Tax Preparation Service for Texas Small Businesses

Two filings, two agencies, two deadlines. Texas small businesses handle a federal income tax return and a Texas Franchise Tax annual report — and both documents need to be consistent with each other since both draw from the same financial records. A tax preparation service that handles both in one engagement gets that right automatically. The Bookkeeping Company prepares federal and Texas business tax returns remotely for Texas clients statewide, with a free initial consultation and no in-person appointment required.

By Maya Primachenko, Founder · Last updated September 2026

Tax Preparation Service for Texas Businesses: What It Covers

The filing list for a Texas small business is longer than most owners expect:

•       Federal income tax returns — Schedule C for sole proprietors and single-member LLCs; Form 1120-S for S-corporations; Form 1065 for multi-member LLCs taxed as partnerships; Form 1120 for C-corporations
•       Personal Form 1040 — owner’s individual return including K-1 income from the entity, the permanent Section 199A QBI deduction, self-employment tax, and any investment income
•       Texas Franchise Tax annual report — Form 05-158 (standard), Form 05-169 (EZ computation), or Form 05-163 (no-tax-due report) depending on revenue level; Public Information Report filed simultaneously
•       Prior-year and late returns — federal and Texas Franchise Tax returns for businesses that have not filed one or more prior years; amended returns (Form 1040-X) to correct previously filed returns
•       Quarterly estimated tax payments — calculation and scheduling of federal quarterly estimated taxes for Texas business owners who do not have sufficient withholding

Integrated bookkeeping feeds directly into every tax return. See how The Bookkeeping Company’s bookkeeping service and tax preparation work together from the same reconciled records.

Texas Business Tax Returns: Federal and State

Federal filing obligations in Texas work the same as everywhere else. The difference is the Texas Franchise Tax — an annual state obligation that most other states don’t have.

Federal Entity Returns and Deadlines

S-corps and partnerships: March 15. C-corps and sole proprietors: April 15. Extensions give more time to file, not more time to pay — that distinction matters when there’s a balance due. The Section 199A QBI deduction, now permanent under federal law, reduces taxable income for eligible S-corp, partnership, and sole proprietor owners on the personal Form 1040.

The Texas Franchise Tax Annual Report

Texas Franchise Tax applies to most entities organized or doing business in Texas. The rate is 0.375% for retailers and wholesalers, 0.75% for most other businesses. One thing that surprises a lot of people: even businesses below the no-tax-due threshold still file Form 05-163 annually. Skip it and there are penalties anyway. Annual report is due May 15 for calendar-year filers. (Texas Comptroller — Franchise Tax)

Texas Franchise Tax Report Preparation: Selecting the Right Method

The Texas Franchise Tax report isn’t just a form-fill — decisions made during preparation directly affect how much the business owes. The deduction method is where most of the leverage is.

How Taxable Margin Is Calculated

Total revenue comes from the federal return, adjusted for any Texas-specific exclusions. From there, taxable margin gets calculated three ways: total revenue minus cost of goods sold, total revenue minus total compensation, and 70% of total revenue. The option that produces the lowest taxable margin wins — that’s what goes on the return. Multiply by 0.375% or 0.75% depending on business type and you have the franchise tax owed.

The EZ Computation Option

Businesses under the EZ computation threshold can skip the deduction analysis entirely — flat 0.331% of total Texas revenue, no method selection required. For businesses with low margins or complex cost structures, that often comes out lower than the standard margin method. Worth checking before defaulting to the standard form; both get evaluated for each client.

The Public Information Report

Every taxable Texas entity also files a Public Information Report (Form 05-102) alongside the franchise tax report each year. The PIR discloses officer, director, and member information by entity type — and it’s required even for no-tax-due entities, which is a detail that gets missed. The Bookkeeping Company prepares and files the PIR as part of every Texas Franchise Tax engagement.

Texas Business Tax Filing Deadlines: The Complete Calendar

Texas business owners manage multiple filing deadlines across the year. Missing any one triggers penalties and interest at that agency independently of the others.

Annual Income Tax Deadlines

S-corp and partnership federal returns: March 15 (extended to September 15). Individual and C-corp returns: April 15 (extended to October 15). Texas Franchise Tax annual reports: May 15 — one month after the federal individual deadline. Three separate deadlines. Three separate penalty structures if any of them get missed.

Quarterly Estimated Tax Deadlines

Texas business owners who operate as sole proprietors, S-corp shareholders, or partners pay federal quarterly estimated taxes four times per year: April 15, June 15, September 15, and January 15. Underpaying triggers an IRS underpayment penalty on the annual return even when the full balance is paid by the filing deadline. (IRS — Prior Year Forms and Instructions)

How Much Does a Tax Preparation Service Cost for Texas Businesses?

Tax preparation fees depend on entity type, return complexity, and whether prior-year or amended returns are involved. According to the National Society of Accountants Income and Fees Survey (2025):

•       Schedule C (sole proprietor, with Form 1040): approximately $482 or more
•       S-corp Form 1120-S: approximately $903 or more, plus the owner’s personal Form 1040
•       Partnership Form 1065: approximately $873 or more, plus partner personal returns
•       C-corp Form 1120: varies by complexity; typically similar to or higher than S-corp rates
•       Texas Franchise Tax annual report: additional fee per filing, typically bundled with the federal return at a combined rate
•       Prior-year and late returns: priced individually by year and record availability; typically higher per-year than current returns due to records reconstruction

Free initial consultation produces a specific cost estimate for all required filings before any engagement begins.

Remote Tax Preparation Service for Texas Businesses Statewide

Tax preparation from The Bookkeeping Company reaches Texas businesses statewide via secure document portal and e-filing — no mailed documents, no in-person appointments:

•       Houston and Southeast Texas — energy services, construction, healthcare, and retail businesses; federal entity returns and Texas Franchise Tax annual reports
•       Dallas-Fort Worth metro — technology, professional services, and logistics businesses; S-corp and partnership returns with multi-owner K-1 coordination
•       Austin and Central Texas — tech, creative, and professional services; Section 199A QBI deduction optimization and quarterly estimated tax planning
•       San Antonio and South Texas — retail, hospitality, and manufacturing businesses; Texas Franchise Tax report deduction method analysis and annual filing
•       All Texas communities — prior-year and late returns available for businesses anywhere in Texas regardless of how many years are unfiled

Free initial consultation for all Texas clients. Call 360-524-9889 or use the contact form at thebookkeepingcomp.org.

Frequently Asked Questions About Tax Preparation Service for Texas

How much does business tax preparation cost?

Depends on entity type and complexity (Source: National Society of Accountants, 2025). A Schedule C with Form 1040 averages $482 or more; an S-corp Form 1120-S averages $903 or more; a partnership Form 1065 averages $873 or more. Texas Franchise Tax annual report preparation is an additional fee, typically bundled into the annual engagement. Prior-year and late returns are priced individually. The free initial consultation produces a complete cost estimate before commitment.

Do you prepare the Texas franchise tax report?

Texas Franchise Tax annual reports are a core part of what The Bookkeeping Company prepares for Texas clients — selecting the correct form (Form 05-158, Form 05-169 EZ, or Form 05-163 no-tax-due), calculating total revenue from the federal return, evaluating all three deduction methods to minimize taxable margin, and filing by the May 15 deadline. The Public Information Report is prepared and filed at the same time.

Can you handle federal returns for a business based anywhere in Texas?

Entirely remote, statewide. Houston, Dallas, Austin, San Antonio, Fort Worth, and every other Texas community. Federal returns covered include Schedule C, Form 1120-S, Form 1065, and Form 1120, along with the owner’s personal Form 1040 with K-1 income and the permanent Section 199A QBI deduction. Documents go through a secure upload portal, draft returns come back for review, and clients sign electronically before e-filing.

Is your preparer an Enrolled Agent with IRS representation rights?

Maya Primachenko holds an IRS PTIN — Preparer Tax Identification Number — required by law to prepare and sign federal tax returns for compensation. (IRS — PTIN Requirements for Tax Return Preparers) A PTIN authorizes preparation of all federal and state return types. An Enrolled Agent goes further — passing the IRS Special Enrollment Examination earns unlimited representation rights for audits and collection matters. For situations requiring direct audit representation, the firm refers clients to EA partners.

Can you file prior-year or late returns?

Prior-year federal and Texas Franchise Tax returns are available for clients behind on their filings. Texas businesses with unfiled franchise tax reports accumulate Comptroller penalties — filing the missing reports stops that clock. The federal situation is worth understanding: the IRS has no statute of limitations on unfiled returns and may file a Substitute for Return that almost always overstates what’s owed. Filing your own return typically brings that number down significantly — sometimes by a lot.

What documents do Texas businesses need for tax preparation?

For federal returns: prior year return for reference, full-year profit and loss statement and balance sheet, payroll W-2s for owner-employees, K-1s from any partnerships or investments, and 1099-NEC forms received. For the Texas Franchise Tax report: total revenue from the federal return data and cost of goods sold or compensation figures for deduction selection. One sequencing note: S-corp and partnership entity returns have to be done before the owner’s personal Form 1040 can be finalized.

Can you prepare S-corp and partnership returns for Texas businesses?

S-corp and partnership returns are a core part of what The Bookkeeping Company prepares for Texas clients. Form 1120-S for S-corps, Form 1065 for partnerships — each coordinated with the owner’s personal Form 1040. Both require K-1 preparation for all owners, reasonable salary documentation for S-corp owner-employees, and the Section 199A QBI deduction calculation. Entity returns: March 15. Owner personal returns: April 15. Texas Franchise Tax: May 15.

How does remote tax preparation work for a Texas client?

Texas clients upload their documents — prior year return, P&L, payroll records, 1099s, anything else relevant — through a secure portal. Draft federal and Texas Franchise Tax returns come back for review from there. Any questions about specific figures get answered before approval. Once the client signs electronically, the firm e-files with the IRS and Texas Comptroller.

Schedule your free tax consultation