Overview of Oklahoma LLC Taxes
In Oklahoma, LLCs are taxed as pass-through entities by default, meaning the LLC passes its revenues and losses on to its members.
Taxation Structure of Oklahoma LLCs
- Members pay the state’s graduated personal income tax rate ranging from 0.25% to 4.75%
- Members also pay the state’s Pass-Through Entity Tax of 4%
- Federal self-employment tax rate is 15.3% (12.4% for social security and 2.9% for Medicare)
Taxation Details and Considerations
- Owners pay self-employment tax on business profits
- Owners pay federal income tax on any profits, less allowances and deductions
- Some LLCs pay Oklahoma sales tax on products
- Employers pay payroll tax on any wages paid to employees
Applicable Taxes for Oklahoma LLCs
- Self-employment tax: 15.3%
- C-Corp income tax: 21% federal, 4% state
- Some LLCs pay Oklahoma sales tax
Ongoing LLC Maintenance Tasks in Oklahoma
- Annual Certificate, $25 fee
- Annual franchise tax: No franchise tax
- Annual report with Secretary of State every 2 years
Additional Information
- Oklahoma LLCs are not subject to the franchise tax but may still pay state income taxes requiring $1.25 for each $1000 of capital used in Oklahoma
- By default, only LLC members, not the LLC itself, pay income taxes
- LLCs in Oklahoma are taxed using pass-through taxation, meaning business profits and losses are reported on the owners’ personal tax returns