If so, be prepared to either resume, or begin, paying an annual franchise tax. The state of Oklahoma has reinstated its annual franchise tax after a brief hiatus, during which it was replaced with the business activity tax. Because the business activity tax was repealed and not extended, the franchise tax was reinstated and the franchise tax return for the report period covering July 1, 2014 through June 30, 2015 is due by July 1, 2014. However, returns will not be considered delinquent if filed, and the tax is paid, by September 2, 2014.
The tax is imposed on all for-profit corporations either organized, or doing business, in the state. This includes regular C-corporations, as well as subchapter S-corporations, but does not include not-for-profit corporations, partnerships, or limited liability companies taxed as partnerships. In addition, all foreign corporations (C, S and not-for-profit) are required to pay a $100 registered agent fee.
The franchise tax is calculated at the rate of $1.25 for each $1,000 of capital employed in or apportioned to Oklahoma. The returns due July 1, 2014 shall calculate the tax based on the corporation's balance sheet from its 2013 tax year. The maximum annual franchise tax is $20,000.
If you have questions as to whether or not Oklahoma franchise tax applies to your organization, please contact a member of our state and local tax team.
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