S-Corp CPA in Princeton, TX: Election, Salary Analysis, and 1120-S Returns
Princeton is the fastest growing city in Texas, with population surging over 30% in a single year. That rapid residential growth has brought a wave of new small businesses: contractors serving the construction boom, retail shops along the expanding commercial corridor, service providers following the rooftops. Many of these Princeton business owners are still operating as sole proprietors or single-member LLCs, paying thousands more in self-employment tax than they need to.
Our Services
Our S-Corp Election and Tax Services for Princeton Clients
When you work with us on your S-Corp election and ongoing tax compliance, here is exactly what you receive:
- S-Corp eligibility review: We analyze your Princeton business structure, revenue, and profit margins to determine whether S-Corp status will produce real tax savings or create unnecessary complexity.
- IRS 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 analysis: We research compensation data for your industry and the Princeton market to establish a salary that satisfies IRS scrutiny while maximizing your tax savings on distributions.
- Annual 1120-S return preparation: We prepare your S-Corp federal return, Schedule K-1 distributions, and all required supporting schedules. S-Corp and partnership returns are $1,000 to $2,000 depending on complexity.
- Texas Franchise Tax and Public Information Report: Every Texas S-Corp must file annually with the Comptroller. We handle this for $250 to $500 per year so you never miss a deadline or risk forfeiture.
- Payroll setup for owner salary: S-Corp owners must run payroll on their reasonable salary. We provide monthly bookkeeping with payroll processing for $300 to $600 per month, keeping your withholding, quarterly deposits, and W-2 filings on track.
Why Princeton Businesses and Residents Choose AG Freideman, CPA
30+ years of tax experience: Al Freideman is a licensed CPA who has handled S-Corp elections, salary analyses, and IRS compliance across dozens of industries over three decades. Princeton business owners get that depth of knowledge applied directly to their situation, not a junior associate learning on the job.
Virtual appointments that reach Princeton easily: Our office is on Preston Road in North Dallas, but Princeton clients never need to make the drive down US-75. We handle every step virtually, from the initial consultation through filing your 1120-S, so your location in Princeton is never a barrier to working with a seasoned CPA.
Transparent pricing with no surprises: We publish our rates because Princeton business owners deserve to know what they are paying before they commit. Your S-Corp return runs $1,000 to $2,000, and a one-time tax planning session to evaluate the election starts at $197. No hidden fees, no invoices that double after the work is done.
52 five-star Google reviews: Every single review from our clients is five stars. Princeton business owners can read what other DFW small business owners say about working with Al before booking a consultation.
S-Corp Election and Tax Questions from Princeton Clients
When does an S-Corp election make sense for a Princeton business?
An S-Corp election typically makes sense once your business consistently nets $40,000 or more in annual profit after paying yourself a reasonable salary. Many Princeton business owners in construction, professional services, and the growing retail corridor hit that threshold quickly. Below that profit level, the added cost of payroll processing and a separate S-Corp return may eat into the savings.
How much can an S-Corp save me in self-employment tax?
Self-employment tax is 15.3% on the first $168,600 of net earnings (2026 Social Security wage base). As a sole proprietor, you pay that tax on every dollar of profit. As an S-Corp owner, you only pay it on your reasonable salary. If your Princeton business earns $120,000 in profit and you set a reasonable salary at $60,000, the remaining $60,000 in distributions avoids roughly $9,180 in self-employment tax. The exact savings depend on your specific revenue and salary analysis.
What is a reasonable salary for an S-Corp owner in Princeton?
The IRS requires S-Corp owners who perform services for the business to pay themselves a “reasonable” salary before taking distributions. Reasonable means what you would pay someone else to do your job. For Princeton business owners, we look at Bureau of Labor Statistics data, industry compensation surveys, and local market conditions in the DFW area to set a salary the IRS can not easily challenge. Setting it too low invites an audit; setting it too high wastes the tax advantage.
Can you file the late S-Corp election for my Princeton 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 you intended to elect S-Corp status and simply missed the filing). We have filed successful late elections for many DFW business owners. We will review your situation and file the necessary paperwork to request retroactive treatment.
Does my Princeton S-Corp still need to file Texas Franchise Tax?
Yes. Texas has no state income tax, but every S-Corp registered or doing business in Texas must file a Franchise Tax Report and Public Information Report annually with the Texas Comptroller. If your total revenue is below $2.47 million, you likely owe no tax but still must file. Missing the filing can result in penalties and even involuntary forfeiture of your business entity. We handle this for Princeton S-Corp clients for $250 to $500 per year.
What happens to my S-Corp taxes if I also have W-2 income from Princeton ISD or another employer?
Many Princeton residents work for Princeton ISD or another local employer while running a side business. Your W-2 wages and your S-Corp income are reported on the same personal 1040 return, but the S-Corp files its own 1120-S and issues you a K-1. We coordinate both so your withholding, estimated payments, and total tax liability are calculated correctly across all income sources.
Get Started from Anywhere in Princeton
Whether your Princeton business is on the new retail corridor, out near a job site, or run from your home office in one of the new residential developments, we work with you virtually from start to finish. Book a free, no-obligation consultation to find out if an S-Corp election will save you money, or call Al Freideman directly at (972) 893-3481. You can schedule your meeting online at agfreideman.com/meeting/ and we will take it from there.
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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