Last updated October 13, 2021
Oklahoma LLC Taxes
How to form an LLC in Oklahoma
This Quick Start Guide is a brief overview of how to form an LLC in Oklahoma.
Oklahoma LLC costs:
LLC formation: $100 (one-time fee)
Annual certificate: $25 (every year)
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Note: Our tax lesson is not as step-by-step as our Forming an LLC in Oklahoma lesson, due to the uniqueness and variation among businesses in Oklahoma. Taxes are usually not as straightforward as forming an LLC in Oklahoma, and therefore, the information below is an overview, and not a comprehensive guide.
You will most likely need to hire a tax professional to make sure you meet all your Oklahoma state and local tax obligations. We recommend using Thumbtack.
Do it yourself in Oklahoma
Oklahoma Tax Information
Oklahoma Taxpayer Access Point
Registering for Oklahoma Taxes Online
Oklahoma Tax Commission: Business Taxes
Oklahoma Tax Commission Contact Info
Oklahoma Tax Commission: General Contact Form
Sales Tax Permits
If you are a reseller, a retailer, or you sell tangible/physical property, you need to obtain a sales tax permit from the Ohio Tax Commission:
Depending on your industry, where your Oklahoma LLC is located, how you are taxed by the IRS, and whether or not you have employees, will determine which additional taxes and forms are due.
Some examples of other taxes and forms due are:
- Sales and use tax
- Employer’s withholding tax
- Tobacco tax
- Property tax
- Alcohol tax
- Fuel tax
- Local taxes
- Prepaid Wireless
- Waste Tire
- Consumer Use
- Vendor Use
- Mixed Beverage
- Tire Recycling
- Cigarette Retailer
- Tobacco Retailer
- Beer – Brew Pub
- Beer– Draught, Bottle and Can
- Beer – Bottle and Can
- Beer – Off Premise
- And more
Federal Taxes with the IRS
By default, single-member Oklahoma LLCs are taxed as Sole Proprietorships by the IRS, and by default, multi-member Oklahoma LLCs are taxed as Partnerships by the IRS.
The bulleted list above refers to state and local taxes, not federal taxes filed with the IRS. Remember, the income/losses from your Oklahoma LLC will “flow through” to your personal 1040 tax return on a Schedule C, as well as additional Schedules depending on how you derive your income.
Tip: The above language confuses a lot of people. Notice that we said “taxed as”. This means, in the eyes of the law, your Oklahoma LLC is still a separate legal entity from you, but the IRS is treating your LLC differently (just for tax purposes).
Technically, your Oklahoma LLC is still a “legal entity” with the state and the law, but your LLC is a “tax entity” (either a Sole Proprietorship or Partnership) with the IRS.
Additionally, your tax professional may recommend that your Oklahoma LLC be taxed as a Corporation with the IRS. In that case, your LLC can be taxed as a C-Corp or your LLC can be taxed as an S-Corp. You’ll need to discuss this with your tax professional though, as this usually only works for certain types of businesses, and those businesses that are making close to (or over) $100,000 per year.
Calculating your tax obligations in Oklahoma (and with the IRS) can be complicated and if done improperly can negatively impact your LLC.
Hiring a tax professional will not only help you keep your Oklahoma LLC in compliance, but it will also give you an advisor to go to for other business questions.
You’ll want someone who’s a good fit for your company, makes you feel comfortable, and is willing to answer all of your questions. It should be someone you like personally as well as professionally. We recommend talking with at least 2-3 people before making your final decision.