Small Business Tax Prep Houston TX

For Business Owners

We Specialize in Houston Small Business Taxes

Houston has one of the most active small business environments in the country. Restaurant owners, contractors, real estate investors, service businesses — we work with them all and know exactly what the IRS will and won't allow.

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LLC Tax Filing

Single-member (Schedule C) and multi-member (Form 1065) LLC returns. Plus guidance on whether an S-Corp election would save you money.

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S-Corp Returns (1120S)

Reasonable salary determination, shareholder distributions, payroll compliance, and K-1 preparation. We save S-Corp owners thousands every year.

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Restaurant & Hospitality

Tips, payroll, food and beverage deductions, equipment depreciation. Brandt's background at Landry's makes this a specialty — we know this industry inside out.

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Contractors & Trades

Subcontractor 1099 filing, equipment deductions, vehicle expenses, home office. We serve Houston electricians, plumbers, roofers, painters, and more.

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Quarterly Estimated Taxes

Never get hit with an underpayment penalty again. We calculate and schedule your quarterly payments so you're always ahead.

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Monthly Bookkeeping

Clean books mean maximum deductions and audit protection. We do monthly reconciliation, financial statements, and year-end prep.

FAQs

Small Business Tax Questions — Houston TX

What business entity pays the least taxes in Texas?

For most small businesses earning $40K–$200K in profit, an S-Corp election typically saves the most in self-employment tax — often $5,000–$15,000 per year. We run a side-by-side comparison for every business client.

When are small business taxes due in 2026?

S-Corp and partnership returns (Form 1120S / 1065) are due March 17, 2026. Sole proprietor Schedule C is due April 15, 2026. Quarterly estimated taxes are due April 15, June 16, September 15, and January 15.

Do I need a separate business bank account for taxes?

Yes — it makes a huge difference at tax time and provides the documentation trail the IRS expects. We can recommend the right setup for your business type.

What can Houston small businesses deduct?

Home office (if qualifying), vehicle mileage or actual expenses, health insurance premiums, retirement contributions (SEP IRA, Solo 401k), software, equipment, phone, professional services, and more. The list is long — that's why you need a specialist.

The S-Corp Advantage

How Much Could an S-Corp Election Save Your Business?

The S-Corp election is the single most powerful tax strategy for profitable small businesses. Here's what the math actually looks like.

LLC — No S-Corp Election

$100,000 Net Profit

Self-employment tax (15.3%): $14,130
Federal income tax (~22%): ~$16,400
Total Tax Burden: ~$30,530

S-Corp Election

$100,000 Net Profit

Reasonable salary ($50k): $7,065 SE tax
Distribution ($50k): $0 SE tax
Federal income tax (~22%): ~$16,400
Total Tax Burden: ~$23,465

$7,065

Annual Tax Savings

On $100K profit. Scales up significantly as income grows. We run your specific numbers for free.

*Example uses 2024 SE tax rate of 15.3% on salary portion. Actual savings vary by income level, salary determination, and state. S-Corp has annual compliance costs (~$1,000–$2,500) that should be factored in. We'll show you the real net savings for your situation.

Get My S-Corp Savings Estimate — Free

Entity Strategy

Which Business Structure Pays the Least Tax?

The answer depends on your profit level. Here's a straightforward breakdown — and the number where each entity makes the most sense.

Entity Type	SE Tax on Profit	Best For	Typical Profit Range
Sole Proprietor (Schedule C)	15.3% on all profit	Side income, very early stage	Under $30K
Single-Member LLC	15.3% on all profit	Liability protection, not tax savings	$30K–$50K
LLC + S-Corp Election	Only on salary portion	Most small businesses	$50K+ profit
C-Corp	No SE tax (corporate rate 21%)	High-growth, VC-backed, retained earnings	$500K+ or specific goals

Business Deductions

What Houston Small Businesses Can Deduct

The tax code has hundreds of business deductions — most of which software won't ask you about. We audit every category for every client.

Operating Expenses

✓ Software subscriptions (QuickBooks, Slack, etc.)
✓ Business phone & internet (pro-rated)
✓ Professional services (legal, accounting)
✓ Marketing & advertising
✓ Office supplies & equipment
✓ Business insurance premiums

Owner Benefits

✓ Health insurance premiums (self-employed)
✓ SEP-IRA (up to 25% of compensation)
✓ Solo 401(k) ($69,000 limit in 2024)
✓ HSA contributions
✓ Half of self-employment tax
✓ Qualified Business Income (QBI) deduction

Vehicle & Travel

✓ Business mileage ($0.67/mile in 2024)
✓ Actual vehicle expenses (gas, insurance, depreciation)
✓ Section 179 vehicle deduction (heavy SUVs)
✓ Business travel & lodging
✓ 50% of business meals
✓ Client entertainment (when properly documented)

Small Business Tax Questions — Answered

Should I form an S-Corp for my small business?

If your business nets more than $50,000 per year, an S-Corp election almost certainly makes sense. The SE tax savings on the distribution portion typically outweigh the additional compliance costs ($800–$2,500/year for payroll and the 1120S return). We run a break-even analysis for every client to show exact numbers before recommending it.

How do I pay myself as an LLC owner?

Single-member LLCs take owner's draws — there's no payroll requirement and no separate salary. Multi-member LLCs use guaranteed payments or distributions per the operating agreement. S-Corp owners must pay themselves a "reasonable salary" through payroll, with remaining profits taken as distributions. We set this up correctly from day one.

What is the self-employment tax rate?

Self-employment tax is 15.3% — 12.4% for Social Security and 2.9% for Medicare — applied to your net self-employment income. Above $168,600 (2024), the Social Security portion phases out. You can deduct half of your SE tax on your personal return. An S-Corp election eliminates SE tax on the distribution portion of your profit.

Can I deduct my home office if I'm self-employed?

Yes, if you use a dedicated space regularly and exclusively for business. You can use the simplified method ($5/sq ft, up to 300 sq ft = $1,500 max) or the actual expense method (percentage of home expenses based on square footage). We calculate both and take whichever is larger. Remote workers who are W-2 employees generally cannot claim this deduction after the 2017 tax law changes.

When do I need to pay quarterly estimated taxes?

If you expect to owe $1,000 or more in federal taxes when you file, you're required to pay quarterly estimates. Due dates: April 15, June 16, September 15, and January 15. Missing or underpaying these results in an underpayment penalty. We calculate your exact quarterly amounts and set up a payment calendar so you're never caught off guard.

What records do I need to keep for my business taxes?

The IRS recommends 3–7 years of records. You should keep: bank statements, receipts for all business expenses, mileage logs (date, destination, business purpose, miles), payroll records, contractor 1099s, contracts, and prior year tax returns. We provide a record-keeping guide to every new client and can help set up a simple system that makes tax season effortless.

Business Taxes Done Right, Done Aggressively — Anywhere in the US