S-Corp CPA in Colleyville, TX: Election, Salary Strategy, and 1120-S Filing
Colleyville business owners earn well above the national average, with median household income near $95,000 and many entrepreneurs pulling considerably more through their LLCs and sole proprietorships. That higher income means a higher self-employment tax bill: 15.3% on every dollar of net earnings up to the Social Security wage base ($168,600 in 2026, with the 2026 threshold expected to rise). For Colleyville professionals running consulting practices, medical offices, or service companies, electing S-Corp status is one of the most reliable ways to reduce that burden legally.
Our Services
Our S-Corp Election and Tax Services for Colleyville Clients
Every S-Corp engagement starts with a one-on-one conversation about your Colleyville business, your income, and your goals. Here is exactly what we deliver:
- S-Corp election analysis: We compare your projected self-employment tax under your current structure (LLC or sole proprietorship) against the tax savings an S-Corp election would produce, using your actual Colleyville business revenue and expenses.
- IRS Form 2553 preparation and filing: We prepare and submit your S-Corp election to the IRS, confirm acceptance, and ensure your effective date is correct. If you missed the standard deadline, we handle late-election relief requests.
- Reasonable salary determination: We research compensation data for your industry and the Colleyville market to set a salary the IRS will accept, maximizing the income you can take as distributions rather than payroll wages.
- Payroll setup and processing: Once your salary is established, we set up payroll so your wages, federal withholding, and FICA taxes are processed correctly each pay period.
- Annual 1120-S return and K-1 preparation: We prepare your S-Corp’s federal return and generate Schedule K-1s for every shareholder.
- Texas Franchise Tax compliance: S-Corps operating in Texas still owe the state franchise tax (margin tax). We file your annual Franchise Tax Report and Public Information Report, priced at $250 to $500 depending on complexity.
Why Colleyville Businesses and Residents Choose AG Freideman, CPA
30+ years of hands-on experience: Al Freideman has guided hundreds of business owners through S-Corp elections across dozens of industries. Colleyville clients get the benefit of that depth without paying large-firm overhead.
Virtual appointments that fit your schedule: Our office is on Preston Road in North Dallas, but we serve Colleyville clients entirely by phone, video, and secure document portal. You never need to drive to Dallas for a signature or a question.
Transparent pricing with no surprises: S-Corp and partnership returns (Form 1120-S/1065, K-1 prep, multi-member returns) run $1,000 to $2,000 depending on complexity. We quote your fee before we start, and the price you see is the price you pay.
52 five-star Google reviews, zero negative reviews: Every one of our 52 Google reviews is five stars. Colleyville business owners who value quality over cut-rate pricing consistently trust us because we earn that trust year after year.
S-Corp Election and Tax Questions from Colleyville Clients
When does an S-Corp election make sense for a Colleyville business owner?
As a general rule, an S-Corp election starts saving money when your net business profit consistently exceeds $50,000 to $60,000 per year after expenses. Many Colleyville business owners cross that threshold comfortably given the area’s strong local economy. We run a side-by-side comparison using your actual numbers before recommending the election.
How much can an S-Corp save me in self-employment tax?
The savings depend on the gap between your total net profit and the reasonable salary you pay yourself. For example, if your Colleyville consulting practice nets $150,000 and we establish a reasonable salary of $80,000, the remaining $70,000 is taken as a distribution and is not subject to the 15.3% self-employment tax. That is roughly $10,710 in annual savings on that portion alone. Individual results vary, and we calculate your specific projection during a tax planning session (starting at $197).
What is a reasonable salary for an S-Corp owner?
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, industry, and market would earn. For Colleyville, we look at compensation data specific to the DFW metro area and your profession. Setting the salary too low invites IRS scrutiny; setting it too high erases your tax savings. We find the defensible number in between.
Can you file a late S-Corp election for my Colleyville business?
Yes. The standard deadline to file Form 2553 is within 75 days of the start of the tax year you want the election to take effect. If you missed that window, the IRS offers late-election relief under Revenue Procedure 2013-30 for businesses that meet certain criteria. We have successfully filed late elections for many clients and can assess whether your Colleyville business qualifies.
Does Texas charge a state income tax on S-Corp income?
Texas has no state personal income tax, which is one reason Colleyville is attractive for business owners. However, Texas does impose the franchise tax (also called the margin tax) on most business entities, including S-Corps. The no-tax-due threshold for 2026 is $2.47 million in total revenue. Even if your S-Corp falls below that threshold, you are still required to file the annual report. We handle that filing for $250 to $500.
What ongoing filings does a Colleyville S-Corp need each year?
At minimum, your S-Corp needs an annual federal Form 1120-S with Schedule K-1s for all shareholders, quarterly payroll tax filings (Forms 941), annual payroll reports (W-2s and W-3), and the Texas Franchise Tax and Public Information Report. If your Colleyville business collects sales tax, those returns are due monthly, quarterly, or annually depending on your volume. We manage all of these so nothing falls through the cracks.
Get Started from Anywhere in Colleyville
You do not need to leave Colleyville to work with a CPA who has 30 years of S-Corp experience. We handle everything virtually: document upload through a secure portal, consultations by phone or video, and e-signatures for every filing. Your first consultation is free, with no obligation. Call Al Freideman directly at (972) 893-3481 or book a time that works for you at agfreideman.com/meeting/ to find out exactly how much an S-Corp election could save your Colleyville 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.
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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