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

[Progturner]

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

[PhoebeRoberts]

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.

[Progturner]

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 · Accepted solution]

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.