Business Formation & Structuring · Austin, TX · Serving business owners nationwide

Choose the entity that fits how your company makes money, and how you want to be taxed.

The structure you pick decides how your income is taxed, how you pay yourself, and what you’ll file every year. We walk you through the options in plain English, show you what each one would cost in tax, and help you set it up correctly, whether you’re starting something new or have outgrown the setup you began with.

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What you get before and after you file the paperwork

  • A side-by-side comparison. We run your expected numbers through each structure, so you can see the tax difference in dollars.
  • A clear recommendation. We tell you which option we’d choose in your position and why.
  • The tax setup handled. We take care of your EIN, the right IRS elections, and your Texas tax registrations.
  • A first year done correctly. We make sure payroll, owner pay, and the books match the structure you chose.

Four common structures, and how each one is taxed

Structure · How profit is taxed · Often the right choice when
Structure How profit is taxed Often the right choice when
LLC On the owners’ personal returns by default. An LLC can also elect to be taxed as an S-corp or a C-corp. You want liability protection and flexibility in how you’re taxed.
S-corp On the owners’ personal returns, with owners who work in the company paid a reasonable salary through payroll. Profit is well above what you’d pay yourself in salary.
C-corp By the company at the corporate rate, and again by shareholders when dividends are paid. You plan to reinvest earnings in the company or bring in outside investors.
Partnership On each partner’s personal return, according to the partnership agreement. Two or more owners want flexibility in how profit is shared.

An S-corp is a tax election and not a separate type of company, so an LLC or a corporation can choose it. That’s one reason the “LLC or S-corp” question confuses so many owners, and it’s among the first things we clear up.

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The structure that worked at the start may be costing you now.

Many owners chose an entity years ago, often quickly, and haven’t looked at it since. A change is worth considering when:

  • Profit has grown, and more of it is being taxed as self-employment income than needs to be.
  • A partner or investor is coming in, which changes who owns what and how income is divided.
  • You’re buying real estate or starting a second line of work that may belong in its own entity.
  • You’re planning to sell in the next few years, since structure affects how the sale is taxed.
  • A foreign company is setting up in the United States and needs a structure that works for both sides.

If any of these sound familiar, we’ll compare where you are with where you could be, and tell you whether a change is worth the effort.

From the first conversation to a company that’s set up right

  1. Tell us your plans.In a free, confidential consultation, share what the company does, who owns it, and where you expect it to go.

  2. Compare the options.We show you how each structure would be taxed using your own numbers.

  3. Set it up.We handle the tax registrations and elections, and coordinate with your attorney on the legal documents.

  4. Start on solid ground.We set up payroll and the books to match, so your first return is routine.

Forming a company in Texas comes with its own to-do list.

A new Texas entity is registered with the Secretary of State and then with the Comptroller, and most must file a franchise tax report or Public Information Report each year, even when no tax is due. Sales tax permits and Texas Workforce Commission accounts may follow, depending on what you sell and whether you have employees. We keep track of all of it. After your free consultation, we are glad to meet in person anywhere in the Greater Austin area, and owners anywhere else in the country work with us by phone and video.

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  • Secretary of State
  • Comptroller
  • franchise tax report
  • Sales tax permits
  • Texas Workforce Commission

Questions owners ask about entity structure

It depends mainly on how much the company earns. The election can lower self-employment tax, and it also adds payroll and a separate return. We’ll run the numbers during your free, confidential consultation and tell you whether it would save you money.

Get the structure right before the first return, or before the next one.

The first conversation is free and confidential. Tell us what you’re building, and we’ll show you which setup makes the most sense.

Call or text (512) 996-5845
Austin, TX 30.27° N · 97.74° W Based in Austin, TX · Serving business owners nationwide · In-person meetings available across Greater Austin
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