S-Corp CPA Southlake TX: S-Corp Election and Tax Services
Southlake is one of the highest-income communities in the Dallas-Fort Worth metro, with a median household income around $185,000 and home values regularly exceeding $1.1 million. That level of income creates a specific tax problem for business owners: self-employment tax on every dollar of net profit. If you operate as a sole proprietor or single-member LLC in Southlake, you are likely paying 15.3% in combined Social Security and Medicare taxes on earnings that could be partially sheltered through a properly structured S-Corp election.
Our Services
Our S-Corp Election and Tax Services for Southlake 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 filing (Form 2553) with the IRS, including late election relief requests if your existing LLC missed the standard March 15 deadline
- Reasonable salary analysis based on your industry, role, and Southlake market compensation data, so your owner salary withstands IRS scrutiny while maximizing distribution savings
- Annual 1120-S return preparation with K-1 schedules for each shareholder, priced between $1,000 and $2,000 depending on complexity
- Payroll setup and processing for owner wages and any employees, including quarterly 941 filings and year-end W-2s, starting at $300 to $600 per month bundled with bookkeeping
- Texas Franchise Tax and Public Information Report filing ($250 to $500 annually), required for every S-Corp registered in Texas with the Comptroller’s office by the May 15 due date
- Coordination with your personal 1040 so your K-1 income, reasonable salary, and any estimated tax payments all flow together accurately at year end
Why Southlake Businesses and Residents Choose AG Freideman
30+ years of hands-on experience. Al Freideman has prepared S-Corp returns for business owners across dozens of industries. For Southlake clients who are corporate executives at companies like Sabre running a side business, or full-time entrepreneurs in the Town Square retail and dining district, that depth of experience means we have seen your situation before and know exactly how to structure it.
Virtual appointments that fit your schedule. Our office is located on Preston Road in North Dallas, about 25 minutes from Southlake. But most of our Southlake clients prefer virtual meetings, and we are fully set up for remote consultations, document sharing, and e-signatures. You never have to leave Southlake to get your S-Corp election filed or your return prepared.
Transparent pricing with no surprises. S-Corp return preparation runs $1,000 to $2,000 based on the complexity of your return. We quote a price before we start, and the price you are quoted is the price you pay. Southlake business owners managing high six-figure and seven-figure revenues deserve clarity, not hidden invoices after the fact.
52 five-star Google reviews, zero negative reviews. Every one of our Google reviews is five stars. Southlake clients trust us because we deliver the same personal attention year after year. You work with Al directly, not a rotating cast of junior staff.
S-Corp Election and Tax Questions from Southlake Clients
When does an S-Corp election make sense for a Southlake business owner?
Generally, an S-Corp election starts making financial sense when your business nets $60,000 or more per year in profit after expenses. For many Southlake business owners earning well above that threshold, the savings become substantial. The election allows you to split income between a reasonable W-2 salary (subject to payroll taxes) and shareholder distributions (not subject to self-employment tax). Since Texas has no state income tax, the federal self-employment tax savings are often the single largest tax reduction available to a Southlake LLC owner.
How much can an S-Corp save me in self-employment tax?
The math depends on your net profit and reasonable salary. As an example, a Southlake consultant netting $250,000 who sets a reasonable salary at $120,000 would save roughly $19,890 per year in self-employment taxes on the $130,000 taken as distributions (15.3% on the first portion subject to Social Security, 2.9% Medicare on the remainder). The actual savings vary based on your specific numbers, which is why we run a detailed analysis before recommending an election.
What is a reasonable salary for an S-Corp owner in Southlake?
The IRS requires S-Corp owners who perform services for their business to pay themselves a “reasonable” W-2 salary before taking distributions. Reasonable means comparable to what someone in a similar role, industry, and geographic market would earn. For Southlake, where compensation benchmarks are typically higher than national averages given the local cost of living and professional talent pool, we research comparable salaries using Bureau of Labor Statistics data and industry compensation surveys. Setting the salary too low invites an IRS audit; setting it too high defeats the purpose of the election.
Can you file a late S-Corp election for my Southlake business?
Yes. The standard deadline to elect S-Corp status for the current tax year is March 15, but the IRS allows late election relief under Revenue Procedure 2013-30 if you meet certain requirements, including having intended to be taxed as an S-Corp from the effective date. We have successfully filed late elections for many business owners across the DFW area, including Southlake clients who formed their LLC mid-year and did not realize the election deadline had passed.
Does my Southlake S-Corp still owe Texas Franchise Tax?
Yes. While Texas has no state income tax, every S-Corp doing business in Texas must file a Texas Franchise Tax Report and Public Information Report with the Comptroller by May 15 each year. The tax is based on your entity’s total revenue (margin), and businesses with total revenue under $2.47 million owe no tax but must still file the report. We handle this filing for Southlake S-Corp clients for $250 to $500 annually.
Do I need to change my LLC to become an S-Corp?
No. Your Texas LLC stays intact as a legal entity with the Secretary of State. The S-Corp election is a federal tax classification filed with the IRS using Form 2553. Your Southlake LLC simply chooses to be taxed as an S-Corp while remaining an LLC for liability protection purposes. This is often the best structure for Southlake business owners because it combines the legal flexibility of an LLC with the tax advantages of S-Corp treatment.
Get Started from Anywhere in Southlake
Whether you are running a business from a home office in Southlake, managing a practice near Carroll ISD, or consulting for companies along the DFW Airport corridor, we make the process simple. Book a free, no-obligation consultation to review your current tax situation and find out exactly how much an S-Corp election could save you. Call Al Freideman directly at (972) 893-3481 or schedule a virtual meeting at agfreideman.com/meeting/. We will review your numbers, explain your options, and handle every filing from the election through your annual 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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