Tax planning isn't something you do once a year—it's an ongoing strategy that can save your Dallas-Fort Worth business tens of thousands of dollars. As we enter 2026, here are the top seven tax planning strategies every DFW business owner should implement.
1. Optimize Your Business Entity Structure
The entity structure you choose—sole proprietorship, LLC, S-Corp, or C-Corp—has massive tax implications. Many Dallas business owners are operating under the wrong structure for their current revenue level.
S-Corp Election Example:
A Dallas consultant earning $200,000 as a sole proprietor pays approximately $28,300 in self-employment taxes. By electing S-Corp status and paying a reasonable salary of $100,000, they could save over $10,000 annually in self-employment taxes.
2. Maximize Retirement Contributions
Retirement accounts offer powerful tax deductions for business owners:
- SEP IRA: Contribute up to 25% of net self-employment income (max $69,000 in 2026)
- Solo 401(k): Up to $69,000 total, plus $7,500 catch-up if over 50
- Defined Benefit Plan: Potentially $200,000+ annually for high earners
3. Leverage Section 179 and Bonus Depreciation
If your Dallas business needs equipment, vehicles, or technology, 2026 offers significant deduction opportunities:
- Section 179: Deduct up to $1,160,000 in equipment purchases
- Bonus Depreciation: 60% first-year depreciation on qualifying assets
- Vehicle Deductions: SUVs over 6,000 lbs qualify for enhanced deductions
4. Implement an Accountable Plan for Employee Expenses
An accountable plan allows your business to reimburse employees (including yourself if you're an S-Corp shareholder-employee) for business expenses tax-free. This includes mileage, home office, cell phone, and other business costs.
5. Time Income and Expenses Strategically
Cash-basis businesses have flexibility in when they recognize income and expenses:
- Defer income by delaying December invoices until January
- Accelerate deductions by prepaying expenses before year-end
- Stock up on supplies and inventory in high-income years
- Consider the impact on QBI deduction thresholds
6. Hire Family Members Strategically
Employing family members can shift income to lower tax brackets:
- Children under 18 working for a sole proprietorship: No FICA taxes
- Spouse employment: Access to benefits and retirement plans
- Adult children: Income shifting while providing real employment
7. Don't Forget Texas-Specific Considerations
While Texas has no state income tax, DFW businesses must navigate:
- Texas Franchise Tax: Businesses with revenue over $2.47 million
- Sales Tax Compliance: 8.25% in most DFW cities
- Property Tax Planning: Texas has high property taxes affecting business real estate
Take Action Now
The best tax planning happens throughout the year, not in April. At Momentum Group, we work with Dallas-Fort Worth businesses to implement proactive tax strategies that minimize liability while maximizing growth.
Ready to optimize your tax strategy? Schedule a free tax planning consultation with our Dallas CPA team to identify opportunities specific to your business.
