who make money on Uber, Lyft, and Airbnb in the Philadelphia area

The number of people doing gig work has increased significantly over the past few years. It was more than 76 million people in the U.S. last year, according to recent reports.

And the work can pay well. Almost 5 million freelancers are earning more than $100,000 per year, according to freelancer site Upwork. These side gigs can include everything from driving an Uber and running an Airbnb to managing websites, tutoring, or even walking a dog.

Benefits to this kind of work include flexibility, control, independence, variety, and the ability to make extra money outside a day job.

But having a successful side gig isn’t easy.

Marketing yourself and getting work is a topic for a different day. But before you get to that — and yes, you will need to — here are a few things you should know.

It’s a business

Your side gig is a business, so make sure you’re treating it like one. You are an independent contractor and the company owner.

You will need to track your costs and revenues separately from your personal life. You should probably have a separate bank account so funds aren’t intermingled.

You may need insurance. This not only gives your business credibility, but it also makes it easier for companies to hire you as an independent contractor rather than classifying you as an employee.

A proper contractor is “really someone already running their own business — they provide the service to a number of other companies,” said Sarah Holmes, a small-business attorney based in Ardmore.

It helps to set up a corporation or limited liability company, said Jeff Burke, a partner at law firm McElroy Harvey in West Chester.

“If you set up a corporation or an LLC and you’re doing a business-to-business contract, you are way more likely to pass muster,” Burke said. “A freelancer should have some written proof — business cards, advertisements, websites — that shows you’re actually out in the marketplace.”

No matter what the business, you always have to remember that “you’re the owner,” Uber and Lyft driver Joseph Casasanto told me.

“As drivers, we are independent business contractors,” he says. “So that means everything is our responsibility, like gas, oil changes, alignments, tires, repairs, miles, depreciation, etc.”

Don’t ignore the paperwork

As a business, you’ll need to make sure you’ve filed the right paperwork and take your taxes seriously. This means either reporting your income and expenses on the Schedule C to your individual tax return or setting up your business separately as an LLC, corporation, or other entity recognized for both federal and state purposes.

Because your customers don’t withhold taxes like an employer does, you’ll need to pay in estimated taxes to avoid penalties and interest for underpaying throughout the year.

Experienced freelancers, like part-time Uber driver Jason Napolitan, are scrupulous about tracking their expenses separately and keeping good tax records.

“My expenses are not only the obvious ones like gas and insurance but also tires and wear and tear on my vehicle.” he said. “For example, I always make sure to track my mileage for the IRS allowance given on my taxes.”

As a freelancer, you should have an agreement in writing that stipulates the services provided and is clear about your role, so that you’re in compliance with federal and state worker classification rules.

Guidance around independent contractor rules has been shifting, said Josh Ganz, a labor and employment attorney at Duffy North in Hatboro. But there is a baseline to follow.

Important questions to consider, he said, are: “Is your client or customer controlling your entire day? Do they tell you where to be and provide the tools for you?”

Set boundaries

Having a side gig should never affect your primary job. Make sure you have clear boundaries and there are no conflicts so you don’t get into trouble with your primary employer.

Running a side gig means you’ll have a lot to juggle between your personal life, your job, and your business. So it’s important to create a schedule. Your customers will want to know when you’re available and so will your family.

It’s important to set goals as to how much you want to earn and stick to those parameters. It’s easy to get caught up in doing the extra work but it can also quickly take up your time.

“If you want to do this full time, you have to set goals,” Lyft driver Kendra Brigman said. “You have to have a good attitude when you’re doing your side gig and provide great service. But your availability is also very important.”

Be smart about pricing

If you’re doing freelance work for an established company like Uber or Lyft, those rates are usually set for you. Others, like Airbnb, can suggest rates based on your local market. But the rest will be up to you.

Setting a price too low may set a precedent that becomes unprofitable over the long term. Charging too much may turn off potential customers. You’ll need to research the competition and make a few mistakes over time to learn the right balance.

It’s also important to know your limitations.

For example, Airbnb host Julie Seda said, “We are always up-front to prospective guests that our house is not suitable for people with mobility restraints.”

Lyft driver Brigman said knowing your pricing and comparing it with what you’re being asked to do can make a big difference, and it’s important to figure out what’s worth your time.

“Sometimes the miles requested doesn’t equate with the amount of money I would like to earn,” she said. “I’ve learned to turn down those jobs.”

January 6, 2026
8 ways small-business owners can prep for the new year

As we head into the new year, here are eight ways you can position your Philly-based business for success.

Join a business group

The people who best understand the challenges you face as a business owner are the ones who are also running small businesses in the area. Meeting them will give you the opportunity to share your problems with others who can help solve them, or at least give you a shoulder to cry on.

Some of my clients enjoy groups like Vistage and the Entrepreneurs’ Organization. Others get involved in local business organizations like Philly Business Connect, the Union League, or any number of other groups listing their events on Meetup.com. LGBTQ+ business owners can consider the LGBTQ+ Chamber of Commerce and other groups. Black business owners can choose from a number of local groups.

Expand your horizons

If you’re looking for foreign customers, have a meeting with someone from the World Trade Center of Greater Philadelphia. They help their members connect to overseas customers (and suppliers), make introductions, and create new opportunities. If you want to sell more to the government — which spends more than $7 trillion per year! — reach out to a local chapter of APEX Accelerators. They’ll connect you to government projects particular for your industry and guide you through the process of getting approved so that you can respond to bids.

Revisit your taxes

There were big changes in the 2025 federal tax and spending bill that can benefit your business. These include significant new deductions for capital expenditures (particularly if you’re a manufacturer), more incentives to offer your employees paid time off, the ability to go back to 2022 and deduct research and development costs, and additional options for investing in other small businesses. And, because “pass-through” rules and corporate rates have been made permanent, maybe now is the time to reconsider your entire business structure.

“Maybe [pass-throughs] such as S corporations or partnerships are perfect for you and minimizes your ultimate tax liability,” says Rich Petillo, a partner at Centri Business Consulting in Philadelphia. “But perhaps converting to a C corporation is more attractive to potential future investors.”

Before things get really busy for your accountant, meet and make a plan for leveraging these benefits.

Provide financial counseling to employees

Your employees have a lot of complicated financial choices to make. How can they make sure they’re taking advantage of all the tax incentives that are available to help them with their dependents? What health insurance plan is right for them? How much should they be saving for retirement? When should they buy life insurance? Which are the best investments for the short and long term? What’s the difference between “after-tax” and “before-tax” savings plans?

It’s important to make sure your employees are making the best financial decisions possible. This year ask your CPA firm, financial adviser, and benefits consultants for help. They can provide advice to your staff as an added employee benefit. It may cost a little extra, but it’s good for everyone in the long term.

Start an HSA

Health Savings Accounts have been exploding in popularity and there’s no mystery why: having one for your employees allows them to put away $4,400 per year ($8,750 for families) pretax (it lowers their taxable income) and can then be withdrawn, without penalty, as long as the funds are used for unreimbursed medical expenses. That includes periodic health evaluations, such as tests and diagnostic procedures ordered in connection with routine examinations, routine prenatal and well-child care services, child and adult immunizations, and even certain weight-loss programs. Unused amounts are rolled over to the next year and continue to grow with investment choices you can offer.

“The longer the funds stay in the account and grow, the bigger the tax benefit,” Meg McGinn, founder of Osprey Health, a health insurance brokerage firm based in Berwyn said. “It’s one of the only accounts out on the market right now that offer these benefits.”

Get immigration paperwork in order

U.S. Immigration and Customs Enforcement ”is likely looking at companies right now that they think and/or know are hiring undocumented immigrants,” Lindsay Eury, an attorney at the Philadelphia-area immigration law firm Solow, Hartnett & Galvan, told me earlier this year. “We do expect to see an increase in on-site inspections and audits for other employers.”

Make sure you have updated I-9 Employment Eligibility Verification forms for each of your workers. Also check with E-Verify to make sure they’re legal to work.

Lean into AI

AI assistants like ChatGPT, Copilot, Gemini, Claude, and Grok — though far from perfect — have become more reliable and accurate and 2026 is the year where you should be leaning into their offerings. Encourage your employees to do the same.

You could make a rule that no contract, quote, bid, purchase order, estimate, or other outside communication leaves your company without first uploading to your AI assistant for review. Or require all new policies, internal memos, and agreements be first created by your AI assistant and then reviewed by your experts. Use your assistant for research, analysis, and advice. AI can now play a very important role in your business if you accept that it’s no more than another smart adviser.

Finally … make ‘me’ time

Running a small business is very demanding, stressful, and can put pressure on your family relationships. In 2026, regularly commit to doing something for yourself. Join a birdwatching group. Ride your bike in the middle of the day. Go to a gym every morning. Coach or get involved in your child’s after-school activity. Volunteer. Take an art class.

Do something that’s completely unrelated to your business. You’ll find that it takes your mind off your daily problems and clears your head for better thinking. Your customers, employees, and family will notice the difference.

December 30, 2025
It’s almost time to file tax returns. Watch out for these limits on the tips and overtime deductions.

By now, most people have heard about the “no tax on tips” and “no tax on overtime” provisions of “One Big Beautiful Bill” that became law during the summer. It sounds great. But unfortunately, the new legislation is not all that it seems. Why?

Yes, there is a “no tax on tips” benefit. But be careful because you may not be eligible.

A specific list shows all the jobs that qualify. As a rule of thumb, you’ll be eligible for the tipped income deduction if you work in a business where tips are common. Regardless, you should know that the deduction is limited to $25,000 per person and begins to phase out once you start earning more than $150,000 individually and $300,000 if you file a joint return.

You can only take advantage of the deduction when you file your individual tax returns after the year has ended. And if these deductions result in you getting a tax refund, you’ll have to wait until next year, when your 2025 return can be filed and processed by the IRS.

Remember too that this deduction is scheduled to expire in 2028, so you’ve only got a few years to take advantage. So does the deduction on overtime wages.

The overtime deduction is even more limited. It only applies to the “overtime” wages you receive, which means that if you receive time-and-a-half for overtime worked, you get to deduct only the amount related to the “half.”

For example, if your base wage is $20 an hour and you get paid $30 for one hour of overtime, only the $10 difference is eligible for the deduction. Also, the overtime deduction is limited to $12,500 for individuals and $25,000 for joint-filers, and it begins to phase out after you’ve earned more than $150,000 individually or $300,000 if you’re filing a joint return. And, depending on prevailing wage rules or overtime calculations that are part of union contracts, some of these wages may not be eligible at all.

Even though the new law promises “no taxes” on tipped and overtime income, that’s not entirely true either. Social Security and Medicare taxes will still be required by both employees and their employers. Most states — including Pennsylvania and New Jersey — are not excluding tipped or overtime income from their tax calculations.

“It’s kind of a misnomer,” said Andrew Gargana, a federal compliance analyst at HR firm Paychex. (Gargana is a client of my firm.)

“Yes, no tax on tips or overtime sounded great on the campaign trail, but the reality is that an employee is still paying some taxes on this income,” Gargana said.

If you’re an employer that has tipped workers or pays overtime, you are looking at potential reporting headaches.

Employees now must know the correct amount of tipped wages and overtime to include in their tax returns. Usually, this will come from their W-2 form, which is used to report wages and is required to be mailed by the employer to both the employee and the IRS by the end of January.

The IRS has released a draft form W-2 for 2026 that enables an employer to separately report these amounts. But what about 2025?

According to a blog post from Bala Cynwyd-based accounting firm Isdaner & Co., the IRS announced that the 2025 versions of Form W-2 — where overtime wages are not broken out from total compensation — will be unchanged.

Gargana says 2025 reporting will be like the “Wild West.”

“The IRS’s guidance just offers ‘transition relief’ to employers and employees for 2025,” he said. “As long as an employer makes reasonable attempt at reporting, the IRS is not going to penalize. They’re acknowledging that employers and employees were not tracking this information in the form they needed at the beginning of the year.”

But what is “reasonable”? And what if their mistakes cause a significant mistake on their employee’s tax return? It is unclear how much leeway employers will get. Accuracy still matters, and a big enough miscalculation could mean potential penalties and interest for employees that underreport taxes due and a potential legal problem for the employer.

In the end, the responsibility of filing a correct individual tax return still rests with the individual.

“Employers and payroll management companies should begin tracking qualified tip and overtime income immediately and implement procedures to retroactively track qualified tip and overtime income amounts that were paid going to Jan. 1, 2025,” accounting firm Isdaner said in an email to clients.

This is a looming hassle for employers. Whether they’re required to report externally or not, workers and their accountants will want to take advantage of this deduction, and if the amounts they need are not disclosed on their W-2, they’re going to be pressing their bosses for the correct information for their individual tax returns.

Both Paychex and Isdaner are warning their clients to get on top of this issue to avoid confusion when employees start filing their individual returns. Gargana said employers may even provide a separate statement along with employees’ W-2 forms.

“Communication is critical,” Gargana said. “Employers should expect questions and proactively share available data.”

December 23, 2025
Business owners should consider these strategies to reduce their future taxes

Thanks to the tax and spending bill enacted in July, many small-business owners I know are moving forward with long-term strategies that will cut their corporate tax bills in the future.

The new tax law included more tax incentives for companies and made other substantial provisions permanent. Here are a few strategies to consider for your business.

Invest in longer-term assets

The new tax law made permanent big deductions for capital equipment, and introduced a significant deduction for manufacturers building new facilities.

“Bonus depreciation” deductions — which were being scaled back over the past few years — are now permanent, and allow businesses to write off the costs of qualifying property when they’re put into use, according to Mitch Gerstein, a senior tax adviser at Isdaner & Co. LLC in Bala Cynwyd.

“Eligible items that may qualify include computer systems and software, office furniture, certain vehicles, and qualified improvement property,” he said. “This immediate expensing can significantly improve cash flow and lower taxable income, an especially valuable benefit for businesses investing in growth.”

Scott Jillard has been encouraging his clients to make new capital investments where it seems appropriate. His firm, Jillard & Associates in Media, helps businesses take advantage of available federal tax credit programs.

“This is significant for all commercial and investment property owners,” Jillard said. “It allows them to accelerate their depreciation schedules, which offsets income taxes from their rentals and encourages them to either improve their properties or add to their portfolio.”

For manufacturers, there is now a 100% deduction for qualified production property, which allows eligible companies to immediately deduct the entire cost of new facilities used in qualified production activities like manufacturing. To qualify, the property must be new, located in the U.S., and meet specific construction timelines, with office or administrative areas excluded.

“It’s important to take advantage of these tax deductions to help drive your top-line growth, while still minimizing your tax liability,” said Rich Petillo, a partner at Centri Business Consulting in Philadelphia.

Cost segregation

Given the more favorable tax rules, many tax experts like Jillard are also recommending that their clients look more deeply into cost segregation.

Cost segregation is a tax strategy employed by purchasers of new commercial properties to increase their tax benefits, said Jillard. It involves reclassifying building components to accelerate depreciation deductions. This reclassification allows certain elements, such as HVAC systems and lighting, to be depreciated over shorter periods, reducing taxable income.

“Doing this can result in lower tax liabilities, improved cash flow, and enhanced return on investment,” he said. “Additionally, cost segregation can speed up the payback period for the property and potentially increase its resale or refinancing value.”

Revisit your corporate structure

2026 will be a good time to take another look at the tax structure of your business.

Because the “pass-through” deduction for S corporations, partnerships, and similar entities was made permanent, more businesses can take write off as much as 20% of their profits before that income “passes through” to their individual returns, said Linda Scheer, a tax director at J. Cohen CPAs & Advisors in Philadelphia. This deduction would have sunset at the end of this year had it not been extended permanently, she added.

“We plan to review our small-business clients’ 2025 pass-through status,” Scheer said.

Petillo says that while pass-throughs are very popular with small-business owners, much of this income will be taxed at higher individual rates (the top tax rate is as high as 37%) while the corporate rate is still fixed at 21%.

“Maybe an S corporation or partnership is perfect for you and minimizes your ultimate tax liability,” he said. “But perhaps converting to a C corporation is more attractive to potential future investors.”

Spend on research

Thanks to the new tax bill, businesses can now fully deduct the cost of their research and development expenses in the year incurred, a benefit that had phased out in 2022. Small businesses (those with average annual gross receipts of $31 million or less) can retroactively apply full expensing to tax years 2022, 2023, and 2024 by filing amended tax returns. The deadline to do so is July 4, 2026.

This deduction is not to be confused with the research and development tax credit, which is a credit against either income or payroll taxes owed. Business owners may be able to amend this credit to also take advantage of expenses going back to 2022.

“These benefits are enormously advantageous to business owners of innovative and creative companies that engage in experimentation and are taking financial risk in improving their processes and procedures,” said Jillard.

Consider starting a Qualified Small Business

Those looking to start new companies should consider it as a Qualified Small Business under Section 1202 of the tax code, Gerstein said.

Such an entity must be a U.S. C corporation with newly issued stock that is actively engaged in qualified trade or business like manufacturing, technology and software development, life sciences, engineering, industrial, distribution, or a research and development-heavy business. The new tax law made it even easier to form and invest in these types of companies, and the long-term benefits are substantial because the longer investors hold on to the stock, the more tax benefits can be realized.

“Changes to these rules offer new opportunities for investors and founders,” he said. “Noncorporate investors can now exclude 50% of gains on small business stock after three years, 75% after four, and 100% after five or more.”

And, he added, “Being a Qualified Small Business is a powerful tool for attracting investment, planning future exits, and encouraging long-term growth.”

December 16, 2025
A worker cooperative is a different form of employee benefit. Some say it’s better

Thinking of selling your business? Or starting a business? You may want to consider a worker cooperative.

This type of business structure is different from a consumer cooperative, where customers each own a piece of the organization in exchange for a membership. It’s also different from an employee stock ownership plan where ownership is assigned to employees based on other factors such as compensation, responsibility, and tenure; retirement value builds up; and day-to-day control is given up to management.

A worker cooperative is a form of business organization where all workers equally own the business. There are no majority shareholders. Management is elected by the workers and reports to the workers. All profits are shared equally.

One example is Home Care Associates of Philadelphia, a worker-owned, women-led cooperative providing in-home personal care, mobility support, and household assistance to seniors and people with disabilities in the Philadelphia region. Employees can buy one share of the company for $500 via payroll after a probationary period.

“You have full rights at that point to run for a seat on the board, to participate in the worker-owner meetings, and to vote,” said CEO Tatia Cooper. “If anyone decides not to be a worker-owner anymore, they get the full amount back that they invested.”

Pennsylvania is one of the easier places in the country to form a worker’s cooperative, according to Kevin McPhillips, the CEO of the Havertown-based nonprofit Pennsylvania Center for Employee Ownership, because the commonwealth has designated this type of organization separately from other business forms like corporations and partnerships. New Jersey also has specific regulations enabling the formation of worker cooperatives.

Why should a business consider the worker cooperative structure?

For many it builds stronger retention and loyalty to the organization. When people are owners, they have more devotion to the company, so turnover is generally lower, resulting in lower costs for recruiting, hiring, and onboarding.

Some believe worker cooperatives are more apt to deliver better service because the employees care more about their end work product. They’re more devoted to safety, quality, and minimizing waste.

“Home care agencies struggle with retention and providing consistent care,” says Cooper. “For the simple fact that you have workers who stay longer, it really impacts your bottom line.”

Cooper also believes that when workers have a say in how the business is run and the work that they do, they feel more empowered and that then translates to better care.

Scott Moon, the executive director at Baker Project, an employee ownership advocacy group related to the Pennsylvania Center for Employee Ownership, says that while worker cooperatives can be a good vehicle for succession planning, owners will need to make some hard decisions about their objectives if they’re looking to sell their business.

“Business owners who are having a difficult time finding a buyer for their company but want to see it continue to exist and support their employees can use a worker cooperative as a way to pass their work to a new generation of owners,” he said.

Jobs and the company’s brand can be kept in place and the owner can be paid for the value of their company by the workers via a seller’s note or through a bank loan, which is serviced by the company.

“There are many owners who feel it’s not just about selling and that their business has an ongoing responsibility to their employees, their customers, and their community,” Moon said. “So this type of strategy best fits those goals.”

Cooper has found that their organization has a unique culture because of their employee ownership structure.

“It’s the kind of environment where workers can say, ‘Hey, listen, I see a problem, I see a gap. Here’s how I think we should solve it. What do we need to do to make it happen?,” she said. “We have a happiness committee, we have a policy action group, we have a safety committee all led by board members who are worker-owners.”

Downsides of worker cooperatives

Worker cooperatives have their drawbacks. Owners need to understand that they’re giving up complete control.

Because decisions are being made by elected groups of managers that need approval from employees, processes can be slower and potentially messier. Everything is open for scrutiny, and sometimes this level of transparency can hinder decision-making. Some employees may be enthusiastic about attending meetings and paying attention to the organization’s management, but others may not be up for the time and responsibility it takes.

Financing is also harder. According to Cooper, banking is a “real challenge” because, in her experience, worker cooperatives can’t apply for typical small-business loans.

“Most financial entities are looking for someone who owns 5% or more of the company, and we’re constantly explaining to banks and other institutions that this is a different model,” she said. “This is something that we’ve been advocating for with legislators, but it still continues to be a struggle.”

For those interested in forming a worker’s cooperative, many organizations can help. For example, the U.S. Federation of Worker Cooperatives and the Democracy at Work Institute both provide technical assistance, education/training, advocacy, and a directory of worker co-ops. Other organizations like the ICA Group, Project Equity, and Workers to Owners Collaborative help businesses transition from a traditional form of ownership to worker ownership.

Cooper acknowledges that worker cooperatives aren’t for everyone, but they do present a “unique way” of viewing work.

“In my opinion, the benefits outweigh the challenges,” she said. “It’s about everyone feeling empowered to do their best.”

December 9, 2025