How to Start an LLC in Oklahoma | 2024 Guide

Start a LLC in Oklahoma

How to Start an LLC in Oklahoma: If you’re looking to launch a business in Oklahoma, starting a Limited Liability Company (LLC) may be the right choice for you. An LLC provides personal liability protection for its owners while giving them flexibility in managing and taxing the business. This guide provides a step-by-step process for starting an LLC in Oklahoma. From choosing a unique name to registering with the state and obtaining necessary licenses and permits, Webinarcare Editorial Team will walk you through setting up your new business entity. So grab a pen and paper, and let’s get started!

What is a Limited Liability Company?

A Limited Liability Company (LLC) is a type of business entity that combines a corporation’s limited liability protection with a partnership’s tax benefits. LLCs are popular among small business owners for their flexibility and ease of formation. In Oklahoma, an LLC must have a unique name and file Articles of Organization with the Secretary of State. Depending on their business needs, LLCs may also elect to be taxed as a corporation or an S-corp. Owners of an LLC, called members, are not personally liable for the company’s debts and losses, and the company’s profits and losses are passed through to the member’s personal tax returns. This makes an LLC an attractive option for those seeking personal liability protection and simplified taxation.

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Steps on How to Start an LLC in Oklahoma

To form an LLC for your business, you must follow the guidelines that include naming your LLC, hiring a Registered Agent, filing your Articles of Organization, creating your LLC operating agreement, getting an employer identification number, opening a bank account and getting business licenses and permits.

Step 1: Name your LLC in Oklahoma

After you have decided on the idea to form an LLC in Oklahoma, deciding the name for your LLC is significant. There is a complete guide on LLC name guidelines for you to have a proper LLC business name. Here are some regulations you must follow while naming your LLC,

  • The name should not be confused with a government entity.
  • The name should be unique.
  • The name should be available to use.
  • Any other business does not use the name.
  • The new name must include “LLC” if it is a limited liability company.

In Oklahoma, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 60 days. You must file a name reservation application in Oklahoma Secretary of State to keep the name.

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You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for filing Oklahoma DBA (doing business as). In this manner, you can choose any name you desire for your business. A DBA allows a company to operate under the name of the person or entity who owns it. If you have decided to file for a DBA, you can file it in two methods, by mail and in person. However, before filing a DBA, you should know that you need to renew your DBA from up to Indefinite, which costs around $25.

Step 2: Hire a Registered Agent in Oklahoma

Hiring a Registered Agent in Oklahoma is a must since a Registered Agent is a person or business entity responsible for receiving important legal documents on behalf of your Oklahoma LLC. Most states require you to designate a Registered Agent when forming your LLC.

The qualifications of a Registered Agent vary depending on the jurisdiction. Still, generally, a Registered Agent must meet the following criteria:

  • Availability: A Registered Agent must be available during regular business hours to receive and process legal documents and official correspondence.
  • Physical Address: A Registered Agent must have a physical street address within the state where the LLC is registered. This address, known as the registered office, cannot be a P.O. Box.
  • Residency or Authorization: For individuals serving as Registered Agent, they must be residents of the Oklahoma where the LLC was formed. A business entity acting as a Registered Agent must be authorized to do business within that state.
  • Age: A Registered Agent must be at least 18 years old.
  • Good standing: A Registered Agent should not have any legal or financial issues that impede their ability to fulfill their duties.

Choosing a reliable and responsible Registered Agent is essential, as failure to receive and respond to legal documents can seriously affect your business. Some businesses use professional Registered Agent services to ensure compliance and proper handling of legal matters.

However, if you would like to have an easier process in filing the necessary documents, you can get Oklahoma Registered Agent Services.

Step 3: File your Articles of Organization in Oklahoma

The Articles of Organization for an LLC is an important document to start your limited liability company (LLC). Oklahoma Articles of Organization is a simple document that contains the business name and address as well as the name and address of the person who received lawsuits on behalf of the organization.

Here are the guidelines and specific requirements in filing your Articles of Organization in Oklahoma.

1. Obtain the Necessary Forms: Visit the Oklahoma’s business filing office website, usually the Oklahoma Secretary of State’s office, to download the required forms or file online.

2. Provide the Required Information: Fill in the necessary details in the form, which typically include:

  • The name of your LLC (must include an LLC designator such as “LLC,” “L.L.C.,” or “Limited Liability Company”)
  • The purpose of your LLC (a general statement or specific business activities)
  • The address of your LLC’s principal place of business
  • The name and address of your registered agent (the person or business entity responsible for receiving legal documents on behalf of your LLC)
  • The management structure of your LLC (member-managed or manager-managed)
  • The duration of your LLC, if not perpetual
  • The names and addresses of the LLC’s organizers or members

3. Sign and File the Form: Submit the completed form in the {state} state office, either by mail, in person, or online. You may mail it at Oklahoma Secretary of State, 421 N.W. 13th Suite 210, Oklahoma City, OK 73103.

4. Pay the Filing Fee: When you submit your Articles of Organization, you’ll need to pay a filing fee of $100. Make sure to check and include the correct payment with your submission.

5. Receive Confirmation: After your Articles of Organization have been filed and processed, you’ll receive a confirmation from Oklahoma, typically a stamped and approved copy of the document or a Articles of Organization.

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Once you have successfully filed your Articles of Organization and it has been approved, your Oklahoma LLC is officially formed. However, remember to complete additional steps, such as creating an Operating Agreement, obtaining an EIN, and registering for any required licenses and permits.

Step 4: Create Your Oklahoma Operating Agreement

An operating agreement is a document that contains all of your company’s organizational details. Drafting an operating agreement in most states is not required. Yet, having one as an internal document is strongly advised. An operating agreement includes information like-

  • About Business
  • Members and management
  • Capital contribution
  • Profit Distribution
  • Change of membership
  • Dissolution

To understand how an operating agreement works, you should check out how to create an operating agreement in Oklahoma.

Recommended: Get oprating agreement drafts ready on your table with a help of a professional service. We recommend using –

LegalZoom($0 + State Fee for LLC formation)

Step 5: Get an EIN

After documenting the operating agreement, you should get or request an Employer Identification Number (EIN) in Oklahoma. An EIN will serve as the tax ID for your professional corporation. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website.

The application of an EIN in Oklahoma can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

In obtaining an EIN for your LLC, you should be aware to ensure that your LLC is eligible for an EIN. You need an EIN if you have employees, operate as a corporation or partnership, or meet other specific IRS criteria. Before applying, gather the required information, including your LLC’s name, mailing address, and the responsible party’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Also, you can apply for an EIN through various methods, including online, by fax, mail, or telephone (for international applicants).

Recommended: Professional services have the EIN included in their LLC formation package. We recommend using –

LegalZoom($0 + State Fee for LLC formation)

Step 6: Open a Bank Account and Prepare for Taxes

After you have filed for and received your Employer Identification Number, you should open a bank account because you will use this account for yourself, your clients, and your employees.

Your business dealings in Oklahoma might be simpler with a US business bank account because it boosts your company’s legitimacy and liquidity. Most banks demand an EIN to create a business bank account for firms other than sole proprietorships. Also, having an EIN makes tax preparation easier. You can anticipate paying employment and corporate taxes with Oklahoma LLC.

Opening a bank account is necessary for Oklahoma business. If you are still wondering where to open an account in your Oklahoma, you should check the Best Bank for Small Business in Oklahoma.

Step 7: Get a Business and License Permit

You must get a business license in Oklahoma before establishing your LLC. A business license is a legal document granted by a state government body that permits you to conduct business within the area under its jurisdiction. The price of business licenses and permits in Oklahoma ranges from $50 – $300. If there is a requirement for a specific license or city-based permit, you must inquire with the Oklahoma Secretary of State.

Cost to Form an LLC in Oklahoma

Even if you have a business name and structure in mind, you should consider whether you can afford the costs of forming an LLC in Oklahoma. Articles of Organization costs around $100. The initial filing fee is $100, and the annual fee is $25.

If you forget to pay the annual fee for your Oklahoma LLC, you will have a penalty of $50. However, you can check the Oklahoma LLC Cost for additional information.

Advantages of Creating Oklahoma LLC

Even though some people decide on what to do with their businesses, some choose to put it in their own individual name, while others still choose to set it up via LLC in Oklahoma. Important benefits will help you set up an LLC in Oklahoma.

  • Pass-Through Taxation: The pass-through structure will make the company not pay twice the tax. Most start-ups and entrepreneurs in Oklahoma apply for an LLC because of this structure. Pass-through taxation refers to how income and losses from an LLC (Limited Liability Company) are passed through to its members (owners) for tax purposes rather than being taxed at the business entity level. This means the LLC does not pay federal income taxes; the members’ profits and losses are allocated based on their interests. Each member then reports their share of the LLC’s income or losses on their personal tax returns and pays taxes at their individual tax rates.
  • Ownership Flexibility: If you need sole and primary control over your company’s operations, a sole proprietorship will allow you to do so. If you apply for an LLC in Oklahoma with flexibility, you will have default rules set by law and need an operating agreement.
  • Personal Liability Protection: Personal Liability Protection protects your business from damage, debts, or legal obligations. In personal liability protection, the company’s profits and earnings will stay as is even if your company is about to be sued. This protection of having an LLC in Oklahoma can also be extended to the company’s properties and assets. Many start-up companies will benefit from this since most are starting to build a company. Even if liability exists, the LLC in Oklahoma will protect its assets.

FAQs

What is an LLC?
Limited liability companies are a way for companies to become incorporated as their own entity with its own tax and financial responsibilities.
How do I start an LLC in Oklahoma?
In Oklahoma, you can start an LLC by submitting Articles of Organization to the Secretary of State’s website.
How much does it cost to start an LLC in Oklahoma?
The fee for filing articles of organization with the Secretary of State in Oklahoma is $100.
What are the requirements for starting an LLC in Oklahoma?
To start an LLC in Oklahoma, you must appoint a registered agent, file articles of organization with the state, and create an operating agreement.
Who can form an LLC in Oklahoma?
Anyone can start an LLC in Oklahoma.
Can an LLC have one owner in Oklahoma?
Yes, a single member LLC is allowed in Oklahoma.
Does Oklahoma require an LLC to have a physical address?
Yes, an LLC in Oklahoma must have a registered agent and physical address in the state.
How long does it take to get an LLC in Oklahoma?
The processing time for an LLC in Oklahoma typically takes 2-3 weeks.
What is a registered agent in Oklahoma?
A registered agent is a person or company that receives legal service of process on behalf of the LLC.
Can I be my own registered agent in Oklahoma?
Yes, you can be your own registered agent in Oklahoma.
What is a certificate of good standing in Oklahoma?
A certificate of good standing is a document proving the business is registered and authorized to conduct business in Oklahoma.
How do I get a certificate of good standing in Oklahoma?
You can request a certificate of good standing through the Oklahoma Secretary of State’s website.
What is an Operating Agreement in Oklahoma?
An operating agreement is a legal document that outlines the ownership and operation of an LLC in Oklahoma.
Is an Operating Agreement required in Oklahoma?
It’s not required, but it’s highly recommended to have an operating agreement for your Oklahoma LLC.
Can Non-US residents start an LLC in Oklahoma?
Yes, Non-US residents can start an LLC in Oklahoma.
What taxes does an LLC in Oklahoma pay?
LLCs in Oklahoma must pay federal, state, and payroll taxes.
Do I need a business license to start an LLC in Oklahoma?
Requirements can be specific by industry and locality, so check with your local city to get more information on business license requirements.
How do I renew my Oklahoma LLC?
To renew an Oklahoma LLC, you must file an annual report with the Secretary of State annually.
Can I change the name of my LLC in Oklahoma?
Yes, you can file an amendment document with the Secretary of State to change the name of your LLC.
What is a DBA in Oklahoma?
DBA stands for “doing business as” and it is an Oklahoma document that allows your company to operate a new or separate name without creating a new business entity.
Can a foreign LLC do business in Oklahoma?
Yes, as long as it registers with and follows the state’ requirements.
What is an organizational meeting in Oklahoma?
An organizational meeting is when all owners meet to sign the LLC’s operating agreement.
How do I dissolve my Oklahoma LLC?
To dissolve an LLC in Oklahoma, you must file dissolution papers with the Arizona Secretary of State.
Is Oklahoma an income tax-friendly state for LLC’s?
Yes, Oklahoma is known for its tax-friendly policies on LLCs.
Does Oklahoma have any LLC naming requirements?
Yes, the Oklahoma naming requirements specify that your LLC’s name must include “limited liability company,” “limited company,” “LLC,” “L.L.C.,” “LC,” or “L.C..”
What is a franchise tax in Oklahoma?
A franchise tax is an annual fee paid by businesses incorporated in Oklahoma.
Does Oklahoma require an LLC to file annual reports?
Yes, an Annual Report needs to be filed with the Secretary of State in Oklahoma.
Does Oklahoma allow Series LLC’s?
No, Series LLC’s aren’t allowed in Oklahoma.
What is an LLC in Oklahoma?
An LLC in Oklahoma is a legal business structure that allows for limited personal liability and pass-through taxation for its members.
What is the process for forming an LLC in Oklahoma?
To form an LLC in Oklahoma, you must file articles of organization with the Oklahoma Secretary of State and pay the necessary filing fees.
What is the cost to form an LLC in Oklahoma?
The cost to form an LLC in Oklahoma is $100 for standard processing or $200 for expedited processing.
What are the advantages of forming an LLC in Oklahoma?
The advantages of forming an LLC in Oklahoma include limited personal liability, pass-through taxation, and ease of formation and maintenance.
Can an LLC in Oklahoma have only one member?
Yes, an LLC in Oklahoma can have only one member.
What are the naming conventions for an LLC in Oklahoma?
The name of an LLC in Oklahoma must include the words “Limited Liability Company” or its abbreviation, “LLC.”
Can an LLC in Oklahoma be formed for any type of business?
Yes, an LLC in Oklahoma can be formed for any type of business activity that is lawful.
Are there residency requirements for forming an LLC in Oklahoma?
There are no residency requirements for forming an LLC in Oklahoma.
What are the annual requirements for maintaining an LLC in Oklahoma?
An LLC in Oklahoma must file an Annual Certificate with the Secretary of State and pay the necessary annual fees.
Can an LLC be formed in Oklahoma online?
Yes, an LLC can be formed in Oklahoma online through the Oklahoma Secretary of State’s website.
How long does it take to form an LLC in Oklahoma?
The processing time for forming an LLC in Oklahoma is typically 3-5 business days for standard processing or 24 hours for expedited processing.
Can a non-resident individual form an LLC in Oklahoma?
Yes, a non-resident individual can form an LLC in Oklahoma as long as they comply with the state’s requirements for formation.
What is the minimum number of members required to form an LLC in Oklahoma?
The minimum number of members required to form an LLC in Oklahoma is one.
What is a Registered Agent in Oklahoma?
A Registered Agent in Oklahoma is an individual or business entity designated to receive legal documents and other official correspondence on behalf of an LLC.
Is a Registered Agent required for an LLC in Oklahoma?
Yes, a Registered Agent is required for an LLC in Oklahoma.
Can an LLC in Oklahoma change its Registered Agent?
Yes, an LLC in Oklahoma can change its Registered Agent by filing the necessary forms and paying the appropriate fees.
What is an Oklahoma Limited Liability Partnership?
An Oklahoma Limited Liability Partnership is a legal business structure that allows for a partnership to have limited personal liability and pass-through taxation for its members.
How does an Oklahoma Limited Liability Partnership differ from an LLC?
An Oklahoma Limited Liability Partnership is operated by partners, whereas an LLC is operated by members.
Can an existing business be converted to an LLC in Oklahoma?
Yes, an existing business can be converted to an LLC in Oklahoma by filing the necessary forms and paying the appropriate fees.
What is the highest personal liability protection characteristic?
The highest personal liability protection characteristic is the formation of an LLC in Oklahoma.
Is a business plan required to form an LLC in Oklahoma?
No, a business plan is not required to form an LLC in Oklahoma.
Are there any zoning requirements for forming an LLC in Oklahoma?
Zoning requirements for forming an LLC in Oklahoma will depend on the business activity and the location of the business.
Are there any annual reporting requirements for an LLC in Oklahoma?
Yes, an LLC in Oklahoma must file an annual certificate and pay an annual fee to the Oklahoma Secretary of State.
Is a separate bank account required for an LLC in Oklahoma?
A separate bank account is not legally required for an LLC in Oklahoma, but it is best practice to keep business and personal finances separate.
Is an operating agreement required for an LLC in Oklahoma?
An operating agreement is not legally required for an LLC in Oklahoma, but it is highly recommended to outline the rights and responsibilities of the members.
Can an LLC in Oklahoma be taxed as an S-corporation?
Yes, an LLC in Oklahoma can choose to be taxed as an S-corporation by filing Form 2553 with the IRS.
Can an LLC in Oklahoma be taxed as a C-corporation?
Yes, an LLC in Oklahoma can choose to be taxed as a C-corporation by filing Form 8832 with the IRS.
How can an LLC in Oklahoma be dissolved or cancelled?
An LLC in Oklahoma can be dissolved or cancelled by filing the necessary forms with the Oklahoma Secretary of State and paying any necessary fees.
What happens if an Oklahoma LLC fails to file its annual certificate?
If an Oklahoma LLC fails to file its annual certificate, it may be declared void by the Secretary of State.

Also Read

How Fast Can I Form an LLC in Oklahoma

The good news is that forming an LLC in Oklahoma is a relatively straightforward process that can be completed fairly quickly. While the exact timeframe can vary depending on several factors, including how you choose to file and whether you opt for expedited processing, in most cases, you can expect to have your LLC formed within a few weeks.

One of the first steps in forming an LLC in Oklahoma is choosing a name for your business. Your chosen name must be unique and not already in use by another business in the state. You can check the availability of your desired name on the Oklahoma Secretary of State’s website to ensure that it’s not already taken.

Once you’ve selected a name, you’ll need to file Articles of Organization with the Secretary of State’s office. This document officially creates your LLC and includes important information about your business, such as its name, address, and the names of its members. You can file your Articles of Organization online or by mail. If you choose to file by mail, processing times may be slightly longer.

After your Articles of Organization have been filed and approved, you’ll need to create an Operating Agreement for your LLC. While this document is not required by the state of Oklahoma, it’s highly recommended, as it outlines the ownership structure and operating procedures of your business. Having an Operating Agreement in place can help prevent misunderstandings between members and ensure that your LLC operates smoothly.

Finally, once you’ve completed these steps, you’ll need to obtain any necessary business licenses and permits to legally operate your LLC in Oklahoma. The specific licenses you’ll need will depend on the nature of your business and its location. You can find more information about required licenses on the Oklahoma Small Business Development Center website.

Overall, forming an LLC in Oklahoma can be a relatively quick and straightforward process. By following the necessary steps and providing all required information, you can have your LLC up and running in a matter of weeks. Keep in mind that processing times may vary, so it’s important to plan ahead and allow for some flexibility in your timeline.

If you’re considering forming an LLC in Oklahoma, it’s essential to familiarize yourself with the process and requirements to ensure a smooth and efficient start to your new business. With the right understanding and preparation, you can take the necessary steps to form your LLC quickly and effectively.

Conclusion

In conclusion, starting an LLC in Oklahoma is a strategic choice for entrepreneurs seeking a flexible, straightforward business structure with limited liability protection. By following the essential steps, including choosing a business name, filing Articles of Organization, appointing a Registered Agent, creating an Operating Agreement, obtaining an EIN, and securing the necessary licenses and permits, you can successfully establish your LLC. This business structure offers numerous advantages, such as pass-through taxation and ownership flexibility, making it an attractive option for small business owners looking to grow and protect their ventures. As always, consult legal and business professionals for guidance specific to your situation and state requirements.

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