A Headquarters City
Plano is home to the North American headquarters of Toyota and the head offices of JCPenney, Frito-Lay and Pizza Hut, along with large campuses for banks and technology companies around Legacy. Samsung Electronics America is moving its U.S. headquarters to Plano by the end of 2026, and AT&T plans to begin moving into a new headquarters on the former EDS campus in 2028. Most Plano businesses are much smaller than these names: IT consultancies, staffing firms, marketing agencies, medical and dental practices, restaurants and franchises. BOMCAS prepares returns for Plano businesses remotely.
The franchise tax and entity filings are summarised on our Texas business tax page. Plano's service and consulting firms are the focus here.
What Plano Businesses File
Texas has no corporate income tax, so companies file federal returns and the Texas franchise tax report by May 15. Many Plano firms sell services to clients nationwide, and some have employees working from home in other states, which can create income tax filing requirements in those states even though Texas has none. We review where employees, contractors and customers are located each year.
IT Consultancies and Staffing Firms
Plano has many technology consultancies that place developers and engineers at corporate clients, often on time-and-materials contracts through vendor management systems. Their returns turn on employee versus contractor classification, payments to subcontracted firms, and immigration-related costs such as H-1B filing fees, which are deductible business expenses. For the franchise tax, labour-heavy consultancies often do best with the compensation deduction, and licensed staff leasing companies can exclude certain payments for assigned employees from total revenue. Owners who are on work visas should be careful about their role, because H-1B holders generally cannot work for their own company without proper sponsorship.
Suppliers to the Big Campuses
Caterers, facilities contractors, printers, event planners and software vendors serving the headquarters campuses deal with long payment terms, supplier compliance requirements and annual contract renewals. Revenue from multi-year software or service contracts may need to be spread over the contract term. Large customers often require certificates of insurance and W-9s before paying, and some issue 1099s that we reconcile to the books.
Restaurants and Retail at Legacy West and the Shops
Legacy West, the Shops at Legacy, Downtown Plano and Willow Bend hold restaurants and shops that depend on office workers, residents and visitors. Their returns include tip credits, build-out costs for leased spaces, which may qualify as qualified improvement property with a 15-year life and bonus depreciation, and inventory for retail.
Medical and Professional Practices
Physician groups, dental offices, therapy clinics and law and accounting firms serve Plano's well-off population. Practices organised as partnerships or professional associations need accurate guaranteed payments, buy-in and buy-out accounting and equipment depreciation. The qualified business income deduction for health and professional services phases out at higher incomes.
Franchise Owners
Plano has a large number of franchise owners, sometimes holding several units in different cities. Initial franchise fees are amortised over 15 years, while ongoing royalties and advertising fees are deductible each year. Multi-unit owners should consider how units are held, since each entity files its own franchise tax report.
Companies Relocating to Plano
Smaller firms follow the big headquarters to Plano, often moving from California, Illinois or New York. A move does not end the old state's claims at once: the company may still have employees, customers or property there, and it must file final returns and withdraw its registration if it leaves. Some companies convert into Texas entities, while others register to do business here as foreign entities. Either way, the Texas franchise tax begins with the first report after registration, and apportionment in the move year needs care.
What We Review
- Worker classification and subcontractor payments.
- Out-of-state employees and filings.
- Contract revenue timing.
- Leasehold improvements and depreciation.
- Owner pay and the QBI deduction.
- Franchise tax method.
Plano Business Tax Preparation Questions
Does a Plano IT firm with remote employees in other states file there?
Often yes. Employees in another state can create filing and withholding duties there.
Which franchise tax method suits a consultancy?
Often the compensation deduction, because salaries are the largest cost. We compare all methods each year.
Are H-1B fees deductible?
Yes, as ordinary business expenses for the employer.
How are franchise fees treated?
Initial fees are amortised over 15 years; royalties are deducted as paid.
Talk to BOMCAS About Business Tax Preparation in Plano
Each return rests on timesheet and subcontractor bookkeeping, multistate payroll and correct software and services tax. Owners report their share on personal returns, structure changes need planning, overlooked filings go to catch-up work, and owners from abroad should read cross-border tax. General Texas rules on personal filings, sales and use tax, books, payroll, planning ahead, catch-up filing and international tax are on our state pages, all summarised in the Texas overview.
Let BOMCAS know about your Plano company or household and we will explain what we would review first and which records would help us quote. Use the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. Every Plano service is listed on the Plano overview. This page is general information, not advice for your own case.