Franchise tax might be owed if you run a business in Oklahoma. Some companies might, however, be excluded from paying this tax. This page will cover Oklahoma franchise tax exemptions as well as partnership dissolution procedures.
A restricted range of companies are exempt from the Oklahoma franchise tax. These consist of:
2. Nonprofit Organizations: Nonprofit groups that qualify for tax exemption under Internal Revenue Code Section 501(c) are likewise exempt from paying franchise tax.
4. Agricultural Cooperatives: Under Oklahoma law, agricultural cooperatives are exempt from paying franchise tax.
Oklahoma Partnership Dissolution
1. Inform other partners: The first step in dissolving a partnership is to inform all other partners of your desire. You can do this in writing.
2. Submit a certificate of dissolution: The Oklahoma Secretary of State must receive your certificate of dissolution. You can do this via mail or online. The document must contain the date of dissolution, the names and addresses of all partners, and that all debts and liabilities of the partnership have been paid in full or discharged. 3. Submit final tax returns: You must submit partnership final tax returns to the Oklahoma Tax Commission and the IRS. 4. Notify creditors: You are required to inform all of the partnership’s creditors of the dissolution. 5. Liquidate assets: The assets of the partnership must be sold or given to the partners.
In conclusion, some companies in Oklahoma, such as sole proprietorships, nonprofit institutions, institutions of higher learning, and agricultural cooperatives, may not be required to pay franchise tax. In order to dissolve a partnership as a business partner, you must take specific actions, such as submitting a certificate of dissolution, final tax returns, contacting creditors, selling off assets, and submitting a final report. These instructions must be carefully followed in order to terminate the partnership legally.