Oklahoma is home to more than 360,000 small-scale businesses. Each of these small businesses does not need a business license. This guide will help you understand which types of businesses require a license and the circumstances.
Summary: Getting an Oklahoma Business License
| The sales tax license, commonly referred to as a seller’s permit, is the primary state-level permit or license in Oklahoma.
A sales tax license is required If any of the following apply:
Businesses in particular professions or industries could also need to have particular licenses or permits. More details on some of these licenses are available from the Oklahoma Department of Commerce. |
Do you need an Oklahoma Business License?
Oklahoma does not require any specific type of business license. However, most Oklahoma businesses will need a sales tax permit. Any business that sells goods to the public or provides services must have this permit. Print and advertising services, automobile parking, lodging and meals, and admissions are just a few of the services that require permits. Business owners must collect and pay the 4.5% sales tax on all retail transactions and certain services.
Professional licenses may be required for certain businesses. This applies to engineers, architects, tattoo artists, racehorse owners, and social workers. Similar licenses might be required for certain contractors, the insurance industry, and medical professionals.
There may also be requirements for licensing in your county or city, along with the professional licensure and sales tax permit. Oklahoma City, for example, has requirements regarding business licensing. The company’s owner should consult local authorities to determine what licensing and permits are required for a new business.
What are the requirements for a business license in Oklahoma?
You will need a sales tax permit if you sell taxable goods or resell items to the public. A business that acts as a wholesaler for other retail establishments can apply for a permit to resell. It doesn’t have to collect or pay sales tax.
Business owners might need to be licensed for specific industries, especially providing vocational and professional services. To avoid fines and penalties, obtaining all licenses and permits is important before starting business activities.
Types of business licenses
It is important to be familiar with your company’s different types of business licenses. Each type of license has its own requirements.
- Seller’s Permit. To collect the 4.5% sales taxes, retail sales establishments, and certain service providers must obtain a license from Tax Commission.
- Remote seller registration. To collect state use tax, retail sales establishments that sell more than $100,000 per year online or via phone distribution channels must apply to the Tax Commission.
- Alcoholic Beverage Laws Enforcement Commission License. This license is required for establishments that sell alcoholic beverages to the public and consumers.
- Tobacco License. The Tax Commission must issue a license to businesses that sell tobacco products.
- Food Permits. The Department of Health must issue a license to any business that serves or manufactures food.
- State Professional Licensing. Through professional boards, the state licenses many professions. For more information, each business should consult its professional association.
- County Licenses. Locally, permits and licenses might be required for a variety of reasons.
- Federal Licenses & Permits. Federal permits and licenses are required for many industries. For more information, please contact the Small Business Administration.
Steps to Obtaining Your Oklahoma Business License
The Oklahoma Taxpayer Access Point is where you can obtain a seller’s license. Registering is not complete until you have obtained an Employer Identification Number (EIN). You can get one by completing Form SS-4, or visiting the IRS Website.
This EIN will be used to register your new business on the portal. Follow the prompts to enter the necessary details about your company. The online application will take approximately 20 minutes to complete. After registration, the $20 fee will be charged to your credit card or debit card.
What Does an Oklahoma Business License Cost?
Oklahoma’s seller’s license costs $20. The cost of other types of business licenses varies depending on the industry, required license, and business activity. Check with your county clerk to find out the cost of filing for a license in your area.
Wrapping Up
Although not all businesses in Oklahoma require a business license you might want to consult with local, state, and federal officials to find out which licenses may apply to your company. A seller’s permit is required by most retail businesses. You may also need a city or county business license, depending on the laws of your locality. A license may be required for professionals.
Frequently Asked Questions (FAQs).
Is it necessary to register an Oklahoma sole proprietorship?
You may need a business license depending on the activities of your sole proprietorship. A sole proprietorship cannot be exempted from paying sales or use taxes. It may also need to have professional licensing.
Is Oklahoma required to register as a DBA?
Oklahoma does not require a DBA (doing business as) registration. However, it is advisable to file one. This will ensure that your name is protected and that you are allowed to use the name for commercial purposes.
