S-Corp CPA in Arlington, TX: Election, Salary Strategy, and 1120-S Filing
Arlington sits at the center of the DFW metroplex, and its economy reflects that position. Between the GM Assembly Plant, the University of Texas at Arlington, and the entertainment corridor anchored by AT&T Stadium and Six Flags, the city supports a dense mix of manufacturing suppliers, professional services, restaurants, and small contractors. Many of these business owners operate as sole proprietors or single-member LLCs, paying self-employment tax on every dollar of profit. With a median household income around $82,000 in Arlington, that 15.3% self-employment tax hit adds up fast.
Our Services
Our S-Corp Election and Tax Services for Arlington Clients
When you work with AG Freideman, here is exactly what you receive:
- S-Corp election analysis: We review your Arlington business’s net income, industry, and growth trajectory to determine whether S-Corp status will produce real tax savings after accounting for payroll costs and compliance overhead.
- IRS Form 2553 preparation and filing: We prepare and submit your S-Corp election to the IRS, confirm acceptance, and handle late-election relief requests under Revenue Procedure 2013-30 if you missed the standard deadline.
- Reasonable salary determination: We research comparable compensation data for your role and Arlington’s market to set a salary that minimizes self-employment tax exposure without triggering an IRS audit.
- Annual 1120-S return and K-1 preparation: We file your S-Corp’s federal return and prepare Schedule K-1 distributions for each shareholder, priced at $1,000 to $2,000 depending on complexity.
- Payroll setup for officer compensation: We establish payroll processing so your reasonable salary is paid with proper withholding, W-2 issuance, and quarterly 941 filings. Monthly bookkeeping with payroll runs $300 to $600 per month.
- Texas franchise tax compliance: Every Texas S-Corp owes an annual franchise tax report. We prepare your Franchise Tax and Public Information Report filing for $250 to $500, keeping your entity in good standing with the Texas Comptroller.
Why Arlington Businesses and Residents Choose AG Freideman, CPA
30+ years of tax and accounting experience: Al Freideman has handled S-Corp elections and reasonable salary analyses across dozens of industries. Whether you run a restaurant near the entertainment district, a contracting company serving Arlington’s construction growth, or a professional practice near UT Arlington, Al has seen your situation before and knows where the IRS looks.
Virtual appointments that serve all of Arlington: Our office is on Preston Road in North Dallas, but we work with Arlington clients entirely by video call and secure document upload. You get the same one-on-one attention without fighting I-30 traffic. No geographic barriers, no wasted afternoons.
Transparent pricing with no surprises: We publish our rates because Arlington business owners deserve to know what they are paying before they commit. S-Corp returns run $1,000 to $2,000, and we quote your specific engagement before work begins. No hidden fees at the end of the process.
52 five-star Google reviews, zero negative reviews: Every single client review is five stars. That track record exists because Al handles every client personally. You are never handed off to junior staff or an associate who does not know your business.
S-Corp Election and Tax Questions from Arlington Clients
When does an S-Corp election make sense for my Arlington business?
Generally, an S-Corp election starts producing meaningful savings when your business’s net profit consistently exceeds $50,000 to $60,000 per year after expenses. Below that threshold, the added costs of payroll processing, a separate 1120-S return, and compliance work can eat into the tax savings. Many Arlington business owners in contracting, consulting, and professional services clear that level comfortably, making the election worthwhile. We run the numbers for your specific situation during a free consultation before recommending the switch.
How much can an S-Corp save me in self-employment tax?
The savings depend on your net profit and what the IRS considers a reasonable salary for your role. As an example, if your Arlington business nets $120,000 and we set a reasonable salary at $60,000, the remaining $60,000 flows through as a K-1 distribution that is not subject to the 15.3% self-employment tax. That is roughly $9,180 in annual savings on the distribution portion alone. The exact number varies, which is why we model it with your real financials before making a recommendation.
What is a reasonable salary for an S-Corp owner in Arlington?
The IRS requires S-Corp owners who perform services for the business to pay themselves a “reasonable” salary before taking distributions. Reasonable means comparable to what someone in a similar role, in a similar market, would earn. For an Arlington-based contractor, that number differs from a marketing consultant or a restaurant operator. We research Bureau of Labor Statistics data, industry compensation surveys, and DFW-specific salary ranges to document a defensible number. This documentation is your protection if the IRS ever questions your salary level.
Can you file a late S-Corp election for my Arlington business?
Yes. If you missed the March 15 deadline for the current tax year, the IRS allows late-election relief under Revenue Procedure 2013-30, provided you meet certain conditions (typically that the business has been operating as though the election were in place). We prepare Form 2553 with the required reasonable cause statement and submit it for relief. We have successfully obtained late-election approval for many DFW business owners, including clients in Arlington who did not realize the deadline had passed.
Does Texas charge a state income tax on my S-Corp?
Texas has no state income tax, but it does impose the Texas franchise tax (also called the margin tax) on most business entities, including S-Corps. The franchise tax applies to businesses with total revenue above $2.47 million (the 2026 no-tax-due threshold). Even if your Arlington S-Corp falls below that threshold, you still must file the annual franchise tax report and Public Information Report to keep your entity in good standing. We handle that filing for $250 to $500 per year.
What does S-Corp tax preparation cost with AG Freideman?
Our S-Corp and partnership return preparation (Form 1120-S or 1065, including K-1 prep) is priced at $1,000 to $2,000, depending on the number of shareholders, complexity of transactions, and whether multi-state activity is involved. If you also need monthly bookkeeping and payroll, that runs $300 to $600 per month. We quote your specific engagement upfront so you know the cost before we begin.
Get Started from Anywhere in Arlington
Whether your Arlington business is near the entertainment district, the GM plant, the UT Arlington campus, or anywhere else in the city, we work with you virtually from day one. Al Freideman, CPA, handles your S-Corp evaluation, election filing, and ongoing returns personally. The process starts with a free, no-obligation consultation where we review your income, discuss reasonable salary strategy, and calculate whether the S-Corp election will save you money. Call (972) 893-3481 or schedule your free consultation online. There is no cost to find out if an S-Corp is the right move for your Arlington business.
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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