OK LLC -1st year as S-Corp (form 2553) - Do they have to file OK franchise tax return?

Forum|Forum|4 years ago
April 14, 2022
1 reply
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Previously filed as a single member LLC (Sch. C). For 2021 we had elected to file as S-Corp. Have tried to research and I know LLC's are exempt but cannot find language if LLC files as S-Corp if they now have to pay franchise tax and file return. Thanks

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Best answer by PhoebeRoberts

1) Yes

2) The Secretary of State mails them a form on their anniversary to send the $25 back with. Nothing the preparer needs to worry about.

PhoebeRoberts

Intuit Community Champion

Only entities formed as state-law corporations pay franchise tax. LLCs never pay franchise tax (just the separate $25 per year), regardless of tax elections.

P

ProgturnerAuthor

Level 2

2 follow up questions

I assume an S-corporation that is pretty old and has always been an S-Corp will pay the franchise tax? They have been paying for quite some time.

2nd - Can you tell me what form the LLC would pay the $25? I am unfamiliar with that "tax"?

Thank you so much

PhoebeRoberts

Answer

Intuit Community Champion

1) Yes

2) The Secretary of State mails them a form on their anniversary to send the $25 back with. Nothing the preparer needs to worry about.

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