Ghaba & Associates CPA, LLC

08/28/2026

What happens if you don't file taxes?

08/27/2026

5 Things Every Business Owner should do before year-end

07/23/2026

Smart tax planning starts today, not at tax time. 💰

07/02/2026

Follow us for more tax and business tips!

06/30/2026

We’re honored to join the Sylvania Area Chamber of Commerce! Thank you for the warm welcome. We look forward to building strong relationships, supporting our local business community, and serving businesses and individuals with trusted accounting and tax services.

Welcome to Our New Members!

We’re thrilled to welcome these amazing businesses to the Sylvania Area Chamber of Commerce family!

Say hello to:

🔵Argyle IT Solutions
🔵High Profile MI
🔵Four Of A Kind Entertainment LLC
🔵Tuffy Tire & Auto Service
🔵Pat & Jake's Towing
🔵The Mez
🔵Ghaba & Associates CPA, LLC
🔵DC's Auto Care

Thank you for investing in our community! We're so glad you're here! Let’s grow, connect, and thrive together.

06/26/2026

Contact us!

419-210-3345
[email protected]
www.ghabacpa.com

06/24/2026

Contact us!

419-210-3345
[email protected]
www.ghabacpa.com

03/29/2026

If you’re not set up right, you’re overpaying.
LLC vs S Corp matters

03/21/2026

Eid Mubarak to all who are celebrating 🌙
Wishing you peace, prosperity, and continued success in the year ahead.

Grateful for our clients and the community we serve.

03/06/2026

Why Your S-Corp Needs Payroll (Even If Your Preparer Says “It’s Fine”)
I recently had a conversation with a business owner who formed an S-Corp but did not run payroll for himself. He was told by another preparer: “You can just take distributions. We’ll file it.”

Here’s the problem.
If you actively work in your S-Corp, the IRS requires you to pay yourself reasonable compensation before taking distributions.
This is not optional. This is not a “strategy.” This is long-standing IRS position supported by court cases. And this Red Flag.

If audited, the IRS can:
• Reclassify distributions as wages
• Assess back payroll taxes
• Add penalties and interest
• Potentially apply the Trust Fund Recovery Penalty (this one is nightmare)

For service businesses (contractors, technicians, consultants), this is a common audit trigger.

There are two types of tax preparation:
1️ Filing what keeps taxes lowest this year
2️ Filing what withstands IRS scrutiny

Those are not always the same.

As a tax professional, I cannot sign a return that ignores reasonable compensation requirements. Not because I want more payroll filings. Not because I want higher fees. But because compliance matters.

Bottom line is
When done correctly, an S-Corp can still produce payroll tax savings — without exposing you to unnecessary risk. Compliance today is cheaper than correction tomorrow.