S-Corp CPA in Rockwall, TX: Election, Salary Strategy, and 1120-S Filing
Rockwall is one of the fastest-growing suburbs in the Dallas-Fort Worth metro, and its business community is growing right alongside it. With a median household income around $95,000, many Rockwall business owners are earning well above the threshold where an S-Corp election starts producing real self-employment tax savings. If you are running a profitable LLC or sole proprietorship in Rockwall and paying both the employer and employee halves of Social Security and Medicare tax on your entire net income, you may be leaving thousands of dollars on the table every year.
Our Services
Our S-Corp Election and Tax Services for Rockwall Clients
When you work with us on your S-Corp election and ongoing compliance, here is exactly what you receive:
- S-Corp election analysis: We review your Rockwall business’s net income, industry, and growth trajectory to determine whether the tax savings from an S-Corp election outweigh the added compliance costs, including payroll setup and additional filings.
- IRS Form 2553 preparation and filing: We prepare and submit your S-Corp election to the IRS, including late election relief requests if you missed the standard deadline.
- Reasonable salary determination: We research comparable compensation data for your role and industry in the Rockwall and broader DFW market, then document a salary figure that withstands IRS scrutiny.
- Annual 1120-S return and K-1 preparation: We prepare your S-Corp’s federal income tax return and generate K-1 schedules for each shareholder, priced between $1,000 and $2,000 depending on complexity.
- Payroll setup and processing: Because every S-Corp owner must run payroll, we handle monthly payroll with bank reconciliation starting at $300 to $600 per month.
- Texas Franchise Tax compliance: Your S-Corp must file an annual Texas Franchise Tax report and Public Information Report. We handle both for $250 to $500 per year.
Why Rockwall Businesses and Residents Choose AG Freideman, CPA
30+ years of hands-on experience: Al Freideman has spent over three decades preparing business tax returns, structuring S-Corp elections, and defending reasonable salary positions. For Rockwall business owners making their first entity election, that depth of experience means you get it done right the first time.
Virtual appointments that serve all of DFW: Our office is on Preston Road in North Dallas, but we serve Rockwall clients entirely through virtual meetings. You get the same personal attention as an in-office client without the 30-mile drive west on I-30.
Transparent pricing with no surprises: We publish our rates openly. S-Corp return preparation runs $1,000 to $2,000, and we quote your specific fee before work begins. Rockwall business owners who have been burned by vague “we’ll send you a bill” practices from other providers appreciate knowing exactly what they will pay.
52 five-star Google reviews: Every single one of our Google reviews is five stars. Rockwall clients join a roster of Dallas-Fort Worth business owners who trust Al to handle their taxes personally, year after year, with no hand-offs to junior staff.
S-Corp Election and Tax Questions from Rockwall Clients
When does an S-Corp election make sense for a Rockwall business owner?
Generally, an S-Corp election starts saving money when your business’s net profit consistently exceeds $50,000 to $60,000 per year after expenses. At Rockwall’s median household income of $95,000, many local business owners are well above this threshold. The savings come from splitting your income into a reasonable salary (subject to payroll taxes) and distributions (not subject to self-employment tax). We run the numbers for your specific situation before recommending the election.
How much can an S-Corp save me in self-employment tax?
The self-employment tax rate is 15.3% on the first $168,600 of net earnings (the 2026 Social Security wage base, as set by the IRS) and 2.9% above that for Medicare. If your Rockwall business nets $120,000 and you set a reasonable salary of $60,000, the $60,000 in distributions avoids roughly $9,180 in self-employment tax. The exact savings depend on your industry, your salary level, and your total income. We calculate this during your free consultation.
What is a reasonable salary for an S-Corp owner in Rockwall?
The IRS requires S-Corp owners who perform services for the business to pay themselves a “reasonable” salary before taking distributions. There is no fixed percentage. We look at what someone in your role, in your industry, in the DFW market would earn as an employee. For a Rockwall consulting practice owner, that number will differ from a Rockwall retail store owner. We document our methodology so you have a defensible position if the IRS ever asks.
Can you file a late S-Corp election for my Rockwall business?
Yes. The standard deadline for filing IRS Form 2553 is within 75 days of forming your entity or by March 15 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, provided you meet certain criteria. We have filed successful late elections for business owners across DFW, including those in Rockwall who did not realize the deadline existed.
Does Texas charge a state income tax on S-Corp income?
Texas has no state personal income tax, which is one reason DFW attracts so many business owners. However, your S-Corp is still subject to the Texas Franchise Tax (margin tax) if its total revenue exceeds the no-tax-due threshold set by the Texas Comptroller. We handle both your federal 1120-S return and your Texas Franchise Tax filing so nothing falls through the cracks.
What ongoing compliance does an S-Corp require in Rockwall?
Beyond the annual 1120-S federal return, your Rockwall S-Corp must run payroll (with quarterly 941 filings and annual W-2s), file the Texas Franchise Tax and Public Information Report each year, and maintain a registered agent in Texas. We offer registered agent services for $149 per year, included free when you engage us for tax preparation or bookkeeping.
Get Started from Anywhere in Rockwall
Whether you are near the Harbor District, out by the lake, or anywhere else in Rockwall, our process is fully virtual. Schedule a free, no-obligation consultation at agfreideman.com/meeting/ and we will review your current tax situation, run the S-Corp savings analysis, and give you a clear recommendation. If an S-Corp election is the right move, we handle the filing, payroll setup, and ongoing compliance from start to finish. You can also call us directly at (972) 893-3481. Al Freideman works with every client personally, so the CPA you talk to on day one is the same CPA who files your return.
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.