Oklahoma LLC Taxes: The Complete Filing Guide (2025)

Oklahoma LLC Tax Basics

Navigating your Oklahoma LLC tax obligations doesn’t have to be complicated. We’ll walk you through the essentials of pass-through taxation, explain Oklahoma’s specific requirements, and highlight strategies to stay compliant and organized. This guide covers everything from federal income taxes to city-specific requirements and filing deadlines.

Use the links below to jump directly to the section you need:

• Oklahoma LLC Taxes at a Glance
• Understanding LLC Taxation Basics
• Federal Tax Obligations
• Oklahoma State Taxes
• Local Tax Considerations
• Tax Calendar and Filing Tips
• Tax Strategies for Oklahoma LLCs
• Forms and Resources

Oklahoma LLC Taxes at a Glance

Tax Type	Rate	Filing Deadline	Forms Required
Federal Income Tax	10-37% (personal brackets)	April 15, 2025	Form 1040 + Schedule C or Schedule E/K-1
Self-Employment Tax	15.3%	April 15, 2025	Schedule SE
Oklahoma Income Tax	0.25% – 4.75%	April 15, 2025	Form 511
Oklahoma Pass-Through Entity Tax	4%-4.75%	March 15, 2025	Form 586/Form 514
Oklahoma Corporate Income Tax	4%	May 15, 2025	Form 512
Federal Payroll Taxes (If Employees)	7.65% employer + 7.65% employee (FICA)	Quarterly (April 30, July 31, October 31, January 31)	Form 941
Oklahoma Unemployment Tax (If Employees)	0.3% – 9.2% (new employers: 1.5%)	Quarterly	Form OES-1
Federal Unemployment (FUTA)	6% on first $7,000 per employee (0.6% after credits)	January 31, 2026 (annual)	Form 940
State and Local Sales & Use Taxes	4.5% state rate (plus up to 6.5% in local taxes)	Monthly or semi-annually based on sales volume	Form STS-20002
Annual Certificate	$25 fee	Anniversary date of LLC formation	LLC Annual Certificate Form

Understanding LLC Taxation Basics

How Oklahoma LLCs Are Taxed By Default

Your Oklahoma LLC doesn’t pay taxes itself. Instead, profits flow through to you and your members, who report them on personal tax returns. This is called pass-through taxation.

Here’s how it works:

1. Your LLC earns income from business activities
2. The LLC itself files no tax return (unless you elect otherwise)
3. Profits “pass through” to members based on ownership percentage
4. Each member reports their share on their personal tax return
5. Members pay tax at their individual income tax rates

What this means for you: Unlike corporations, your business profits are only taxed once, which typically saves money.

Tax Classification Options

While pass-through taxation is the default, your Oklahoma LLC can choose alternative tax treatments:

Default LLC Tax Status:

• Single-member LLC: Taxed as a sole proprietorship
• Multi-member LLC: Taxed as a partnership

Optional Tax Classifications:

• S Corporation: Can reduce self-employment taxes by paying “reasonable salaries”
• C Corporation: LLC pays corporate tax on profits, members pay personal tax on distributions (creates double taxation)

Oklahoma Pass-Through Entity Tax Option:

• Optional tax that allows LLCs taxed as partnerships or S Corps to pay tax at the entity level
• Can help overcome the $10,000 SALT deduction limitation
• Must be elected each year (does not renew automatically)
• Can be revoked within 60 days of making the election

Not sure which tax classification is right for your business? Schedule a free consultation with 1-800Accountant.

Federal Tax Obligations

Income Tax

As a Oklahoma LLC owner, you’ll report your share of business profits on your personal tax return using:

• Form 1040 + Schedule C (single-member LLCs)
• Form 1040 + Schedule E + Schedule K-1 (multi-member LLCs)

Federal income tax rates range from 10% to 37% based on your tax bracket (actual brackets will depend on inflation adjustments and any tax law changes).

Simply Put: Whatever money your business makes (after expenses) gets added to your personal tax return, just like income from a job.

Self-Employment Tax

LLC members actively involved in the business must pay self-employment tax of 15.3% (covering Social Security and Medicare) on their share of LLC profits.

Key points:

• Applies to net earnings of $400 or more
• Calculated on Schedule SE
• You can deduct 50% of the self-employment tax as an “above-the-line” deduction, which lowers your adjusted gross income

What happens if I miss this payment? The IRS charges penalties of 0.5% per month plus interest. However, first-time mistakes can often qualify for penalty abatement if you have a clean compliance history.

Employment Taxes

If your LLC has employees, you must:

• Withhold federal income tax
• Pay and withhold FICA taxes (7.65% each for employer and employee)
• Pay federal unemployment tax (FUTA)
• File quarterly employment tax returns (Form 941)
• Provide W-2 forms annually

Estimated completion time: 2-3 hours per quarter (significantly less with payroll software or professional help)

Estimated Tax Payments

Because no tax is withheld from your LLC profits, you’ll likely need to make quarterly estimated tax payments using Form 1040-ES. These payments cover both income and self-employment taxes on your share of the business income. Missing deadlines or underpaying can lead to IRS penalties, even if you pay in full later.

Working with an accountant can help ensure accurate calculations, on-time payments, and a smarter overall tax strategy.

Key deadlines:

• April 15
• June 16
• September 15
• January 15

Pro Tip: Set calendar reminders 15 days before each deadline. This gives you time to prepare without the last-minute rush that leads to mistakes.

Oklahoma State Taxes

Oklahoma Income Tax

Oklahoma taxes your share of LLC income on your personal return at a graduated rate ranging from 0.25% to 4.75% (depending on your total taxable income).

Filing requirements:

• Use Oklahoma Form 511
• Due April 15, 2025
• Oklahoma follows federal adjusted gross income as a starting point

Bottom Line: For every $1,000 your LLC earns, you could end up paying up to $47.50 in Oklahoma state income tax (in addition to federal taxes).

Corporate Income Tax

If your LLC elects to be taxed as a C corp, it will need to pay the state’s flat rate 4% corporate income tax.

Filing requirements: 

• Due May 15, 2025 
• Use North Dakota Form 512

Oklahoma Pass-Through Entity Tax

This optional tax can benefit many Oklahoma LLC owners:

• Tax rate: 4.75% 
• Paid by your LLC instead of individual members
• Members receive a tax credit on their personal returns
• Helps bypass the $10,000 SALT deduction limitation
• Must elect by filing Form 586 by March 15, 2025
• Use North Dakota Form 514 to file 
• Can be revoked within 60 days of making the election

Real Savings Example: For an LLC with $200,000 in profits, the Pass-Through Entity Tax could save owners up to $9,500 in federal taxes by working around the SALT deduction cap.

Sales and Use Tax

If your Oklahoma LLC sells physical products or certain services:

• Collect 4.5% sales tax on taxable sales (plus any applicable local taxes)
• Register for a sales tax permit through OkTAP ($20 fee)
• File and pay collected taxes monthly or semi-annually based on sales volume
• Due dates vary based on filing frequency

60-Second Check: Do I Need to Collect Sales Tax?

• Do you sell physical products in Oklahoma? → if yes, collect tax
• Do you sell digital products? → Generally not taxable
• Do you provide services? → Most services are exempt
• Do you sell online to Oklahoma customers? → If yes, collect tax

Services typically exempt from sales tax include:

• Professional services (legal, accounting)
• Personal services (haircuts, fitness training)
• Medical services

Products typically subject to sales tax include:

• Tangible personal property
• Prepared food
• Some digital products

Payroll Taxes 

If you have employees in Oklahoma, you will be responsible for two types of payroll taxes. 

Unemployment Insurance (UI) Tax 

• Register through the Oklahoma Employment Security Commission
• Rate is 1.5% for new employers (0.3%-9.2% afterwards)
• Applies to first $28,200 of each employee’s wages
• Due quarterly

Withholding Tax 

• Register through the Oklahoma Tax Commission
• Use Oklahoma’s tax tables to calculate withholding rate per employee
• Due monthly, quarterly, or semi-weekly 

Annual Certificate Filing

While not a tax, your Oklahoma LLC must file an annual certificate (also known as an annual report):

• Due on your LLC’s anniversary date each year
• $25 filing fee
• File online with the Oklahoma Secretary of State

Calendar Alert: Set a reminder one month before your LLC’s anniversary date to ensure you don’t miss this easy but required filing.

Local Tax Considerations

Local Sales and Use Taxes

Oklahoma allows cities and counties to impose additional sales taxes on top of the state’s 4.5% rate.

Areas with the highest combined rates (state and local) include:

• Hobart (11.5%)
• Tulsa (8.52%)
• Oklahoma City (8.63%)
• Norman (8.75%)
• Other Oklahoma cities and counties

Filing requirements:

• Both state and local sales taxes are reported together through OkTAP
• You do not need to file separate returns for each city or county
• The state will distribute local tax portions to cities and counties for you

Property Taxes

If your LLC owns real property in Oklahoma:

• Rates vary by locality
• Assessed annually
• May qualify for various exemptions based on business type
• Personal property tax may apply to business equipment

Tax Calendar and Filing Tips

Key Deadlines for Oklahoma LLCs

January:

• January 15: Final estimated tax payment for previous year
• January 31: Oklahoma UI tax due
• January 31: Issue W-2s/1099s to employees/contractors
• January 31: Fourth quarter federal payroll tax payment due 

March:

• March 15: Pass-Through Entity Tax election deadline

April:

• April 14: North Dakota pass-through entity tax return due 
• April 15: Personal tax returns due
• April 15: Federal income and self-employment tax returns due
• April 15: First quarter estimated tax payment due 
• April 30: First quarter federal payroll tax payment due
• April 30: Oklahoma UI tax due

June: 

• June 16: Second quarter estimated tax due 

July: 

• July 31: Oklahoma UI tax due
• July 31: Second quarter federal payroll tax payment due 

September:

• September 15: Third quarter estimated tax payment due

October:

• October 31: Oklahoma UI tax due
• October 31: Third quarter federal payroll tax payment due

Record-Keeping Checklist

Keep these records for at least 7 years:

• Business income records (invoices, receipts)
• Expense receipts and documentation
• Bank and credit card statements
• Asset purchase and improvement records
• Vehicle mileage logs
• Home office documentation
• Payroll records
• Previous tax returns

Tax Strategies for Oklahoma LLCs

S Corporation Election Benefits

Converting your LLC to an S Corporation for tax purposes can save on self-employment taxes:

1. File Form 2553 with the IRS
2. Pay yourself a “reasonable salary” subject to employment taxes
3. Take remaining profits as distributions exempt from self-employment tax

Example: An LLC making $100,000 in profit pays 15.3% self-employment tax on the entire amount. As an S Corp, if $60,000 is a reasonable salary and $40,000 is taken as distributions, only the $60,000 is subject to employment taxes.

Potential Savings: In this example, you’d save about $6,120 in self-employment taxes.

Pass-Through Entity Tax Election

Consider electing Oklahoma’s Pass-Through Entity Tax if:

• You’re affected by the $10,000 SALT deduction cap
• You expect your LLC to generate significant income
• All members agree to the election

Business Expense Deductions

Common deductions Oklahoma LLC owners often overlook:

• Home office deduction
• Business mileage (70¢ per mile for 2025)
• Health insurance premiums
• Retirement plan contributions
• Professional development expenses
• Business meals (50% deductible)

Forms and Resources

Federal Tax Forms

• Schedule C: Profit or Loss From Business (sole proprietors)
• Form 1065: U.S. Return of Partnership Income
• Schedule K-1: Partner’s Share of Income, Deductions, Credits
• Form 1120-S: U.S. Income Tax Return for an S Corporation
• Form 2553: Election by a Small Business Corporation (S Corp)
• Form 8832: Entity Classification Election

Oklahoma Tax Forms

• Form 511: Oklahoma Personal Income Tax Return
• Form 512: Oklahoma Corporate Income Tax Return
• Form 514: Oklahoma Pass-Through Entity Tax Return
• Form STS-20002: Oklahoma Sales and Use Tax Return

Helpful Resources

• Oklahoma Tax Commission
• Oklahoma Secretary of State
• Oklahoma Taxpayer Access Point
• Internal Revenue Service