Brownsville Business Tax Preparation

A Border City With a Deepwater Port

Brownsville, across the Rio Grande from Matamoros, had about 193,000 residents in the Census Bureau's 2025 estimate. Its economy is changing fast. The Port of Brownsville supports more than 10,000 jobs, Rio Grande LNG is under construction at the port with a workforce of over 2,000, and SpaceX's launch site at Boca Chica employs thousands more nearby. The Brownsville Independent School District, with about 7,000 employees, remains the largest single employer. Alongside them are shipyards, distribution firms, customs brokers, retailers and family businesses. BOMCAS prepares returns for Brownsville businesses remotely.

For the franchise tax in general, see the Texas business tax page. Below are Brownsville's contractors, port firms and traders.

The Returns

Texas and Brownsville do not tax income. Companies file Form 1120, 1120-S or 1065, single-member LLCs use Schedule C unless they elect otherwise, and every taxable entity files the Texas franchise tax report by May 15. Companies with operations in Mexico may also file there.

Construction and Industrial Contractors

The LNG project and space-industry work have brought electrical, mechanical, civil, scaffolding, crane and staffing contractors to Brownsville, many from out of state. Their returns depend on percentage-of-completion accounting for long contracts, retainage, equipment depreciation and per diem paid to travelling workers. Contractors from other states may need to register in Texas, file franchise tax and track which income belongs to Texas.

Port, Shipyard and Logistics Firms

The port hosts shipbuilding and repair, rig fabrication, ship recycling, steel and bulk cargo terminals and warehouses. Shipyards and fabricators carry large projects and equipment; recyclers sell scrap metal with fluctuating prices; terminal and warehouse operators earn storage and handling fees. Each has its own revenue and inventory questions.

Cross-Border Traders and Customs Brokers

Brownsville distributors sell goods to buyers in Mexico, and customs brokers clear shipments over the city's bridges. Distributors record export sales and keep proof of export. Brokers separate duties and fees paid on behalf of clients from their own revenue, which also matters for franchise tax.

Shrimpers and Seafood

Brownsville's shrimp fleet operates from the port's shrimp basin. Boat owners pay crews a share of the catch, buy fuel, ice and nets and depreciate boats and engines. Federal fuel tax credits may apply to fuel used in commercial fishing. Seafood processors and wholesalers carry inventory that must be counted and valued at year-end.

Retailers and Family Businesses

Downtown Brownsville, including the Elizabeth Street shopping district, has served shoppers from Matamoros for generations. Family stores, restaurants, pharmacies and service businesses often employ relatives and own their buildings through separate companies. We review owner pay, related-party rent and the qualified business income deduction.

Space-Industry Suppliers

Machine shops, welders, engineering firms and service companies supplying the launch site may qualify for the research credit for development work. U.S. research costs paid from 2025 can again be deducted in the year paid, and small companies may apply that to earlier years.

Hurricane Losses

Storm damage to buildings, inventory and equipment can be deducted to the extent not covered by insurance. When insurance pays more than the property's tax basis, the gain can be deferred by replacing the property within the allowed period.

Our Checklist

Contract accounting and retainage.
Out-of-state contractor registrations.
Export sales and proof.
Client funds for brokers.
Boat, fuel and crew records for shrimpers.
Franchise tax reports.

Getting Started

Send the accounting file, bank statements, contracts, asset additions and last year's federal and Texas filings. We review them, send our questions in one list and go over the draft return with you before it is filed.