LLC Annual Report and Tax Filing Requirements in Oklahoma

If you choose to form a limited liability company (LLC), you'll need to keep up with the related state filing and tax requirements. You'll need to submit an annual certificate and fee and pay the appropriate business taxes for your Oklahoma LLC.

Below are the most important ongoing reporting and state tax filing requirements for Oklahoma LLCs. (If you're looking for information about other states' LLC requirements, you can review our article on LLC tax and filing requirements.)

Oklahoma LLC Annual Certificate

The State of Oklahoma requires you to file an annual certificate for your LLC. You can mail in a completed Annual Certificate or file your certificate online at the Secretary of State website. To complete the certificate you'll only need to provide a few pieces of information, such as:

• your LLC's name
• your LLC's state-issued filing number
• the anniversary date of the LLC's creation, and
• the street address of the LLC's principal place of business.

The annual certificate must be filed each year by the anniversary date of your LLC's creation. There are penalties for late filings. As of 2023, the filing fee is $25.

State Business Taxes in Oklahoma

Most LLCs are considered "pass-through tax entities" for the purpose of income taxes. With a pass-through tax entity, the responsibility for paying federal income taxes passes through the LLC itself and falls on the individual LLC members. By default, the LLC doesn't pay taxes on its income. Only the LLC members pay taxes on their share of the LLC's income.

While your LLC itself doesn't have to pay income tax, Oklahoma requires LLCs to file an Oklahoma income tax return. If your LLC is taxed as a partnership, you'll need to file an Oklahoma Partnership Income Tax Return (Form 514). You should be aware that Oklahoma does have income withholding requirements for Oklahoma income paid to a non-Oklahoma member.

Oklahoma gives pass-through tax entities the option of electing pass-through entity status. Electing this status means that the LLC is taxed at the entity level on behalf of the owners. This election has many implications and tax consequences so you should talk to a tax professional before making this election.

You'll need to file these returns with the Oklahoma Tax Commission (OTC). You can file your returns and pay your taxes online using the Oklahoma Taxpayer Access Point (OkTAP).

No franchise tax. Some states impose a separate franchise tax or fee on LLCs and other business entities for the privilege of doing business in the state. Oklahoma doesn't impose a franchise tax on LLCs.

Electing corporate tax status. Usually, LLCs are taxed as partnerships by default. However, in som cases, LLC owners choose to have the LLC taxed as a corporation for tax purposes. This choice is made by filing IRS Form 2553 with the IRS. Unlike the default pass-through tax situation, when an LLC elects to be taxed as a corporation, the company itself must file a separate tax return. Oklahoma, like almost every other state, has a corporation income tax. In Oklahoma, as of 2023, the corporate tax is a flat 4% of Oklahoma taxable income. If your LLC is taxed as a corporation you'll need to pay this tax. The state's corporate income tax return (Form 512) is filed with the OTC.

You can find the forms you need on the forms section of the OTC website.

Oklahoma Employer Taxes

If your LLC has employees or plans to, you must pay employer taxes to the federal and state governments. You should get your federal employer identification number (EIN) from the IRS to report and pay these taxes as an employer.

Withholding employee wages. You'll need to withhold and pay employee income taxes to the OTC. Begin by registering your business with the OTC on paper (Form WTH 10006) or online via OkTAP. Once you've registered your business, you'll need to file and pay withholding taxes periodically—for example, quarterly, monthly, or semiweekly.

Unemployment insurance (UI) tax. In addition, you'll probably need to register to pay state UI taxes to the Oklahoma Employment Security Commission (OESC). You can register for these taxes online through the EZ Tax Express portal. After registering, you must file quarterly reports.

Oklahoma Sales and Use Tax

If you plan to provide taxable goods or services to customers in Oklahoma, you must collect and pay sales tax to the OTC. Register your business online through OkTAP to receive a sales tax number and sales tax permit. You'll need to pay sales and use tax periodically to the OTC.

For more information, check the sales and use tax section of the OTC website.

LLC Registration in Other States

Many businesses register in one state and do business in other states. For example, you might form your LLC in Oklahoma but conduct business activities in Texas. If you do business outside of Oklahoma, you might need to register your LLC in some or all of the states where you have business activities.

Every state has its own rules and requirements for when an out-of-state business must register. In general, you probably need to register as an out-of-state LLC if you have a physical presence in a state, hire employees in the state, or advertise directly to residents of the state.

To review individual state requirements, check out our state guide to qualifying to do business outside your state.

More Information About Oklahoma LLCs

The Oklahoma Department of Commerce has a guide to starting a small business in Oklahoma on its website. This guide includes information about:

• LLC organization or other business structures
• business licenses
• sales tax permits
• employer requirements
• initial capital and financing options, and
• business resources.

If you want general guidance about how to manage and run your LLC, check out the articles in the LLC section of our website. For more personalized, professional help, consider talking to an Oklahoma business attorney. A lawyer can help you determine your registration and filing requirements and help you keep track of your legal obligations throughout the year.