S-Corp CPA in Flower Mound, TX: Elections, Salary Analysis, and 1120-S Returns
Flower Mound business owners earning well above the city’s $95,000 median household income face a costly reality: every dollar of net self-employment income gets hit with a 15.3% self-employment tax (the combined Social Security and Medicare tax for sole proprietors). For a Flower Mound LLC owner clearing $200,000 in profit, that’s over $30,000 in self-employment tax alone. An S-Corp election can cut that number significantly by splitting income between a reasonable salary and distributions that are not subject to self-employment tax.
Our Services
Our S-Corp Election and Tax Services for Flower Mound Clients
When you work with us on your S-Corp election and ongoing tax compliance, here is exactly what you receive:
- S-Corp election analysis: We review your Flower Mound business’s income, expenses, and growth trajectory to calculate whether the self-employment tax savings outweigh the added compliance costs of operating as an S-Corp.
- IRS Form 2553 preparation and filing: We prepare and submit your S-Corp election to the IRS, including late election relief filings under Revenue Procedure 2013-30 if you missed the standard deadline.
- Reasonable salary determination: We research comparable compensation data for your role and industry in the Flower Mound and DFW market, then document a salary figure that satisfies IRS scrutiny while maximizing your tax savings.
- Annual 1120-S return preparation: We prepare your S-Corp federal return, including K-1 schedules for each shareholder, with pricing from $1,000 to $2,000 depending on complexity.
- Payroll setup for officer compensation: S-Corp owners must run payroll for their salary. We coordinate payroll processing, quarterly 941 filings, and W-2 issuance so you stay compliant.
- Texas Franchise Tax filing: Every Texas S-Corp must file a Franchise Tax report and Public Information Report annually. We handle both for $250 to $500 per year.
Why Flower Mound Businesses and Residents Choose AG Freideman, CPA
30+ years of tax and accounting experience: Al Freideman is a licensed CPA who has handled S-Corp elections, reasonable salary analyses, and IRS audits for over three decades. Flower Mound business owners get a CPA who has seen every scenario, not a seasonal preparer learning on the job.
Virtual appointments that serve all of Flower Mound: Our office is on Preston Road in North Dallas, about 25 minutes from Flower Mound. But most of our Flower Mound clients work with us entirely by video call and secure file sharing. You get the same personal attention without driving to an office.
Transparent pricing with no surprises: We publish our rates on our website. S-Corp returns (Form 1120-S with K-1 preparation) run $1,000 to $2,000. You know what you’ll pay before we start, which Flower Mound business owners consistently tell us was a deciding factor.
52 five-star Google reviews: Every single Google review we’ve received is five stars. That track record reflects how we treat each client: one CPA, one relationship, year after year.
S-Corp Election and Tax Questions from Flower Mound Clients
When does an S-Corp election make sense for a Flower Mound business?
The general threshold is when your business consistently nets $50,000 or more in annual profit after expenses. Below that level, the added payroll costs, return preparation fees, and compliance requirements often eat into the tax savings. Many Flower Mound business owners we work with are well above that threshold, making the election straightforward to justify.
How much can an S-Corp save me in self-employment tax?
The savings depend on the gap between your total business profit and the reasonable salary you pay yourself. For example, if your Flower Mound consulting practice earns $180,000 in net profit and your reasonable salary is $80,000, only the $80,000 is subject to the 15.3% self-employment tax (Social Security at 12.4% up to the IRS wage base, plus Medicare at 2.9%). The remaining $100,000 passes through as a distribution and avoids that tax entirely, saving you roughly $15,300 per year.
What is a reasonable salary for an S-Corp owner?
The IRS requires that S-Corp shareholders who perform services for the business pay themselves a “reasonable” salary before taking distributions. There is no fixed percentage or formula. We look at comparable pay for similar roles in the Flower Mound and DFW job market, the owner’s experience level, and the company’s revenue. Setting the salary too low invites an IRS audit; setting it too high eliminates the tax benefit. We document the analysis so you have a defensible position if the IRS ever asks.
Can you file a late S-Corp election for my Flower Mound business?
Yes. The standard deadline to elect S-Corp status for the current tax year is March 15 (or within 75 days of forming the entity). If you missed that window, the IRS allows late election relief under Revenue Procedure 2013-30, provided you meet certain requirements and the request is filed within three years and 75 days of the intended effective date. We regularly file these for Flower Mound clients who didn’t realize the election was available when they formed their LLC.
Does Texas charge a separate tax on S-Corps?
Texas has no state income tax, so your S-Corp distributions and salary are not taxed at the state level. However, every Texas S-Corp is subject to the Texas Franchise Tax (also called the margin tax), which applies to businesses with total revenue above $2.47 million (the 2026 no-tax-due threshold). Even if you fall below that threshold, you must still file the annual Franchise Tax report and Public Information Report with the Texas Comptroller. We handle both filings for our Flower Mound clients.
What ongoing compliance does an S-Corp require after the election?
Once your Flower Mound business is classified as an S-Corp, you must run payroll for any owner who works in the business, file quarterly payroll tax returns (Form 941), issue W-2s, file an annual 1120-S return with K-1s, and submit the Texas Franchise Tax report. We handle all of this so you can focus on running your business rather than managing tax deadlines.
Get Started from Anywhere in Flower Mound
Whether you’re in Flower Mound’s Lakeside Business District, working from a home office near The River Walk, or running jobs across the DFW metro, we work with you virtually from start to finish. Your first step is a no-obligation consultation where Al Freideman, CPA, reviews your business income, current tax structure, and whether an S-Corp election will produce real savings for your situation. Call us at (972) 893-3481 or book your free consultation directly at agfreideman.com/meeting/ to get started.
Related Services & Nearby Areas
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.
Book a Meeting"I was looking for a CPA who could also help with creating my LLC, and have not been disappointed. Not only did they facilitate the process, but also went above and beyond answering my questions, often in real time. They…"
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