OUR THOUGHTS ON:

Is Your Corporation Conducting Business in Oklahoma?

State and Local Tax

By Allen Wassel

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  Because the business activity tax was repealed and not extended, the franchise tax was reinstated and the franchise tax return for the report period covering July 1, 2014 through June 30, 2015 is due by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.

© 2014 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

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The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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