S-Corp CPA in Allen, TX: Elections, Salary Strategy, and 1120-S Returns
Allen business owners earning well above the Texas median are leaving thousands of dollars on the table every year they operate as a single-member LLC or sole proprietorship without evaluating an S-Corp election. With a median household income around $110,000 and a thriving entrepreneurial corridor along US-75 and the Watters Creek district, Allen is home to consultants, medical professionals, e-commerce operators, and service providers whose net business income makes them prime candidates for S-Corp tax savings.
Our Services
Our S-Corp Election and Tax Services for Allen Clients
When you work with us on your S-Corp election and ongoing compliance, here is exactly what you receive:
- S-Corp election filing (Form 2553) with the IRS, including late election relief requests if your LLC has already been operating without the election in place.
- Reasonable salary analysis based on your industry, role, Allen market compensation data, and IRS guidelines to set a W-2 salary that maximizes tax savings without triggering audit risk.
- Annual 1120-S return preparation with Schedule K-1 distribution reporting for each shareholder, priced at $1,000 to $2,000 depending on complexity.
- Payroll setup and processing for your owner salary, including quarterly 941 filings and year-end W-2 generation, bundled with monthly bookkeeping at 0 to 0 per month.
- Texas Franchise Tax and Public Information Report filing ($250 to $500 annually), required for every S-Corp registered in Texas regardless of whether the state has an income tax.
- Year-round tax planning so your salary, distributions, retirement contributions, and estimated payments stay coordinated as your Allen business grows.
Why Allen Businesses and Residents Choose AG Freideman
Al Freideman handles your account personally. With 30+ years of experience as a licensed CPA, Al reviews every election filing, every 1120-S return, and every salary analysis himself. Allen clients never get handed off to junior staff or a rotating team of associates.
Virtual appointments make Allen service seamless. Our office is on Preston Road in North Dallas, a quick drive south on US-75 from Allen. But most of our Allen clients work with us entirely by video call and secure document upload, so you never have to leave your office near Exchange Parkway or your home in the Watters Creek area.
Transparent pricing with no surprises. We publish our rates openly. S-Corp returns run $1,000 to $2,000, and you will know your fee before we begin. Allen business owners who are tired of vague quotes from other providers appreciate that we tell you the cost upfront.
52 five-star Google reviews from real clients. Every single review is five stars. That track record reflects the personal attention and accuracy Allen clients can expect when they trust us with their S-Corp compliance.
S-Corp Election and Tax Questions from Allen Clients
When does an S-Corp election make sense for my Allen business?
Generally, an S-Corp election starts saving money when your business nets roughly $50,000 or more per year after expenses. Many Allen business owners, especially consultants and professionals working along the US-75 corridor, exceed that threshold comfortably. If you are paying self-employment tax on all of your net income, a conversation about the election is overdue. We offer a one-time tax planning session starting at $197 to run the numbers for your specific situation.
How much can an S-Corp save me in self-employment tax?
The savings depend on the gap between your net business income and your reasonable salary. Self-employment tax is 15.3% on the first $168,600 of net earnings (2026 Social Security wage base, with the Medicare portion continuing above that). If your Allen business nets $150,000 and your reasonable salary is set at $80,000, the $70,000 in distributions avoids that 15.3% tax, saving you approximately $10,710 per year. The exact figure depends on your industry and compensation benchmarks.
What is a reasonable salary for an S-Corp owner in Allen?
The IRS requires that S-Corp owners who perform services for their business pay themselves a “reasonable” W-2 salary before taking distributions. Reasonable means what a comparable employee in Allen or the Dallas-Fort Worth market would earn for similar work. For a marketing consultant in Allen, that might be $65,000 to $85,000. For a dental practice owner, it could be $120,000 or more. We research actual compensation data for your role and industry so the salary withstands IRS scrutiny.
Can you file a late S-Corp election for my Allen business?
Yes. If your Allen LLC has been operating without the election, the IRS allows late election relief under Revenue Procedure 2013-30, provided you meet certain conditions (typically that you intended to be treated as an S-Corp and simply missed the filing deadline). We prepare the late Form 2553 with the required reasonable cause statement. Many of our Allen clients come to us after discovering they have been overpaying self-employment tax for years.
Does Texas require anything extra for S-Corps?
Texas has no state income tax, so there is no state-level S-Corp return. However, every S-Corp doing business in Texas must file the Texas Franchise Tax Report and Public Information Report by May 15 each year. The franchise tax is a margin-based tax, not an income tax, and the no-tax-due threshold for 2026 is $2.47 million in total revenue. We handle this filing for Allen S-Corp clients at $250 to $500 per year.
Do I need to set up payroll if I elect S-Corp status?
Yes. Once your Allen business elects S-Corp status, you must run payroll for any owner who works in the business. That means withholding federal income tax, Social Security, and Medicare from your salary, filing quarterly Form 941 returns, and issuing a W-2 at year end. We handle payroll setup and ongoing processing as part of our monthly bookkeeping packages ($300 to $600 per month), so the entire process runs on autopilot.
Get Started from Anywhere in Allen
Whether you work from home near Allen Premium Outlets, run a practice on Exchange Parkway, or manage a team near Lovejoy ISD, getting started with your S-Corp election is simple. Book a free, no-obligation consultation at agfreideman.com/meeting/ and we will review your current tax situation, estimate your potential savings, and explain exactly what the election process involves. You can also call Al Freideman directly at (972) 893-3481. Most Allen clients complete the entire process virtually, from initial consultation through election filing and first payroll run, without a single office visit.
Visit Our Office
Address: 17304 Preston Rd Ste 861, Dallas, TX 75252
Phone: (972) 893-3481
We also offer virtual appointments for clients throughout the DFW metroplex who prefer to meet remotely.
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Ready to Get Started?
Book your free consultation with Al Freideman, CPA. 30+ years experience serving Dallas-Fort Worth.