Business in the Middle of the Metroplex
Arlington sits between Dallas and Fort Worth, and its economy has two very different engines. One is the General Motors Arlington Assembly plant, which builds full-size SUVs and employs about 5,200 people, surrounded by suppliers, logistics firms and machine shops. The other is the entertainment district around AT&T Stadium, Globe Life Field, Six Flags Over Texas and Texas Live!, which draws more than 16 million visitors a year. A third group of businesses grows around the University of Texas at Arlington. BOMCAS prepares returns for Arlington businesses remotely.
General franchise tax rules sit on the Texas business tax page, while this page covers Arlington's suppliers and event businesses.
What Arlington Businesses File
Texas has no corporate or personal income tax. Corporations file Form 1120, partnerships and multi-member LLCs file Form 1065 with K-1s, and S corporations file Form 1120-S. Every taxable entity also files the Texas franchise tax report by May 15, with a no-tax-due report when revenue is below the threshold and a public information report or ownership information report each year.
Automotive Suppliers
Companies that sequence parts, assemble components or provide logistics for the GM plant work under tight delivery schedules and supplier contracts that set prices for a model year. Their returns turn on inventory costing, tooling owned by the customer versus the supplier, and the timing of price adjustments and chargebacks. A model changeover or production pause can produce a loss year, and net operating losses carry forward to later years. For the franchise tax, many suppliers choose the cost of goods sold deduction because of their heavy material and labour costs.
Event Vendors and Promoters
Caterers, security firms, staging and lighting companies, merchandise sellers and event promoters earn much of their income on game and concert days. Their revenue is irregular and their workforce often includes contractors brought in for a single event. Contractor classification, Form 1099 reporting and the treatment of deposits received for future events all affect the return. Promoters who sell tickets must also understand that admission charges are subject to Texas sales tax, and events at Globe Life Field carry the city's ticket tax.
Hotels and Restaurants
Hotels in the entertainment district and along Interstate 30 deal with large fixed costs, management fees and frequent renovations. Cost segregation can move part of a building's cost into shorter-lived property, and renovation work may qualify as repairs rather than improvements. Restaurants claim the FICA tip credit for employer Social Security and Medicare paid on tips above the minimum wage.
Firms Near UTA
Engineering consultancies, research spin-offs and software companies near the university often spend heavily on development. Under current rules, domestic research and experimental costs can be deducted again in the year paid, and qualifying firms may claim the federal research credit, with small start-ups able to apply part of it against payroll tax. Texas also offers a franchise tax research credit.
Medical Practices and Professional Firms
Arlington's hospitals, including Texas Health Arlington Memorial and Medical City Arlington, anchor clusters of physician groups, therapy clinics, dental offices and imaging centres. These practices often have several owners with different ownership shares, buy-in and buy-out arrangements and equipment financed over many years. The return needs accurate guaranteed payments or salaries for each owner, depreciation schedules for expensive equipment and, for S corporations, reasonable compensation. Many qualify for the qualified business income deduction only within income limits, so the owners' total income matters.
What We Review
- Inventory, tooling and customer pricing adjustments.
- Event deposits and contractor payments.
- Hotel cost segregation and repairs.
- Research costs and credits.
- Franchise tax method and filings.
Getting Started
Send the accounting file, bank statements, last year's federal and franchise tax filings, fixed asset records and any customer or event contracts. We review them, send one list of questions and go through the drafts with you before anything is filed.
Arlington Business Tax Preparation Questions
Which franchise tax method suits an automotive supplier?
Many use the cost of goods sold deduction because materials and labour are a large share of revenue. We compare all methods each year.
Are event deposits income when received?
Often they can be deferred until the event under specific rules, but the treatment depends on the contract and the accounting method.
Can hotel renovations be deducted?
Some work qualifies as repairs, and cost segregation can shorten the life of parts of a building.
Do Arlington businesses owe city income tax?
No. Neither Texas nor Arlington has an income tax.
Talk to BOMCAS About Business Tax Preparation in Arlington
Returns rely on event and inventory bookkeeping, payroll for shifts and crews and sales and venue tax filings. Owners report profits on personal returns, larger decisions start with planning, missed years go to back taxes, and foreign-owned suppliers should see cross-border tax. Statewide detail is on our Texas pages on household returns, sales and use tax, monthly bookkeeping, payroll and TWC, tax planning, late filings and cross-border matters, with a summary in the Texas overview.
Send BOMCAS a short note about your Arlington business or household and we will reply with what we would look at first and what we need for a quote. Use the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. All Arlington services are listed on the Arlington overview. This page is general information, not advice for your situation.