Business CPA

So, you started an LLC—congrats! 🎉 You’re officially a business owner, calling the shots and building something great. But now it’s tax season, and suddenly, words like Form 1065, K-1s, and self-employment taxes are being thrown at you like a game of financial dodgeball.

Feeling overwhelmed? You’re not alone. Many LLC owners don’t realize their tax filing responsibilities until crunch time or worse, until they get a penalty notice from the IRS.

At Insogna CPA, a top Austin, Texas CPA firm, we help business owners like you navigate LLC taxes, avoid mistakes, and maximize deductions so you keep more of your hard-earned money. Let’s break it all down without the confusing tax jargon.

Why LLC Taxes Can Be Confusing (And How to Make Sense of It All)

Unlike corporations, LLCs don’t have a one-size-fits-all tax setup. The IRS doesn’t tax your LLC as an entity; instead, it decides how your business is taxed based on the number of owners (a.k.a. members).

Here’s Where Many LLC Owners Get Tripped Up:
 1️. Single-Member LLCs – The IRS treats you like a sole proprietor by default, meaning you report business income on Schedule C of your personal tax return. Simple enough.
 2️. Multi-Member LLCs – The IRS sees you as a partnership, which means you need to:

• File Form 1065 (the partnership tax return).
• Issue Schedule K-1s to each member, detailing their share of profits or losses.

The problem? Most multi-member LLC owners don’t realize they need to file Form 1065 until it’s too late. And missing that deadline? The IRS will happily charge you $220 per partner, per month in penalties.

The good news? With a little planning, you can avoid unnecessary penalties and confusion.

How to File Taxes for Your LLC the Right Way

Step 1: Know Your LLC’s Tax Setup

Before you file, figure out how the IRS sees your business.

• Single-Member LLC: You’ll file your taxes on Schedule C, attached to your personal return (Form 1040).
• Multi-Member LLC: You must file Form 1065 and send K-1 forms to your partners. They’ll report their share of business income on their personal tax returns.

Thinking about S-Corp status? If your LLC makes $50K+ in net profit, electing to be taxed as an S-Corp could save you thousands in self-employment taxes. But you need to file Form 2553 with the IRS to make it official. (We can help with that!)

Step 2: Get Your Financials in Order

Taxes are way easier when your books are clean. If you’ve been tracking expenses in a shoebox (or worse, not tracking them at all), it’s time for an upgrade.

What You’ll Need for Tax Filing:
 ✔ Profit & loss statements and expense reports.
 ✔ Bank and credit card statements.
 ✔ Payroll records (if you have employees).
 ✔ Receipts for major business expenses.

Pro Tip: If you’re using QuickBooks, Xero, or another accounting tool, make sure all your transactions are categorized correctly before tax time.

Step 3: File the Right Tax Forms (And Avoid IRS Penalties)

Here’s what you’ll need to file based on your LLC type:

Single-Member LLCs:

• Report your income & expenses on Schedule C, attached to Form 1040.
• Pay self-employment taxes (yep, you’re on the hook for Social Security & Medicare).

Multi-Member LLCs:

• File Form 1065 with the IRS by March 15.
• Issue Schedule K-1s to each partner, detailing their share of the business’s income.
• Partners must report their K-1 income on their personal tax returns.

Miss the deadline? You could be facing a $220 per partner, per month penalty from the IRS. Don’t wait until the last minute!

Step 4: Don’t Forget About State Taxes

Your federal tax return isn’t the only thing you need to worry about. Depending on where your LLC is registered, you may also owe state taxes.

State Tax Considerations for LLCs:
 ✔ Texas Franchise Tax: Texas doesn’t have personal income tax, but LLCs must file an annual franchise tax report to stay compliant.
 ✔ California LLC Fees: If you operate in CA, expect an $800 annual franchise tax, plus additional fees based on your revenue.
 ✔ Multi-State LLCs: If your business operates in multiple states, you might owe state taxes in each one.

Not sure what your state requires? A CPA in Austin, Texas (like us!) can help you figure it out.

Common LLC Tax Mistakes (And How to Avoid Them)

• Missing the Form 1065 deadline (for multi-member LLCs) = automatic IRS penalties.
• Forgetting state tax filings, leading to fees or even LLC suspension.
• Not tracking deductions properly, resulting in paying more than you owe.
• Skipping estimated tax payments, which can trigger IRS penalties.

The Fix: Work with an experienced Austin small business accountant (that’s us!) to handle the details so you can focus on actually growing your business.

Let’s Make LLC Tax Filing Easy

Filing LLC taxes doesn’t have to be stressful but waiting until the last minute can cost you. Whether you’re a single-member LLC, multi-member LLC, or considering an S-Corp election, we’ve got your back.

At Insogna CPA, a trusted Austin accounting firm, we:
 ✔ Make sure you file on time to avoid IRS penalties.
 ✔ Maximize deductions so you don’t overpay.
 ✔ Help you plan ahead so tax season is stress-free....

Don’t risk IRS penalties—schedule a consultation with Insogna CPA today and let’s make sure your LLC taxes are filed correctly!

Summary of What This Blog Covers:

• Breaks Down the Most Common Tax Mistakes Startups Make
  This blog uncovers the seven most frequent tax pitfalls startup founders fall into like missing key deductions, misclassifying income and expenses, and choosing the wrong entity structure—all of which can cost a startup thousands if not caught early.
• Explains How to Fix Each Mistake with Practical, Scalable Solutions
  From using QuickBooks Self-Employed to tracking expenses properly, to filing the right forms (like 1099-NEC, Form 2553, or Form 1040-ES), the blog offers startup-friendly solutions to make taxes more manageable and efficient for founders.
• Demonstrates Why Year-Round CPA Support Beats April-Only Tax Prep
  The blog emphasizes the value of having a proactive tax partner, especially a CPA in Austin, Texas who supports strategy, compliance, cash flow planning, and investor readiness all year long, not just during tax season.
• Outlines the Role of Insogna CPA in Supporting Startup Growth
  It highlights how Insogna CPA helps founders stay compliant, claim credits like the R&D tax credit, structure their businesses for tax efficiency, and avoid IRS penalties. Making them a go-to tax advisor for startups across Austin and beyond.

You’ve launched your startup. You’ve got your pitch deck polished, your MVP built, and maybe even a little revenue trickling in. You’re bootstrapping your way through development, juggling contractors, and optimizing every marketing dollar. But here’s something most founders don’t realize until it’s too late:

Taxes can quietly undo a lot of your hard work.

And no, we’re not talking about a couple of missed receipts. We’re talking about thousands of dollars lost in missed deductions, misclassifications, and preventable penalties. It happens all the time.

At Insogna CPA, one of the most trusted Austin, Texas CPA firms, we’ve worked with hundreds of founders and small business owners who were doing everything right except on the tax side. Whether you’re bootstrapping, scaling, or somewhere in between, knowing the most common tax pitfalls can save your startup major money.

Let’s talk about seven tax mistakes startups make all the time and how to avoid them like a pro.

1. You’re Leaving Free Money on the Table (AKA Missing Deductions)

Startups spend money. Lots of it. From software to branding to that standing desk you finally ordered after three weeks of back pain. But are you actually tracking those expenses and writing them off?

If not, you’re giving free money to the IRS.

Most Commonly Missed Deductions:

• Home office expenses (a portion of rent, Wi-Fi, and utilities)
• Software subscriptions (like Slack, QuickBooks, Canva, Notion)
• Marketing and branding costs (ad campaigns, logo design, email platforms)
• Startup and legal fees (LLC registration, incorporation, state filings)
• Business meals, mileage, and travel 

And don’t forget contractor payments. If you’ve paid a freelancer more than $600, you need to issue a 1099 NEC and collect a W9 form or risk IRS penalties.

The Fix:

• Use QuickBooks Self-Employed to track your expenses
• Store receipts digitally (Expensify, Hubdoc, etc.)
• Open a separate business bank account 
• Work with a small business CPA in Austin who understands startup cash flow

The difference between “I think I’m doing okay” and “I’m claiming every dollar I can” is often worth thousands.

2. You’re Misclassifying Income and Expenses

Here’s a pro tip: not all money that comes into your startup is revenue. Not all expenses are deductible in the same way. And if you’re misclassifying things? That’s a quick path to either overpaying taxes or raising red flags with the IRS.

Common Mistakes Founders Make:

• Recording investor capital or loan proceeds as revenue
• Not differentiating personal and business expenses 
• Paying team members through Venmo without proper documentation
• Reporting contractor pay as employee wages (hello, audit risk)

Why This Matters:

Misclassifying revenue or expenses can inflate your income, mislead potential investors, and cost you when it’s time to file Form 1040 or Form 1120-S.

What We Do:

As your CPA in Austin, Texas, we clean up your books, categorize everything correctly, and train you or your bookkeeper to keep things clean going forward.

If you’ve searched “tax preparer near me” and ended up with a one-size-fits-all firm, it’s time to upgrade.

3. You Haven’t Claimed the R&D Tax Credit (Yes, It’s for Startups Too)

Here’s one that makes founders’ jaws drop: the Research & Development Tax Credit can apply to your startup even if you’re not building medical devices or patenting technology.

If you’re creating software, testing new features, improving internal processes, or hiring developers to troubleshoot technical problems, you probably qualify.

Activities That May Qualify:

• Building or improving software applications
• Developing or testing prototypes
• Running A/B tests or algorithmic experiments
• Enhancing backend infrastructure

Why It Matters:

The R&D tax credit can offset up to $250,000 in payroll taxes annually, and you don’t even need to be profitable.

What We Do:

Our team of taxation accountants will:

• Identify qualifying projects
• Compile supporting documentation
• Handle IRS filings and compliance
• Maximize the value of your R&D tax credit

Need a tax advisor in Austin who understands SaaS, hardware, and e-commerce innovation? That’s us.

4. Your Bookkeeping Is a Disaster (or Just Doesn’t Exist Yet)

We get it. You’re building product, selling, managing users, fixing bugs, and chasing funding. Bookkeeping probably isn’t on your top 10 list.

But if you’re not keeping clean books, you’re going to:

• Miss deductions
• Panic during tax season
• Lose credibility with investors or lenders

Signs You Need Help:

• You don’t know how much profit (or loss) you made last quarter
• Your bank balances don’t match your books
• You’re using Excel for everything and praying you’re close

The Fix:

• Switch to cloud-based software like QuickBooks Self-Employed 
• Reconcile your accounts monthly, not just in March
• Use an Austin accounting service to review and organize your financials

At Insogna CPA, we offer services accounting packages that include real-time support, cleanup, and training. We’ll help you stay audit-ready and investor-friendly.

5. You Picked the Wrong Business Structure

Your business entity whether you’re an LLC, S Corporation, or C Corporation determines how your startup is taxed. Choose wrong, and you could be paying thousands more in self-employment taxes or facing double taxation.

What Founders Get Wrong:

• Staying an LLC when an S Corp election would cut their tax bill
• Choosing a C Corp without understanding the implications of double taxation 
• Registering in a state without understanding franchise tax obligations

When to Reevaluate:

• You’re earning $50,000+ in net profit
• You’re bringing on W2 employees or scaling operations
• You’re planning to raise venture capital or issue equity

What We Do:

As your certified public accountant in Austin, we:

• Handle Form 2553 (S Corp election)
• File your Form 1120-S or Form 1065 
• Analyze compensation strategy to reduce self-employment tax 

Need a CPA near you who knows startup entity structuring? Let’s make your tax structure work for your growth, not against it.

6. You’re Ignoring Quarterly Tax Payments

Founders often make the mistake of treating taxes like a once-a-year event. But for the self-employed (and that’s you, if you’re drawing income outside a W2), the IRS expects quarterly payments via Form 1040-ES.

What Happens If You Skip:

• You get hit with underpayment penalties
• You scramble to pay a huge year-end tax bill
• Your cash flow takes a serious hit

What You Should Be Doing:

• Estimate your quarterly tax payments based on real data
• Use a self-employment tax calculator to adjust payments as income changes
• Automate reminders so nothing slips through the cracks

At Insogna CPA, we integrate directly with QuickBooks Self-Employed to forecast your taxes based on actual performance not guesses. We’ll keep you compliant and cashflow-stable all year long.

7. You’re Only Thinking About Taxes in April

Last-minute tax prep is like trying to cram for a final exam in a class you didn’t attend. It might work, but you’ll be stressed, inefficient, and probably not getting the best results.

Why Year-Round Planning Matters:

• You can time deductions and shift income for maximum savings
• You’ll avoid surprises at filing time
• You’ll be ready for audits, due diligence, or capital raises

What Year-Round Planning Looks Like:

• Regular check-ins with your Austin, TX accountant 
• Ongoing monitoring of cash flow, tax liability, and filing deadlines
• Strategic planning for growth, hiring, and expansion

We’re not just here in April. Our team includes enrolled agents, certified general accountants, and chartered public accountants who build tax strategies that grow with your business.

Why Startup Founders Trust Insogna CPA

We’re not your average “tax preparer near you” firm. We’re your proactive startup tax strategist, and we understand that you don’t have time to babysit your books.

What You Get:

• Real-time support from certified CPAs, chartered professional accountants, and enrolled agents 
• A team that knows Austin accounting and startup tax strategy inside and out
• Experience with platforms like QuickBooks Self-Employed, FreshBooks, and Wave 
• Clarity around cash flow, payroll, taxes, and compliance so you can focus on growth

From Austin to the IRS, we’ve got your back.

Contact Insogna CPA today to schedule your tax strategy session. Let’s keep more money in your startup and less in Uncle Sam’s wallet.
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Starting a business is expensive. You’re stretching every dollar, reinvesting into growth, and making strategic decisions daily. But here’s the kicker: if you’re not taking advantage of tax-saving opportunities, you’re literally handing free money to the IRS.

At Insogna CPA, a top-rated Austin, Texas CPA firm, we work with startup founders like you to maximize deductions, claim tax credits, and keep more cash in your business where it belongs. Let’s break down where most startups go wrong and how you can fix it.

The Startup Tax Problem: You’re Missing Out on Savings

Most startup founders don’t realize how much they’re overpaying in taxes simply because they don’t know what’s deductible.

Common Ways Startups Bleed Money on Taxes:

• Skipping deductions for home office, software, and marketing.
• Not claiming tax credits (like the R&D credit that refunds payroll taxes).
• Choosing the wrong business structure, leading to extra self-employment taxes.
• Not planning for quarterly tax payments, which results in IRS penalties.

Sound familiar? You’re not alone. The good news is, these mistakes are 100% fixable.

The Solution: How to Keep More of Your Hard-Earned Cash

1. Track Every Expense Like Your Business Depends on It (Because It Does)

If you’re not tracking expenses, you’re leaving tax deductions on the table. And no, waiting until April to figure it out isn’t a strategy, it’s a guaranteed way to overpay.

Here’s What You Can Deduct as a Startup:

• Business registration fees & legal costs (your LLC setup wasn’t free—write it off!).
• Home office expenses (yes, your Wi-Fi bill counts).
• Marketing, branding & website costs (ads, logos, even that fancy product shoot).
• Software & subscriptions (QuickBooks, Shopify, Slack—all deductible).

How to Stay on Top of It:
 ✔ Use QuickBooks Online to track every dollar.
 ✔ Separate business & personal finances (if you’re still using one account, fix that today).
 ✔ Save digital receipts using Expensify or Hubdoc—paper receipts are a nightmare.

How Insogna CPA Helps: We review your expenses, clean up your books, and make sure you’re claiming every deduction possible.

2. Claim the R&D Tax Credit (Even If You Think You Don’t Qualify)

Think the R&D Credit is just for big tech companies? Nope. If you’re developing software, testing new products, or improving processes, you might qualify for thousands in payroll tax refunds.

Eligible Activities Include:
 ✔ Software & app development (even if you don’t have a patent).
 ✔ Prototyping & product testing (A/B testing counts!).
 ✔ Process improvements that require experimentation.

Why This Matters: Startups can use the R&D Credit to offset payroll taxes, freeing up cash for growth.

How Insogna CPA Helps: We’ll determine if you qualify, handle the paperwork, and get you the refund you deserve.

3. Choose the Right Business Structure (Your Tax Bill Depends on It)

The entity structure you pick today affects how much you pay in taxes for years to come.

Things to Consider:
 ✔ Should you start as an LLC or S-Corp? (Hint: If you’re paying yourself, an S-Corp can save thousands on self-employment taxes.)
 ✔ Are you registering in the right state to avoid expensive franchise taxes?
 ✔ Do you need multi-state tax compliance if you’re selling nationwide?

How Insogna CPA Helps: We’ll set up your business structure the right way from day one, so you save money instead of scrambling later.

4. Plan for Quarterly Taxes (So the IRS Doesn’t Come for You)

If you’re self-employed or running a startup, the IRS expects you to pay quarterly estimated taxes. Skip them, and you’ll face penalties and surprise tax bills and no one wants that.

How to Stay Ahead:
 ✔ Calculate your estimated taxes based on actual income (not a guess).
 ✔ Set up automated payments so you never miss a deadline.
 ✔ Work with an Austin small business accountant (that’s us!) to avoid penalties.

How Insogna CPA Helps: We’ll calculate and adjust your payments so you’re paying just the right amount—no more, no less.

5. Work with a CPA Who Actually Gets Startups

Googling tax strategies will only get you so far. You need a CPA who understands startup finances and how to legally reduce your tax bill.

What a Startup CPA Does for You:
 ✔ Find deductions & credits you didn’t even know existed.
 ✔ Keep your books clean to avoid IRS issues.
 ✔ Build a tax strategy that helps your business scale without tax surprises.

Think of it this way: You wouldn’t launch a product without a marketing plan so why run a business without a tax strategy?

How Insogna CPA Helps: We go beyond tax prep, we help startups scale smarter by reducing their tax burden year-round.

The Real Cost of Ignoring Tax Savings? Overpaying by Thousands

Let’s break it down: If you miss $10,000 in deductions and your tax rate is 25%, that’s $2,500 extra you just handed to the IRS.

Multiply that over a few years, and you’ve wasted tens of thousands—money that could have been used to:

• Scale your business.
• Hire your first employees.
• Attend industry events to grow your network.

Why give the IRS more than you need to?

Let’s Make Sure You’re Keeping More of Your Startup’s Profits

At Insogna CPA, a leading Austin accounting firm, we specialize in helping startups maximize deductions, reduce taxable income, and stay compliant. Whether you’re an early-stage founder or scaling fast, we’ve got your back.

📞 Stop leaving money on the table—contact Insogna CPA today and let’s get your tax strategy working for you!

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Summary of What This Blog Covers:

• Explains When Rental Property Owners Should Hire a CPA
  This blog outlines five key indicators that it’s time to work with a certified public accountant, especially if you own multiple properties, are involved in a complex ownership structure, or manage short-term rentals like Airbnb or VRBO.
• Breaks Down Tax Complexities That CPAs Can Simplify
  From handling depreciation and tracking deductions to preparing rental-specific tax forms like Schedule E, Form 4562, and Form 1099-NEC, this blog shows how a CPA can reduce tax errors and improve IRS compliance.
• Highlights the Risks of DIY Tax Filing for Property Investors
  The blog shares common issues real estate investors face, such as misreporting rental income, overlooking passive activity loss rules, and missing FBAR filings for foreign holdings. All areas a CPA helps navigate with confidence.
• Reinforces the Value of Working with an Experienced Real Estate CPA Firm
  It emphasizes how partnering with Insogna CPA—a leading Austin-based firm with expertise in rental property taxation, QuickBooks Self-Employed integration, and multi-entity structuring—saves time, reduces stress, and maximizes tax savings.

So you’ve taken the plunge into real estate investing. Maybe you’ve got a condo in East Austin you’re renting out, or you’ve expanded to several properties across Texas. Wherever you are on your investment journey, rental real estate can be one of the best paths to long-term wealth. But when it comes to taxes—well, it’s not quite as passive as the income.

From tax preparation services to tracking expenses and reporting depreciation, rental property taxes can get complex quickly. That’s especially true when you manage multiple units, operate in different states, or use platforms like Airbnb and VRBO.

If you’re still trying to figure out if you need a professional to help with your taxes, here are five clear signs that it’s time to call in a certified public accountant (CPA) especially one with experience in real estate. At Insogna CPA, we’ve helped investors throughout Austin, Round Rock, and South Austin cut through the noise, capture every deduction, and stay IRS-compliant year-round.

Let’s dig in.

1. You Own Multiple Rental Properties and It’s Getting Hard to Keep Track

Managing the income and expenses for one property might be relatively straightforward. But add a second or third unit, and suddenly you’re juggling a spreadsheet jungle.

Each property comes with its own:

• Mortgage interest

   

• Property taxes

   

• Maintenance and repairs

   

• Depreciation schedules

   

• Local filing requirements if you own across different states

Now layer in short-term rentals through platforms like Airbnb, and you’ve got a whole other set of rules, forms (like Form 1099-K), and potential self-employment tax considerations.

What a CPA Does:

• Tracks income and expenses property by property

   

• Helps you establish accurate books using tools like QuickBooks Self-Employed

   

• Ensures you’re following rules around W9 tax form collection and 1099 NEC form filings for contractors and property managers

This isn’t just about tax prep. It’s about putting systems in place to manage your investments like a business. That’s what we do at Insogna CPA, your trusted Austin tax accountant with deep rental property expertise.

2. You’re in a Complex Ownership Structure (LLC, Partnership, Co-Owner, etc.)

If you hold your property jointly with a friend, spouse, or business partner or through an entity like an LLC or S Corporation, your tax situation just moved to the advanced level.

Ownership Scenarios That Complicate Filing:

• Partnerships requiring Form 1065 and K-1s

   

• S-Corps needing Form 2553 election and Form 1120S

   

• Co-owners splitting income and expenses unevenly

   

• LLCs registered in one state owning property in another (hello, foreign LLC filings)

Why It Matters:

When you’re dealing with pass-through income, income allocation, or multiple entities, the chances of missing deductions or filing incorrectly go up fast.

What We Do:

• Determine the best ownership structure based on your goals
• Prepare and file complex returns including Schedule E, Form 1065, Form 1120-S

   

• Coordinate with all stakeholders to ensure clear documentation and accurate filings

If you’re searching for a CPA firm in Austin, Texas that knows how to handle multi-entity real estate setups, we’re already speaking your language.

3. You’re Not Sure What You Can Deduct and You’re Leaving Money on the Table

Let’s face it. Deductions are one of the biggest tax perks of owning rental property. But knowing what you can write off, and how to do it properly, is a whole different story.

Common Deduction Questions We Hear:

• “Is that new roof a repair or an improvement?”
• “Can I deduct travel expenses when I visit my rental out of state?”
• “What about the property management software I subscribe to?”

Some Deductions You Might Be Missing:

• Property taxes and mortgage interest
• Repairs and maintenance
• Utilities (if you pay them)
• Advertising and tenant screening costs
• Business-related travel and mileage
• Home office expenses if you manage your rentals from home
• Depreciation of the structure and major improvements

Many investors also forget to issue Form 1099 NEC to contractors or they don’t collect a W9 form from vendors. Both are required for IRS compliance.

Our CPAs and tax preparers in Austin help you keep track of every deductible expense while staying compliant with IRS guidelines. We’ll even run projections so you can plan around quarterly payments using a self employment tax calculator, especially if you’re a self-employed landlord.

4. Depreciation Makes Your Head Spin (and You’re Not Alone)

Depreciation is hands-down one of the most valuable tax tools available to rental property owners. It’s what allows you to reduce your taxable rental income without actually spending money.

But calculating it? That’s another story.

What You Need to Know:

• Residential real estate is depreciated over 5 years

   

• Only the structure not the land is depreciable
• Capital improvements must be depreciated separately
• If you sell, you’ll face depreciation recapture, which could surprise you at tax time

What We Do:

• Calculate and track depreciation accurately

   

• File Form 4562 with your return and carry it over year after year
• Help you plan around depreciation when buying, improving, or selling properties
• Structure your investments for long-term tax deferral, including strategies like the 1031 exchange

   

This is where your generic tax preparation software or “tax pro near you” can fall short. At Insogna CPA, we dig into the details and give you the clarity you need.

5. You’re Worried About Compliance or You’ve Already Received an IRS Letter

The IRS doesn’t mess around with real estate income. And with the rise of short-term rentals and digital payment platforms, they’re keeping a closer eye than ever on unreported income and incorrect deductions.

IRS Issues Rental Owners Commonly Face:

• Misclassifying short-term rental income

   

• Failing to report income reported on Form 1099-K

   

• Missing 1099 NEC filings for contractors
• Misunderstanding passive activity loss limitations

   

• Not reporting foreign accounts for international property investors (requiring FBAR filing)

How We Keep You Compliant:

• Proactively issue and track 1099 forms

   

• File Schedule E correctly for long-term rentals or Schedule C for short-term rentals when applicable
• Represent you in front of the IRS if you’ve already received a letter or notice
• Provide support for international tax issues, including FBAR and non-resident income reporting

   

Our team of enrolled agents and tax accountants work hard to make sure you’re not just filing taxes, you’re protecting your investment.

Tax Forms and Tools We’ll Handle for You

Here’s a quick overview of what you can expect to use and how we manage it for you:

• Schedule E (Form 1040) – Report income and expenses for each property
• Form 1065 – For partnership-owned rental properties
• Form 1120-S – For S Corporation-owned rental businesses
• Form 1040-ES – Estimated tax payments
• Form 4562 – Depreciation
• Form 1099-NEC / 1099-K / 1099-C / 1099-R – Contractor and payment reporting
• Form W9 – To collect contractor information
• FBAR – For foreign rental bank accounts or property holdings

We streamline every form and filing deadline so you’re never caught off guard.

Why Work With Insogna CPA for Rental Property Tax Strategy

We’re not your average “tax preparer nearby” firm. We’re a team of experienced CPAs in Austin, Texas, deeply focused on helping real estate investors, rental property owners, and small businesses maximize their tax savings.

What Sets Us Apart:

• Certified CPAs, chartered public accountants, and enrolled agents on staff
• Deep experience in services accounting and multi-property financial management

   

• Trusted by landlords, flippers, and Airbnb hosts throughout Austin and across state lines
• Fully integrated with systems like QuickBooks Self-Employed, WaveApp, and FreshBooks

   

Whether you own one unit or manage an entire portfolio, Insogna CPA delivers clarity, confidence, and peace of mind.

Let’s Take the Stress Out of Rental Property Taxes

If rental property taxes are keeping you up at night or if you’re wondering whether you’re missing deductions, overpaying taxes, or inviting an IRS audit, it’s time to stop guessing.

Contact Insogna CPA today to schedule your rental tax strategy session. Whether you’re looking for a small business CPA in Austin, need help with self-employment tax planning, or want a partner to handle multi-state rental compliance, we’re here to help.

Because real estate should be rewarding, not risky. Let’s make your next tax season your best one yet.

Summary of What This Blog Covers:

• Covers Strategic Tax-Saving Tips Specifically for S-Corporation Owners
  This blog walks S-Corp owners through essential tax strategies. From setting a reasonable salary to maximizing retirement contributions and leveraging fringe benefits, all designed to minimize tax liability and stay in compliance with IRS rules.
• Explains Compliance Essentials and Common Pitfalls to Avoid
  Readers learn the importance of separating personal and business finances, staying compliant in multiple states, and properly deducting expenses like health insurance and business travel. All areas that, if mismanaged, could trigger audits or penalties.
• Breaks Down Advanced S-Corp Planning Opportunities
  The blog highlights how to make the most of deductions like the Qualified Business Income (QBI) deduction, when to reconsider your S-Corp status, and how to handle tax forms like Form 2553, Form 1120-S, and Form 941 with confidence.
• Reinforces the Value of Working with a Specialized CPA
  It emphasizes why S-Corp owners benefit from working with a tax professional, specifically a CPA or enrolled agent experienced in S-Corp strategy, multi-state filings, and platforms like QuickBooks Self-Employed rather than relying on DIY tools or generic tax prep services.

Congratulations on taking the leap and electing S Corporation status. That move alone signals that you’re not just building a business, you’re building it smarter. But with that decision comes a new set of tax responsibilities (and opportunities) that can either save you a lot of money or cost you if you get them wrong.

We’ve seen both sides of that equation here at Insogna CPA, one of the top-rated Austin, Texas CPA firms supporting business owners in Austin, South Austin, Round Rock, and beyond. Whether you’re operating solo or running a fast-scaling team, knowing how to navigate S-Corp tax planning is a game-changer.

Here’s our expert take on the 10 tax tips every S-Corporation owner should know to stay compliant, save big, and stay ahead of the IRS curve.

1. Set a Reasonable Salary: The IRS Is Watching

One of the biggest perks of an S-Corp is reducing self-employment tax by paying yourself a reasonable salary and taking the rest of your income as distributions. But here’s the catch: you can’t just pay yourself $10K and take $200K in distributions.

Why It Matters:

• The IRS expects S-Corp owners who perform services for the business to receive W-2 wages.
• Too-low salaries can trigger audits and reclassification of distributions, along with back taxes and penalties.

What We Do:

• Help you determine a reasonable salary using industry benchmarks and your actual duties.
• Handle payroll setup in tools like Intuit QuickBooks, Gusto, or ADP.
• File your Form 941 and W2 forms quarterly and annually.

This is one area where you really need a certified public accountant near you who knows S-Corps inside and out.

2. Take Full Advantage of Retirement Contributions

As an S-Corp owner, you can use retirement accounts as both a tax-saving and wealth-building strategy. Options like a Solo 401(k) or SEP IRA allow you to make contributions as both the employee and the employer.

Tax Benefits:

• Employer contributions are deductible at the corporate level.
• Employee contributions reduce your taxable income on Form 1040.
• Tax-deferred growth means long-term savings for your future.

At Insogna CPA, our taxation accountants help you compare plans and optimize contributions based on your income level and business goals.

3. Keep Your Books Clean: Separate Business and Personal Finances

Mixing business and personal expenses is a no-no. Not just for tax purposes but for legal liability.

Here’s Why It Matters:

• You could lose your limited liability protection (piercing the corporate veil).
• Audit risk increases when financials aren’t clean.
• You could miss out on valuable deductions due to misclassified or untracked expenses.

Pro Tip:

Use tools like QuickBooks Self-Employed, ZohoBooks, or WaveApp to keep business income and expenses organized. If you’re looking for a small business CPA in Austin, we offer customized bookkeeping services near you with real-time QuickBooks syncing.

4. Maximize the Qualified Business Income (QBI) Deduction

One of the biggest gifts in the current tax code for S-Corp owners is the Qualified Business Income (QBI) deduction, also known as the Section 199A deduction.

What You Need to Know:

• You may be eligible to deduct up to 20% of your S-Corp income on your personal tax return.
• Eligibility depends on your income level, the nature of your business, and how your salary vs. distributions are structured.

We regularly run projections to help you optimize your compensation and keep your income within the QBI threshold. This is where having a tax advisor in Austin on your side makes all the difference.

5. Understand Multi-State Compliance If You Operate Beyond Texas

If you’ve hired remote workers, sell across state lines, or offer services in multiple jurisdictions, you may need to comply with multi-state filing requirements.

Common Requirements Include:

• Registering as a foreign LLC in states where you operate.
• Filing state income tax, sales tax, or franchise tax.
• Understanding each state’s nexus thresholds and composite filing rules.

How We Help:

We track your nexus exposure, file your registrations, and help you manage multi-state tax compliance with ease so you can focus on growing your business, not managing state-by-state filings.

If you’ve searched for a tax consultant or CPA office near you to help sort this out, we’ve got you covered.

6. Deduct Health Insurance Premiums: If You Do It Correctly

S-Corp owners are eligible to deduct health insurance premiums for themselves and their families but only if they’re reported properly.

Rules to Remember:

• Health insurance must be reported on your W2 form.
• The premium is deductible on your individual tax return.
• Failure to follow IRS procedures could disqualify the deduction.

Our tax preparers at Insogna CPA make sure your payroll and reporting systems are set up to track this correctly.

7. Don’t Forget About Business Deductions

Every business expense you miss is money you could have saved. S-Corps are eligible for a wide range of deductions that reduce taxable income, but only if you track them properly.

Common Deductions Include:

• Advertising and marketing
• Travel and lodging
• Business software subscriptions
• Legal and professional services
• Contractor payments via 1099 NEC

We help you categorize and document everything, using software integrations to simplify compliance. It’s a key part of our accounting services for small business clients.

8. Reassess Your S-Corp Election Periodically

Just because you’ve elected S-Corp status doesn’t mean it’ll always be your best structure. As your income grows or your ownership evolves, it may make more sense to consider C-Corp status or revert to LLC taxation.

When to Reevaluate:

• Revenue exceeds $500,000+
• You plan to raise investor capital
• You’re looking to retain earnings within the business

We hold year-end strategy sessions with our Austin small business accounting clients to review your financials and structure, ensuring your entity still supports your goals.

9. Use Fringe Benefits Wisely

Fringe benefits are perks that can enhance compensation while offering potential tax benefits if structured properly.

Examples Include:

• Company cars
• Educational assistance
• Childcare benefits
• Group term life insurance

Some fringe benefits are deductible at the business level and excluded from income; others must be reported as taxable income.

We’ll help you implement and track fringe benefits correctly, ensuring IRS compliance and optimizing your S Corporation tax strategy.

10. Work with a CPA Who Knows S-Corps Inside and Out

Let’s be honest: this is not DIY territory. From Form 2553 to Form 1120-S, from tracking self-employment tax savings to handling multi-state filings, you need a tax pro who speaks fluent S-Corp.

At Insogna CPA, We Offer:

• Certified tax accountants near you who specialize in S-Corp structures
• In-house enrolled agents and licensed CPAs
• Support for everything from FBAR filing to 1099-K reconciliation

We’re more than a tax preparer. We’re your long-term tax advisor in Austin.

Why S-Corp Owners Across Texas Choose Insogna CPA

We’re not just any CPA firm in Austin, Texas. We’re known for helping growth-minded business owners like you:

• Minimize tax liability legally
• Avoid IRS audits and penalties
• Set up and manage S-Corp payroll
• Comply with multi-state tax law
• Discover new opportunities with tax planning services

From franchise tax filings to QuickBooks Self-Employed integration, we handle it all with strategy, precision, and heart.

Let’s Build Your Best Tax Year Yet

Running an S-Corp is more than a tax election. It’s a commitment to smarter business. With the right guidance, you’ll avoid costly mistakes and unlock real savings.

Contact Insogna CPA today to schedule your tax strategy session. Whether you’re searching for a certified CPA near you, need tax help for self-employed businesses, or want a partner for multi-state compliance, we’re ready to help.

Because your business deserves more than a generic tax return. It deserves a custom strategy built for growth.

Running a business in multiple states is an exciting milestone—it means your business is growing and reaching new markets. But let’s be honest, managing taxes across state lines? That’s a whole different story. Each state has its own rules, deadlines, and tax-saving opportunities, which can quickly feel overwhelming.

If you’re feeling stuck, you’re not alone. At Insogna CPA, we help businesses like yours simplify multi-state tax compliance and unlock tax-saving strategies you may not even know exist. As a trusted Austin, Texas CPA, we specialize in breaking down the complexity so you can focus on what you do best: growing your business.

Here’s why working with a CPA who understands multi-state taxes is a must for your business.

1. Every State Has Its Own Tax Rules

No two states handle taxes the same way. Whether it’s franchise taxes, sales taxes, or income taxes, each state comes with its own regulations and deadlines. Trying to stay compliant without expert guidance can lead to missed filings and costly penalties.

Here’s Why You Need a CPA:

• We’ll track the specific tax requirements for every state where your business operates.
• We’ll stay ahead of filing deadlines, so you don’t have to stress about missing a due date.
• We’ll handle the paperwork to keep your business in good standing across state lines.

How This Helps You: You’ll avoid penalties, late fees, and the frustration of managing inconsistent tax laws.

2. Composite vs. Pass-Through Tax Rules Can Get Complicated

If your business is structured as an LLC, S-Corp, or partnership, understanding whether to use composite tax filings or pass-through taxation can be tricky. Choosing the wrong approach could mean overpaying on your taxes.

How We Make It Simple:

• We evaluate your business structure to determine the best tax filing strategy for each state.
• We help you understand the tax implications of composite filings vs. pass-through income.
• We handle the filings to ensure you’re compliant and saving money.

Why It Matters: A CPA in Austin can ensure you’re using the best strategy for your business, helping you keep more of your hard-earned money.

3. Staying Compliant Prevents Costly Penalties

Missing a filing deadline or failing to register in a state where your business operates can lead to hefty fines—and even legal trouble. Consistent compliance is critical for protecting your business.

How We Keep You Compliant:

• We track all your filing deadlines for sales tax, franchise tax, and income tax.
• We help register your business as a foreign LLC in states where you operate.
• We provide ongoing support to ensure you’re meeting all multi-state requirements.

What This Means for You: Peace of mind knowing your business is fully compliant and avoiding unnecessary risks.

4. A CPA Uncovers Tax-Saving Opportunities

Did you know many states offer tax credits, exemptions, or deductions specific to certain industries? Without a CPA, you could be leaving money on the table.

How We Save You Money:

• We identify state-specific tax credits and incentives that your business qualifies for.
• We review your nexus in each state to ensure you’re only paying taxes where required.
• We optimize your tax strategy to lower your overall tax burden.

Why It Matters: Saving money on taxes means more resources to reinvest in your business.

5. You Get Proactive, Year-Round Support

Taxes aren’t just a once-a-year task for multi-state businesses. They require constant attention to avoid surprises and stay ahead of deadlines. That’s where a CPA’s year-round guidance comes in.

How We Help You Stay Ahead:

• We provide monthly or quarterly check-ins to address upcoming deadlines.
• We offer strategic advice for expansion, restructuring, or growth opportunities.
• We keep you updated on changing state tax laws that could impact your business.

Why You’ll Love This: With ongoing support, you’ll always feel in control and confident in your tax strategy.

Why Work with Insogna CPA?

At Insogna CPA, we’re not just here to file your taxes—we’re here to be your long-term partner. Businesses across Austin, South Austin, and Round Rock TX trust us to handle the complexities of multi-state taxes.

Here’s what sets us apart:

• We Simplify the Process: From compliance to strategy, we make taxes stress-free.
• We Tailor Solutions to You: Every business is unique, and we create a plan that works for you.
• We’re Proactive: We help you plan ahead and avoid problems before they arise.

Let’s Simplify Multi-State Taxes Together

Managing taxes across multiple states doesn’t have to be stressful. Let Insogna CPA, one of the top CPA firms in Austin Texas, handle the complexity so you can focus on growing your business.

📞 Ready to get started? Contact Insogna CPA today for a consultation and see how we can help your multi-state business thrive. Let’s make taxes easy!