How to Start a Construction Company in Oklahoma | Essential Guide

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Oklahoma Construction Company

Starting a construction company in Oklahoma can be lucrative and rewarding for anyone with the right skills, resources, and determination. With a strong demand for quality construction services and a consistently growing population of 4,021,753 (2024 data), there is always room for new Limited Liability Companies to thrive in this industry. However, starting a construction company is a challenging task and requires careful planning, dedication, and hard work.

In this article, Webinarcare Editorial Team will discuss the necessary steps to Start a Construction Company in Oklahoma and provide valuable tips for ensuring your success in this competitive industry.

How to Start a Construction Company in Oklahoma

What is a Construction Company?

A construction company in Oklahoma is a business that specializes in the planning, design, and execution of construction projects. These projects can range from residential homes to commercial buildings and infrastructure projects such as roads, bridges, and utility systems. Oklahoma construction companies must adhere to local building codes, regulations, and licensing requirements to ensure their projects are safe, efficient, and compliant with state standards.

Oklahoma construction companies often offer various services, including general contracting, design-build, and specialized construction services. They collaborate with various stakeholders, such as architects, engineers, developers, and property owners, to bring projects to life. By employing skilled tradespeople, project managers, and other professionals, construction companies in Oklahoma work to deliver high-quality, durable structures that meet their client’s needs and contribute to their community’s development and growth.

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It is suggested that you speak with a legal professional before you begin setting up a construction company. They’ll understand what’s best for you and your future company. To safeguard your personal assets from business debts, you can always start an LLC in Oklahoma.

– WEBINARCARE EDITORIAL TEAM

How to Start a Construction Company in Oklahoma

To launch a construction business, you must follow the guidelines that include researching the construction industry, developing a business plan, registering your business, securing funding, purchasing equipment and material, hiring a skilled team, and marketing your construction company.

Step 1: Research the Construction Industry

Before diving into starting your construction company, it’s essential to understand the local construction industry in Oklahoma. Research your area’s market trends, major players, and potential competition. This will help you identify gaps in the market that your company can fill and allow you to make informed decisions about the types of services you want to offer.

Some key areas to research include:

  • Types of construction projects in demand (residential, commercial, etc.)
  • The average cost of construction projects in your area
  • Local building codes and regulations
  • Key stakeholders in the industry (architects, developers, etc.)
  • Licensing and certification requirements for contractors in Oklahoma

Step 2: Develop a Business Plan

A well-thought-out business plan is crucial for the success of any new business, including a construction company. Your business plan will act as a roadmap for your company’s growth and development, helping you make informed decisions and keep your business on track.

Some key elements to include in your construction company business plan are:

  • Company Overview: Describe your company’s mission, vision, and goals. Include the legal structure of your business (LLC, corporation, sole proprietorship, etc.) and your company’s name and location.
  • Market Analysis: Summarize your research on the local construction industry, including the target market, competition, and growth opportunities.
  • Services Offered: Clearly define the types of construction services your company will offer, such as general contracting, design-build, or specialized construction services.
  • Marketing and Sales Strategy: Outline how to attract and retain clients and your strategies for generating leads and closing sales.
  • Management and Organization: Detail the roles and responsibilities of your management team and any key personnel you plan to hire.
  • Financial Projections: Provide a realistic estimate of your company’s financial performance over the next few years, including projected income, expenses, and profits.

Step 3: Choose a Business Name

Selecting a name for your Oklahoma construction company is essential to forming. Your business name should be unique, memorable, and reflective of your products or services. There is a complete guide on Oklahoma Business Name Search for you to have a proper Oklahoma construction business name. 

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

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 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 every Indefinite, which costs $25.

You can check the availability of your desired business name by searching the Oklahoma Secretary of State Business Entity Search ‘s website.

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Step 4: Register Your Construction Company

Register your business with the appropriate government agencies before officially starting your construction company in Oklahoma and obtain any necessary licenses and permits. 

Hire a Registered Agent

A Registered Agent is a person or entity responsible for receiving legal documents and official notices for your construction business. The qualifications of a Registered Agent vary depending on the jurisdiction, but generally, they must meet the following criteria:

  • Age: The Registered Agent must be at least 18 years old.
  • Residency: The Registered Agent must reside where the company is registered or authorized to do business in that state. In some jurisdictions, a domestic corporation or limited liability company (LLC) can act as its Registered Agent if it has a physical address in Oklahoma.
  • Physical Address: The Registered Agent must have a physical street address, not just a post office box, where the company is registered. This is where they will receive official correspondence and legal documents on behalf of the company.
  • Availability: The Registered Agent must be available during normal business hours (9 a.m. to 5 p.m., Monday through Friday) to receive and sign official correspondence and legal documents.
  • Good Standing: If the Registered Agent is a business entity, it must be in good standing with the state and not be in default, suspended, or revoked.
  • Compliance: The Registered Agent should know Oklahoma requirements and deadlines for the company, such as Annual Reports and Oklahoma franchise tax filings, and ensure that the company stays compliant. 

You can serve as your Registered Agent, appoint a friend or family member, or hire a Professional Oklahoma Registered Agent Services.

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File For Articles of Organization or Certificate of Incorporation

If you form an LLC for your construction company, you must file the Oklahoma Articles of Organization, which costs $100. However, you must file the Certificate of Incorporation if you form Oklahoma Corporation for your construction company. The Certificate of Incorporation filing fee costs $25 for online, by mail filing or in person filing.. It is crucial to provide accurate and complete information on this document, as errors or omissions may result in delays or rejection of your filing.

  • Online Filing: Create an account/Log in to the SOS site, get the online form, fill it, and submit online 
  • Offline Filing: Send the form by mail or drop it off in person at Oklahoma Secretary of State, 421 N.W. 13th Suite 210, Oklahoma City, OK 73103

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Create an Operating Agreement

Operating Agreement is a document that contains all of your company’s organizational details. Drafting an operating agreement in Oklahoma is optional. Yet, having one as an internal document is strongly advised. 

Recommended: Creating an Operating Agreement is like having a personal legal guide at hand; it’s efficient, thorough, and ensures the smooth and compliant operation of your business. With LegalZoom’s operating agreement, it will protect your rights as an owner, keeping misunderstandings at bay and your business on the path to success. That’s why we recommend using –

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Obtain an Employer Identification Number

You must first obtain Oklahoma Employer identification number (EIN) from the IRS if you will open a bank account or hire an employee for your Oklahoma construction company. 

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.

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

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Step 5: Obtain the Necessary Licenses and Permits

Starting a construction company in Oklahoma requires several licenses and permits. Some of the most common licenses and permits you’ll need include the following:

  • Business License: Your local city or county government may require Oklahoma Business License. The business license fee in Oklahoma ranges from $50 – $300.
  • Contractor’s License: A contractor’s license is required in most states for construction businesses that perform specific types of work, such as general contracting, electrical, plumbing, HVAC, or other specialized trades. Requirements for obtaining a contractor’s license may include passing an exam, providing proof of experience, and obtaining bonding and insurance.
  • Building Permits: Construction projects typically require permits issued by the Oklahoma building department. Building permits ensure the construction project complies with local building codes and regulations.
  • Occupational Licenses: Some states may require occupational licenses for specific types of work, such as asbestos abatement, lead paint removal, or the installation of fire protection systems. Check with your state’s licensing board to determine if any special licenses are required for the work your construction company will perform.
  • Oklahoma Sales Tax Permit: A sales tax permit from the Oklahoma Tax Commission allows you to collect sales tax. Currently, the Oklahoma sales tax rate is 4.50%.
  • Environmental Permits: Depending on the nature of your construction projects, you may need to obtain environmental permits, such as stormwater discharge or air quality permits.

Step 6: Secure Funding

Starting a construction company requires significant capital to cover equipment, materials, and labor costs. To secure funding for your Oklahoma business, you must explore various financing options and determine the best fit for your needs.

When seeking funding, be prepared to present your business plan and financial projections to potential lenders or investors. This will demonstrate your commitment to your company’s success and help build their confidence in your ability to repay the loan or generate a return on their investment.

However, consider applying for your construction company’s Oklahoma Small Business Loans.

Step 7: Purchase Equipment and Materials

Once you have secured funding for your Oklahoma construction company, you must purchase the necessary equipment and materials to begin operations. This may include items such as:

  • Construction vehicles (trucks, excavators, etc.)
  • Power tools and hand tools
  • Safety equipment (hard hats, safety goggles, etc.)
  • Building materials (lumber, concrete, etc.)
  • Office equipment and supplies (computers, printers, etc.)

Invest in high-quality equipment and materials, as this will help you deliver exceptional results to your clients and build a strong reputation in the industry. Consider purchasing insurance for your equipment, as this can help protect your investment in the case of theft, damage, or accidents.

Step 8: Hire a Skilled Team

Your Oklahoma construction company’s success will largely depend on your team’s skills and expertise. Hire individuals with experience and knowledge in the construction industry to build a strong workforce. This may include:

  • Project managers
  • Construction laborers
  • Skilled tradespeople (electricians, plumbers, etc.)
  • Architects or engineers
  • Administrative staff (accountants, receptionists, etc.)

In addition to hiring qualified employees, invest in ongoing training and development programs to help your team stay current on industry trends, technologies, and best practices. This will improve the quality of your services and help you attract and retain top talent in the competitive construction industry.

Step 9: Market Your Construction Company

You must develop a comprehensive marketing strategy to attract clients and grow your Oklahoma construction company. This may include building a professional website that showcases your services, portfolio, and testimonials from satisfied clients; creating and distributing print materials, such as brochures, business cards, and direct mail advertisements; networking with industry professionals, such as architects, developers, and real estate agents, to generate leads and referrals, and utilizing social media and digital marketing strategies to reach a wider audience and drive traffic to your website.

By consistently promoting your Oklahoma construction company and showcasing your expertise and quality work, you can build a strong reputation in the Oklahoma construction industry and attract a steady stream of new clients.

Benefits of Forming a Construction Company

Forming a Construction LLC is best for a start-up company since it offers the following advantages.

Limited Liability Protection

LLC provides limited liability protection to its owners, also known as members. This means that the personal assets of the LLC members are separate from the company’s debts and liabilities. In the construction industry, where accidents, property damage, and contractual disputes occur, limited liability protection is crucial to protect business owners’ assets.

Pass-through Taxation

An LLC typically offers pass-through taxation, meaning the company’s profits and losses are reported on the owner’s tax returns. This avoids the double taxation corporations may face, where the company and its shareholders are taxed separately. Pass-through taxation can lead to potential tax savings for the Oklahoma construction company’s owners.

Flexibility in Management

LLCs have a more flexible management structure than corporations. They do not require a board of directors, and the owners can choose how to manage the company through member or manager management. This flexibility allows Oklahoma construction companies to adapt their management structure as needed.

Simpler Record-Keeping and Compliance

LLCs still require formalities; they typically have fewer record-keeping and reporting requirements than corporations. This can save time and resources for Oklahoma construction companies, allowing them to focus on their core business operations.

Credibility

Forming an LLC can provide the Oklahoma construction company with increased credibility and professionalism in the eyes of clients, vendors, and financial institutions. This can be beneficial in securing contracts and building a positive reputation in the industry.

FAQs

What kind of license do I need to start a construction company in Oklahoma?
A contractor’s license from the Oklahoma Construction Industries Board is required for most construction projects in Oklahoma.
What is the process for obtaining a contractor’s license in Oklahoma?
You will need to submit an application to the Oklahoma Construction Industries Board, provide proof of insurance, and pass an exam.
How much does it cost to obtain a contractor’s license in Oklahoma?
The application fee for a contractor’s license in Oklahoma is $320, and the exam fee is $60.
Are there any continuing education requirements for licensed contractors in Oklahoma?
Yes, licensed contractors in Oklahoma are required to complete 6 hours of continuing education every two years.
How do I obtain insurance for my construction company in Oklahoma?
You will need general liability insurance as well as worker’s compensation insurance, which you can obtain through a local insurance agent.
What is the average cost of liability insurance for a construction company in Oklahoma?
The cost of liability insurance can vary widely depending on your business size and other factors, but an average cost may be around $2,500 per year.
Do I need to register my construction company with the state of Oklahoma?
Yes, you will need to register your company with the Oklahoma Secretary of State.
How much does it cost to register a construction company in Oklahoma?
The fee for registering a limited liability company with the Oklahoma Secretary of State is $100.
What type of business structure should I choose for my construction company in Oklahoma?
This depends on your individual needs and preferences, but popular options for construction companies include limited liability companies and corporations.
What taxes does my construction company need to pay in Oklahoma?
Construction companies in Oklahoma are subject to income tax, sales tax, and use tax.
How do I apply for a sales tax permit in Oklahoma?
You can apply for a sales tax permit through the Oklahoma Tax Commission.
Are there any incentives available for construction companies in Oklahoma?
Yes, there are several incentives available through the Oklahoma Department of Commerce, including tax credits and financing programs.
How do I find construction projects to bid on in Oklahoma?
You can find construction projects to bid on through local government agencies, private companies, and online construction project databases.
What is the prevailing wage in Oklahoma for construction projects?
Prevailing wage rates in Oklahoma vary depending on the type of construction project and the geographic area.
Can my construction company work on federal construction projects in Oklahoma?
Yes, your company can bid on federal projects in Oklahoma if it meets certain requirements.
How do I comply with safety regulations in Oklahoma?
You will need to comply with safety regulations outlined by the Occupational Safety and Health Administration (OSHA), as well as state and local regulations.
What resources are available for hiring construction workers in Oklahoma?
You can use job boards, recruitment agencies, and social media to find qualified construction workers in Oklahoma.
What is the minimum wage for construction workers in Oklahoma?
The minimum wage for construction workers in Oklahoma is currently $7.25 per hour.
How do I manage payroll for my construction company in Oklahoma?
You can use payroll software or hire a payroll service to manage payroll for your construction company in Oklahoma.
Can I subcontract work to other companies in Oklahoma?
Yes, you can subcontract work to other companies as long as they are also licensed and insured.
How do I ensure that my construction company complies with environmental regulations in Oklahoma?
You will need to comply with environmental regulations outlined by the Oklahoma Department of Environmental Quality, as well as federal regulations.
What permits do I need to obtain before starting a construction project in Oklahoma?
You may need to obtain building permits, zoning permits, and other permits before starting a construction project in Oklahoma.
How do I ensure that my construction project complies with building codes in Oklahoma?
You will need to comply with building codes outlined by individual cities and counties as well as the state of Oklahoma.
Can I get a loan to start my construction company in Oklahoma?
Yes, there are several financing options available through the Small Business Administration, banks, and other lenders.
How do I handle taxes for my construction company employees in Oklahoma?
You will need to withhold federal, state, and local taxes from your employee’s paychecks.
How do I file taxes for my construction company in Oklahoma?
You can file taxes through the Oklahoma Tax Commission, using a software program, or hiring an accountant.
What do I do if I need legal advice for my construction company in Oklahoma?
You can contact a local attorney who specializes in construction law for advice specific to your situation.
How can I promote my construction company in Oklahoma?
You can use social media, advertising, and networking to promote your construction company in Oklahoma.
How do I handle disputes with clients or subcontractors in Oklahoma?
You may need to hire a mediator or attorney to help resolve disputes with clients or subcontractors in Oklahoma.
What licenses and registrations are required to start a construction company in Oklahoma?
You will need to register your business with the Oklahoma Tax Commission and obtain a contractor’s license from the state Department of Labor.
Do I need to have insurance for my construction company?
Yes, it is important to obtain insurance for your construction company in Oklahoma. Liability insurance, workers’ compensation insurance, and property insurance are all recommended.
Are there any bonding requirements for construction companies in Oklahoma?
Some construction projects in Oklahoma require bonding, so it may be beneficial to obtain a bond.
What are the requirements for obtaining a surety bond in Oklahoma?
To obtain a surety bond in Oklahoma, you must be licensed and have the necessary financial documentation.
How much does a surety bond cost in Oklahoma?
The cost of a surety bond in Oklahoma varies depending on the size and type of bond needed, as well as factors such as credit history.
Is it possible to start a construction company in Oklahoma with little to no capital?
Starting a construction company without any capital in Oklahoma may be difficult, as there are many expenses involved in the industry.
How can I secure financing for my construction company in Oklahoma?
If you are unable to self-fund your business, you can secure financing through loans from banks and other lending institutions.
Are there any grants or funding opportunities for small construction companies in Oklahoma?
Although there are no specific grants for construction companies in Oklahoma, there are funding opportunities available through the Small Business Administration and other organizations.
What types of construction projects are popular in Oklahoma?
The construction industry in Oklahoma is diverse and encompasses projects such as residential homes, commercial buildings, and public infrastructure improvements.
What location factors should I consider when starting a construction company in Oklahoma?
Access to transportation hubs, proximity to customers and suppliers, and availability of skilled labor are all important factors to consider when starting a construction company in Oklahoma.
How do I determine how much to charge for my construction services in Oklahoma?
To determine pricing for your construction services, you should consider factors such as materials, labor costs, and equipment expenses.
Are there any state-specific regulations or laws construction companies need to comply with in Oklahoma?
Yes, there are state-specific regulations and laws that construction companies must comply with in Oklahoma, such as safety and environmental regulations.
What marketing strategies should I employ to promote my construction company in Oklahoma?
You can promote your construction company in Oklahoma by leveraging social media, directly contacting potential clients, and networking with others in the industry.
How can I develop a strong brand identity for my construction company in Oklahoma?
To develop a strong brand identity for your construction company in Oklahoma, you should consider your positioning, values, and key messaging.
What are the advantages and disadvantages of starting a construction company in Oklahoma?
Advantages of starting a construction company in Oklahoma include the diverse range of projects and need for construction services. Disadvantages include the competitive market and regulatory compliance requirements.
How should I structure my construction company for legal and tax purposes in Oklahoma?
You can structure your construction company for legal and tax purposes in Oklahoma as a sole proprietorship, partnership, LLC, or corporation.
How can I build a skilled and reliable workforce for my Oklahoma construction company?
You can build a skilled and reliable workforce for your Oklahoma construction company by actively recruiting and hiring, providing training and education opportunities, and investing in retention strategies.
Are there any unique challenges faced by small construction companies in Oklahoma?
Some challenges that small construction companies in Oklahoma may face include limited capital, access to equipment and resources, and stiff competition.
What trends should I be aware of in the Oklahoma construction industry?
Some current trends in the Oklahoma construction industry include innovative construction methods, increased use of technology, and growing demand for eco-friendly construction.
How long does it typically take to obtain a contractor’s license in Oklahoma?
The timeframe for obtaining a contractor’s license in Oklahoma varies, but the application process typically takes several weeks.
What type of business plan should I create for my construction company in Oklahoma?
Your business plan for your construction company in Oklahoma should include a company overview, marketing and sales strategies, operations plan, and financial projections.
What are common mistakes I should avoid when starting a construction company in Oklahoma?
Common mistakes to avoid when starting a construction company in Oklahoma include not obtaining the necessary licenses and permits, underestimating costs, and failing to develop a strong marketing strategy.
What should I do if I encounter any legal or licensing issues with my Oklahoma construction company?
It is important to promptly address any legal or licensing issues with your Oklahoma construction company by contacting the appropriate regulatory agencies, legal counsel, and industry associations.
How can I develop a safety plan for my construction company in Oklahoma?
You can develop a safety plan for your construction company in Oklahoma by identifying potential hazards, implementing employee training programs, and regularly reviewing and updating your safety policies.
Can I expand my construction company beyond Oklahoma borders?
Yes, it is possible to expand your construction company beyond Oklahoma borders by registering in other states and obtaining the necessary licenses and permits.
How can I differentiate my construction company in a competitive Oklahoma market?
To differentiate your construction company in a competitive Oklahoma market, you can leverage your unique strengths and expertise, develop a strong brand identity, and provide outstanding customer service.
How much does it cost to start a construction company in Oklahoma?
The costs of starting a construction company in Oklahoma depend on a number of factors, such as the scope of your operations, the types of projects you undertake, and the size of your workforce.

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Conclusion

Starting a construction company in Oklahoma can be challenging yet rewarding for those prepared to invest the time, effort, and resources necessary for success. By following the steps outlined in this article and dedicating yourself to providing exceptional service and quality work, you can create a thriving construction business that stands out in the competitive Oklahoma market.

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