Book of Lists 2019 available at www.msbusiness.com/lists SMALL BUSINESS
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Oxford company specializes in reading glasses that double as jewelry — Page 2
MBJ FOCUS
January 4, 2019 • Vo. 41 No. 1 • 12 pages
40 years and still printing that first issue dealt with transportation issues, oil and gas exploration and the upcoming gubernatorial election as well as offering people in the news, business briefs, editorials and In August 1979, a new business-focused, more. statewide newspaper hit the newsstand for the See 40 YEARS, Page 6 first time. Dubbed the Mississippi Business Journal,
» MBJ still the leading source of business news in Magnolia State
40 YEARS
1979
2019
MBJ FOCUS
Law & Accounting {Section begins P7}
» Hadley: Austin has nothing on Jackson and Mississippi
{The List P11}
» Largest Law Firms
From www.consumerreports.org
Very interesting tax season expected Page 7 as new tax regulations play out
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2 Q Mississippi Business Journal Q January 4, 2019 SMALL BUSINESS
Oxford company specializes in reading glasses that double as fashionable jewelry
» Neckglasses has been featured on “Good Morning America,” “The View,” the Home Shopping Network and HLN By RICK HYNUM
Reserved and soft-spoken, Dianna Seddon may not fit the stereotype of the extroverted, hard-charging American entrepreneur, but she’s setting a new trend in the world of fashionable eyewear with her Oxford, Miss.-based startup, Neckglasses. Her company’s products—which make ideal gifts for older women (and men) with a polished fashion sense— were featured on two top-rated ABC network shows in 2018 as well as the Home Shopping Network and HLN, and there’s more to come. “It’s grown bigger and faster than we ever expected,”
said Seddon, co-owner of Neckglasses, which specializes in contemporary reading glasses that double as necklaces and are just as fashionable as they are functional. “We’re just keeping our heads down and trying to stay on top of it.” Seddon and Ganovsky introduced their product last year on the website, myneckglasses.com. Described as “jewSeddon elry with a purpose,” they’re reading glasses for the Anna Wintour set— smart, elegant and stylish, a far cry from the austere, homely readers your grandma used to wear for knitting. Ganovsky, who lives in Windermere, Fla., developed the concept after her ophthalmologist suggested she buy a pair of readers from Walgreens to boost her eyesight for reading menus in dimly lit restaurants. “I was only 44 years old,” Ganovsky recalled. “The last thing I wanted See GLASSES, Page 5
Courtesy of Neckglasses/MBJ
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» INSIDE MISSISSIPPI
2019 will be a big year for Mississippi politics
I
t’s upon us, the new year, the much anticipated big political year for Mississippi. Yep, 2019 is the year when most state, regional, and local officials will be up for re-election and/or replacement. But, the really big thing will be the gubernatorial showdown between Lt. Gov. Tate Reeves and Attorney General Jim Hood. Oh, that November confrontation is not a sure thing just yet. Both will have August primary challengers, though none so far with much money or name recognition. Meanwhile, the big time jockeying for the Reeves vs. Hood battle has begun. It started with Hood’s November proclamation that state retirees can serve as legislators and keep getting retirement benefits. PERS regulations require retirees to put benefits on hold should they become a state elected official. While this has been a contested issue for years, Hood suddenly weighed in against PERS, arguing legislators are part-time employees so thousands of retirees, mostly retired teachers, can serve without giving up benefits. (There is one big flaw in Hood’s reasoning. PERS credits legislative service as full-time. Hood’s ac-
Bill Crawford
tion would reduce that retirement credit to part-time. Otherwise legislative service would somehow be fulltime and part-time at the same time). PERS said it had not been consulted by Hood and has his ruling under advisement. It will be interesting to see if PERS revises its regulations, but more interesting to see if the Republican controlled legislature acts to undo Hood’s ruling. You see, it’s pretty clear from the reaction of pro-education advocates that their hope is for many retired teachers of the Democrat persuasion to challenge Republican incumbents in next year’s elections. This would benefit Hood by increasing Democrat turnout next November. It could also undo the GOP super majorities in the house and senate and boost chances for increased school funding. The jockeying continued in December with the revelation that Gov. Phil Bryant has been quietly looking into expanding Medicaid in Mississippi, a la the conservative approach then Governor, now Vice President, Mike Pence put in place in Indiana. Expanding Medicaid has gained somewhat in popularity in Mississippi
he current of method of ranking Mississippi’s schools and districts has its limitations. The Mississippi Statewide Accountability System awards letter-grade rankings based on a number of factors, although it is heavily weighted toward student performance on state tests. That means the way we judge our schools is largely based on how well students perform on one test on one day of a 180day school year. Certainly there is some value to having state assessments. Educators need data on how well students are performing to be able to determine what skills students have mastered and which ones they haven’t. It helps them better adjust their instruction and assure that individual students are not falling through the cracks. The problem is when an accountability model overemphasizes those test results. The public largely determines whether a school is good or not – whether it is an “A,” “B,” C,” “D” or “F” – based on how students perform on one test one day of the year. Many other factors of school success – enrichment programs that go beyond the curriculum, teachers who truly care for their students, vibrant extra-curricular programs – are ignored. Such a model pushes educators to focus more on the tests and less on the factors that don’t get measured. It encourages “teaching to the test” and endless drilling and practice tests to ensure students are going to score highly enough to give the school the highest letter grade. It doesn’t have to be that way. As state lawmakers prepare to come together for another legislative session, they once again have the opportunity to change the school ranking system. The best approach would be a collaborative one that engages educators, the business community, community leaders, parents and others on a model that measures what’s truly important. It should begin by answering a fundamental question – what do we want a graduate to look like – and work backward from there. It should find creative ways to holistically measure school performance. Meanwhile, communities shouldn’t wait on the legislature either. While they’ll continue to be measured by the state accountability system until the law changes, what’s to stop individual communities from coming together to develop their own accountability models that are far more accurate evaluators. If a wide array of stakeholders could come together and agree on the defined criteria, communities can use their individualized ranking systems that carry more weight than the one that comes from the state. It’s an opportunity to move away from a top-down education approach. It’s a chance for districts to work together with local leaders to become a model for the rest of the state. And it’s a path to escape the trap of teaching to the test.
— Northeast Mississippi Daily Journal See CRAWFORD, Page 4
PERSPECTIVE
4 I Mississippi Business Journal I January 4, 2019 » RICKY NOBILE
CRAWFORD
Continued from Page 3
and is seen as one of Hood’s major campaign issues, as well as a potential financial rescue for many rural hospitals and clinics. Sliding a conservative version through the upcoming legislative session could boost Reeves. So far, Bryant has not commented on the story published in Mississippi Today. If this moves forward it will be interesting to see if the GOP legislative majority will go along. There is also the possibility Bryant could expand Medicaid by executive order. All this supports rumors that Bryant and Reeves have mended fences in order to hold off a Democrat surge in November. In another December jockeying maneuver, Speaker of the House Philip Gunn told reporters that lawmakers will abandon attempts to rewrite the Mississippi Adequate Education Program (MAEP) funding formula in the upcoming session. Changing the formula has been a major Republican goal since the defeat of the school funding referendum in 2015. Taking it off the table will tamp down an inflammatory issue for pro-school advocates and teachers, e.g., likely Hood supporters. Intriguingly, Reeves, so far, has been quiet on Republican jockeying. No doubt because changing course on Medicaid and school funding won’t play well with part of his base. Yes, 2019 will be a big year for Mississippi politics. Bill Crawford is a syndicated columnist from Meridian.
»INSIDE MISSISSIPPI
DEFENSE SPENDING IS A MISSISSIPPI TRADITION
A
s the current Congress sputters to an end, there’s one accomplishment that Mississippi’s Republican members are looking back on with pride — higher defense spending. It was a theme in the reelection campaigns of several members, and resurfaced with December’s announcement of two more Coast Guard cutters to built at Ingalls Shipbuilding in Pascagoula at an eventual cost of $1.7 billion. Military support is a tradition for Mississippi’s delegation. The late John C. Stennis is the only U.S. senator with an aircraft carrier named for him, in recognition of his long advocacy for military funding during his 41-year career, including his desire for “a navy second to none.” The late Sonny Montgomery spent much of his 30 years in the U.S. House looking after the needs of veterans, reserve forces and National Guard members, as well as advocating for military bases. Today, Sen. Roger Wicker is an Air Force veteran. Rep Steven Palazzo is a Marine Corps veteran and member of the Mississippi National Guard. And Rep. Trent Kelly is a brigadier general in the National Guard. Both Palazzo and Kelly, in interviews with The Associated Press before their re-elections cited increased military spending as one of their goals. Palazzo said he wanted to “continue to fund our military to restore our loss of readiness and recapitalize the equipment. We feel like we’re stronger than we were.” Kelly said that “I think we continually have to build the strength of the military.” After ebbing earlier this decade, defense spending has taken off again in the last two years, with the enthusiastic support of Mississippi Republicans. While parts of the fed-
Jeff Amy
ures . That was less than the nationwide average of 2 percent, eral government were shut down in late December because and much less than states where defense spending is a much Congress and President Donald Trump couldn’t agree on a budget, lawmakers and the president signed off on a $717 bil- bigger driver of the economy. Military spending made up 5.2 percent of Alabama’s economy that year, fifth highest in the lion spending plan for defense months ago. The impact of defense spending is most eviIngalls also stands out in terms of defense contract spending, dent in Palazzo’s 4th Congreswith its home county of Jackson netting $2.4 billion of the oversional District. There’s Keesler all $3.5 billion statewide. Second was Madison County, anchored Air Force Base in Biloxi, the Naval by aerospace and defense vehicle parts supplier Vertex. Construction Battalion Center nation. in Gulfport and the Naval Meteorology and Oceanography Whatever its importance, though, defense spending is a Command and other units at Stennis Space Center and the way that Mississippi’s delegation can send some money Camp Shelby National Guard base near Hattiesburg. That’s home. In a previous generation, earmarking would have promore than 24,000 active duty and civilian personnel, more vided that opportunity, as witnessed by all the buildings than half the state’s total of 46,000, according to Departnamed after former senators Thad Cochran and Trent Lott. ment of Defense figures. And that doesn’t count Ingalls and But with Congress forgoing the ability to spend at home diits 11,000 employees. rectly, pork has to be more indirect. So when Roger Wicker Ingalls also stands out in terms of defense contract spendadvocates for a 355-ship Navy, he’s pushing for a stronger naing, with its home county of Jackson netting $2.4 billion of tional defense. But he can rest reasonably assured that a fair the overall $3.5 billion statewide. Second was Madison number of those ships will be launched in Pascagoula, emCounty, anchored by aerospace and defense vehicle parts ploying thousands of his constituents. supplier Vertex. Defense spending, though, is relatively unimportant to Mississippi’s statewide economy. In the federal government’s JEFF AMY has covered politics and government for The Associ2016 budget year, it made up 1.6 percent of Mississippi’s ated Press in Mississippi since 2011. Follow him at overall economy, according to Department of Defense fighttp://twitter.com/jeffamy .
January 4, 2019
GLASSES Continued from, Page 2
was a pair of granny glasses. I tried on every pair of readers on the rack, looking for a pair that wouldn’t make me feel old and frumpy. Then I immediately lost the first pair I bought and kept losing others, too. Before long, the lady at Walgreens knew me on a first-name basis.” Determined to create quick-view reading glasses that they could wear proudly (and keep up with), Ganovsky and Seddon began to collaborate on tasteful designs— functional readers disguised as chic, boutique-style lockets and pendants that can be folded and worn like necklaces and swiftly raised to the eye to scan a menu or a hardto-read price tag in a shopping mall. They named the various designs, which soon included styles for men as well as women, after themselves, their children and other family members and close friends. The two women launched Neckglasses with modest ambitions, hoping to get their eyewear in a few local boutique shops and go from there. Their marketing strategy changed, however, after Ganovsky contacted a producer at the Home Shopping Network (HSN), which showcased Neckglasses twice on its American Dreams program last winter. Before long, other networks began showing an interest, including ABC. Good Morning America contributor Tory Johnson was so impressed by Neckglasses that she featured them on her “Deals and Steals” segment, which aired nationwide May 17. “That morning was a whirlwind,” Seddon noted. “Our phones were ringing off the hook all day long and into the night. Most of the callers were women, and they all had questions. They were excited to find a product like this. A lot of them wanted to add to their orders. They weren’t just buying for themselves—they wanted to give them as gifts to their friends and loved ones.” The “Deals and Steals” segment proved so successful that another ABC producer asked to feature Neckglasses on a “View Your Deal” segment of the popular morning talk show, The View, on July 9. The media blitz continued later this summer with CNN’s Robin Meade, who spotlighted Neckglasses on her HLN show, Morning Express. Between those three shows, the company sold more than 27,000 units in just three months. Meanwhile, fashionistas in the United Kingdom began sporting Neckglasses when the London-based QVC UK network aired a segment on the product in late August. A second appearance on Morning Express is tentatively slated for January as well. Ironically, getting their wares into retail stores has been a bigger challenge than netting international TV coverage. “From the start, we knew we had a product with wide appeal,” Seddon said. “But like most small businesses, we didn’t have the wide reach
of a major wholesaler. When retailers see what we have to offer, they love it. But getting Neckglasses in front of retailers without a distributor is easier said than done.” Enter another woman-owned company: The Grommet, an online B2B e-commerce marketplace and product discovery platform founded in 2008 by Jules Pieri and Joanne Domeniconi. The Grommet’s wholesale division serves as a bridge between small, independent makers like Neckglasses and retailers seeking innovative products to offer their customers. The platform uses its popular website and a vast email database to promote unique items
ranging from kitchen gadgets and accessories to clothing, jewelry and even pizza ovens for home chefs. “The Grommet was first interested in us for their retail site, but once they saw our product line, they wanted to go back and change our agreement so they could also offer Neckglasses through their wholesale network,” Seddon said. “We couldn’t sign up fast enough.” The Grommet helped turn Fitbit— which makes a line of activity-tracking fitness products—into a household name. Others like Otterbox, SodaStream, Bananagrams and Goldieblox received a
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huge boost in name recognition from The Grommet. “Karen and I see so much of ourselves in Jules and Joanne, and we’ve both been shopping on the site for years. It’s a pretty big thrill to know they thought Neckglasses was worth featuring.” When they’re not managing incoming orders, selling their eyewear at trade shows around the country, and fielding calls from TV producers, Seddon and Ganovsky continue working on new designs and refining existing ones to meet rising demand for their readers.
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For More Information contact Tami Jones, Associate Publisher at (601) 364-1011 or email: tami.jones@msbusiness.com
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Newsmakers
Jones agreed. “I was helping Rosa Lee pitch the Continued from, Page 1 paper to prospective buyers when I The frequency of the publication would decided that I should buy it myself,” evolve from monthly to weekly, the format Jones remembered. “I had recently would change from tabloid size to maga- sold out of another business venture zine and back to tabloid and had some change in my pocket. and the newspaper would So, I along with then-editor Buddy see new ownership, but Bynum (who would serve as editor 40 years after that first through 1997) bought the paper in edition, the Mississippi BusiApril 1995.” ness Journal is still offering “Why did I gamble on an unprovmany of those news items en product in an unfamiliar market? and is still striving to be I really can’t say definitively. I enjoy the voice of business and Joe Jones business and, truth be known, I like industry in the Magnolia to run things. I had never been inState. volved with a creative-type business In a special pre-proand that intrigued me.” duction issue in 1979, the It would prove to be a successful original publisher and transition as most of the MBJ’s speowner Joe Mack Dove cial events and publications launched wrote: “The Journal is beunder Jones’ leadership. Top 40 ing targeted as a statewide Under 40, Best Places to Work, 50 communications need, Leading Businesswomen/Businesswhich we do not believe is Tami Jones woman of the Year and NEXT! A being filled now. We could Guide to Life After High School never hope to compete were all introduced during this time. with the large daily media in general news And even now the MBJ is adding coverage; what we intend to do is provide new events annually like Mississipa solid and timely look at what is happen- pi’s Top Entrepreneurs, Top in Tech, ing in business and commerce across our Mississippi’s Top Nonprofits, Best of state.” Mississippi Business, CEO Awards Over the next five years under Dove and of Mississippi and others. then-editor Mike McCall, the MBJ grew The MBJ was a pioneer when in offerings and readership, emerging as a it came to the online publishing. trusted source for business news. When it launched www.msbusiness. Dove eventually sold the MBJ in 1984 com, the MBJ was the first weekly in to veteran publisher Richard Roper. Two the state to develop a website. And years later, Roper sold the paper to Rosa it was during this time that the MBJ Lee Harden Jones, who along with her launched the MBJ E-Bulletin, a free husband, Kevin, operated the MBJ nearly daily e-mail service that continues 10 years. today. First issue of the MBJ published August 1979 However, the MBJ saw its most signifJones gave the lion’s share of credit icant and consistent growth when Jack- for the MBJ’s growth to his manageson-area entrepreneur, CPA and business ment team, which included late genper Contest in its first year of eligibility. It consultant Joe Jones purchased the news- eral manager Ron Jones (no relation) and marked the first time ever that a newspapaper in the mid-1990s. Jim Laird, who replaced Bynum and served per took the highest award in its inaugural Jones was originally asked to help Rosa as editor for nearly a decade. year of competition. (The MBJ has gone Lee Harden Jones (no relation) find a new It was during this time that the MBJ on to win dozens of MPA awards, includowner for the paper. She thought leaving made history when it won the top honor ing another General Excellence in 2010, the paper under the control of a local busi- — General Excellence — from the Missis- 2012, 2014 and 2016.) nessperson was in the paper’s best interest. sippi Press Association’s Better NewspaIn 2007, Joe Jones sold the MBJ to Minneapolis, Minn.-based Dolan Media. It was during this time that the MBJ moved to North Congress Street in downtown Jackson, where it stayed for 10 years. The MBJ added more special publicahttp://www.msbusiness.com tions and events during this time, includBANKS ing Healthcare Heroes, Leaders in Law Q Regions Bank.................................................................................................................. www.regions.com HUMAN RESOURCES and Leaders in Finance. Q People Lease.........................................................................................................www.peoplelease.com The MBJ become Mississippi-owned INSURANCE AGENCIES again in 2012 when Tupelo-based JourQ Account Services Group........................................................... www.accountservicesgroup.com nal Inc. purchased the MBJ from Dolan. LAW FIRMS Privately held Journal Inc.’s flagship operQ Victor W. Carmody, Jr. P.A........................................................................... www.mississippidui.com PAYROLL ation is the Northeast Mississippi Daily Journal, Q People Lease.........................................................................................................www.peoplelease.com Tupelo’s daily newspaper. In addition to SOCIAL MEDIA MANAGEMENT the MBJ, Journal Inc. owns weekly newsQ Mansell Media.................................................................................................... www.mansellmedia.net papers located across north Mississippi and southwest Tennessee. Have your business listed here! Contact your The MBJ recently started its latest advertising representative at 601.364.1000
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chapter when it moved and opened it offices at 132 Riverview Drive in Flowood. Alan Turner, who was named publisher of the MBJ in 2009, said, “The Mississippi Business Journal continues today with the same mission it began with — namely, to provide important and relevant information about Mississippi business to business and civic leaders, educators, health and legal professionals and others who read our publication and website. We are pleased and proud to be Mississippi’s premier source of statewide business news.” Day to day operations are now run by Associate Publisher Tami Jones while Ross Reily as been editor for more than 10 years and is aided by senior writer Jack Weatherly and many more freelancers and writers. Tacy Rayburn and Charina Rhodes, the production manager and circulation manager, respectively have both been with the organization for more than a decade. Meanwhile, Marcia Thompson-Kelly is the business assistant for the publication.
January 4, 2019 • MISSISSIPPI BUSINESS JOURNAL • www.msbusiness.com
AN MBJ FOCUS: Law & Accounting
From www.consumerreports.org
Very interesting tax season expected as new tax regulations play out By BECKY GILLETTE mbj@msbusiness.com The past year has been a busy one for tax advisors due to changes in income tax laws for both individuals and businesses. “The new tax law did not make taxes simpler,” said Ted Edwards, CPA, senior member in charge of tax services for Haddox Reid Eubanks Betts PLLC, Jackson. “So, it is going to be a very interesting tax season for us. We’ve had quite a lot of conversation about that. It is going to be very different. The tax changes have benefited both small and big businesses. I think generally individuals are going to benefit, as well. There will be some who won’t. We have already learned that. It
will hurt them. It all depends on their particular tax situation.” Edwards said it is important to understand the new tax law so you can know how to use those changes to benefit your business or as an individual. There are still some unknowns. “Because of the changes, both individuals and business owners have been trying to find out what real effect it is going to have on them,” Edwards said. “We have had a lot of meetings and made many calculations trying to let our clients know what we believe it will mean to them. We have to wait to see how it plays out as we start to prepare the tax returns in the upcoming tax season. In that regard, as is the case with so many tax laws
that Congress has passed and continues to pass, there’s uncertainty as to how the provisions may necessarily work.” One big change affected business that operate as a C corporations is that there is now a flat 21 percent rate, while in the past it was a graduated rate schedule with the top being a 35 percent rate. “That is probably primarily a benefit to larger companies, but could be a benefit to medium-sized companies, as well,” Edwards said. Regarding businesses, Edwards said the IRS issued some proposed regulations in August giving guidance on one of the most significant tax breaks for businesses, the section 199A deduction. See TAXES, Page 9
Law & Accounting
8 Q Mississippi Business Journal Q January 4, 2019
Hadley: Austin has nothing on Jackson and Mississippi By NASH NUNNERY mbj@msbusiness.com
E
lizabeth Ross Hadley left her heart in Mississippi. A lawyer/lobbyist with prestigious Texas firm Greenberg Traurig, Hadley and her husband Bryan made the decision ten years ago to move to Austin for better and bigger opportunities than her home state could offer. But the Jackson native comes home several times a year to visit family, attend Ole Miss football games and tailgate in the Grove. With her recent appointment to the advisory board of the University of Mississippi’s Department of Political Science, Hadley is looking forward to becoming an even more frequent visitor to her beloved Mississippi. “I am honored to be selected for this opportunity and to play a role in serving the university that gave me a terrific education,” said Hadley, who earned her undergraduate and law degrees from Ole Miss. “My love of politics started at (Ole Miss) and it has a special place in my heart. I’m looking forward to working with my fellow trustees, and helping
current and future students have the best opportunities available to them.” As a board member, she’ll work closely with the university’s department chair to offer strategic counsel and recommendations, advising on the creation of scholarship programs and endowments. Growing up in Jackson, Hadley certainly had plenty of exposure to the legal business – both her dad and grandfather were prominent attorneys in the metro. A political science major at Ole Miss, Hadley’s favorite undergraduate course was constitutional law. “I knew I was going to become an attorney in high school but the class in constitutional law at Ole Miss sealed the deal, I guess,” she said. “I truly loved law school and got the opportunity to work for (then) Senate majority leader Trent Lott in Washington (D.C.) after earning my law degree. “It was an amazing experience and became a building block in my law career.” While in Washington, Hadley met her husband, got engaged and moved to Oxford. Soon married, the couple began looking at other locales in 2008 to better utilize their talents. “Bryan is a native Texan and a (Univer-
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Elizabeth Hadley
sity of Texas) Longhorn, and Austin was just on the cusp of being the city it’s become today,” she said. “I’d never say never to moving back to Mississippi but we both love Austin and raising our kids here.” Hadley focuses her practice at Greenberg Trauing on both government law and
policy, and litigation matters. The mother of three represents clients in several fields, including insurance regulation, economic development, health care, education and campaign finance compliance in Texas. Her litigation practice includes the representation of pharmaceutical, consumer products and medical device companies in national products liability and mass torts matters. Hadley relishes the challenges of both. “When we moved to Austin 10 years ago, I knew I’d found the perfect job of lawyer/lobbyist,” she said. “There’s a lot of crossover and I love the legislative process. “I enjoy advocating for people, whether it’s the courtroom or the (state) capital.” A self-professed foodie living in one of the nation’s must-do culinary destinations, Hadley is quick to point out Austin has nothing on Mississippi and Jackson, in particular, when it comes to food. “Every time I come home, a trip to Keifer’s, Amerigos, Broad St. Bakery and the Mayflower is tops on the list,” she said. “Jackson has so many great places to eat. My grandfather took my father to the Mayflower as a child, and my father took me. It’s a tradition, and we keep that tradition alive with our kids when we visit.”
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Law & Accounting TAXES Continued from, Page 7
“But there are still unanswered questions that we are currently trying to work with,” Edwards said. “The 199A deduction is a 20 percent deduction that eligible taxpayers will benefit from. That is going to be a very beneficial for many businesses. Also, Edwards there were some favorable depreciation provisions in the tax bill that will allow any business to expense and deduct expenses that in the past they would have had to capitalize and depreciate over a period of time.” Albert Sappington, Sappington CPA, manager of construction tax services for HORNE LLP in Ridgeland, said they are advising clients to do adequate tax planning to take advantage of the 199A 20 percent deduction. “We make sure through our planning to maximize that deduction and that we are factoring in that deduction in our planning,” Sappington said. “Usually the owner has to take cash out of the company to pay the tax, especially if it is a flow through entity. Knowing how much cash needs to be distributed to pay the owner’s tax is important because that can affect business decisions.” For example, if business owners know they have to pay $100,000 in taxes April, they might hold back on investing into the business. Companies in the construction industry are heavy on equipment cost,” Sappington said. “I have my clients talk about any equipment they might need over the next six months. Maybe it makes sense to buy that equipment and place it in service now instead of waiting until the next year so we can take accelerated depreciation to reduce the current year taxes that are due.” A big change in Section 179 depreciation deduction is that the previous $500,000 limit has been increased to $1 million. Sappington said that is very significant. Another big depreciation change is bonus depreciation which went from a 50 percent write off to 100 percent. “In the past you could only take bonus depreciation on new equipment,” he said. “And for 2018 forward, you can take it on new and used equipment that you purchased. Depreciation is a big one. That affects a lot of our clients. Contractors always need a new piece of equipment. The key is making sure they buy in the right tax year to provide the most benefit for taxes.” For individual income taxes, the tax bracket change will mean people will pay one to two percent less tax than prior tax rates. Sappington said that is not a huge change, but it is a benefit. Another major change for individuals
is the elimination of the exemptions for the individual, spouse and children. But the IRS increased the standard deduction to $12,000 for singles and $24,000 for a married couple. It is actually an increase from $6,350 for singles and $12,700 for a married couple from the prior year,” Sappington said. “It almost doubled. One thing to understand about the new tax law is it is referred to it as a balanced budget. If you cut taxes for one group, others increase. Some individuals will pay more taxes and some will pay less. We want to make sure our clients fall on the better of the two sides, if possible.”
January 4, 2019
Another thing that changed the child tax credit. In prior years that was only a $1,000 credit per child. Now it is up to a $2,000 credit per child. “So, you don’t get those exemptions for your children anymore, but get a $1,000 increase in tax credit,” he said. “That is a dollar-per-dollar reduction in taxes. The child tax credit going up is a good benefit for many taxpayers.” Sappington recommends using a tax professional as a business partner throughout the year to help you make educated decisions for your business and on your individual investments.
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“A lot of people don’t understand the need and benefit of tax planning,” he said. “We are trying to be proactive and do things now that help you pay less tax instead of just telling you what you owe at filing time. I never want my clients to be blindsided by a large tax liability. Understanding what the tax liability will be through planning helps the client plan for the cash outlay and also provides a higher level of tax service.”
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At Bradley, we combine legal experience and knowledge with a sophisticated understanding of the industries that drive Mississippi. Our attorneys find practical, strategic solutions specifically tailored to our clients’ business operations. We go above and beyond expectations to help our clients meet their goals. Bradley is proud to have 19 attorneys from our Jackson office listed in The Best Lawyers in America® for 2019. For more information visit our website at www.bradley.com
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Law & Accounting
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Jones Walker attorneys recognized in the 2018 Mid-South Super Lawyers 20 Jones Walker attorneys were selected for inclusion in the 2018 Mid-South Super Lawyers List, with 16 recognized as Super Lawyers and 4 recognized as Rising Stars. Mississippi attorneys recognized as Mid-South Super Lawyers: Jeffrey R. Barber, Bankruptcy: Business; Neville H. Boschert, Business Litigation; Chad J. Hammons, Creditor Debtor Rights; Kristina M. Johnson, Bankruptcy: Business; Craig N. Landrum, Banking; Keith R. Raulston, Business Litigation; W. Whitaker Rayner, Intellectual Property; Thomas B. Shepherd III,
Gaming; Aileen S. Thomas, Government Finance. Jackson attorneys recognized as Mid-South Rising Stars: Lindsay T. Dowdle, Employment & Labor; Andrew S. Harris, Business Litigation; Kaytie M. Pickett, Business Litigation; Sabrina B. Ruffin, Real Estate.
2 Deutsch Kerrigan lawyers recognized Deutsch Kerrigan, L.L.P. announced that R. Douglas Vaughn and Matt Quinlivan have been selected to the 2018 edition of Mid South Super Lawyers and Rising Starts Lists.
Brunini attorneys listed in 2018 Mid-South Super Lawyers and Rising Stars Brunini announced 14 attorneys have been selected to the 2018 Mid-South Super Lawyers and five attorneys have been selected to the 2018 Mid-South Rising Stars. 2018 Mid-South Super Lawyers are: Jackson: Matt Allen, Business Litigation; Sheldon Alston, General Litigation; Steve Carmody, Employment & Labor; Lynne Green, Estate & Probate; Trey Jones, Business Litigation; David Kaufman, Business Litigation; Sam Kelly, Construction Litigation; James
Publish Date: January 11 Lists: Information Technology Services
FOCUS ON: Technology Stories this week: » COMPUTER SYSTEMS — Longevity of computer systems. Do most businesses just retire them after a couple of years rather than wait for them to break down? How important are backup systems? » PROFILE — John Grogan, a Clinton native and Ole Miss senior, who was one of three college students from Mississippi’s two leading universities who have been chosen to participate in the second year of a joint fellowship program between C Spire and Nokia Bell Labs. ** NOTE — All stories are subject to change
» The Mississippi Business Journal keeps its readers informed – and does so with quality. » In 5 of the last 7 years, the MBJ printed product was awarded the state’s overall “General Excellence” award in its category. » Our print and online edition readership 185,000 monthly. » Daily, the nearly 13,000 readers who subscribe to our email list receive e-alerts with links back to our website. » Our nearly 15,000-plus Twitter followers receive tweets about stories with links to our website. » More than 3,300 readers “like” us on Facebook and nearly 8,000 YouTube followers. » Ask about bundling print & online advertising.
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McCullough, Business Litigation; Patrick McDowell, Business Litigation; John Milner, Environmental; Leonard Van Slyke, Tax Law; John Wade, Plaintiff Medical Malpractice: Defense; Walter Weems, Business/Corporation; and Ron Yarbrough, Construction Litigation. 2018 Mid-South Rising Stars are: Jackson: Cody Bailey, Construction Law; William Drinkwater, Civil Litigation: Defense; Chris Fontan, Employment & Labor; Lauren Lawhorn, Employment & Labor. Biloxi: Taylor McNeel, Business Litigation.
Hartfield appointed chair of ADLA Women in the Law Committee
Bradley Arant Boult Cummings LLP has announced that C. Meade Hartfield, a partner in the firm’s Birmingham office, has been appointed the inaugural chair and a founder of the Women in the Law Committee of the Alabama Defense Lawyers Association (ADLA). “We congratulate Meade on her appointment to develop and lead the Women in the Law Committee of the Alabama Defense Lawyers Association,” said Bradley Birmingham Office Managing Partner Dawn Helms Sharff. A member of Bradley’s Banking and Financial Services Practice Group, Ms. Hartfield has represented clients in financial services as well as a variety of other industries, including drug and medical device, automotive, aviation, industrial equipment, insurance, and environmental. She has represented financial institutions, auto-finance lenders and mortgage companies in defensive litigation matters throughout the country, including alleged violations of TCPA, TILA, FCRA, FDCPA and state deceptive trade practices laws. She also spearheads regulatory compliance services in response to pending or new legislation. In addition to the ADLA, Ms. Hartfield is an active member of the Defense Research Institute (DRI), where she serves as seminar marketing chair of the Women in the Law Committee, as well as the women in the law liaison to the International Law Committee and the Automotive Section of the Product Liability Committee. The ADLA’s main goals are to enable an exchange of information and ideas among members, elevate the skills of civil defense lawyers, and collaborate with similar associations in other legal areas.
Adams and Reese attorneys recognized in Mid-South Super Lawyers & Rising Stars Adams and Reese recently announced the inclusion of 28 attorneys in the 2018 edition of Mid-South Super Lawyers (by Thomson Reuters), which includes the publication’s “Rising Stars” list. Attorneys selected from the firm’s Jackson, Miss. office include: Holmes S. Adams, Estate & Probate; William C. Brabec, Business Litigation; C. Phillip Buffington Jr., Banking; Elizabeth Lee Maron, Employment & Labor; Jeff Trotter, Energy & Resources; Charles R. Wilbanks Jr., Class Action; Matthew R. Dowd, General Litigation, named to Mid-South Super Lawyers “Rising Stars” Super Lawyers recognizes lawyers in each state who have attained a high degree of peer recognition and professional achievement.
Law & Accounting
January 4, 2019
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