Learn about the annual report and tax filing obligations for Oklahoma limited liability companies.
If you want to form and operate an Oklahoma limited liability corporation (LLC), you must prepare and submit many paperwork with the state. This article discusses the most significant continuing reporting and state tax filing obligations for Oklahoma limited liability companies.
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Articles of Incorporation
The articles of formation are the initial state document required for each Oklahoma LLC. You form your LLC by submitting articles of formation to the Oklahoma Secretary of State (SOS). The articles are a straightforward document in which you provide information such as the official name of your new LLC, its registered office address and registered agent’s name, the LLC’s principal place of business, a brief statement of the LLC’s purpose, the LLC’s duration (which may be perpetual), the names and addresses of the LLC’s initial members, and a few other basic details.
You may save your articles either online or on paper. The filing cost is now $100.
Before filing, verify sure the name you desire for your LLC isn’t already in use by someone else. The SOS website, where you can do a corporate entity search, is the first place to look. You may also learn more about business name availability by visiting the Nolo website’s Business Name, Location & Licenses section. You may reserve a name for 60 days for a price of $10 by registering a name reservation online or on paper.
Remember that, in addition to the articles of incorporation, you need prepare—or have a lawyer prepare—an operating agreement for your new company.
Certificate every year
You must submit an annual certificate for your LLC with the state of Oklahoma. You may submit the certificate by mail or online at the Secretary of State’s website. Blank certificate forms may be downloaded from the SOS website. You will just need to supply a few bits of information to complete the certificate, such as:
The name of your LLC, its state-issued file number, the anniversary date of formation, and the street location of the LLC’s primary place of business.
The annual certificate must be submitted each year by the anniversary date of the formation of your LLC. Late filings are subject to fines. The application cost is $25.
State Corporation Tax
Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. LLCs do not pay income taxes by default; only its members do. Some states charge LLCs a separate tax or fee for the privilege of conducting business in their jurisdiction. Oklahoma historically had a Business Activity Tax, or BAT, that required LLCs to pay a $25 yearly levy; however, the BAT seems to have been abolished. Furthermore, Oklahoma has income withholding regulations for Oklahoma income paid to a non-Oklahoma resident. Check with the Oklahoma Tax Commission for further information on the current status of the BAT and withholding obligations (OTC).
In certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. Oklahoma, like almost every other state, has a corporate income tax. The corporation tax in Oklahoma is a flat 6% of Oklahoma taxable revenue. This tax must be paid if your LLC is taxed as a corporation. The Oklahoma Tax Commission receives the state’s corporate income tax return (Form 512).
Employer Taxes in the State
Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) However, Oklahoma employers must additionally pay state taxes.
To begin, you must withhold and pay employee income taxes to the OTC. Begin by registering your company with the Oklahoma Taxpayer Access Point on paper (Form WTH 10006) or online (Oklahoma Taxpayer Access Point) (TAP). After registering, you must submit withholding taxes on a regular basis (for example, monthly or quarterly) using Form WTH-10001. You must also complete reconciliation documents for your LLC’s tax withholding on a regular basis. More information may be found on the OTC website.
You’ll also need to register to pay state unemployment insurance (UI) taxes. The Oklahoma Employment Security Commission is in charge of these taxes (OESC). These taxes may be registered for electronically using the EZ Tax Express system or on paper using Form OES-1. Then, on a quarterly basis, you must submit Form OES-3 to the OESC. Visit the OESC website for further information.
Taxes on Sales and Use
If your LLC sells items to clients in Oklahoma, you must collect and remit sales tax. This implies you’ll have to register with OTC for this reason and then pay sales tax on products sold. Online registration is available, as is OTC Form 40001. After you register, you will get a sales tax permit. Pay sales tax online or by filling out Form STS20002.
Other States Registration
If you want to do business in states other than Oklahoma, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.