People who operate small businesses often have many questions. They need to know whether it is within their grasp to even start a business; they need to know about the laws, licenses, and rules that govern the operation of a business. Today I would like to answer at least a few of those questions by going over the Oklahoma small business tax laws.

If you’re going to start a business in the state of Oklahoma, you will need an ID number. Most people refer to it as a “tax ID number,” but it can be your employee ID number (EIN) from the federal government,  or if selling goods is not part of your business you may simply use your social security number.

You are required to have a tax ID number if you have a corporation or a partnership, if you have employees, if you have a self-employed retirement plan, or if you file an employment, excise, fiduciary, alcohol, tobacco, or firearms tax return. So, if you fall into one of those categories, the easiest way to get a tax ID number is through the IRS.

If you’re going to be selling goods or services, you have to get a sales tax permit through the Oklahoma tax commission. The cost of the permit is $20. you will collect sales tax at the rate of 4.5 percent, plus whatever the city or county your business is located in adds on for their share of the tax. You will remit this tax to the state on a quarterly basis.

In general, if you have a service business you do not have to charge, collect, and report sales tax. Even if you use goods in relation to your business, you are considered the “end user” so you are the one who pays the sales tax on them.

For more information on Oklahoma small business tax laws, phone 800-522-6154.

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This entry was posted on Tuesday, December 5th, 2006 at 3:57 pm and is filed under Small Business Tax Laws, Tax Laws. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.