S-Corp CPA in Garland, TX: Election, Salary Analysis, and 1120-S Returns
Garland business owners earning well above the city’s median household income of $95,000 face a familiar problem: self-employment tax takes a significant bite out of every dollar they earn. For sole proprietors and single-member LLC owners in Garland, the combined 15.3% self-employment tax (Social Security at 12.4% plus Medicare at 2.9%, per IRS guidelines) applies to all net business income. An S-Corp election can redirect a meaningful portion of that tax burden into legitimate savings, but only when the election is filed correctly, reasonable compensation is properly set, and the 1120-S return is prepared with precision.
Our Services
Our S-Corp Election and Tax Services for Garland Clients
When you work with AG Freideman, CPA on your S-Corp election and ongoing tax compliance, here is exactly what you receive:
- S-Corp election analysis: We review your Garland business’s net income, industry, and growth trajectory to determine whether electing S-Corp status will produce meaningful tax savings or whether another structure serves you better.
- IRS Form 2553 preparation and filing: We prepare and submit your S-Corp election to the IRS, ensuring it meets all deadlines and requirements so your election is accepted without delays.
- Reasonable salary determination: We research comparable compensation data for your role and industry in the Dallas-Fort Worth market, then document a defensible salary that satisfies IRS scrutiny while maximizing your tax savings.
- Annual 1120-S return preparation: We prepare your S-Corp’s federal return, including all required schedules and K-1 distribution statements for each shareholder. S-Corp and partnership return preparation is $1,000 to $2,000 depending on complexity.
- Payroll setup for owner compensation: Because S-Corp owners must run payroll for their reasonable salary, we handle monthly payroll processing with bank reconciliation starting at $300 to $600 per month.
- Texas Franchise Tax and Public Information Report filing: Every Garland S-Corp must file with the Texas Comptroller annually. We handle this for $250 to $500 per year.
Why Garland Businesses and Residents Choose AG Freideman, CPA
30+ years of tax and accounting experience: Al Freideman has handled S-Corp elections, reasonable salary analyses, and 1120-S returns across dozens of industries over three decades. For Garland business owners making this decision for the first time, that depth of experience means you get answers based on real-world outcomes, not guesswork.
Virtual appointments that serve all of Garland: Our office is on Preston Road in North Dallas, but you never need to fight traffic on I-635 or I-30 to meet with us. We serve Garland clients entirely through virtual appointments, secure document sharing, and phone calls. Every step, from your initial S-Corp analysis to your filed 1120-S, happens remotely at your convenience.
Transparent pricing with no surprises: We publish our pricing because Garland business owners deserve to know what they’re paying before they commit. S-Corp return preparation runs $1,000 to $2,000, and a one-time tax planning session starts at $197. The price we quote is the price you pay.
52 five-star Google reviews and personal attention from Al: Every one of our 52 Google reviews is five stars. That track record exists because Al handles every client personally. You won’t be passed to a junior associate or seasonal preparer. When your Garland S-Corp return is filed, Al reviewed it.
S-Corp Election and Tax Questions from Garland Clients
When does an S-Corp election make sense for a Garland business owner?
Generally, an S-Corp election starts producing meaningful savings when your business’s net income consistently exceeds $50,000 to $60,000 per year after expenses. Many Garland business owners generating well above the $95,000 median household income from their businesses are strong candidates. However, the right threshold depends on your industry, your reasonable salary requirement, and the added costs of payroll compliance. We run the specific numbers for your situation during a tax planning session.
How much can an S-Corp save me in self-employment tax?
The savings come from splitting your business income into two buckets: a reasonable salary (subject to payroll taxes) and distributions (not subject to self-employment tax). For example, if your Garland business nets $150,000 and your reasonable salary is set at $70,000, you avoid the 15.3% self-employment tax on the remaining $80,000 in distributions. That is roughly $12,240 in annual savings before accounting for the employer’s share deduction. The exact amount depends on your specific income and compensation level.
What is a reasonable salary for an S-Corp owner in Garland?
The IRS requires S-Corp owners who perform services for the business to pay themselves a “reasonable” salary, meaning compensation comparable to what someone in a similar role and market would earn. For Garland businesses, we look at compensation data for the Dallas-Fort Worth labor market in your specific industry. Setting the salary too low invites IRS scrutiny. Setting it too high eliminates your tax savings. We document the analysis so it holds up if the IRS ever asks.
Can you file a late S-Corp election for my Garland business?
Yes. The standard deadline for filing Form 2553 is within 75 days of forming your entity or by March 15 for the current tax year. If you missed that window, the IRS offers a late election relief process under Revenue Procedure 2013-30, provided you meet certain reasonable cause requirements. We have helped business owners across DFW, including Garland, successfully file late elections and secure retroactive S-Corp status.
Does Texas charge a state income tax on my S-Corp?
Texas has no state income tax for individuals or businesses. However, your Garland S-Corp is still subject to the Texas Franchise Tax (also called the margin tax), which applies to businesses with total revenue exceeding $2.47 million (as set by the Texas Comptroller). Even below that threshold, you must file the Public Information Report annually. We handle both filings as part of our S-Corp tax services.
What happens if I don’t set up payroll for my S-Corp?
If you take distributions from your Garland S-Corp without running payroll for a reasonable salary, the IRS can reclassify those distributions as wages, assess back payroll taxes, and add penalties and interest. This is one of the most common S-Corp audit triggers. We set up compliant payroll from the start so you never face that risk.
Get Started from Anywhere in Garland
You don’t need to leave Garland to work with a licensed CPA who has 30+ years of S-Corp experience. Our virtual-first process means your initial consultation, document exchange, salary analysis, and return filing all happen remotely. Al Freideman handles your case personally from start to finish. Call (972) 893-3481 for a free, no-obligation consultation, or book a time that works for you at agfreideman.com/meeting/. Whether you’re considering your first S-Corp election or need a CPA who will prepare your 1120-S the right way, we’re ready to help.
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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Book your free consultation with Al Freideman, CPA. 30+ years experience serving Dallas-Fort Worth.