S-Corp Election Texas: Expert CPA Services in Dallas-Fort Worth
Making an S-Corp election in Texas can save your business thousands in taxes annually, but the process requires precise timing and proper filing to avoid costly mistakes. At AG Freideman, CPA Al Freideman has guided Dallas-Fort Worth business owners through S-Corp elections for over 30 years, ensuring you capture every tax benefit while staying fully compliant with IRS requirements.
What Our S-Corp Election Service Includes
Who We Help
Our S-Corp election clients are primarily successful LLC owners and sole proprietors across Dallas, Plano, Frisco, and throughout the DFW metroplex who are ready to reduce their self-employment taxes. These business owners typically earn $60,000 or more annually and want to keep more of their hard-earned profits rather than sending unnecessary tax payments to the IRS. We work with consultants, contractors, real estate agents, medical professionals, attorneys, and local service businesses who understand the value of strategic tax planning.
We also help new business owners who are forming their companies and want to elect S-Corp status from day one. Whether you’re a tech startup in Deep Ellum, a family business in Arlington, or a growing service company in Richardson, we ensure your S-Corp election is filed correctly and on time. Many of our clients come to us after attempting to handle the election themselves or working with online services that lack the personal attention and Texas-specific knowledge your business deserves.
Our S-Corp Election Process
Why Choose AG Freideman for S-Corp Election in Dallas, Texas?
With over three decades of experience helping Texas business owners navigate federal and state tax requirements, CPA Al Freideman understands the unique considerations for S-Corp elections in our state. Unlike states with income taxes, Texas business owners can focus purely on federal tax benefits without worrying about conflicting state-level S-Corp treatment. Our Preston Road office in North Dallas provides convenient access for DFW clients, while our virtual meeting options serve business owners throughout Texas and beyond.
We’ve successfully processed over 200 S-Corp elections, including complex situations like late elections, multi-member LLCs converting to S-Corp status, and businesses with non-resident owners. Our 52 five-star Google reviews reflect our commitment to clear communication and reliable results. Unlike large tax preparation chains or online services, we provide personalized attention and are available year-round to answer questions about your S-Corp status.
Every S-Corp election we handle includes ongoing support during your transition period. We don’t just file the paperwork and disappear – we ensure you understand your new responsibilities and help you maximize the tax benefits of your election. Our clients consistently tell us they appreciate our straightforward explanations and proactive approach to identifying additional tax-saving opportunities.
What is the deadline for S-Corp election in Texas?
For existing businesses, you must file Form 2553 within 75 days of the tax year you want the election to take effect. For new businesses, you have 75 days from when you first have shareholders, assets, or begin business operations. However, late election relief may be available in certain circumstances, which we can help you navigate if you’ve missed the standard deadline.
How much can I save with an S-Corp election?
S-Corp elections typically save business owners 15.3% in self-employment taxes on profit distributions above reasonable salary. For example, a business owner with $100,000 in profit who takes a $60,000 reasonable salary would save approximately $6,120 annually in self-employment taxes on the remaining $40,000 in distributions.
What is reasonable salary for S-Corp owners in Texas?
The IRS requires S-Corp owner-employees to take reasonable compensation through payroll before receiving tax-free distributions. Reasonable salary depends on your industry, role, location, and company size. In the Dallas-Fort Worth area, we help determine appropriate salary levels based on local market data and IRS guidelines to ensure compliance while maximizing your tax savings.
Can my LLC elect S-Corp status in Texas?
Yes, LLCs can elect to be taxed as S-Corporations by filing Form 2553 with the IRS. This allows you to keep your LLC’s operational flexibility while gaining S-Corp tax benefits. Your LLC remains an LLC under Texas law but is treated as an S-Corp for federal tax purposes, eliminating self-employment taxes on distributions above reasonable salary.
Does Texas have additional requirements for S-Corps?
Texas does not have a state income tax, so S-Corp elections don’t create additional state tax complications like in other states. However, S-Corps in Texas are still subject to the state franchise tax, which applies to most business entities. We ensure your S-Corp election doesn’t negatively impact your Texas franchise tax obligations.
Can I revoke my S-Corp election later?
Yes, but there are important restrictions. Once you revoke an S-Corp election, you generally cannot elect S-Corp status again for five years without IRS permission. We help you understand the long-term implications of your election to avoid situations where you might want to revoke it later.
What happens if my S-Corp election is rejected?
The IRS may reject S-Corp elections for various reasons, including late filing, incomplete information, or ineligible shareholders. We have extensive experience handling rejected elections and can often resolve issues through amended filings or requests for late election relief. Our thorough preparation process minimizes the risk of rejection.
Pricing & Getting Started
Our S-Corp election service starts at $750 for straightforward single-owner businesses, with pricing adjusted based on complexity factors such as multiple owners, late election circumstances, or concurrent entity formation needs. We provide upfront pricing with no surprise fees, and many clients find the service pays for itself within the first few months through tax savings. To get started, simply book a consultation where we’ll review your situation, explain your options, and provide a detailed quote for your specific needs.
Ready to start saving on self-employment taxes with an S-Corp election? Don’t let another tax season pass without capturing these significant savings. Book your consultation today at our meeting page and let’s discuss how S-Corp status can benefit your Dallas-area business. With proper planning and timely filing, you could be saving thousands in taxes starting with your next return.
"Al and team have been preparing my tax returns for the past 2 years and I cant praise them enough. Efficient, thorough and communicative."
Ready to Get Started?
Book your free consultation with Al Freideman, CPA. 30+ years experience serving Dallas-Fort Worth.