Killeen Business Tax Preparation

A City Built Beside Fort Hood

Killeen, in Bell County, had about 162,000 residents in the Census Bureau's 2025 estimate and sits at the main gate of Fort Hood. The Comptroller estimates the installation directly employs about 54,000 people, including more than 34,000 active-duty soldiers, about 4,500 civilian employees and more than 11,000 contractor staff, and supports about $37.9 billion in economic activity in Texas. Most Killeen businesses serve soldiers, their families and the many retirees who stay in the area. BOMCAS prepares returns for Killeen businesses remotely.

Franchise tax for all Texas entities is covered on the Texas business tax page. Here we focus on Killeen contractors and small businesses.

What Killeen Businesses File

Texas has no personal or corporate income tax. Businesses file federal returns on Form 1120, 1120-S, 1065 or Schedule C, and each taxable entity files a Texas franchise tax report by May 15. Most small businesses fall under the no-tax-due threshold but must still file the report and its ownership information.

Defence Contractors

Companies that maintain vehicles, aircraft and equipment, run training and simulation, provide logistics or support base services hold federal contracts and subcontracts. Their returns deal with contract revenue recognition, unbilled receivables, retainage and costs that are not allowable under federal contracts but may still be deductible. Federal contract accounting and tax accounting are different, and the books must support both.

Military Spouse Businesses

Many spouses run businesses that can move with each assignment: bookkeeping, design, photography, childcare, fitness, baking and online shops. A single-member LLC is reported on Schedule C. When the family moves, the LLC may need to register in the new state or be replaced, and Texas franchise reports must still be filed or the entity ended properly.

Restaurants and Services Near the Gate

Restaurants, barbers, tattoo studios, auto shops, car dealers and pawn shops along Fort Hood Street, Rancier Avenue and Central Texas Expressway serve soldiers. Their sales rise and fall with deployments, so planning for estimated taxes and cash flow is important.

Home Builders and Landlords

Killeen and its neighbours Harker Heights and Copperas Cove build many homes for military families. Builders report income when homes close and capitalise construction costs. Landlords who rent to soldiers report rent on Schedule E and must plan for vacancies when units deploy or move.

Veteran-Owned Businesses

Retired soldiers often start businesses with retirement pay as their base income. Their business returns interact with their retired pay and VA disability compensation, which is not taxable, when estimating taxes and planning retirement contributions.

Deployment Swings

When a division deploys, restaurant and retail sales near the gate can drop for months and then surge when soldiers return with savings. Owners who pay estimated taxes on last year's figures may overpay in a slow year or underpay in a strong one. We review results each quarter and adjust estimates, and plan large equipment purchases for years when the deduction is worth most.

Small Contractors and Set-Asides

Veteran-owned and service-disabled veteran-owned small businesses often win set-aside contracts. Rapid growth from a first large contract changes their tax position quickly: cash basis may no longer be allowed once average receipts exceed the threshold, and long-term contract rules can apply. Planning before the contract starts avoids surprises.

Our Checklist

Contract revenue and unallowable costs.
Entity choices for mobile businesses.
Estimated taxes for seasonal sales.
Builder cost capitalisation.
Rental depreciation.
Franchise tax reports.

Getting Started

Send us your accounting file, contracts, bank statements, asset purchases and last year's federal and Texas filings. We review them, list our questions and go through the draft with you before filing.