Absolutely. While Texas has no personal income tax, federal obligations remain substantial. Additionally, most Texas businesses owe franchise (margin) tax, and industry-specific rules around energy, real estate, and construction can create significant tax exposure without proper planning. Federal self-employment tax alone can be 15.3% — an S-corp election often cuts this in half.

The Texas franchise tax (also called the margin tax) is imposed on most businesses with Texas nexus. It's calculated on "margin" — essentially a version of revenue minus certain deductions — at rates of 0.375% to 0.75%. LLCs, S-corps, C-corps, and partnerships all owe it. Sole proprietors are generally exempt. We handle all franchise tax filings.

Houston energy businesses commonly miss intangible drilling cost (IDC) deductions, depletion allowances (up to 15% for oil and gas), tangible equipment expensing under Section 179, and R&D credits for qualifying exploration activities. These deductions are complex and easy to underreport without a specialist CPA.

Yes. A 1031 exchange allows real estate investors to defer capital gains tax by reinvesting proceeds into a like-kind property. The rules are strict — timelines, identification requirements, and qualified intermediary use must be followed exactly. We guide Houston investors through every step from planning to closing.