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, percentage depletion (15% for independent producers and royalty owners under IRC §613A, subject to production and taxable-income limits), tangible equipment expensing under Section 179, and R&D credits under IRC §41 for qualifying technological development — for example, innovations in drilling, completion, or enhanced-recovery processes. One important caveat: the costs of exploring for or appraising oil and gas deposits are specifically excluded from R&D credit treatment under IRC §174A(d)(2). 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.