A Manufacturing City East of Dallas
Garland, northeast of Dallas, had about 250,000 residents in the Census Bureau's 2025 estimate, and it is one of the few large North Texas suburbs where factories still set the pace. Kraft Heinz, Sherwin-Williams and Epiroc run plants here, and the industrial districts along Interstate 635, and Shiloh Road hold hundreds of smaller fabricators, machine shops, sign makers and distribution warehouses. Alongside them is a large Asian business community, much of it Vietnamese, running restaurants, groceries, salons and service firms. BOMCAS prepares returns for Garland businesses remotely.
How the franchise tax works across the state is explained on the Texas business tax page. Here the subject is Garland's plants, shops and family firms.
The Filings
Neither Texas nor Garland taxes income. Corporations file Form 1120 or 1120-S and partnerships and most multi-member LLCs file Form 1065, while single-member LLCs report on the owner's Schedule C unless they elect otherwise. Every taxable entity in Texas also files the franchise tax report each May 15, even when revenue is below the no-tax-due threshold and only an information report is needed.
Small Manufacturers and Job Shops
A machine shop or fabricator has inventory of raw stock, work in progress and finished parts, and the year-end count drives its profit. Shops under the federal small business gross receipts threshold can use simpler inventory methods and skip the uniform capitalization rules, while larger manufacturers must add a share of indirect costs to inventory. Many shops also qualify for the federal research credit for work on new parts, tooling or processes, and the payroll version of the credit can help a young company that has no income tax to offset yet.
Machinery and Depreciation
CNC machines, press brakes, forklifts and racking are expensive, and how they are written off changes taxable income sharply. Equipment acquired after January 19, 2025 qualifies for 100 percent bonus depreciation, and section 179 expensing is available up to $2.5 million for 2025, adjusted for inflation afterwards. Expensing everything is not always best: a shop planning a sale, or one with losses it cannot use, may do better spreading deductions.
Franchise Tax for Producers
Most Garland manufacturers compute franchise tax using the cost of goods sold deduction, which for a producer includes labour, materials, factory overhead and depreciation on production equipment. Distributors and wholesalers may qualify for the lower retail and wholesale rate. Choosing the right method, and keeping the records that support it, often matters more than any single deduction.
Vietnamese and Asian-Owned Businesses
Garland's Vietnamese community, centred on the shopping centres along Jupiter Road and Walnut Street, includes restaurants, bakeries, grocery stores, nail salons, insurance agencies and accounting offices. Many are family companies with relatives on the payroll, cash sales and a building owned in a separate company. We review owner pay, related-party rent, the qualified business income deduction and how cash receipts are recorded.
Contractors and Trades
Roofing, remodelling, HVAC and electrical contractors are busy across Garland's older housing, and storm seasons bring a surge of insurance work. Contractors need clear separation of jobs, deposits and materials, and those working for homeowners must handle Texas rules on separated and lump-sum contracts correctly.
Our Checklist
- Inventory count and cost method.
- Research credit eligibility.
- Equipment purchases and depreciation choices.
- Franchise tax method and revenue.
- Owner pay and related-party rent.
- Job records for contractors.
Getting Started
Send the accounting file, year-end inventory, asset purchases, bank and loan statements and last year's federal and Texas filings. We review them, ask our questions in one list and go over the draft return with you before it is filed.
Garland Business Tax Preparation Questions
Can a small Garland machine shop claim the research credit?
Often yes, when it develops new parts, tooling or processes and keeps records of the work and costs.
Should every equipment purchase be expensed right away?
Not always. It depends on current income, losses and whether a sale is planned.
Which franchise tax method suits a manufacturer?
Usually the cost of goods sold deduction, but we compare it with the other methods each year.
Does Garland tax business income?
No. There is no city or state income tax.
Talk to BOMCAS About Business Tax Preparation in Garland
The return rests on job-costed books and inventory, accurate shift payroll and exemption certificates for sales tax. Profits pass to owners' personal returns; machine purchases and succession are planning work; unfiled years go to catch-up filing; and foreign parents bring cross-border forms. For the rules that apply everywhere in Texas, read our state pages on personal tax, sales and use tax, bookkeeping, payroll, planning, back taxes or cross-border tax, all gathered on the Texas overview.
If you run a Garland plant, shop or restaurant, or simply need your family’s return done right, send BOMCAS a few lines about it and we will tell you what to send and what the work would cost. Reach us through the contact page or the form below, by phone at 780-667-5250 or at info@bomcas.ca. All Garland services are listed on the Garland overview. What you read here is general information and not advice on your situation.