Oklahoma Annual Report: Everything You Need To Know
An Oklahoma annual report must be filed by businesses registered in Oklahoma with the Secretary of State's Office.3 min read
2. Completing the Annual Certificate
3. State Business Tax
4. State Employer Taxes
5. Sales and Use Taxes
6. Franchise Tax
7. Registering as a Foreign Entity
An Oklahoma annual report must be filed by businesses registered in Oklahoma with the secretary of state's office. The type of report, cost, and frequency depend on the specific business entity.
Annual Report Fees by Business Type
- Corporations in Oklahoma are not required to file an annual report.
- Limited liability companies (LLCs) must file an annual certificate by mail or online by the anniversary of the company's establishment date. The fee is $25. No late fee is charged, but the LLC loses good standing after 60 days and can be dissolved or revoked if the filing is not made for three years. The report can be filed by a member or manager.
- Limited partnerships must file an annual certificate each year during the registration anniversary month. This can be done by mail or online for a $50 fee.
- Nonprofit corporations are not required to file an annual report.
Completing the Annual Certificate
You can download a blank certificate form from the Oklahoma secretary of state website and mail it in. You can also complete the filing online. You'll need to provide information that includes the name of your company, your state filing number, the street address of your main business location, and the anniversary date of your business entity.
State Business Tax
If you have an LLC, you report the business profits and losses on your individual tax return. This is called pass-through taxation. However, some states also require LLCs to pay a separate business tax. Although Oklahoma once charged LLCs an annual $25 business activity tax, this has since been repealed.
If your business pays a salary to a member who does not live in Oklahoma, you are subject to certain income withholding requirements. To learn more, consult the Oklahoma Tax Commission.
An LLC can choose to be taxed as a corporation by filing IRS Form 2553. This means the company must file its own tax return. In Oklahoma, corporate income tax is a flat rate of 6 percent of taxable income. You must file state Form 512 to pay this tax each year.
State Employer Taxes
If your Oklahoma company has employees, you are responsible for employer taxes. Some are paid at the federal level and others to the state. You'll need to apply for a free employer identification number (EIN) from the IRS.
To pay state employee income taxes, file Form WTH 10006, which can be done online through the Oklahoma Taxpayer Access Point. Your withholding taxes will need to be filed either quarterly or monthly with Form WTH-10001. You will also need to file periodic withholding reconciliation forms.
To pay state unemployment insurance taxes, register with the Oklahoma Employment Security Commission. You'll need to first complete Form OES-1, which can be done through the EZ Tax Express portal, then file a quarterly Form OES-3.
Sales and Use Taxes
If you will be selling taxable goods to Oklahoma customers, you must collect sales tax and remit it to the state tax department. You can register to pay sales and use tax online with Form OTC 40001. You will receive a sales tax permit in the mail. You can pay your sales tax online using Form STS 20002.
Oklahoma businesses must pay annual franchise taxes using Form FRX 200. This is based on the volume of yearly revenue and the value of state-held assets at a tax rate of $1.25 per $1,000. The franchise tax is waived for revenue and assets of less than $200,000 and is capped at $20,000.
If you do not file your franchise tax form by July 1 of the following year, you'll receive a penalty of 10 percent plus 1.25 percent interest per month until it is paid.
Registering as a Foreign Entity
If you have an Oklahoma business but plan to do business in other states, you'll need to register in those states as a foreign entity. This process depends on the state in question; some states do not require foreign registration while others have lengthy requirements.
In most states, whether you're considered a foreign entity depends on whether:
- You have a business location there
- You have employees there
- You solicit business there
In most cases, registration requires a certificate of authority or related form.
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