The Oklahoma Bar Journal May 2026

T axation

Business Tax Basics: The Boring (but Essential) Side of Entrepreneurism By Marina Wise

I N THE POETIC WORDS OF SHAWN CARTER, also known as Jay-Z, “I’m not a busi nessman. I’m a business, man.” For many Oklahomans, their business is more than just their job – it represents their livelihood, identity and sometimes even legacy. When start ing a business, one may concentrate on products, services, staffing, strategy or logo design. While important, those details become futile if the business runs afoul of basic state tax laws and procedures. Although often mundane, tax compliance is vital to the success and longevity of any business.

are subtypes for each structure that can also differ substantially. The main tax takeaway in this is that business structure can greatly impact not only what is taxed but also who is liable for that tax. Since businesses are required to select a structure during the registration process, the following are descrip tions of some of the most common business structures. 3 Sole proprietor. A business that is owned by a single individ ual and is often considered the simplest of business structures. Liquor stores are frequently orga nized as sole proprietorships due to legal restraints, and this structure is also commonly used by self-em ployed and home-based individ uals. In terms of liability, the sole proprietor and the business owner

The intricate and technical nature of tax and business guide lines can deter even the most motivated business professionals. Reducing tax and business material to smaller, bite-sized pieces may make it more palatable. Accordingly, this article primarily covers the early stages of business ownership – specifically, the registration process. BUSINESS REGISTRATION Every business requires a solid foundation; truly, a laundry list of details must be carefully final ized before opening any business. Registering the business with the Oklahoma Tax Commission (OTC), specifically, is a crucial step. Registration is, in simple terms, the process a business must follow to obtain OTC permission to operate.

Proper registration will prevent compliance issues for businesses later. Registration applications can be submitted via OkTAP. 1 Applicants should be prepared to provide several key pieces of information, some of which are described below. no small component of the business registration process. A business’s entire fiscal trajectory – as well as that of its officers – can be heavily impacted by business structure alone. Sole proprietorships, part nerships and corporations each vary in distributions ( i.e. , of profits and taxes), legal protections (pri marily referring to officer liability), as well as required filings and doc umentation. On top of that, there Business Structure 2 Selecting a business structure is

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

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THE OKLAHOMA BAR JOURNAL