Oklahoma Taxes

Last updated on

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.

Detailed Lessons:

 

Oklahoma LLC costs:
LLC formation: $100 (one-time fee)
Annual certificate: $25 (every year)

Need help?
Hire a company to form your Oklahoma LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

(check out Northwest vs LegalZoom)

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 FAQs
https://www.ok.gov/tax/faqs.html

Registering for Oklahoma Taxes Online
https://www.ok.gov/tax/Online_Services/Online_Business_Registration.html

Oklahoma Tax Commission Contact Info
https://www.ok.gov/triton/contact.php?ac=281&id=257

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:
Business Sales Tax
Oklahoma Sales Tax Information and Rates

Other Taxes
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
  • Coin-op
  • 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.

Our Recommendation

Calculating your tax obligations in Oklahoma (and with the IRS) can be complicated and if done improperly can negatively impact your LLC.

We recommend that you get help from a tax professional once your Oklahoma LLC is formed. You can use Thumbtack or Yelp.

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.

Matt Horwitz
Founder & Educator, LLC University®
Forming an LLC shouldn't be so complicated. Our step-by-step guide will make the process a breeze – and no complex legal jargon! LLC University® teaches people how to form an LLC for free in all 50 states. We hope you find our free guides and resources helpful in your business journey.
Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Rules and regulations vary by location. They also change over time and are specific to your situation. Furthermore, this comment section is provided so people can share their thoughts and experience. Please consult a licensed professional if you have legal or tax questions.

4 Comments

  1. Rita May 11, 2018

    Hi Matt,

    Thank you so much for the lessons. They clear my thoughts and give me confidence.

    I also want to learn info about getting a domain and trademark. Does domain mean an official website for an LLC? Is it must-have for an LLC? If so, where and how can I apply for one? Concerning the trademark registration, I found a couple of websites which offer trademark registration services. But I also found a lot of mixed reviews about their services. Could you please give me some advice if you can?

    Really appreciated!
    Rita

    reply
    • Matt Horwitz May 16, 2018

      Hi Rita, you’re very welcome! A domain is just the website address (ex: MyWebsite.com)… in can be the website for an LLC, but it doesn’t have to be (and you aren’t required to create a website for your LLC). I recommend NameSilo for purchasing a domain name. GoDaddy is also a consideration if you’re new to the whole thing. I recommend NameSilo since they provide domain privacy at not additional cost. This keeps your name, address, phone number, and email off of the domain WHOIS records (“public records” of domain names). Regarding the trademark, there are two general types of trademarks… state trademarks and federal trademarks. State trademarks protect you in one state. Federal trademarks offer protection in all states. I find it best to speak with a trademark attorney when you’re ready to file a trademark for your business. Hope that helps.

      reply
      • Rita May 17, 2018

        Hi Matt, really appreciated your advice. They are really helpful.

        reply
        • Matt Horwitz May 17, 2018

          You’re very welcome Rita!

          reply

Leave a comment or question

Comments are temporarily disabled.