commenda-logo
Book a demo
Login
Talk to an expert

Doing business in

Oklahoma

Navigate Oklahoma’s business landscape with ease—whether you’re incorporating, expanding, or managing tax compliance. Commenda helps you stay ahead with automated solutions for incorporation, compliance, and tax filings.
Book a demo
oklahoma

Business Overview

Oklahoma features diverse economic sectors including energy, aerospace, agriculture, and manufacturing. The state offers competitive business costs, customized workforce training, and incentives targeting growing industries. Its central location and transportation infrastructure support distribution operations.

Key Facts & Figures

Category Details
Capital Oklahoma City
Major Cities Oklahoma City, Tulsa, Norman, Broken Arrow, Edmond
State Sales Tax Rate 4.50%
Local Sales Tax Rate Up to 7% additional local taxes
Corporate Income Tax No corporate income tax (Commercial Activity Tax instead)
Physical Nexus Threshold Physical presence through employees, property, or inventory
Economic Nexus Threshold $100,000 in annual sales

Did you know?

Oklahoma is a major energy production state, with significant oil, natural gas, and emerging renewable energy sectors.

Setup & Compliance

Oklahoma provides streamlined business registration with moderate regulatory requirements.

Starting a Business in Oklahoma:

  1. Select Your Business Structure: Consider tax implications and liability protection needs.
  2. Register Your Business: File formation documents with the Oklahoma Secretary of State.
  3. Register for Tax Accounts: Register with the Tax Commission for sales tax and withholding.
  4. Obtain Required Licenses: Research and secure necessary state and local business licenses.
  5. Register as an Employer: Register with the Employment Security Commission if hiring employees.

Key Compliance Considerations:

  • Annual Certificate of Good Standing: Many Oklahoma entities must maintain annual good standing with the Secretary of State.
  • Sales Tax Collection: Collect and remit 4.5% state sales tax plus applicable local taxes.
  • Corporate Income Tax: Corporations pay 6% corporate income tax.
  • Franchise Tax: Oklahoma corporations pay annual franchise tax based on capital invested in the state.
  • Professional Licensing: Various professions require specialized licenses through state boards.

Hiring & Payroll

Oklahoma maintains a business-friendly employment environment with minimal state regulations.

Oklahoma Payroll Requirements:

  • Unemployment Insurance: Rates from 0.1% to 7.2% on first $24,000 of wages.
  • State Income Tax Withholding: Required with progressive rates.
  • Workers’ Compensation: Required for most employers.

Oklahoma Employment Laws:

  • Minimum Wage: Follows federal minimum wage ($7.25/hour).
  • No state-mandated paid sick or family leave.
  • New hire reporting within 20 days.
  • Final paycheck due on next regular payday.
  • Oklahoma is an at-will employment state with right-to-work laws.

State Incentives

Oklahoma provides strategic economic incentives to attract and retain businesses.

Key Business Incentives:

  • Oklahoma Quality Jobs Program: Tax credits for job creation.
  • Small Manufacturer Voucher Program: Support for manufacturing businesses.
  • Research and Development Tax Credit: Supports innovative company development.

Small Business & Startup Support:

  • Oklahoma Small Business Development Center: Comprehensive business resources.
  • Rural Business Development Grants.
  • Minority and Women-Owned Business Certification Program.

Regulatory Considerations

Oklahoma provides a business-friendly regulatory environment with clear guidelines.

Key Business Regulations:

  • Data Privacy: Laws protecting consumer and business information.
  • Environmental Compliance: Regulations for energy and agricultural industries.
  • Professional Licensing: Required for various service-based professions.

Additional Regulatory Areas:

  • Energy Sector Compliance.
  • Agricultural Industry Regulations.

Explore Tax & Compliance Topics

Join hundreds of cross-border businesses growing fast with Commenda

Talk to an expert