Business Tax Planning & Strategy in Houston, TX
Year-round tax planning for Houston businesses, so the tax bill is something you planned for months ago rather than discovered at filing time. Federal estimates, Texas obligations and the structural decisions that change what you owe.
What's included
- Quarterly estimated tax calculations from current numbers
- Texas franchise tax planning and deadline tracking
- Sales and use tax nexus monitoring as you sell into other states
- Entity structuring, including S corporation analysis
- R&D tax credit studies and filing
- Business and owner returns, or support for your existing CPA
- IRS audit defense and representation
No state income tax does not mean no state tax
Texas does not tax personal income, so owners of pass-through businesses pay federal tax only on their share of the profits. The state collects instead through the franchise tax, sales tax and local property tax, each with its own rules and deadlines:
- Franchise tax: reports are due May 15. For 2026 and 2027, businesses at or below $2.65 million in revenue owe no tax but must still file a Public Information Report or Ownership Information Report. Above the threshold most pay 0.75% of taxable margin, or 0.375% for retailers and wholesalers, and businesses under $20 million in revenue can elect the 0.331% E-Z computation.
- Sales and use tax: the state rate is 6.25% and local jurisdictions add up to 2%, for 8.25% inside the City of Houston. Selling into other states can trigger their economic nexus rules, which require you to register and collect there too.
- Property tax: business personal property such as equipment, furniture and inventory is rendered to the county appraisal district by April 15. From 2026 the first $125,000 of value is exempt, which removes or reduces the bill for many small businesses.
Planning that changes what you owe
Most tax savings are decided before the year ends, not when the return is prepared. For Houston owners that usually means checking whether an S corporation election and a reasonable salary would lower self-employment tax, timing equipment purchases to make the most of depreciation, setting quarterly estimates from current results rather than last year's, and identifying research and development credits.
Houston's engineering, energy technology, software and manufacturing firms often qualify for the R&D credit for work they do not think of as research.
Returns, notices and your CPA
We prepare business returns, including 1120s and K-1s, along with owners' personal 1040s, so business and personal planning line up. If you would rather keep your current CPA for filing, we work alongside them and hand over clean, reconciled numbers. If a notice arrives from the IRS, our audit defense and representation service handles the response.
Industry experience
Common questions
Does a Texas business pay state income tax?
No. Texas has no personal or corporate income tax. Most businesses are subject to the franchise tax instead, which is based on margin, and those at or below the no-tax-due threshold ($2.65 million for 2026 and 2027 reports) owe nothing but still file an information report.
When is the Texas franchise tax report due?
May 15 each year, moving to the next business day when it falls on a weekend or holiday. Extensions are available, but they extend the time to file rather than the time to pay.
Do you prepare tax returns as well as planning?
Yes. We prepare business returns and owners' personal returns, or work alongside your existing CPA if you prefer to keep them for filing.
Can you help us claim the R&D tax credit?
Yes. We run the study and file the credit. Many engineering, software, energy technology and manufacturing firms qualify for activity they do not think of as research.
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We provide tax planning to businesses throughout Houston and the surrounding cities, and remotely to clients across the United States and internationally.