S-Corp CPA in McKinney, TX: Elections, Salary Analysis, and 1120-S Returns
McKinney business owners are riding one of the strongest local economies in the country. Ranked the #6 fastest-growing U.S. city by U-Haul in 2026, McKinney’s surge in healthcare services, professional offices along the 75 corridor, and the shops and restaurants fueling historic downtown have created thousands of new LLCs and sole proprietorships. With a median household income of $105,000, many of these owners are earning well above the threshold where an S-Corp election starts saving real money on self-employment tax.
Our Services
Our S-Corp Election and Tax Services for McKinney Clients
When you work with AG Freideman on your S-Corp election and ongoing tax compliance, here is exactly what you receive:
- S-Corp election analysis: We compare your current tax liability as a sole proprietor or single-member LLC against projected savings under S-Corp status, using your actual McKinney business revenue and expenses.
- Form 2553 preparation and filing: We prepare and submit your S-Corp election to the IRS, including late-election relief requests under Revenue Procedure 2013-30 when the standard March 15 deadline has passed.
- Reasonable salary determination: We research comparable compensation for your role, industry, and the McKinney market to set a W-2 salary that satisfies IRS guidelines without erasing your tax savings.
- Annual 1120-S return and K-1 preparation: We file your S-Corp return each year and prepare Schedule K-1s for every shareholder, priced at $1,000 to $2,000 depending on complexity.
- Payroll setup and processing: S-Corps require payroll for owner-employees. We handle monthly payroll with bank reconciliation starting at $300 to $600 per month.
- Texas Franchise Tax compliance: Every Texas S-Corp must file a franchise tax report and Public Information Report annually by May 15. We handle both for $250 to $500 per year.
Why McKinney Businesses and Residents Choose AG Freideman
Al Freideman handles your account personally. With 30+ years of experience as a licensed CPA and MBA, Al reviews every S-Corp election, every salary analysis, and every 1120-S return himself. McKinney clients never get handed off to junior staff or a rotating associate who doesn’t know their situation.
Virtual appointments designed for McKinney’s busy professionals. Whether you run a practice near the Collin County courthouse, manage a construction crew out of eastern McKinney, or operate a retail shop on the downtown square, we meet on your schedule through secure video calls. Our Preston Road office in North Dallas is also available for in-person meetings when you prefer face-to-face time.
Transparent pricing with no surprises. We publish our rates because McKinney business owners deserve to know what they’re paying before they commit. S-Corp returns run $1,000 to $2,000. Monthly bookkeeping and payroll run $300 to $600. No hidden fees, no billing surprises at the end of the engagement.
52 five-star Google reviews and zero negative reviews. Every single client review is five stars. McKinney clients stay with us year after year because the service is personal, the work is accurate, and the advice pays for itself.
S-Corp Election and Tax Questions from McKinney Clients
When does an S-Corp election make sense for a McKinney business owner?
An S-Corp election generally makes sense once your business nets $50,000 or more annually after expenses. At McKinney’s median household income of $105,000, many local business owners, especially those in healthcare, professional services, and the growing restaurant scene downtown, are well past this threshold. The key factor is whether the self-employment tax savings outweigh the added cost of running payroll and filing a separate 1120-S return.
How much can an S-Corp save me in self-employment tax?
Self-employment tax is 15.3% on net earnings up to the Social Security wage base ($168,600 for 2025, with the 2026 figure typically adjusted upward by the IRS each October). If your McKinney business nets $120,000 and you set a reasonable salary of $60,000, only the salary portion is subject to payroll taxes. The remaining $60,000 passes through as a distribution, saving you roughly $9,180 per year in self-employment tax. We run these numbers with your actual financials during your free consultation.
What is a reasonable salary for an S-Corp owner in McKinney?
The IRS requires S-Corp owners who perform services to pay themselves a “reasonable” W-2 salary before taking distributions. Reasonable means comparable to what someone in a similar role, with similar experience, would earn in the same market. For a McKinney dentist, that figure differs significantly from a McKinney restaurant owner or a Collin County real estate agent. We research industry compensation data specific to the Dallas-Fort Worth area so your salary stands up if the IRS ever questions it.
Can you file a late S-Corp election for my McKinney business?
Yes. The standard deadline to elect S-Corp status for the current tax year is March 15 (or within 75 days of forming a new entity). If you missed that window, the IRS allows late-election relief under Revenue Procedure 2013-30 as long as you meet certain requirements, including having intended to elect S-Corp status and failing to file on time due to reasonable cause. We regularly file late elections for McKinney business owners and handle the entire process.
Does Texas charge a separate tax on S-Corps?
Texas has no state income tax, but every S-Corp doing business in Texas must file and pay the Texas Franchise Tax (also called the margin tax) if total revenue exceeds $2.47 million. Even S-Corps below that threshold must still file a Public Information Report with the Texas Comptroller each year by May 15. We prepare both filings for McKinney clients as part of our compliance services.
Get Started from Anywhere in McKinney
Whether your business is near the Collin College campus, along Highway 75, or in one of McKinney’s rapidly developing commercial areas to the west, we work with you virtually so there’s nothing to schedule around except a conversation. Your free consultation covers your current entity structure, your income, and whether an S-Corp election will actually save you money. No obligation, no pressure, just the math. Call Al Freideman directly at (972) 893-3481 or book your consultation at agfreideman.com/meeting/ today.
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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Book your free consultation with Al Freideman, CPA. 30+ years experience serving Dallas-Fort Worth.