CPA Allen Alternative. The 4A rate is older than the entity.

The city taxed the sale before you picked a form

Owners sometimes arrive wanting an entity conversation and holding a receipt. The receipt is the prior fact. A sale in Allen collects 8.25 percent whether the seller is a sole proprietor, a partnership, a corporation, or something elected to be taxed as an S corporation. The state keeps 6.25 percent. The city keeps 2 percent, split as a half percent for the 4A corporation, a half percent for the 4B corporation, and 1 percent for the city general fund, under local code 2043072. Electing a federal status does not merge those names and does not erase them.

We still have the entity conversation. It belongs in its own chair. Wages, profit, how an owner is paid, and whether an election date is even open are the facts that matter there. What we will not do is let that conversation become a reason to keep local tax in a single unnamed account. The 4A piece exists on the sale before anyone asks how the company wants to be taxed. The books should be able to say that out loud.

What an election does not fix

An election does not reconcile the bank. It does not set up payroll on your provider. It does not file the 20th. It does not prepare a rendition for business personal property. Owners hope it will, because an election feels like a decision and a reconciliation feels like chores. The chores are the practice. The election is a threshold we will cross with you only when the chores are real enough that the threshold math can be trusted.

Franchise tax is a state tax on the entity that owes it, with its own no tax due threshold. For report years 2026 and 2027 that threshold is 2,650,000 dollars, with 0.375 percent for retail or wholesale and 0.75 percent for other businesses, due 15 May. A company under the threshold can still have a filing. A company over it can still have clean local sales tax. The two facts rhyme on a calendar and diverge in every other way. We keep them on separate pages of the working papers.

How we sequence the work

First we look at the last close and the last sales tax filing. Then payday, if there are people. Then the question of whether the legal entity and the tax entity are the ones you think they are. Then, if the year is open and the profit is real, the election or retirement conversation. Reversing that order is how a sophisticated document gets stapled to a year that cannot survive a question. We would rather be slow at the start than inventive at the deadline.

If you already elected and the books never caught up, we do not scold the election. We start from the months. The status is a fact we plan around. The unnamed local tax is a fact we rename. Both can be true of a company that is doing perfectly good work in the world and perfectly foggy work in the ledger.

A job site in Allen does not become a different city because the company that bills it was formed somewhere else. The receipt still carries 8.25 percent, local code 2043072 still names the city, and the half percent pieces still need accounts. Entity choice can wait a week. The 20th will not. Write the three names into the ledger before the election memo, or the memo will outrun the books.