MAY 2026 | 9 THE OKLAHOMA BAR JOURNAL 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. Taxation Business Tax Basics: The Boring (but Essential) Side of Entrepreneurism By Marina Wise The intricate and technical nature of tax and business guidelines 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 finalized 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. Business Structure2 Selecting a business structure is 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, partnerships and corporations each vary in distributions (i.e., of profits and taxes), legal protections (primarily referring to officer liability), as well as required filings and documentation. On top of that, there 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 descriptions of some of the most common business structures.3 Sole proprietor. A business that is owned by a single individual and is often considered the simplest of business structures. Liquor stores are frequently organized as sole proprietorships due to legal restraints, and this structure is also commonly used by self-employed and home-based individuals. In terms of liability, the sole proprietor and the business owner IN THE POETIC WORDS OF SHAWN CARTER, also known as Jay-Z, “I’m not a businessman. 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 starting 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.
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