Industry Guide

Tax guidance for small business owners.

LLCs, S-corps, and partnerships — entity choice, reasonable comp, and clean books drive better outcomes.

Who this is for

Built for small business

For owners of LLCs, S-corporations, C-corporations, and partnerships operating in Texas and beyond.

Common income sources

  • Product and service revenue
  • K-1 pass-through income
  • Interest and other business income

Commonly considered expense categories

  • Payroll and contractor payments
  • Rent, utilities, and office
  • Software and subscriptions
  • Marketing and travel
  • Depreciation of equipment

May be deductible if eligible and properly documented. Rules vary — verify with a professional.

Recordkeeping

Recordkeeping checklist

  • Bookkeeping through QuickBooks/Xero or similar
  • Bank and credit card statements
  • Prior-year returns and depreciation schedules
  • Payroll and 1099 reports
Watch outs

Common mistakes to avoid

  • Skipping reasonable compensation as an S-corp owner
  • Commingling personal and business funds
  • Missing Texas franchise / public information report
  • Waiting until March to reconcile the books
FAQ

Frequently asked questions

Industry guides are general educational information for small business and do not constitute tax advice. Rules change often and personal circumstances vary — please consult a qualified tax professional.
Consultation

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