Best CPA

TurboTax is fine until it’s not. If your finances are getting more complicated, DIY tax software might be holding you back. A missed deduction here, an unexpected tax bill there—it adds up. At some point, you need more than software. You need a CPA in Austin, Texas who understands your business, your goals, and how to keep more money in your pocket.

Here’s how to know when it’s time to ditch TurboTax and upgrade to a small business CPA in Austin who actually has your back.

1. You’ve Hit Major Life Changes

Marriage, a new home, kids—congrats, life is moving fast. But with those milestones come tax implications, and the standard TurboTax questionnaire isn’t cutting it anymore. A Austin Texas CPA helps you navigate these shifts strategically, so you’re not leaving money on the table.

2. You Own a Rental Property or Side Business

So, you’re making money beyond a W-2. Maybe you’ve got rental income, freelance gigs, or a growing side business. That’s great—until tax time. Depreciation, business write-offs, self-employment taxes—sound familiar? A CPA firm in Austin, Texas helps you structure your earnings the right way, so you maximize deductions while staying compliant.

3. You’re Worried About Missing Deductions

Let’s be real—TurboTax only works with what you tell it. But are you asking the right questions? A tax advisor in Austin finds deductions you didn’t even know you qualified for. Real estate depreciation, overlooked business expenses, tax credits—this is where a good CPA saves you real money.

4. You Want to Avoid IRS Surprises

An IRS audit? A tax bill way higher than expected? No, thanks. A Austin TX accountant makes sure your returns are airtight, so you’re not scrambling if the IRS comes knocking. And if they do? You won’t be dealing with them alone—your CPA handles the back-and-forth for you.

5. You Value Expert Guidance Over DIY Guesswork

Let’s be honest—you didn’t start your business or invest in real estate to become a tax expert. That’s our job. A CPA in Austin, Texas does more than file your return—they help you plan, strategize, and structure your finances for long-term growth. Unlike TurboTax, we’re here year-round to make sure you’re making the best financial moves, not just checking boxes.

Let’s Build a Smarter Tax Strategy

You’ve worked hard to grow your income. Now, it’s time to make sure you’re keeping more of it. Insogna CPA is one of the top CPA firms in Austin, Texas, helping business owners and investors optimize their finances and reduce their tax burden. Let’s talk and start building a strategy that works for you...

Let’s be honest. When you first started your business, taxes were simple. Your CPA handled your filings, made sure you were legal, and maybe even saved you a few bucks. But now that your business is scaling, things are getting way more complicated and suddenly, your CPA’s “one-size-fits-all” approach isn’t cutting it.

If you’re in a product-based industry like alcohol, CPG (consumer packaged goods), or e-commerce, you need more than just tax prep. You need strategic financial guidance and if your CPA isn’t giving you that, your business could be leaving serious money on the table.

So, how do you know if it’s time to upgrade? Let’s break it down.

Signs Your CPA Might Be Holding You Back

• You only hear from them at tax time. If your CPA isn’t proactively helping you plan for growth, they’re just a tax preparer not a strategic partner.
• They don’t understand inventory or COGS (cost of goods sold). If you’re selling products, inventory management is everything. A CPA who doesn’t get this could be missing major deductions or messing up your financial reports.
• Your tax bills keep surprising you. If you’re constantly shocked by what you owe, your CPA isn’t planning ahead.
• Cash flow feels unpredictable. Your business looks profitable, but somehow there’s never enough cash in the bank.
• They don’t specialize in your industry. E-commerce, alcohol, and CPG businesses have very specific tax rules. If your CPA doesn’t know them inside and out, you’re missing out.

Sound familiar? Then it’s time for a change.

Why This Happens: Not All CPAs Are Built for Business Growth

Many business owners start with a personal tax-focused CPA because, well, it’s easy. But as your business grows, you need an accountant who understands business finance not just personal tax returns.

Here’s what a generalist CPA might not be helping you with:

• Inventory & COGS tracking – Essential for managing product margins and profitability.
• Cash flow forecasting – So you never get caught short when it’s time to scale.
• Choosing the right entity structure – LLC, S-Corp, C-Corp? The wrong choice could mean higher taxes.
• Multi-state tax compliance – Selling across state lines? Each one has different tax laws.
• Proactive tax strategy – The best CPAs don’t just file taxes, they help you plan ahead to keep more money in your business.

If your CPA isn’t covering these bases, your business is losing money—period.

The Solution: Work with a CPA Who Helps You Grow

At some point, every serious business owner realizes they need more than just tax filing, they need a CPA who thinks like a CFO and helps them plan for the future.

What Insogna CPA Does Differently:

• We create proactive tax strategies—so you’re never hit with surprise tax bills.
• We understand product-based industries—and know the best tax-saving strategies for e-commerce, alcohol, and CPG businesses.
• We help you track cash flow and inventory correctly—so you always know where your money is going.
• We guide you through growth decisions—like when to switch to an S-Corp or expand into new states.

Is Your CPA Keeping Up with Your Growth? Let’s Find Out.

If your CPA isn’t providing strategic tax planning, cash flow insights, and industry-specific guidance, your business is missing out on major opportunities to save money and scale smarter.

At Insogna CPA, we specialize in helping businesses like yours optimize their finances, stay compliant, and grow with confidence.

Whether you need an Austin tax accountant, guidance from a tax advisor in Austin, or expert Austin accounting services from one of the top CPA firms in Austin Texas, we’ve got your back...

Let’s talk about what your business really needs. Book a free consultation today!

Summary of What This Blog Covers:

• Why Many CPAs Say “No” to Deductions and Why It’s Costing You
  This blog explores how traditional CPAs are often focused on compliance over strategy, default to conservative, outdated tax advice. It breaks down how this overly cautious approach can lead women entrepreneurs to overpay taxes, miss legitimate deductions, and feel unsupported during tax season.
  
  
• Commonly Missed Deductions and How a Strategic CPA Helps You Take Them
  From the home office deduction and business travel to retirement contributions and 1099 contractor payments, the blog outlines key tax strategies often misunderstood or avoided by generalist accountants. It shows how a knowledgeable CPA in Austin, Texas ensures every qualified deduction is documented and maximized.
  
  
• How a Proactive CPA Builds Systems to Simplify and Strengthen Compliance
  The post details how the right CPA partner can help you track expenses using tools like QuickBooks Self-Employed, file 1099 NEC forms on time, categorize business use of personal technology, and manage international tax compliance, including FBAR filing. All while giving you year-round peace of mind.
  
  
• How Insogna CPA Empowers Women Business Owners with Strategic, Flat-Rate Support
  With flat-fee pricing, proactive planning, and concierge-level service, Insogna CPA becomes more than just a tax preparer, it’s a trusted partner in your growth. This blog invites readers to stop settling for “no” and start building a confident, compliant tax strategy aligned with their vision and financial goals.

When Your CPA Says “No,” It Might Be Costing You More Than You Think

You’ve built your business from the ground up. You know your numbers. You know your worth. And yet every tax season, you hear the same answers from your CPA:

“That deduction might raise red flags.”
 “Let’s be conservative.”
 “Better not to claim that just in case.”

It’s frustrating.

You’re not trying to push boundaries or cheat the system. You simply want to take the deductions you’ve earned and make tax season work for your business, not against it.

If your current CPA near you feels more like a gatekeeper than a partner, it might be time for a change.

At Insogna CPA, we help women entrepreneurs confidently navigate the tax landscape. Taking every legitimate deduction, staying compliant, and planning ahead with strategy and clarity.

Why So Many CPAs Default to “No”

Many tax accountants near you are trained for compliance, not strategy. They’re focused on filing forms, not empowering business owners. And they often fall into one of two categories:

1. They’re overly conservative out of fear

These CPAs don’t want to deal with audits, ambiguity, or complex deductions. So, instead of looking at the law and supporting documentation, they default to saying “no” across the board.

This kind of defensive accounting might keep things simple but it also leads to overpayment, missed opportunities, and a lot of unnecessary stress for you.

2. They don’t specialize in small business or service-based models

A general tax preparer near you may not fully understand your business model especially if you’re a service-based provider, solopreneur, or creative entrepreneur.

They may not know how to document deductions for:

• Digital tools
  
  
• Online advertising
  
  
• Coaching and mentorship
  
  
• Hybrid workspaces
  
  
• Multi-state operations
  
  

When your CPA doesn’t understand the nuances of your business, it’s no wonder they hesitate to help you fully leverage your tax strategy.

What a Strategic, Supportive CPA Does Differently

At Insogna CPA, we believe your accountant should be your ally not a barrier. We don’t just tell you what you can’t do. We help you uncover what’s possible with clear guidance, proper documentation, and proactive planning.

Here are some of the most commonly missed deductions and how we help our clients confidently claim them.

1. The Home Office Deduction: You’re Working, Not Just “At Home”

If you use a dedicated space in your home exclusively for business, you likely qualify for the home office deduction. An important tool for reducing your taxable income.

Yet, many CPAs will caution against it out of fear. The truth? The IRS has long-established criteria for this deduction, and when taken correctly, it’s completely legitimate.

As a small business CPA in Austin, we help you:

• Measure your workspace
  
  
• Determine the appropriate business-use percentage
  
  
• Deduct expenses like rent, utilities, and home maintenance proportionally
  
  
• Document everything in a way that aligns with IRS standards
  
  

You work hard in that space. You deserve to deduct it.

2. Phone and Internet Expenses: Not Just Personal Anymore

If you’re using your phone and internet to run your business (for example: manage schedules, communicate with clients, run social media ads) those services are partially business expenses.

Yet, many tax professionals near you skip this deduction due to confusion around personal versus business use.

We guide our clients to:

• Determine a reasonable, justifiable business-use percentage
  
  
• Keep clear records of costs
  
  
• Consider switching to a business plan for further clarity and optimization
  
  

This isn’t pushing boundaries, it’s understanding how to claim what’s rightfully deductible.

3. Marketing, Coaching, and Branding: Strategic Spending Is Deductible

Investments in marketing and professional development are often misunderstood by more traditional CPAs. But if you’re investing in a new website, brand strategy, coaching program, or ad campaign, you’re making legitimate business decisions.

At Insogna CPA, one of the most trusted Austin CPA firms accounting for women-led businesses, we help you:

• Document coaching and consulting expenses
  
  
• Track online ad spending (Facebook, Instagram, LinkedIn, Google)
  
  
• Properly classify brand design, copywriting, and other services
  
  
• Tie these deductions back to business growth, clearly and accurately
  
  

This isn’t about cutting corners, it’s about honoring the real investments you’ve made to grow your business.

4. Travel and Meals: When Business Takes You Places

Have you traveled to attend a conference, meet a client, or speak on a panel? Did you pay for a working lunch or team retreat? These are often 100% legitimate deductions—but they’re frequently under-claimed or misclassified.

As a seasoned Austin tax accountant, we ensure:

• All travel has a documented business purpose
  
  
• Receipts are retained and categorized correctly
  
  
• Meal expenses follow current IRS guidelines (usually 50% deductible)
  
  
• Expenses are aligned with your broader business strategy
  
  

We also help set up easy systems for tracking travel and meals using your existing tools so you’re not pulling it all together in a panic at year-end.

5. Retirement Contributions: Plan Smart, Save Big

Retirement savings can dramatically reduce your taxable income while helping you build future wealth.

If you’re self-employed or operate as an S-Corp or LLC, you may qualify for tax-advantaged plans such as:

• Solo 401(k)s
  
  
• SEP IRAs
  
  
• Traditional IRAs
  
  

At Insogna CPA, we work closely with you to:

• Calculate your maximum annual contribution
  
  
• Integrate retirement into your quarterly tax planning
  
  
• Align contributions with your cash flow and long-term financial goals
  
  

Retirement planning is one of the most powerful strategies available yet many CPAs overlook it unless you ask. We make it part of the conversation from day one.

6. Technology and Tools: Your Digital Business Infrastructure Matters

From Zoom to project management apps to accounting software, the tools you use to run your business are essential. And yes, they’re deductible.

Your CPA certified public accountant should be helping you:

• Deduct subscriptions and software as business expenses
  
  
• Track licenses, hosting fees, and hardware purchases
  
  
• Differentiate between depreciable assets and deductible supplies
  
  

We provide guidance on categorizing these expenses and ensuring you’re not under-claiming your business technology infrastructure.

7. 1099 NEC and Contractor Payments: Stay Compliant While Maximizing Deductions

If you’re working with contractors or freelancers, you’re required to file 1099 NEC forms for any payments over $600. But many CPAs drop the ball here or tell you it’s too complicated.

We help our clients:

• Collect W9 forms proactively
  
  
• Track payments throughout the year
  
  
• Issue and file 1099s correctly and on time
  
  
• Build contractor relationships that are both compliant and cost-effective
  
  

Handling these filings correctly also ensures you’re taking the deductions you’re entitled to without increasing your risk.

8. FBAR Filing and International Reporting: Don’t Overlook Global Income

Do you have a foreign bank account, receive payments from international clients, or invest overseas? Then you may be required to file an FBAR (Foreign Bank Account Report), a critical compliance step that many CPAs miss.

At Insogna CPA, our team of enrolled agents and chartered professional accountants ensures:

• You stay compliant with international reporting rules
  
  
• You don’t miss out on deductions tied to foreign income
  
  
• Your tax filings are aligned with both U.S. and international standards
  
  

We take the guesswork out of global income and give you the peace of mind to scale internationally, without fear.

You Don’t Need to Settle for “No”, You Deserve a Better Yes

When your CPA sees you as a partner and not a risk, you begin to experience tax season differently. You lead with clarity, confidence, and a strategy that aligns with your values.

At Insogna CPA, we provide:

• Flat-fee tax preparation services near you
  
  
• Strategic, year-round planning from a responsive Austin, TX accountant
  
  
• Support with QuickBooks Self-Employed, 1099 forms, W9, and FBAR filing
  
  
• Hands-on guidance from a CPA office near you who truly listens
  
  

We’re proud to be one of the most trusted CPA firms in Austin, Texas for women-led businesses. Offering not just compliance, but concierge-level care.

Schedule your discovery call today with Insogna CPA. Let’s take back control of your taxes and put your dollars to work for the business and life you’re building...

Summary of What This Blog Covers:

• Recognize When DIY Tax Software No Longer Fits Your Needs
  This blog outlines key indicators that your financial situation has outgrown platforms like TurboTax or TaxAct especially if you own rental properties, run a business, invest across states, or manage multiple income streams. It explains why these complexities require more than just automated prompts.
  
  
• Understand the Risks and Costs of Sticking with DIY Tools
  From missing valuable deductions to increasing audit risks, the blog discusses how relying on basic tax software can lead to overpayments, errors, and lost tax-saving opportunities. It emphasizes the value of having a personalized strategy guided by a licensed CPA.
  
  
• Explore the Strategic Value a CPA Brings to Growing Professionals
  The article highlights how a certified public accountant provides year-round tax planning, multi-entity coordination, and compliance with state and federal rules like FBAR filing and franchise tax. It positions a CPA as a proactive advisor, not just a tax preparer.
  
  
• See How Insogna CPA Supports High-Earning Clients Beyond Tax Season
  Featuring flat-rate pricing, audit defense, and personalized tax strategies, the blog shows how Insogna CPA, a leading CPA firm in Austin, Texas, helps professionals and business owners shift from filing taxes to building long-term financial plans tailored to their income and lifestyle.

Let’s get real for a moment. TurboTax and other DIY tax software have their place. They’re great for simple situations such as W-2 income, a few donations, maybe some student loan interest. But if your financial life has evolved and it probably has if you’re reading this, then it’s time to talk about why your tax strategy should, too.

You’ve grown beyond the standard deductions and drop-down menus. You’ve got income coming in from multiple directions. Maybe you’ve launched a business, bought a rental property, started investing seriously, or even expanded across state lines. And yet, you’re still relying on TurboTax Online, H&R Block Near You, or TaxAct to keep up with it all?

It’s time to upgrade.

At Insogna CPA, a leading CPA firm in Austin, Texas, we help professionals, business owners, and investors move from tax filing to tax strategy. Here’s how to know if you’ve outgrown DIY software and what working with a proactive Austin, TX accountant can do for your bottom line.

1. You Have Rental Properties or Multiple Income Streams

In the early days, your tax return probably fit on two pages. But now? You’ve got:

• Rental income from Airbnb or long-term tenants
  
  
• Income from 1099 consulting gigs or side hustles
  
  
• Dividends, capital gains, RSUs, and possibly even cryptocurrency trading
  
  
• Multiple bank accounts, vendors, and maybe an LLC or two
  
  

The IRS sees these as different buckets of income, each with its own rules. And TurboTax Free or TaxFreeUSA just isn’t built to ask the kind of nuanced questions that save you money when you’ve got more going on.

Why It’s a Problem:

• Rental property tax rules involve depreciation, passive loss limitations, cost segregation, and 1031 exchanges.
  
  
• Self-employed income triggers self-employment tax and requires quarterly estimated payments.
  
  
• You may be eligible for deductions or credits that software can’t identify without a conversation.
  
  

A small business CPA in Austin or tax advisor near you will structure your income and expenses properly, track it in real time, and build a long-term plan that aligns with your financial goals.

2. Your Income Is Growing, and So Are Your Tax Liabilities

More income equals more tax exposure. It also increases your chances of making costly mistakes—mistakes that software simply won’t catch or plan around.

Once your adjusted gross income hits certain thresholds, deductions and credits begin to phase out. You may also become subject to the Alternative Minimum Tax (AMT) or the Net Investment Income Tax. These rules are complex, and they shift each year.

Why It’s a Problem:

• Online software doesn’t offer strategic planning to keep you in a lower tax bracket.
  
  
• You may be overpaying because you’re unaware of income deferral strategies or entity structuring options.
  
  
• You might be missing opportunities to reduce your effective tax rate.
  
  

A certified public accountant near you can help you set up retirement plans, HSA contributions, or S-Corp elections. All of which can lower your taxable income if done correctly and at the right time.

3. You Want More Than a Cookie-Cutter Return

TurboTax is fast, but it’s not flexible. It doesn’t ask about your growth strategy. It doesn’t analyze your business model. It doesn’t help you think long-term.

You’ve moved beyond a one-size-fits-all approach. Whether you’re a solopreneur, landlord, investor, or multi-entity business owner, your financial strategy should reflect the complexity of your life, not a series of yes-or-no prompts.

Why It’s a Problem:

• You need help structuring your business—LLC, S-Corp, or partnership?
  
  
• You want to plan your income timing to reduce year-end surprises.
  
  
• You may be able to use bonus depreciation or Section 179 deductions that TurboTax doesn’t optimize for.
  
  

With a proactive CPA in Austin, Texas, you get personalized guidance, not automated guesswork. We ask better questions so you get better answers.

4. You’re Probably Missing Deductions (And You Know It)

The biggest complaint we hear from new clients? They feel like they’re overpaying taxes because they’re not confident they’re claiming everything they’re entitled to.

And they’re usually right.

Common Missed Opportunities:

• Home office deduction (especially post-pandemic)
  
  
• Vehicle expenses for business use
  
  
• Depreciation of rental or business property
  
  
• Continuing education, coaching, or certifications
  
  
• Charitable giving through donor-advised funds
  
  
• Business use of your cell phone, internet, and software subscriptions
  
  

At Insogna CPA, we walk you through these line by line. Using tools like QuickBooks Online Accountant, FreshBooks, ZohoBooks, or WaveApp, we help you set up your systems so deductions are tracked properly, audit-proofed, and maximized every year.

You’re no longer asking, “Can I deduct this?” You’re planning for it and that’s the difference.

5. An IRS Audit Would Send You Into Panic Mode

Let’s say the IRS sends you a letter. Suddenly, they want documentation on your deductions from three years ago. You scramble to find receipts. You realize you didn’t back up your files. And then you remember TurboTax can’t defend you in an audit.

Why This Matters:

• The IRS and state tax agencies (yes, including franchise tax boards) are becoming more aggressive.
  
  
• If you make over $200,000, your audit risk increases.
  
  
• Multi-entity, multi-state investors are more likely to be flagged for “random” reviews.
  
  

At Insogna CPA, we build your returns with audit defense in mind. And if an audit ever happens, we handle it for you. We’ll respond to notices, provide documentation, and communicate directly with the IRS on your behalf.

Whether you’re dealing with the IRS, FBAR filing, or a state-level audit, our team of tax professionals near you, enrolled agents, and certified CPAs have your back.

6. You Want More Than a Tax Return, You Want a Tax Strategy

Let’s say it clearly: filing is just the finish line. Tax planning is the race. And the smartest business owners and professionals know you can’t win that race without a strategy.

A Tax Strategy Includes:

• Timing capital gains and business purchases
  
  
• Choosing the right business entity (LLC, S-Corp, or partnership)
  
  
• Coordinating multi-state income filings
  
  
• Planning for wealth transfer, estate tax, or exit strategies
  
  

Whether you’re building a portfolio of rental properties, scaling a startup, or managing assets across states or countries, we help you build a plan that minimizes your liabilities and maximizes your opportunities.

That’s what you don’t get from TurboTax Free, Liberty Tax, or any drop-in tax prep service. You get it from a true partner, your own CPA certified public accountant.

Bonus: Your Time Is Worth More Than a Tax DIY Session

You’re running a business. Managing a team. Investing in your future. Your time is valuable and spending it trying to figure out how to categorize deductions or navigate state tax filings is not the best use of it.

At Insogna CPA, we free up your time by taking the tax burden off your plate. No more late nights. No more tax stress. Just clean, efficient filings and smart, strategic planning delivered by a responsive CPA firm in Austin, Texas that speaks your language.

What You Get With Insogna CPA

• Flat-rate pricing—no mystery invoices
  
  
• Dedicated support from a tax advisor in Austin, not a chatbot
  
  
• Proactive planning for franchise tax, self-employment tax, and multi-state income
  
  
• Integration with accounting tools like FreshBooks, WaveApp, Zohobooks, and QuickBooks Online Accountant
  
  
• Deep expertise in taxation accounting, including FBAR filing, S-Corp elections, and real estate strategy
  
  
• A team of certified CPAs, chartered professional accountants, and tax consultants near you

It’s Time to Upgrade Your Tax Strategy

If you’re making good money but still relying on DIY tax tools or generic tax places near you, you’re missing out. Your tax software won’t grow with you. But a proactive Austin tax accountant will.

Schedule your consultation with Insogna CPA today, and let’s build a customized tax strategy that actually works for your business, your investments, and your future.

Because successful people don’t just file, they plan. Let’s do that together. Now. And for the long run...

Summary of What This Blog Covers:

• Compare Sole Proprietorship and LLC Structures for Real Estate Investing
  This blog outlines the key differences between owning rental properties as a sole proprietor versus forming an LLC. It explores the simplicity of sole proprietorships, their lack of liability protection, and the long-term advantages of creating an LLC for scalability, asset protection, and tax flexibility.
  
  
• Learn When an S-Corp Election Makes Strategic Sense
  The article breaks down when and why real estate professionals such as flippers and short-term rental owners should consider electing S-Corp status. It highlights the potential savings on self-employment taxes, increased retirement plan options, and compliance considerations tied to this advanced tax strategy.
  
  
• Understand the Tax Implications of Entity Choice Especially Across States
  With multi-state real estate ownership becoming more common, the blog emphasizes how your business structure affects state-specific obligations like franchise taxes, non-resident filings, and FBAR reporting. It makes the case for working with a proactive CPA to avoid double taxation and audit risks.
  
  
• Discover How Insogna CPA Helps Real Estate Investors Build Strong Foundations
  From entity formation and tax planning to franchise tax compliance and year-round advisory, the blog showcases how Insogna CPA—an experienced CPA firm in Austin, Texas—supports real estate investors with flat-rate pricing, tailored tax strategies, and full compliance services for long-term success.

So, you’ve bought your first rental property (or your fifth). You’ve signed the deed, started collecting rent, maybe even set up a contractor on speed dial. But there’s still one question keeping you up at night or at least popping into your mind every time you look at your bank account:

Should I be doing this under an LLC? Or is it fine to keep it in my own name as a sole proprietor?

If you’ve been around the real estate investing space, you’ve heard plenty of opinions. But what’s the right answer for your situation? The short version: it depends on your goals, risk tolerance, and tax planning strategy.

At Insogna CPA, a trusted CPA firm in Austin, Texas, we work with real estate investors of all sizes from weekend landlords to seasoned multi-state investors. In this guide, we’ll walk you through the pros and cons of each option, introduce the S-Corp twist, and help you decide what structure actually supports your long-term strategy.

Option 1: Owning Real Estate as a Sole Proprietor

What It Means

When you buy property in your own name and don’t register a business entity, you’re operating as a sole proprietor by default. There’s no paperwork involved, no entity fees, and no need to register with the state. Sounds simple, right?

Benefits of Sole Proprietorship

• No Formation Costs: You avoid the time and expense of forming and maintaining an LLC or corporation.
  
  
• Simple Tax Filing: Your rental income is reported on Schedule E of your personal return. No need for separate corporate filings or complex K-1s.
  
  
• Minimal Compliance: No annual reports, no business license renewals (in most states), and no franchise tax (hello, Texas).
  
  

Drawbacks to Consider

• Unlimited Personal Liability: If something goes wrong—say, a tenant sues over an injury or a property-related issue—you’re personally responsible. Your home, savings, and other assets are at risk.
  
  
• Harder to Separate Finances: Without a separate entity and business bank account, tracking expenses becomes murky fast.
  
  
• Limited Tax Planning Opportunities: You don’t get the flexibility to make an S-Corp election, and your options for income deferral and retirement contributions are more limited.
  
  

Who This Works Best For

If you’re a new investor with one or two properties, operating in low-risk markets, and your main concern is simplicity, a sole proprietorship might suffice for now.

But once you start building a portfolio or want to protect your personal assets, it’s time to consider an upgrade.

Option 2: Owning Real Estate Through an LLC

What It Means

A Limited Liability Company (LLC) creates legal separation between your real estate holdings and your personal life. It’s the go-to structure for real estate investors seeking flexibility and protection.

At Insogna CPA, our team of certified public accountants, chartered public accountants, and licensed CPAs regularly helps investors form, maintain, and optimize LLCs based on their real estate and tax strategy.

Advantages of an LLC

• Asset Protection: Your personal assets are shielded from property-related liabilities and lawsuits.
  
  
• Cleaner Financials: You’ll open a business bank account, file business taxes, and track all income and expenses through accounting tools like QuickBooks Online Accountant.
  
  
• Flexible Tax Treatment: An LLC is a “pass-through” entity by default, but you can also elect S-Corp taxation to reduce self-employment taxes. More on that later.
  
  

Challenges to Keep in Mind

• Startup and Ongoing Costs: You’ll need to pay state filing fees, possibly annual franchise taxes (looking at you, California), and handle compliance requirements like annual reports.
  
  
• Financing Hurdles: Some lenders won’t underwrite loans for LLCs or may charge higher interest rates on non-owner-occupied properties owned by entities.
  
  
• No Automatic Tax Savings: Just forming an LLC won’t lower your taxes unless you implement a smart strategy.
  
  

Best Fit For

LLCs are ideal for investors who:

• Own multiple properties
  
  
• Have partners
  
  
• Are scaling quickly
  
  
• Want liability protection
  
  
• Need better tax planning options
  
  

Our clients often find that forming an LLC gives them more clarity, professionalism, and structure especially when moving beyond their first or second deal.

Option 3: Making the S-Corp Election (Advanced Strategy for Active Investors)

What It Means

An S-Corporation is a tax election you can make if you’re already structured as an LLC or corporation. It’s not for everyone, but for certain types of income, it can create substantial tax savings.

Why You’d Elect S-Corp Status

• Save on Self-Employment Tax: As an S-Corp, you pay yourself a reasonable salary and take the rest of your profit as distributions, which aren’t subject to payroll taxes.
  
  
• Higher Retirement Contribution Limits: S-Corps can open Solo 401(k)s and other plans to maximize retirement savings.
  
  
• Increased Professional Credibility: Banks and business partners often prefer to work with formalized entities.
  
  

Why It Doesn’t Work for Everyone

• Added Complexity: You’ll need payroll services, additional filings, and possibly franchise tax
  
  
• Passive Income Doesn’t Benefit: If you’re holding long-term rentals, the S-Corp structure offers little to no tax benefit and could complicate things.
  
  
• Ownership Restrictions: Only individuals (and some trusts) can be shareholders. No partnerships or foreign owners.
  
  

Best For

• Flippers, wholesalers, short-term rental operators, and agents with significant 1099 income
  
  
• High earners looking to reduce self-employment taxes
  
  
• Real estate professionals actively involved in the day-to-day management of properties
  
  

At Insogna CPA, a leading Austin accounting firm, we help you evaluate the S-Corp election using detailed financial modeling. We’ll help you understand whether it makes sense and manage the paperwork if you decide to go for it.

The Multi-State Twist: Why Entity Choice Matters Even More

If you own property in more than one state or plan to, you need to consider multi-state tax implications. Every state has its own rules around:

• LLC registration and compliance
  
  
• Franchise tax obligations
  
  
• Non-resident income tax filing
  
  
• FBAR filing if any entity owns foreign assets
  
  

Failing to plan can lead to double taxation, late fees, and even audit triggers. That’s why smart investors work with a specialized CPA in Austin, Texas who understands both federal and state-specific tax laws.

Why Entity Choice Matters Beyond Taxes

Still on the fence? Here’s what your business structure influences:

• Liability Exposure – Do you want your personal assets protected if something goes wrong?
  
  
• Ease of Scaling – Are you planning to buy more properties? Take on partners?
  
  
• Exit Strategy – Planning to sell? Refinance? Your structure impacts capital gains treatment and step-up in basis rules.
  
  
• Legacy and Estate Planning – Holding properties in a properly structured LLC can simplify your estate strategy and transition wealth efficiently.
  
  

Your structure is your foundation. And the right one makes everything else easier, from filing taxes to raising capital to leaving a legacy.

What You Get with Insogna CPA

• Flat-rate pricing—no surprise fees or hidden costs
  
  
• Year-round access to a licensed CPA, tax advisor, or tax preparer near you
  
  
• Deep expertise in real estate, multi-entity structuring, and franchise tax compliance
  
  
• Customized strategies aligned with your income profile and growth plans
  
  
• Seamless support for tax preparation services, bookkeeping, and advisory
  
  

Whether you’re searching for a tax accountant near you, a strategic Austin, TX accountant, or a certified CPA near you, we’re here to help you build the right plan...