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Each partner having Oklahoma source income sufficient to make a return, shall make such return as required by law. Partnerships filing Federal Form 1065-B will file Form 514. The taxable year and method of accounting shall be the same as the taxable year and method of accounting used for federal income tax purposes.
Every corporation organized under the laws of this state or qualified to do or doing business in Oklahoma in a corporate or organized capacity by virtue or creation of organization under the laws of this state or any other state, territory, district, or a foreign country, including associations, joint stock companies
If a federal consolidated return is filed, an Oklahoma consolidated return may be required or permitted under certain circumstances. ( Instructions, Form 512, Oklahoma Corporation Income Tax Return) The election to file a separate return or a consolidated return is made with the timely filing of the return.
In Oklahoma, as of 2023, the corporate tax is a flat 4% of Oklahoma taxable income. If your LLC is taxed as a corporation youll need to pay this tax. The states corporate income tax return (Form 512) is filed with the OTC.
A Form 500-B must be completed for each nonresident member to whom the pass-through entity has made an Oklahoma taxable distribution and paid withholding to Oklahoma. Form 500-B should not report withholding paid by sources other than the pass-through entity.
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Oklahoma also has a 4.00 percent corporate income tax rate. Oklahoma has a 4.50 percent state sales tax rat, a max local sales tax rate of 7.00 percent, and an average combined state and local sales tax rate of 8.98 percent. Oklahomas tax system ranks 23rd overall on our 2023 State Business Tax Climate Index.
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 doesnt impose a franchise tax on LLCs. Electing corporate tax status. Usually, LLCs are taxed as partnerships by default.
The applicant should immediately contact the Oklahoma Tax Commission to arrange payment of the entire liability. If immediate payment of the entire liability is not possible, the applicant may request an installment payment arrangement through the Collections Division of the Oklahoma Tax Commission.

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