Business Tax Services and S Corporation Planning

Most business owners think of taxes as something to survive: file on time, avoid penalties, stay off the IRS's radar. That's the floor, not the goal. How you pay yourself, when you buy equipment, how your crew is classified, and which entity you operate through all change what you owe. We help you make those decisions with the tax cost in view, before they're locked in.

Entity Structuring and S Corporation Elections

Many businesses start as simple LLCs or sole proprietorships. As profit grows, the structure you started with can cost you more in tax than it needs to.

We review your entity classification to determine when an S corporation election makes sense. With an S corp, business income can be split between a reasonable W-2 salary and shareholder distributions. Distributions aren't subject to self-employment tax, which for many owners frees up thousands of dollars a year. We also handle the parts that make an S corp work: setting a defensible salary, running payroll correctly, tracking shareholder basis, and reimbursing business expenses through an accountable plan.

An S corp isn't right for everyone. Payroll costs, state rules, and your plans for the business all factor in, so we run the numbers before recommending a change.

Ongoing Business Compliance

We handle the recurring filings and calculations so they don't land on your desk:

• Annual returns. Preparation and filing of Forms 1120, 1120-S, and 1065, plus the state schedules that go with them.
• Quarterly estimates. Estimated payments set to preserve cash flow while avoiding underpayment penalties.
• Depreciation and asset tracking. Tracking trucks, equipment, and other assets, and applying Section 179 and bonus depreciation so major purchases are written off as early as the rules allow.
• Texas franchise tax. Filing your annual franchise tax and information reports, even in years no tax is due.

Multi-State Tax Compliance

Texas has no personal income tax, but most of its neighbors do. A business that takes jobs in New Mexico, or has owners or employees in other states, can trigger filing obligations elsewhere: nonresident returns, gross receipts tax, or payroll withholding. These often go unnoticed until a notice arrives. We map where you earn income and where you have obligations, then set up a clean process so every state gets what it's owed and you claim the credits you're entitled to.

Business Tax and S Corp FAQ

When does an S corp election make sense?

Usually once profit is high enough that the self-employment tax saved on distributions outweighs the cost of running payroll and filing an extra return. We calculate that break-even point for your business before you elect.

What is a reasonable salary for an S corp owner?

It's what you'd have to pay someone else to do the work you do. The IRS looks closely at S corp owners who pay themselves little or no salary. We help you set and document a figure you can defend.

Do you handle both my business and personal returns?

Yes. Your entity, compensation, and investments all flow through to your personal return, so we prepare both together.

I do work in New Mexico. What do I need to file?

It depends on how much work you do there and how your business is set up. Often it means New Mexico gross receipts tax and a nonresident income tax return. We'll sort out exactly what applies.