IRS Regulation

So, you’re crushing it in your career or business, making solid money, and now you’re wondering: How do I keep more of what I earn instead of handing it over to the IRS?

You’ve probably heard that real estate investing is the golden ticket for tax savings and don’t get me wrong, it’s great. But it’s not the only play in the game. In fact, if real estate is your only tax strategy, you might be leaving serious money on the table.

That’s where we come in. At Insogna CPA, one of the top CPA firms in Austin, Texas, we help high-income earners like you leverage tax strategies beyond real estate so you can save more, invest smarter, and grow your wealth without unnecessary tax burdens. Let’s break it down.

Why Real Estate Alone Won’t Cut It

Real estate investing is solid for tax planning, but it has its limits. Here’s why relying on it alone might not be your best move:

1. Passive Loss Limitations

• Unless you’re a real estate professional, rental losses can’t offset your W-2 or business income, they can only reduce passive income.
• Translation: If you don’t have other passive income, you may not see immediate tax benefits.

2. Depreciation Recapture

• Depreciation helps you lower taxable income now, but when you sell? The IRS comes knocking. Depreciation recapture means you could owe taxes when cashing out.

3. Liquidity Issues

• Real estate locks up your cash—you can’t just hit “sell” like you would with stocks.
• Need access to capital fast? That rental property might not help.

The Solution? Diversify. Let’s explore some high-impact, IRS-approved tax strategies that go beyond real estate and work in your favor.

Alternative Tax Strategies for High-Income Earners

1. Conservation Easements: Big Deductions, Bigger Impact

Want to support land conservation and slash your tax bill at the same time? A conservation easement lets you donate land rights (or buy into a land preservation fund) for a substantial charitable deduction.

How This Helps You Save:
 ✔ Deduct up to 50% of your adjusted gross income (AGI).
 ✔ Reduce both federal and state taxes.
 ✔ Feel good about supporting the environment while keeping more cash.

Heads Up: The IRS monitors conservation easements closely, so structure it right. A tax advisor in Austin can ensure you’re maximizing benefits while staying compliant.

2. Oil & Gas Investments: Hidden Tax Goldmine

Oil & gas investing isn’t just for energy moguls—it’s actually one of the best-kept secrets for tax savings.

Why It’s a Game-Changer:
 ✔ 85% of your investment can be deducted in year one (thanks to Intangible Drilling Costs).
 ✔ Depletion allowances let you continue writing off extraction-based losses.
 ✔ Unlike real estate, some oil & gas investments can offset W-2 or business income, not just passive income.

High risk, high reward. Not for everyone, but when structured properly, this strategy offers some of the best tax incentives out there. Talk to an Austin small business accountant to see if this fits your investment style.

3. Stock Options & Equity Compensation: Don’t Let Taxes Eat Your Gains

Got stock options, RSUs, or ISOs? Without a plan, you could be staring down a massive tax bill when you cash out.

Smart Tax Moves for Equity Holders:
 ✔ Qualified Small Business Stock (QSBS): Sell your startup stock tax-free under the right conditions.
 ✔ ISO & AMT Planning: Exercise stock options at the right time to avoid the Alternative Minimum Tax (AMT) trap.
 ✔ Donate Appreciated Stock: Instead of selling and paying taxes, donate stock to charity for a double tax benefit.

The Insogna CPA Difference: Stock compensation is tricky. A CPA in Austin, Texas can help you time exercises, sales, and charitable giving for maximum savings.

How Insogna CPA Helps You Implement These Strategies

At Insogna CPA, we don’t just prepare your taxes—we build strategic tax plans that work for high-income earners like you.

• Custom Tax Strategy: We analyze your income, investments, and tax exposure to create a tailored tax plan.
• Multi-Strategy Tax Optimization: We help integrate real estate, conservation easements, oil & gas, stock strategies, and more.
• Ongoing Tax Planning & Compliance: We keep you IRS-compliant while maximizing tax efficiency year-round.

Final Thoughts: The Smartest Investors Diversify Their Tax Strategy

If you’re making six or seven figures, real estate is only one part of the tax-saving puzzle. By incorporating alternative investment strategies, you can protect your wealth, reduce taxes, and build long-term financial success.

Let’s Make Your Money Work Smarter

Sick of handing over too much to the IRS? We’ve got solutions. Let’s create a personalized tax plan that helps you grow your wealth while legally lowering your tax bill...

Schedule a consultation with Insogna CPA, the go-to Austin TX accountant for high-income earners. Let’s get you saving today!

So, you’ve packed your bags, set up shop in a new state, and are ready for a fresh start. But before you get too cozy, let’s talk business taxes. Because moving isn’t just about updating your mailing address.

A lot of entrepreneurs make the mistake of assuming their business will just “follow them” when they move. Spoiler alert: it doesn’t work that way. Failing to update your LLC registration, ignoring multi-state tax obligations, or assuming your old state will just “let you go” can lead to double taxation, surprise penalties, and unnecessary fees.

Not exactly what you had in mind when you moved, huh? Don’t worry, we’ve got your back. At Insogna CPA, a top Austin, Texas CPA, we help business owners navigate state tax laws, stay compliant, and keep more of their hard-earned money. Let’s break it down.

First Things First: Do You Have Tax Nexus in Multiple States?

Before we even get into moving your LLC, let’s talk about tax nexus because this is what determines where you owe business taxes.

What is Tax Nexus?

Nexus is just a fancy word for “connection”—if your business has nexus in a state, you may be required to register, file, and pay taxes there. You might have nexus in multiple states if:

 ✔ You operate a physical office, store, or warehouse in a state.
 ✔ You hire employees or contractors in a state.
 ✔ You store inventory in a fulfillment center (Amazon FBA, for example).
 ✔ You sell products in a state and hit the economic nexus threshold (like $100,000 in sales).

Why This Matters: If you ignore tax nexus, you could be hit with back taxes, penalties, or compliance issues down the road. The best move? Get ahead of it now with an experienced Austin tax accountant who can review your business’s tax obligations.

What Happens If You Move But Keep Your LLC in Another State?

Let’s say you formed an LLC in California, but now you’ve moved to Texas (hello, zero state income tax!). You might be tempted to leave your LLC in California and just run your business from Texas.

Here’s why that could be a problem:

• Your old state may still require you to file business taxes
• Your new state might require you to register as a foreign LLC (translation: more fees).
• If you don’t properly update your registration, you could end up paying annual fees and taxes in both states.

What to Do Instead: Talk to a CPA in Austin, Texas who can help you decide whether to keep, transfer, or dissolve your LLC in the most tax-efficient way possible.

Moving? Here’s How Your Business Taxes Might Change

When you relocate, your tax filing requirements don’t just automatically update—they change based on state rules. Here’s what you need to know:

1. Do You Need to Register Your Business in the New State?

If you’ve moved but still run your business under an LLC from your old state, you might need to:

• Register as a Foreign LLC in your new state.
• Move (Domesticate) Your LLC to your new state (not all states allow this).
• Dissolve your old LLC and start fresh in your new state.

Tip: Every state has different rules. Consult with a tax advisor in Austin to figure out the best approach.

2. Do You Owe Taxes in Two States Now?

If your business still earns income from your old state, you may need to file taxes in both.

Example:

• You moved from New York to Texas, but your business still generates revenue from New York clients.
• New York may still require business tax filings, even though Texas doesn’t have state income tax.

Fix It: Work with an Austin accounting firm to determine if multi-state tax filings apply to you and how to avoid double taxation.

3. What About Sales Tax?

If you sell products and move your inventory to another state, your sales tax obligations could change.

Mistake to Avoid: Forgetting to update sales tax registrations in states where you now have inventory or economic nexus.

Solution: Let a small business CPA in Austin review your sales tax compliance so you don’t collect the wrong amount or worse, fail to collect it at all.

How to Move Your LLC to a New State (Without the Mess)

If you’ve decided to officially move your LLC, here’s the right way to do it:

Step 1: Choose How to Move Your Business

There are 3 main ways to move an LLC to a new state:
 1️. Register as a Foreign LLC – Keep your current LLC but legally operate in your new state.
 2️. Domesticate Your LLC – Transfer your LLC to the new state (if allowed).
 3️. Dissolve & Re-Form Your LLC – Close your old LLC and start fresh in your new state.

Tip: The right option depends on your business model, tax situation, and state laws—a CPA firm in Austin, Texas can help you choose wisely.

Step 2: Update Business Licenses & Tax Registrations

• Apply for a new state tax ID (if required).
• Update your business licenses, sales tax permits, and payroll registrations.

Step 3: Notify the IRS & Financial Institutions

• Update your business address with the IRS and state tax agencies.
• Update bank accounts, payment processors, and merchant accounts (PayPal, Stripe, Shopify, etc.).

Why It Matters: If your business address doesn’t match IRS records, it can delay tax refunds or cause compliance issues.

Final Thoughts: Don’t Let Multi-State Tax Compliance Become a Nightmare

Relocating is exciting—but ignoring state tax laws can lead to double taxation, IRS penalties, and unnecessary business fees.

At Insogna CPA, we help entrepreneurs navigate LLC relocations, tax nexus rules, and multi-state tax compliance so they can focus on running their businesses—not dealing with tax nightmares..

If you’ve recently moved states, let’s make sure your business taxes are in order! Schedule a tax strategy session with Insogna CPA, the go-to Austin small business accountant, today! 🚀

Hey there, startup founder! Let’s talk about something that’s probably been on your mind: tax compliance. We get it, it’s not the most exciting part of running a business, but ignoring it can quickly become overwhelming. Multi-state registrations, complicated nexus rules, and missed tax credits? It’s a lot, especially when you’re busy trying to grow your business.

Here’s the good news: tax compliance doesn’t have to be a headache. With the right plan in place and the right support, you can take control of the process, avoid penalties, and even save money. Let’s break it down.

Why Is Tax Compliance So Overwhelming?

If you’re feeling lost, you’re not alone. Many startups face the same challenges:

1. Multi-State Tax Rules: Expanding into new markets or selling in multiple states often triggers tax obligations you didn’t even know existed.
2. Nexus Confusion: Did you know hiring a remote employee or using an out-of-state warehouse can require you to register and file taxes in that state?
3. Missed Tax Savings: Valuable opportunities like the R&D Tax Credit or state incentives often go unnoticed.
4. Disorganized Books: Without clear records, it’s hard to track income, expenses, and deductions, leading to missed deadlines and costly mistakes.

Sound familiar? Don’t worry—you’re not alone, and there’s a way to simplify all of this.

How to Simplify Your Startup’s Tax Compliance

Here’s a step-by-step guide to help you get ahead of tax compliance without feeling overwhelmed:

1. Understand Where You Have Nexus

Nexus is a fancy term for “connection.” If your startup has a connection to a state—like hiring a remote employee, storing inventory, or selling products there—you’re likely required to register and pay taxes in that state.

How to Make It Easy:

• Start by reviewing your operations: Where are your employees? Where are your customers?
• Partner with an Austin, Texas CPA to analyze your business and make sure you’re registered where you need to be.

2. Manage Multi-State Tax Filings

If your business is operating in multiple states, you might need to file tax returns in each one. Each state has its own deadlines and rules, which can be hard to keep up with.

How to Make It Easy:

• Work with an Austin tax accountant who knows the ins and outs of state tax filings. They’ll handle the details so you can focus on running your business.

3. Don’t Miss Out on Tax Credits and Deductions

Many startups leave money on the table by not claiming tax credits or deductions they qualify for. For example:

• The R&D Tax Credit rewards you for developing new products, processes, or software.
• Some states offer tax breaks for hiring employees or making capital investments.

How to Make It Easy:

• A tax advisor in Austin can help you identify every credit and deduction your business is eligible for, putting more money back in your pocket.

4. Plan for Quarterly Tax Payments

One common mistake startups make is forgetting about quarterly estimated taxes. If you’re not making these payments, you could face penalties and unexpected bills come tax season.

How to Make It Easy:

• Let an Austin small business accountant calculate your quarterly tax payments and set up a system to stay on track.

5. Keep Your Books in Order

Let’s face it—disorganized records are a recipe for stress. Without accurate income and expense tracking, it’s easy to miss deadlines or deductions.

How to Make It Easy:

• Use accounting software to track your finances year-round.
• Better yet, let an Austin accounting service handle your bookkeeping so you never have to worry about missing a detail.

Why Work with Insogna CPA?

Here’s the thing: tax compliance doesn’t have to take up all your time or keep you awake at night. At Insogna CPA, we specialize in helping startups like yours simplify tax compliance and focus on growth.

Here’s how we help:

• Nexus Analysis: We’ll determine where your business needs to register and file taxes.
• Multi-State Filing Management: We’ll handle all the state-specific filings so you don’t have to.
• Tax Savings: From credits to deductions, we’ll make sure you’re taking advantage of every opportunity.
• Year-Round Support: We don’t just show up at tax season—we’re here to guide you every step of the way.

Let’s Take the Stress Out of Tax Compliance

You’ve worked hard to grow your startup, and tax compliance shouldn’t hold you back. With expert guidance from one of the top CPA firms in Austin, Texas, you can simplify your taxes, avoid penalties, and uncover savings you didn’t even know were possible.

Summary of What This Blog Covers:

• Explains IRS Classification for Short-Term Rentals (Schedule C vs. Schedule E)
  Breaks down how the IRS determines whether your short-term rental activity qualifies as a business (Schedule C) or a passive investment (Schedule E), based on services offered, guest stay duration, and your level of involvement in operations.
  
  
• Clarifies Tax Implications of Each Classification
  Highlights how classification impacts self-employment tax obligations, allowable deductions, required IRS forms (like Form 1099 NEC, Form 1040, and Schedule K-1), and whether you need to make quarterly estimated payments.
  
  
• Provides Real-World Scenarios and Tools for Compliance
  Offers real examples comparing different property setups, and recommends accounting software like QuickBooks Self-Employed, WaveApps, and ZohoBooks to track expenses, stay organized, and support your classification.
  
  
• Emphasizes the Importance of Working with a Tax Professional
  Stresses how a CPA in Austin, Texas or a certified tax advisor near you can help ensure proper filing, optimize deductions, assist with FBAR and 1031 exchange planning, and simplify the complexities of short-term rental taxation.

Let’s get real for a minute. You’ve got a great short-term rental property (or a few), and business is booming. Maybe it’s a cozy bungalow in East Austin, a chic downtown condo on Airbnb, or a family-friendly Hill Country retreat that books out six months in advance. Guests love it, your reviews are glowing, and income is steady. Life is good until tax season hits and the IRS comes knocking with a deceptively simple question:
 Is this a business or an investment?

That single question changes everything. It determines how much tax you owe, which deductions you can take, whether you need to pay self-employment tax, and how you report that income.

As your trusted Austin tax advisor, we’re here to help you make sense of it all. No jargon, no guesswork, just straight-up clarity.

Why IRS Classification of Your Rental Property Matters

If you’ve ever filed Schedule C or Schedule E, you know that those aren’t just forms. They’re signposts for how the IRS views your activity. The distinction matters for three reasons:

1. Self-employment tax liability
   
   
2. Deduction eligibility
   
   
3. Audit risk and compliance
   
   

Misclassifying your rental could mean overpaying taxes or raising a red flag with the IRS.

Two Primary Classifications: Schedule C vs. Schedule E

Let’s walk through both.

Schedule C: Your Rental Is a Business

If you’re treating your property like a hospitality business—providing concierge services, coordinating bookings, managing guest communication, and offering more than just a place to sleep—your rental likely falls under Schedule C.

What the IRS Looks At:

• You offer substantial services (e.g., cleaning between stays, stocked kitchens, laundry, guest check-ins).
  
  
• The average stay is seven days or fewer.
  
  
• You’re actively managing the rental or using contracted services.
  
  

Tax Implications:

• Income is reported on Schedule C of your Form 1040.
  
  
• You’re responsible for self-employment tax (15.3% on top of income tax).
  
  
• You may need to file quarterly estimated taxes using a self-employment tax calculator or with guidance from your tax preparer.
  
  
• You can deduct a wider range of business expenses, including:
  
  
  • Marketing and advertising
    
    
  • Utilities
    
    
  • Repairs and maintenance
    
    
  • Property management software (e.g., QuickBooks Self-Employed)
    
    
  • Cleaning and laundry services
    
    
  • Airbnb and Vrbo fees
    
    
  • Travel expenses (if incurred for managing the rental)
    
    

If you’re running multiple units or working full-time on your rental business, the IRS will almost certainly expect you to file under Schedule C.

Schedule E: Your Rental Is a Passive Investment

If your rental approach is more hands-off, the IRS likely sees your property as an investment and your income is considered passive.

You’re probably Schedule E if:

• You lease to long-term tenants or vacation renters with stays longer than 7 days.
  
  
• You provide no significant services. Only basic upkeep like occasional cleaning or property maintenance..
  
  
• You’re using a property manager or are otherwise not engaged in day-to-day operations.
  
  

Tax Implications:

• Income is reported on Schedule E of your Form 1040.
  
  
• You avoid self-employment tax—a big advantage.
  
  
• You still deduct key expenses such as:
  
  
  • Mortgage interest
    
    
  • Property taxes
    
    
  • Insurance
    
    
  • Maintenance and utilities
    
    
  • Depreciation
    
    
  • Management fees
    
    

But your deductions are slightly more limited than Schedule C, and passive losses may be limited unless you qualify as a real estate professional.

Borderline Situations: When It’s Not Clear-Cut

Plenty of rental owners operate somewhere between a full-scale hospitality business and a hands-off investment. Maybe you:

• Provide mid-stay cleanings
  
  
• Occasionally deliver groceries
  
  
• Allow short and long stays
  
  
• Only rent part-time throughout the year
  
  

This is where things get complicated and where an experienced Austin, TX accountant or CPA certified public accountant can make a huge difference.

Remember: the IRS looks at facts and circumstances, not just labels.

IRS Forms You Need to Know

Depending on your classification and setup, here are the forms commonly involved:

• Schedule C – For active rental businesses
  
  
• Schedule E – For passive rentals
  
  
• Form 1040 – Individual income tax return
  
  
• Form 1099 NEC – For paying contractors like cleaners
  
  
• Form 1099-K – If you collect rent through third-party platforms (Airbnb, Stripe, etc.)
  
  
• W9 form – For vendor and contractor compliance
  
  
• FBAR filing – If you have foreign bank accounts connected to your rental business
  
  

Need help coordinating all of this? Our tax services near you are designed to simplify complex filing situations.

Don’t Forget Self-Employment Tax and Quarterly Payments

If you’re filing on Schedule C, your rental income is subject to self-employment tax in addition to regular income tax. This is where many hosts get surprised.

To avoid penalties, you may need to pay estimated quarterly taxes. These are typically due:

• April 15
  
  
• June 15
  
  
• September 15
  
  
• January 15 (of the following year)
  
  

Using a self-employment tax calculator or working with a licensed CPA can help you budget accurately.

Bookkeeping and Expense Tracking: Tools You Should Be Using

If you’re managing multiple properties or even just one with a steady booking rate, keeping accurate records is essential.

Recommended tools:

• QuickBooks Self-Employed – Great for Schedule C filers tracking income and expenses
  
  
• WaveApps – Free option for managing income and vendor payments
  
  
• FreshBooks – Invoicing and light bookkeeping
  
  
• ZohoBooks – Affordable cloud accounting for property owners
  
  

And of course, a certified accountant near you can ensure that your financial data is tax-ready by year-end.

What a Tax Professional Can Do for You

Working with an experienced CPA in Austin, Texas or enrolled agent isn’t just about filing forms. It’s about strategic planning that keeps your rental compliant and profitable.

At Insogna CPA, we help you:

• Determine the correct classification (Schedule C vs. Schedule E)
  
  
• Optimize deductions and track every eligible expense
  
  
• Minimize self-employment tax
  
  
• Stay compliant with 1099 and W9 reporting requirements
  
  
• Coordinate multi-state filings
  
  
• Assist with FBAR filing, if applicable
  
  
• Plan for 1031 exchanges, if you sell and reinvest in new property
  
  

Whether you’re Googling “CPA near me” or looking for an Austin tax accountant, our goal is to provide comprehensive tax preparation services for rental property owners.

Still Not Sure? Here’s a Quick Comparison

Common Google Searches That Bring People to Us

If you found this blog while searching for:

• tax advisor near me for Airbnb income
  
  
• CPA in Austin, Texas for short-term rentals
  
  
• tax places near me for investment property
  
  
• FBAR filing for foreign-owned rentals
  
  
• 1099 NEC form help for rental expenses
  
  
• how to file rental income on Schedule C or E
  
  
• tax accountant near me for Airbnb hosts
  
  
• QuickBooks for short-term rental owners
  
  
• tax preparation services near me for vacation rentals
  
  

You’re not alone. These are the exact topics we help clients with every day.

Why Work With Insogna CPA

We’re more than just a tax preparer. We’re your strategic partner in managing your rental income, reducing tax exposure, and planning for sustainable, long-term growth. As one of the top-rated CPA firms in Austin, Texas, we understand short-term rental tax law and the tools to optimize it.

We provide:

• Dedicated support from a certified public accountant or chartered professional accountant
  
  
• A client portal for all your tax documents, 1099 forms, and financials
  
  
• Ongoing tax help, not just seasonal services
  
  
• Insight into advanced strategies, including 1031 exchange rules and depreciation planning
  
  

Let’s Simplify Your Rental Taxes Together

You didn’t buy or build your short-term rental property to spend your time deciphering IRS code. That’s our job. Whether you’re filing Schedule C or E, we’ll help you do it right on time, with clarity, and with your best financial interest in mind.

Contact Insogna CPA today to schedule your personalized consultation. We’ll take the guesswork out of short-term rental taxes so you can focus on hosting, investing, and growing your income the smart way.

Hi there, business owner! If you’ve come across the terms “composite filing” and “pass-through entity filing” while managing your business taxes, you might be wondering: “What’s the difference, and which one is right for me?”

These terms might sound complicated, but understanding them can help you make smarter tax decisions. As your trusted Austin, Texas CPA, we’re here to break it all down, using real-world examples to help you see how these options impact your bottom line. Let’s get started!

What Is Composite Filing?

Think of composite filing as a group effort. Your business files one tax return on behalf of all its non-resident owners, simplifying the process for everyone. Instead of requiring each non-resident owner to file a state tax return, the business takes care of it for them.

How It Works:

• Your business collects the state taxes owed from non-resident owners.
• Then, it files one consolidated composite return and pays the total tax bill.

Why You Might Like It:

• Simplifies Filing: Non-resident owners don’t have to deal with state tax filings.
• Reduces Hassle: Great for businesses with many non-resident owners.

What to Watch Out For:

• Some states, like Alabama, use higher tax rates for composite returns, which can increase your tax liability.

Pro Tip: Composite filing can be a time-saver, but it’s not always the most cost-effective option. That’s where an Austin tax accountant like me can help you weigh the pros and cons.

What Is Pass-Through Filing?

Pass-through filing is the go-to method for partnerships, S corporations, and LLCs. Instead of the business paying taxes, income and deductions “pass through” to the individual owners, who report them on their personal tax returns.

How It Works:

• Each owner gets a Schedule K-1 showing their share of the business’s income and expenses.
• Owners then file their own federal and state tax returns, including the K-1 info.

Why You Might Like It:

• More Control: Each owner handles their taxes individually.
• Tailored Rates: Non-resident owners might benefit from lower individual tax rates compared to composite filings.

What to Watch Out For:

• More Paperwork: Non-resident owners need to file state returns, which can add to their workload.
• Admin Complexity: Your business will need to prepare and distribute K-1s to all owners.

Pro Tip: If your business has just a few owners, pass-through filing is often a better fit. A CPA in Austin, Texas can help you navigate the details.

Composite vs. Pass-Through: Which Should You Choose?

The right choice depends on your business structure, your owners’ residency status, and where your business operates. Let’s look at an example:

Real-Life Example:
 A partnership in Alabama has five owners—two live in Alabama, and three are non-residents.

• Composite Filing: The business files one return for the three non-resident owners, saving them the trouble of filing individual state returns. This simplifies things but may result in higher taxes due to Alabama’s composite rate.
• Pass-Through Filing: Each owner gets a K-1 and files their own state returns. This offers flexibility but adds extra steps for the non-residents.

What to Consider:

• Number of Non-Resident Owners: Composite filing works well for businesses with lots of non-resident owners.
• Tax Rates: Check whether the composite rate is higher than individual rates in your state.
• Administrative Ease: Composite filing makes life easier for owners but adds some complexity for the business.

How Insogna CPA Can Help

You don’t have to figure this out on your own. At Insogna CPA, we specialize in helping small businesses like yours make smart tax decisions. Here’s how we can support you:

• State-Specific Expertise: Whether you’re filing in Alabama, Texas, or beyond, we’ll explain how the rules apply to your business.
• Personalized Recommendations: Every business is unique. We’ll analyze your ownership structure and state tax laws to find the best option for you.
• Full-Service Support: From filing composite returns to managing K-1s, we’ll handle the details so you can focus on growing your business.

Let’s Simplify Your Tax Filing Strategy

Deciding between composite and pass-through filing doesn’t have to be overwhelming. With expert guidance from an Austin small business accountant, you can make the best choice for your business and avoid unnecessary headaches.

Call to Action: Not sure which tax filing strategy is right for your business? Contact Insogna CPA today. Let’s work together to simplify your taxes and set you up for success!

Hey there, startup owner! If you’re running a business in Austin, Texas, you know there’s always something new to learn—especially when it comes to taxes. Franchise tax filings might seem complicated, but with the right plan, they don’t have to be stressful. As a trusted Austin, Texas CPA, we’re here to guide you through the process step by step so you can stay compliant and focused on growing your business.

Let’s break it down into six simple steps to help you prepare for your franchise tax filings with confidence.

1. Start with the Franchise Tax Questionnaire

When you register your business in Texas, you’ll receive a Franchise Tax Accountability Questionnaire. This form is important because it determines whether your business needs to file franchise taxes.

• What You Should Do: Fill out the questionnaire carefully and submit it on time. Not sure where to start? A CPA in Austin, Texas can help you get it right the first time.

2. Know Your Filing Deadlines

Missing deadlines can lead to penalties and unnecessary stress, and no one wants that. In Texas, franchise tax reports are usually due on May 15, unless that date falls on a weekend or holiday.

• What You Should Do: Mark your calendar now. Better yet, let an Austin accounting service track deadlines for you so nothing slips through the cracks.

3. Understand Your Taxable Margin

Your taxable margin is the basis for calculating franchise taxes in Texas. You can calculate it in different ways, such as total revenue minus the cost of goods sold, compensation, or a flat 70% of revenue. Picking the right method can save you money.

• What You Should Do: Work with an Austin small business accountant to figure out which calculation works best for your business.

4. Organize Your Financial Records

Accurate financial records are the backbone of your franchise tax filing. From income statements and payroll records to balance sheets, having everything in order will make the process so much smoother.

• What You Should Do: Stay organized all year long. A small business CPA in Austin can help you keep your records neat and ready for tax season.

5. File Using the Right Form

The type of franchise tax form you need depends on your business’s revenue:

• No Tax Due Report: For businesses with revenue below the no-tax-due threshold.
• EZ Computation Report: For businesses with revenue under $20 million that qualify for simplified filing.
• Long Form Report: For businesses above the simplified filing threshold.
• What You Should Do: Not sure which form to use? An experienced Austin tax accountant can help you choose the right one and ensure it’s completed accurately.

6. Plan for the Future

Franchise taxes aren’t a one-and-done deal. As your business grows, your tax obligations might change, so planning ahead is key.

• What You Should Do: Work with a proactive tax advisor in Austin to create a long-term strategy that keeps your business prepared for the future.

Why Choose Insogna CPA?

We get it—franchise tax filings can feel overwhelming, especially when you’re focused on running your business. At Insogna CPA, we’ve helped startups and small businesses across Austin, Texas, simplify their taxes and avoid costly mistakes. Whether it’s meeting deadlines, organizing records, or calculating your taxable margin, we’ve got your back.

Let’s Simplify Your Franchise Tax Filings

You don’t have to navigate franchise tax filings alone. With Insogna CPA by your side, you’ll have expert guidance every step of the way.

Ready to simplify your franchise tax filings? Contact Insogna CPA today and work with one of the top CPA firms in Austin, Texas. Let us handle the details so you can focus on growing your business!