S-Corp CPA in Keller, TX: Election, Salary Analysis, and 1120-S Returns
Keller business owners earning well above the city’s $95,000 median household income often discover they are overpaying self-employment tax by tens of thousands of dollars each year. If your LLC or sole proprietorship clears $80,000 or more in net profit, an S-Corp election can redirect a significant portion of that income away from the 15.3% self-employment tax that the IRS charges on every dollar of Schedule C profit. For owners in one of the fastest-growing suburbs in the Dallas-Fort Worth area, the savings compound quickly as revenue climbs.
Our Services
Our S-Corp Election and Tax Services for Keller Clients
Every S-Corp engagement starts with a tax-savings analysis specific to your Keller business. Here is exactly what you receive:
- S-Corp election analysis: We model your current tax burden against projected S-Corp savings using your actual revenue, expenses, and profit figures so you can make a decision based on real math, not guesswork.
- Form 2553 preparation and filing: We prepare and submit your S-Corp election to the IRS, including late-election relief requests under Revenue Procedure 2013-30 if you missed the standard deadline.
- Reasonable salary determination: We research compensation data for your industry and role in the Keller and DFW market, then document a defensible salary figure that minimizes self-employment tax without triggering IRS reclassification.
- Payroll setup and processing: Once your S-Corp is active, we set up payroll for your officer compensation, handle quarterly 941 filings, and issue W-2s at year end. Monthly bookkeeping with payroll processing runs $300 to $600 per month.
- Annual 1120-S return and K-1 preparation: We file your S-Corp return and prepare Schedule K-1 distributions for each shareholder. S-Corp and partnership returns are $1,000 to $2,000 depending on complexity.
- Texas Franchise Tax filing: Every Texas entity, including your Keller S-Corp, owes an annual franchise tax report to the Texas Comptroller. We handle the filing and the Public Information Report for $250 to $500.
Why Keller Businesses and Residents Choose AG Freideman, CPA
30+ years of tax and accounting experience. Al Freideman has guided business owners through S-Corp elections across dozens of industries, from Keller’s growing service and contracting businesses to professional practices along the 114 and 377 corridors. That depth of experience means your salary analysis and return are handled by someone who has seen the IRS challenge these elections and knows how to build a file that holds up.
Virtual appointments that serve all of Keller. Our office is on Preston Road in North Dallas, but most Keller clients work with us entirely by video call and secure document upload. Whether you are near Keller Town Center or out by Bear Creek, you get the same one-on-one access to Al without driving to Dallas.
Transparent, published pricing. We post our rates on our website. S-Corp returns run $1,000 to $2,000, and you will know your cost before we begin. No surprise invoices after filing, which matters to Keller business owners who budget carefully in a competitive local economy.
52 five-star Google reviews with zero negatives. Every single review is five stars. Keller clients choose us because that track record reflects the personal attention Al gives each account, year after year.
S-Corp Election and Tax Questions from Keller Clients
When does an S-Corp election make sense for a Keller business owner?
Generally, an S-Corp election starts saving money when your business nets roughly $50,000 to $60,000 or more in annual profit after expenses. At that level, the self-employment tax savings from splitting income between a reasonable salary and shareholder distributions typically outweigh the added costs of payroll processing and a more complex 1120-S return. Many Keller business owners exceed that threshold comfortably given the area’s strong household incomes and growing local economy. We run the exact numbers for your situation before recommending the election.
How much can an S-Corp save me in self-employment tax?
The IRS charges self-employment tax at 15.3% (12.4% Social Security up to the $176,100 wage base in 2026, plus 2.9% Medicare on all earnings) on every dollar of Schedule C net profit. With an S-Corp, only your reasonable salary is subject to payroll taxes. The remaining profit flows to you as a distribution that is exempt from that 15.3% levy. A Keller business owner netting $150,000 who sets a reasonable salary of $70,000 could save roughly $12,000 or more per year in self-employment tax, depending on the specifics.
What is a reasonable salary for an S-Corp owner in Keller?
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 geographic market would earn. For Keller and the broader DFW area, we pull compensation data from Bureau of Labor Statistics records and industry surveys to document a salary figure that is defensible. Setting it too low invites IRS reclassification of distributions as wages, which eliminates the tax savings and triggers penalties.
Can you file a late S-Corp election for my Keller 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 allows late-election relief under Revenue Procedure 2013-30, provided you meet certain reasonable-cause criteria. We have filed successful late elections for Keller clients and can evaluate whether your situation qualifies. In many cases, we can make the election retroactive to the beginning of the current tax year.
Do I still need to file a Texas Franchise Tax report as an S-Corp?
Yes. Texas does not recognize the S-Corp election for state purposes. Your Keller S-Corp is still subject to the Texas Franchise Tax (also called the margin tax) and must file an annual report with the Texas Comptroller. Most small businesses with revenue under $2.47 million owe no franchise tax but must still file the report and the Public Information Report. We handle both as part of our Keller S-Corp engagement for $250 to $500.
Get Started from Anywhere in Keller
The process begins with a free, no-obligation consultation where Al Freideman reviews your current tax situation and models the potential S-Corp savings for your Keller business. Most Keller clients complete the entire engagement virtually: you upload documents through our secure portal, we handle the analysis and filings, and we meet by video whenever you have questions. If you prefer an in-person meeting, our Preston Road office in North Dallas is a short drive south on I-35W. Call (972) 893-3481 or book your free consultation at agfreideman.com/meeting/ to find out exactly how much an S-Corp election could save you this year.
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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