The legal organizational structures known as Limited liabilities Companies (LLCs) shield business owners from personal liabilities. Because of their management flexibility, tax advantages, and legal protection, LLCs are common in the US. One of the places where LLCs are frequently employed is Oklahoma. However, a lot of people enquire as to whether Oklahoma LLCs expire.
The good news is that LLCs in Oklahoma never expire. In Oklahoma, an LLC is created and remains in existence until it is dissolved. However, in order to keep their status as active, LLCs in Oklahoma must submit an annual report. Every year, by the end of the month commemorating the founding of the LLC, the annual report is required. A $25 penalty fee will be assessed if the report is not submitted on time.
Moreover, if your LLC misses the deadline for the annual report two years in a row, the Oklahoma Secretary of State will administratively dissolve it. Your LLC will cease to exist and its name will be available for use to anyone after administrative dissolution. Therefore, it is essential to submit the annual report by the due date in order to maintain the legal standing and name of your LLC.
Oklahoma LLCs are liable to both state and federal taxes in terms of taxation. However, LLCs are not subject to a state-level tax in Oklahoma. The income of an LLC is instead recorded on the owners’ personal tax returns because LLCs are taxed as pass-through businesses. Whether or not the LLC distributes its revenues, the owners are still responsible for paying taxes on their respective portions.
Last but not least, you can submit an online application through the IRS website if you need an Employer Identification Number (EIN) for your LLC in Oklahoma. Your LLC is uniquely identified for tax purposes by its nine-digit EIN. To open a business bank account, recruit staff, and submit tax returns, you must an EIN.
In conclusion, LLCs are perpetual in Oklahoma, but they must submit an annual report to keep their status as active. LLCs are subject to federal taxes in Oklahoma and are taxed as pass-through businesses. You can submit an online application through the IRS website to obtain an EIN for your LLC in Oklahoma. To preserve the legitimacy, brand, and tax advantages of your LLC, you must abide by Oklahoma’s rules.