S-Corp CPA in Frisco, TX: Elections, Salary Strategy, and 1120-S Returns
Frisco business owners are earning well above the national average, with median household incomes around $125,000, and many solo practitioners and small business owners pull in significantly more through their LLCs. If you are operating as a single-member LLC or multi-member LLC in Frisco and have not elected S-Corp tax status, you may be paying thousands more in self-employment tax than necessary. The S-Corp election is one of the most effective legal tax strategies available to Texas business owners, and getting it right requires a licensed CPA who understands reasonable salary rules, IRS Form 2553 filing deadlines, and the ongoing compliance that comes with an 1120-S return.
Our Services
Our S-Corp Election and Tax Services for Frisco 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 review your net business income, industry, and growth trajectory to determine whether electing S-Corp status will produce real self-employment tax savings for your specific Frisco business.
- 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 calculate a defensible W-2 salary based on your role, industry benchmarks, and Frisco-area compensation data so your payroll withholding satisfies IRS scrutiny.
- Annual 1120-S return preparation: We file your S-Corp return, prepare K-1 schedules for all shareholders, and coordinate with your personal 1040 so nothing falls through the cracks. S-Corp and partnership returns are $1,000 to $2,000 depending on complexity.
- Payroll setup and processing: We handle monthly payroll with proper federal withholding, Social Security, and Medicare, plus quarterly 941 filings. Monthly bookkeeping with payroll runs $300 to $600 per month.
- Texas Franchise Tax compliance: Every S-Corp doing business in Texas owes an annual franchise tax report and Public Information Report by May 15. We prepare and file both for $250 to $500.
Why Frisco Businesses and Residents Choose AG Freideman
Al Freideman handles your account personally. With 30+ years of experience as a licensed CPA, Al reviews every S-Corp election, every 1120-S return, and every salary calculation himself. You will never be handed off to a junior associate or seasonal preparer. For Frisco business owners who want a CPA who actually knows their situation year after year, that consistency matters.
Virtual appointments built for Frisco’s busy professionals. Our office is on Preston Road in North Dallas, about 20 minutes south of Frisco, but most of our Frisco clients work with us entirely by video call and secure document upload. Whether you run your business near PGA of America headquarters or from a home office off Main Street, you get the same personal attention without the commute.
Transparent pricing with no surprises. We publish our rates because we believe you deserve to know what you are paying before you commit. S-Corp returns run $1,000 to $2,000, and we quote your specific fee upfront. No hidden charges after filing.
52 five-star Google reviews and zero negative reviews. Every single client review is five stars. That track record reflects the kind of attention and accuracy Frisco business owners expect from their CPA.
S-Corp Election and Tax Questions from Frisco Clients
When does an S-Corp election make sense for a Frisco business owner?
An S-Corp election typically makes sense when your business consistently generates $50,000 or more in net profit after expenses. At that income level, the self-employment tax savings from splitting income between a reasonable W-2 salary and S-Corp distributions usually outweigh the added costs of payroll processing and a more complex tax return. Many Frisco consultants, real estate professionals, and independent contractors operating near The Star or the growing SoSo District cross this threshold within their first two years.
How much can an S-Corp save me in self-employment tax?
The self-employment tax rate is 15.3% on net earnings (12.4% Social Security up to the 2026 wage base, plus 2.9% Medicare on all earnings). If your Frisco LLC nets $150,000 and you set a reasonable salary of $80,000, you would owe self-employment tax only on the $80,000 salary portion, not the remaining $70,000 taken as distributions. That is roughly $10,710 in annual savings. The exact number depends on your income, industry, and salary determination, which is why we run the analysis before recommending the election.
What is a reasonable salary for an S-Corp owner in Frisco?
The IRS requires S-Corp owners who perform services for the business to pay themselves a “reasonable” W-2 salary before taking distributions. Reasonable means comparable to what you would pay someone else to do your job. We look at Bureau of Labor Statistics data, industry compensation surveys, and Frisco-area salary benchmarks to set a number that is defensible if the IRS ever asks. Setting your salary too low triggers audits. Setting it too high negates the tax benefit. We find the right balance.
Can you file the late S-Corp election for my Frisco business?
Yes. The standard deadline for S-Corp election is March 15 of the tax year (or within 75 days of forming your LLC). If you missed that window, the IRS allows late election relief under Revenue Procedure 2013-30, provided you meet certain conditions and the request is filed within three years and 75 days of the intended effective date. We have successfully filed late elections for many Dallas-Fort Worth business owners and can evaluate whether your Frisco business qualifies.
Does Texas charge a state income tax on S-Corp income?
No. Texas has no state personal income tax, which makes the S-Corp structure even more beneficial for Frisco business owners. However, your S-Corp is subject to the Texas Franchise Tax (also called the margin tax), which applies to businesses with total revenue exceeding $2.47 million or requires an annual no-tax-due report for those below the threshold. We handle the franchise tax report and Public Information Report filing as part of your engagement.
What does AG Freideman charge for S-Corp tax preparation?
S-Corp and partnership returns (Form 1120-S or 1065, including K-1 preparation) run $1,000 to $2,000 depending on the number of shareholders, complexity of transactions, and whether we also handle your bookkeeping. A one-time tax planning session to evaluate whether the S-Corp election is right for you starts at $197. We quote your exact fee before we begin any work.
Get Started from Anywhere in Frisco
Whether you work from a home office in Frisco, run a practice near Frisco ISD headquarters, or operate out of one of the new commercial spaces along the Tollway, we make getting started simple. Book a free, no-obligation consultation at agfreideman.com/meeting/ or call Al Freideman directly at (972) 893-3481. We will review your current tax situation, run the S-Corp savings math for your specific income, and give you a clear recommendation with transparent pricing. Most Frisco clients complete the entire process virtually, from document upload through filing, without ever leaving their office.
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.