Summary of What This Blog Covers:
- Helps New LLC Owners Build a Strong Tax Foundation from Day One
Learn why separating personal and business finances, tracking expenses properly, and setting up the right systems (like QuickBooks or FreshBooks) are essential for clean records, IRS compliance, and protecting your LLC’s legal structure. - Covers Key State and Federal Filing Requirements for Texas LLCs
Understand what’s required to stay in good standing with the Texas Comptroller, including filing the Franchise Tax Report and Public Information Report annually—even if you owe no tax—and how to avoid penalties or business suspension. - Explains When and How to Make an S-Corp Election for Tax Savings
Discover when it makes financial sense to have your LLC taxed as an S-Corporation, what IRS Form 2553 involves, and how it can reduce your self-employment taxes when done correctly—along with the responsibilities that come with it. - Highlights the Value of Working with a Strategic, Year-Round CPA
Learn why partnering with a certified public accountant or chartered professional accountant goes beyond tax filing. Helping you navigate 1099s, payroll compliance, capital gains tax, estimated payments, and long-term growth with expert guidance.
Starting a new LLC is a major milestone and if you’ve made that leap, congratulations. But now comes the part no one’s cheering about: taxes. For most new business owners, tax compliance feels overwhelming, confusing, and honestly, a little intimidating. You’re not alone.
At Insogna CPA, we’ve helped hundreds of startups and small businesses across Austin, Round Rock, and beyond build a rock-solid tax foundation. We know where entrepreneurs get tripped up and more importantly, how to help you avoid those pitfalls before they become expensive mistakes.
Whether you’re filing your first Form 1065, wondering if you need to track W9 tax forms, or hearing about S-Corp elections for the first time, this guide is built for you. Let’s walk through the five essential tax tips every new LLC owner needs to know plus a few bonus insights to help you hit the ground running.
1. Separate Business and Personal Finances Right Away
This is the single most important step you can take to protect your LLC and simplify your taxes. Commingling personal and business finances is one of the biggest mistakes we see. Not only does it make bookkeeping and tax prep difficult, but it can also expose your personal assets to legal risk by undermining the liability protection your LLC is designed to provide.
Here’s What to Do:
- Open a business checking account and use it exclusively for business-related income and expenses.
- Apply for a business credit card to build credit and clearly track business purchases.
- Keep documentation for any member capital contributions or owner draws so you can properly report them on your 1040 tax form or Form 1120S, depending on your election.
Even if your LLC hasn’t made much money yet, getting this structure in place early allows for cleaner books, a more professional image, and a stronger defense in the event of an audit.
When clients search for “CPA accountant near me” or “bookkeeping services near me,” they often come to us with months of commingled accounts. We help them untangle everything, set up systems in QuickBooks Online, FreshBooks, or ZohoBooks, and train them to keep it clean moving forward.
2. Implement Real-Time Income and Expense Tracking
If you’re waiting until April to tally up your receipts in a shoebox or search through bank statements for that one dinner with a client, you’re already behind. The IRS expects accurate recordkeeping and so do we.
By tracking income and expenses in real-time, you’ll:
- Maximize deductible expenses
- Avoid costly surprises
- Prepare quarterly estimated tax payments
- Streamline your year-end filings
Recommended Tools:
- QuickBooks Self-Employed for freelancers or solo LLCs
- WaveApp for cost-effective basic accounting
- ZohoBooks or FreshBooks for scalable cloud accounting
- Secure apps for saving receipts and uploading them directly to your accounting software
We’ll help you reconcile account payable and account receivable balances monthly, stay compliant with 1099 tax form filing rules, and even build out your chart of accounts to align with IRS guidelines.
From day one, you should be categorizing everything from advertising and subscriptions to mileage, meals, and office supplies. If it’s a business expense, it should be tracked and we’ll show you how.
3. Understand State and Federal Tax Compliance for Texas LLCs
Texas is often celebrated for its no personal income tax, but that doesn’t mean your LLC is tax-free. Every registered LLC in the state must file an annual Texas Franchise Tax Report, even if you made zero income. This filing is mandatory to keep your business in good standing with the state.
What You Need to Know:
- The Texas Comptroller requires annual filings of the Franchise Tax Report and Public Information Report (PIR).
- Revenue thresholds determine whether you’re required to pay franchise tax, but filing is required either way.
- LLCs making less than $1.23 million annually (as of 2024) generally owe no tax but must still submit the report.
Failure to comply can lead to penalties, late fees, and even forfeiture of your LLC’s charter.
We ensure your compliance by managing your state filings, tracking tax calendar deadlines, and alerting you if you reach a revenue threshold where payment becomes required.
If you’re unfamiliar with taxas requirements or you’ve Googled “tax places near me” or “CPA office near me USD”—we’ve got you covered.
4. Evaluate Whether an S-Corp Election Makes Sense
As your business becomes profitable—say, consistently earning $60,000 or more in annual net income—you may benefit from electing to have your LLC taxed as an S-Corporation.
Here’s why: standard LLCs are subject to self-employment tax on all profits (15.3%). By contrast, an S-Corp allows you to:
- Pay yourself a reasonable salary (which is subject to payroll taxes)
- Take the remaining profits as distributions (which are not subject to self-employment tax)
This election is made via IRS Form 2553 and can significantly reduce your overall tax liability.
But Be Prepared:
- You’ll need to set up payroll, issue W2 forms, and pay Form 941 and Form 940 payroll taxes quarterly.
- You’ll file a separate Form 1120S corporate return each year.
- You must maintain accurate books and distribute profits according to ownership percentages.
We guide you through the entire process. From filing Form 2553 to setting up Intuit QuickBooks Payroll, creating accounting packages for small business, and staying compliant with federal and state employment tax laws.
5. Work With a CPA Who Offers Year-Round Strategy Not Just Year-End Filing
Many first-time business owners make the mistake of hiring a tax preparer who only shows up once a year. But taxes are a year-round game and the best strategies happen in real-time, not after the fact.
Working with a certified public accountant or chartered public accountant who understands your business structure, growth goals, and compliance needs is essential.
What a Strategic CPA Will Help With:
- Quarterly estimated tax payments using Form 1040-ES
- Tax planning for high-revenue years, capital investments, and owner distributions
- Structuring deductions for healthcare, home office, meals, and travel
- Filing requirements like 1099-NEC, 1095-A, 1095-C, and 1099-K
- Advanced strategies including 1031 exchange planning, short term capital gains tax reduction, and foreign account (FBAR) reporting
If you’ve searched for “tax services near me”, “tax preparation services near me”, or “book keeping services near me,” what you really need is a partner who understands the full financial picture.
Insogna CPA clients have access to expert guidance from start to scale and everything in between.
Bonus Tip: Don’t Forget About Quarterly Estimated Taxes
This one catches a lot of new LLCs off guard. Even if you’ve just started generating income, the IRS may expect you to make quarterly estimated tax payments.
If you owe more than $1,000 in total taxes for the year, you’re required to prepay them in four installments. Failure to do so may result in underpayment penalties, even if you pay the full amount by the April filing deadline.
We calculate your estimated taxes using up-to-date financials and monitor them with QuickBooks Help, so you always know where you stand.
Let’s Launch Your LLC With Confidence
You didn’t start your business to become a tax expert but with Insogna CPA on your side, you don’t have to. From your first invoice to your first S-Corp salary, we’ll guide you with clarity, confidence, and practical insight.
Contact Insogna CPA today to schedule your new LLC consultation. We’ll walk you through everything—state filings, federal tax setup, estimated payments, and long-term strategy—so you can focus on growing your business.
Because building a business is bold. Your tax strategy should be, too.