How to Register for a Sales Tax Permit in Oklahoma

A number of young employees with ambitions to run their own business is often held back by the regulatory obligations that often can seem complicated. Filing for regulatory permits, tax permits on a state, county or local level can be a bit overwhelming. This is why we have created a short overview of these requirements with pointers to the official websites.

Starting a Business in Oklahoma

This is the part of the process that is fairly similar in every state. The first decisions you have to make are choosing the name and a legal structure of your business. Your tax filings will depend on the type of business structure you choose.

Small business owners in Oklahoma and other states normally choose to operate under sole proprietorship or general partnership. However, the downside is that these options leave you vulnerable to personal liability from lawsuits as well as higher taxes. To avoid possible personal liability issues, you can choose among a number of formal types of legal structure. These include common corporation, sub-chapter S Corporation, Limited Liability Company and Limited Partnership. For more information on the formal business legal structures visit here.

With the legal structure decided, you have to register your business name. This is done through the Oklahoma’s Secretary of State, where you can also check for the name availability. If the business name you wish to use is available you can proceed to register it by completing a Trade Name Report and paying a $25 fee, which covers the report costs. If you are uncertain about a business name or maybe wish to take more time to handle other regulatory obligations, you can pay a $10 fee to hold a proposed name for 60 days before registering.

Filing for a Tax Permit in Oklahoma

Depending on the business structure you choose, you may use your social security number (for sole proprietorship) as the identification number. For other business structures you must obtain the Federal Employer’s Identification Number (EIN), which is issued by the Internal Revenue Service (IRS).

If your business will include sales of “tangible personal property” in Oklahoma, you will have to register for a Sales Tax Permit. Under the law, any business having a physical presence in Oklahoma has to register for a sales tax permit. Physical presence means having an office in the state, a business representative, goods in a warehouse or delivery of merchandise.

Sales Tax permit registration can be handled through Oklahoma’s Taxpayer Access Point online, or by visiting the Oklahoma Tax Commission’s office in Tulsa (details provided at the end of the guide).

Before registering for a Sales Tax Permit, however, you need to check if the goods and services you are selling are taxable in the state of Oklahoma. You will find that services are generally not taxable while any tangible products are.

If the products you sell are taxable, make sure to provide personal information. This would include your name, address, SSN as well as business information such as your business name, office address and the EIN. You will also have to provide your business structure type, a date of incorporation, if applicable, and you should specify the types of products you sell.

The Sales Tax Permit fee is $20 and it will take at least five days for your Oklahoma Sales Tax Permit to be processed. To have this process fast-tracked, the Oklahoma Tax Commission advises registering at its Oklahoma City or Tulsa offices personally.

The permit is initially issued for six months after which it gets renewed automatically for another 30 months. For more information, you can consult the Oklahoma Tax Commission’s rulebook.

Oklahoma Licenses and Permits

The state of Oklahoma requires owners and some businesses to obtain specific occupational or professional licenses or permits. Licenses are acquired through completing certain examination processes while permits are issued after the business owner or a representative provides specific information about the business.

Some businesses are required to obtain a state license while others are not. For more information on specific licenses and permits required for various lines of business, visit the Oklahoma’s Department Of Commerce.

Retailers do not have to apply for specific licenses and permits other than the sales tax permit, unless they plan to sell beer, cigarettes or motor fuels in large quantities. In this case, you will have to apply for additional special permits.

Sales Tax Exemptions in Oklahoma

When it comes to wholesale businesses or businesses engaging in selling products for further resale, Oklahoma does not issue an equivalent of a resale certificate that puts the obligation of collecting taxes on the buyer. Instead, in case of a sale for resale, a copy of the buyer’s sales tax permit has to be provided. To verify the sales tax permit, or the buyer’s name, address and sales tax permit number (if the sales tax permit copy is unavailable), call the Taxpayer Assistance Division. In addition, the buyer has to provide a statement to the seller that the articles are being purchased for resale, including a legally binding signature of the buyer, and a certification showing the buyer is engaged in reselling the items.

If the buyer is a returning buyer making purchases on a regular basis, subsequent purchases can be made without further certification until the expiration date of the permit.

Gathering the Right Information

The state of Oklahoma encourages new business owners to develop a written business plan, which will serve as a guide to completing the registration steps discussed in this article and also as a means of pursuing loans or other financing to start the business.

While this guide sets you on the right track, it is of the utmost importance to contact relevant authorities on specific details that have not been covered by this guide. For detailed information, you can either visit the relevant websites or go directly to the offices of the departments you need information from. To help you in your information gathering, here are some relevant addresses you may need to visit.

Who to Contact

Oklahoma Department of Commerce

900 North Stiles Avenue, Oklahoma City, OK 73104.
Telephone: 405-815-6552 or 800-879-6552

Secretary of State

405-521-3912
State Capitol Building, Room 101, 2300 North Lincoln Blvd.,
Oklahoma City, OK 73105

Oklahoma Tax Commission

OKC Metro Area Location – Main Office

(405) 521-3160
2501 North Lincoln Boulevard
Oklahoma City, OK 73194 Connors Building, Capitol Complex

Tulsa Metro Area Location

440 South Houston, 5th Floor
Tulsa, OK 74127

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Henley Johnson

Henley currently works as a sales representative for Direct Liquidation, assisting businesses with product sourcing of liquidated merchandise from the largest retailers in the world. Whether you are looking for a pallet or a truckload Henley is here to help you grow your business.

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