Starting Your Business in Oklahoma | A Step-by-Step Guide

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Start a Business in Oklahoma

If you want to start an LLC in Oklahoma, there are numerous factors to consider. Starting your own business is one of the most exciting and profitable things you can do in Oklahoma. But where do you start? Follow our comprehensive guide on How to Start a Business in Oklahoma. We will assist you in removing doubt from the process and investigate your success chances. It will begin with defining your business idea and progress to establishing, launching, and expanding your business. Webinarcare Editorial Team will help you every step of the way!

How to Start a Business in Oklahoma

What Business to Start in Oklahoma?

If you’re looking to start a business in Oklahoma, consider starting a limited liability company (LLC). LLCs offer personal liability protection for their owners while also providing the flexibility of a partnership or sole proprietorship. Beyond that, here is the list of businesses to consider in Oklahoma.

  1. Clothing Boutique
  2. Woodworking Business
  3. Lawn Care Business
  4. Roller Skating Rink
  5. Liquor Store

Whatever business you choose to start, it’s important to conduct thorough market research and create a solid business plan before diving in. We reviewed some of the Best LLC Services and provided features as an add-on with their packages for you to check out.

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Starting a business can be a challenging but highly rewarding endeavor. By taking the time to research and plan, you can increase your chances of success. Whether you choose to form a corporation or start an LLC in Oklahoma, it’s important to surround yourself with a strong team that will guide you. Don’t let fear hold you back, take that first step towards turning your business dreams into a reality.

– WEBINARCARE EDITORIAL TEAM

How to Start a Business in Oklahoma?

To form a business in Oklahoma, you must follow a few steps that include creating a business plan, choosing a business entity type, determining your business costs, naming your business, registering a business, and lastly, marketing your business.

Please continue reading to learn more about the overall procedure and what new small business owners should keep in mind as they complete each step.

Step 1: Creating a Business Plan

When developing a business plan, many factors should be considered during the decision-making process. Your business plan in Oklahoma serves as a road map for your company’s success.

A business plan should take into account the specific goals of your company. You should know the product or service you will provide in Oklahoma. A well-thought-out business plan is essential for determining how your company will make a profit. If the purpose of the business plan is ambiguous and unrelated to the service you provide, it will impact the business you are forming. Make sure your business goals are SMART (specific, measurable, achievable, realistic, and time-bound). Also, researching your competitors’ services will help you determine your strategy for your state business. Finally, you should consider your company’s funding.

With this article’s assistance, you can better comprehend your business’s essential components and success strategy. You can apply for Oklahoma Small Business Loans from banks and investor funding to help support your company in Oklahoma.

Once you have the entire plan in your hands, you can work on the legal framework of your company. Legally, you can form an LLC for your ideal business.

Step 2: Choose a Business Entity in Oklahoma

Selecting a business entity for your Oklahoma company. When starting your own business, you must choose a business structure. How well your personal assets are secured, how much tax you pay, and how much paperwork you have to deal with will all be significantly impacted by the type of corporate entity you choose. Consider setting up a corporation, LLC, LLP, or sole proprietorship as your business entity in Oklahoma.

Sole Proprietorships

Consider a sole proprietorship if you want to start a business in Oklahoma by yourself. A sole proprietorship is the simplest business structure in which a single individual owns and operates the entire business. The owner and the business are considered the same legal entity in a sole proprietorship. There is no legal distinction between the owner and the business, meaning that the owner has complete control over the business operations, profits, and losses.

Sole proprietorships are best suited for Oklahoma small businesses with low risks and for individuals who want to maintain complete control over their business without the complexities of establishing a separate legal entity.

Limited Liability Company

A Limited Liability Company (LLC) is a business structure that combines features of both partnerships and corporations, offering limited liability protection to its owners (called members) while allowing flexibility in management and taxation. An LLC is a separate legal entity from its owners, meaning the members are not personally liable for the business’s debts, obligations, or liabilities.

It is a popular choice for small to medium-sized businesses that want the liability protection of a corporation while maintaining management flexibility and simpler tax treatment. It’s essential to consult with a legal or financial professional to determine if an LLC is the best choice for your specific business situation.

Limited Liability Partnership

A limited liability partnership (LLP) is comparable to an LLC. However, it is usually used by licensed business professionals like attorneys or accountants. A partnership agreement is necessary for this kind of business entity. You can form an LLP in Oklahoma if you are planning to.

Corporation

Forming a Corporation in Oklahoma reduces your personal liability for business debts as an LLC does. A corporation is a legal entity that is separate and distinct from its owners, known as shareholders. It is created under the laws of the state it is incorporated in and is considered a separate “person” under the law. The corporation can enter into contracts, own property, sue and be sued, and pay taxes separately from its owners.

A corporation can be taxed as an S-corporation (S-Corp) or a C-corporation (C-Corp). If a small corporation satisfies certain Internal Revenue Service (IRS) standards, then S-corporation status is available, providing pass-through taxation. However, most larger businesses and startups seeking venture financing are taxed as C-corps.

To choose the right business structure in Oklahoma, consider personal liability protection, taxation, management flexibility, administrative requirements, and setup costs. Consult a legal or financial professional to help you make the best decision.

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Step 3: Determine your Oklahoma Business Cost

In Oklahoma, you should determine the cost of your business. You should consider paying the Articles of Organization fee, business licenses fee, office supplies and equipment, payroll, rent, utilities, transportation, and taxes.

Usually, filing an initial Oklahoma Articles of Organization fee costs $100, while the LLC annual fee costs $25 in Oklahoma. In terms of filing Oklahoma Certificate of Incorporation, the costs usually range up to $25 for online, by mail filing or in person filing..

If forming an LLC is your ideal business, consider knowing the LLC Cost in Oklahoma.

Step 4: Name your Business in Oklahoma

Naming your business doesn’t take a lot of time. With the help of Oklahoma Business Name Search, you can acquire a name for your business. If you form an LLC in Oklahoma, you must follow the below rules while naming your business-

  • 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 business right away but want to hold the name that you have decided on, then you can reserve your business name. You must file a name reservation application in the Oklahoma Secretary of State to keep the name.

If the business name is available, you may choose to reserve it for a specific period of 60 days. The online name reservation fee is $25 and the mail name reservation fee is $25. If your business plans to operate under a name other than its legal name, you may also need to register a fictitious or “doing business as” (DBA) name.

The DBA filing can be done in two methods, by mail and in person, which you can file in Oklahoma Secretary of State. You can check out how to file a DBA in Oklahoma for clearer understanding.

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– LegalZoom – Starts at $99 + filing fees

Step 5: Register Oklahoma Business

To register a business in Oklahoma, you need to file it with the Oklahoma Secretary of State. Before that, you must have a Oklahoma Registered Agent for your business. The Registered Agent is a person who is responsible for receiving important legal documents on your behalf.

You can serve as your own Registered Agent, or you can appoint a friend or family member, or you can check the Best Registered Agent Services in Oklahoma.

Apply For Articles of Organization

After you have a Registered Agent, you need to file the Oklahoma Articles of Organization, if you want to have an LLC structure, or you need to file the Oklahoma Certificate of Incorporation if you want to have a Corporation.

Request For an EIN

In addition to the paperwork, your Registered Agent should apply for 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. You can obtain the EIN for free from the IRS.

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 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 (for 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.

After you have your EIN number, you can benefit in several ways. It will give your LLC the absolute advantage necessary to operate at full capacity without encountering legal or judicial issues.

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

LegalZoom – ($0 + State Fee for LLC formation)

Step 6: Apply for Business License and Permit

Business licenses and operating permits are necessary to run any business in Oklahoma. Before launching your new business, request any required business license or permission. Most Oklahoma businesses need licenses or permits to operate. Federal, state, and local governments may all require businesses to have licenses and permits. The business license fee depends on the type of license you are applying for. It can start from $25 till going up to $100+. However, in Oklahoma, the business license fee ranges from $50 – $300.

Step 7: Obtain a Bank Account

Your business dealings in Oklahoma might be simpler with a US business bank account because it boosts your company’s legitimacy and liquidity. Opening a separate bank account for your Oklahoma business is essential for maintaining a clear separation between your personal and business finances.

You can check out the Best Banks in Oklahoma, which offers the best fees, services, and convenience for your business needs.

Step 8: Market your Business in Oklahoma

Now that your Oklahoma business is registered, you can market it with an ideal marketing plan. An ideal marketing plan can help a start-up business to become known. Making a comprehensive social media network like META, Facebook, Instagram, Twitter, and YouTube falls within this category. While creating an SEO campaign for your company website, you may also look at specialized communities on Facebook and LinkedIn.

FAQs

What are the requirements for registering a business in Oklahoma?
Businesses operating in Oklahoma need to register with the Oklahoma Secretary of State and file Articles of Incorporation or an Assumed Business Name form.
Where can I find information about the permits and licenses needed for my Oklahoma business?
Check with your city or county and also visit the Oklahoma Department of Commerce for assistance in finding out which permits and licenses your business needs.
What types of taxes will my Oklahoma business be subject to?
Oklahoma imposes income, sales, excise, and property taxes on businesses operating in the state.
What is the sales tax rate in Oklahoma?
The sales tax rate varies by city and county in Oklahoma, but the state sales tax rate is 4.5%.
Can I apply for tax exemptions as a business in Oklahoma?
Yes, there are several exemptions available including exemptions for manufacturing machinery and equipment and telecommunications businesses.
Do I need an operating agreement if I’m starting an LLC in Oklahoma?
It’s not required by law, but it’s generally recommended that LLCs have operating agreements that outline the ownership structure of the business.
Can I form a corporation in Oklahoma?
Yes, you can form a corporation in the state.
Is Oklahoma a good state to start a business in?
There are several factors to consider, but Oklahoma has a relatively low cost of living and doing business, making it an attractive option.
How can I find funding for my Oklahoma business?
There are several options including traditional bank loans, grants, angel investors, and venture capital firms.
Are there any resources available for women-owned businesses in Oklahoma?
Yes, the Oklahoma Women’s Business Association offers resources and support for women entrepreneurs.
What are the most popular business industries in Oklahoma?
Some of the biggest industries in Oklahoma include agriculture, oil and gas, and manufacturing.
How can I register my business name in Oklahoma?
Businesses can register their name with the Oklahoma Secretary of State or they can use a DBA (doing business as) name.
Do I need to register my business with the Oklahoma Tax Commission?
Yes, you will need to register with the Oklahoma Tax Commission in order to collect and pay sales tax.
Is there a specific process for starting a home-based business in Oklahoma?
There are no specific regulations for home-based businesses in Oklahoma, but you will still need to register with the state and obtain any necessary permits and licenses.
Can I form a partnership in Oklahoma?
Yes, you can form both general and limited partnerships in Oklahoma.
What types of insurance coverage do I need for my Oklahoma business?
The types of insurance you need will depend on the type of business you have. Some common types of insurance include liability, property, and workers’ compensation.
What are the requirements for keeping business records in Oklahoma?
Businesses are required by law to keep accurate financial records, including payroll records and tax returns.
Are there any incentives available for businesses that hire employees in Oklahoma?
Yes, there are several programs that offer tax credits and incentives for businesses that hire employees in the state.
How can I determine the best legal structure for my Oklahoma business?
Consulting with an attorney or accountant can help you determine the best legal structure for your business.
What does it cost to register a business in Oklahoma?
The cost varies depending on the type of business and the equipment and machinery used.
How can I market my new business in Oklahoma?
You can advertise through traditional channels like television, radio, or print media, or use digital marketing techniques like social media or email marketing.
Can I operate my Oklahoma business from a location outside of the state?
Yes, but you will still need to register and obtain permits and licenses if you are selling to customers in Oklahoma.
What is the process for closing an Oklahoma business?
You must file Articles of Dissolution or a Certificate of Termination of a Limited Liability Company with the Oklahoma Secretary of State and settle any outstanding taxes or debt.
What resources are available for starting a nonprofit in Oklahoma?
The Oklahoma Center for Nonprofits provides resources to help startups build and maintain a nonprofit organization.
Am I required to hold shareholder meetings as an Oklahoma corporation?
Yes, Oklahoma requires corporations to hold regular shareholder meetings.
Can I change my business structure after I’ve already registered in Oklahoma?
Yes, but you will need to file necessary paperwork with the Oklahoma Secretary of State and settle any outstanding debts.
Does Oklahoma have any special incentive programs for minority-owned businesses?
There are several resources available through The Oklahoma Minority Business Council for minority-owned businesses in the state.
What advantages are there to incorporating in Oklahoma?
Incorporating in Oklahoma provides certain legal protections for business owners and shareholders.
Do I need to register for a state-level EIN number, or is a federal EIN enough for my Oklahoma business?
You will only need a federal EIN in most cases unless you are a government agency or non-profit.
What legal structure should I choose for my business in Oklahoma?
You can choose from a sole proprietorship, partnership, corporation, or limited liability company (LLC).
How do I register my business in Oklahoma?
You can register your business online, by mail, or in person with the Oklahoma Secretary of State.
What is the cost of registering a business in Oklahoma?
The cost of registering a business in Oklahoma varies depending on the chosen legal structure.
How long does it take to register a business in Oklahoma?
Business registration in Oklahoma can take up to 20 days.
Do I need a business license to operate in Oklahoma?
Yes, most businesses in Oklahoma require a business license to operate.
How do I obtain a business license in Oklahoma?
Business licenses in Oklahoma are obtained through county or municipal governments.
Are there any special permits or licenses required for certain industries in Oklahoma?
Yes, some industries, such as healthcare and transportation, require additional permits or licenses in Oklahoma.
What taxes do I have to pay in Oklahoma as a business owner?
Business owners in Oklahoma need to pay corporate income tax, sales tax, and employee withholding tax.
How do I register for taxes in Oklahoma?
You can register for taxes in Oklahoma through the Oklahoma Tax Commission.
Is there an inventory tax in Oklahoma?
No, Oklahoma eliminated its inventory tax in 2016.
How do I apply for a small business loan in Oklahoma?
You can apply for small business loans through banks and credit unions in Oklahoma.
Are there any incentives for businesses in Oklahoma?
Yes, Oklahoma provides various incentives for businesses, including tax credits and abatements.
How do I find investors in Oklahoma?
You can attend pitch events and get in touch with venture capitalists in Oklahoma.
What is the minimum wage in Oklahoma?
The minimum wage in Oklahoma is $7.25 per hour, the same as the federal minimum wage.
Are there any local resources for starting a business in Oklahoma?
Yes, the Oklahoma Department of Commerce and local small business development centers provide resources for starting a business in Oklahoma.
Can I operate my Oklahoma-based business online only?
Yes, you can operate a business online only in Oklahoma.
What types of insurance do I need for my Oklahoma-based business?
Depending on the industry, general liability insurance, worker’s compensation insurance, and emergency supplies insurance may be required.
How do I finance my new business in Oklahoma?
You can finance your business through loans, grants, and crowdfunding in Oklahoma.
What should I consider before starting a business in Oklahoma?
Consider the industry market, competition, and state regulations when starting a business in Oklahoma.
Are there coworking spaces in Oklahoma?
Yes, there are several coworking spaces in Oklahoma.
Do I have to file an annual report for my business in Oklahoma?
Yes, businesses in Oklahoma are required to file an annual report with the Oklahoma Secretary of State.
Can I operate several businesses under one business license in Oklahoma?
No, each business needs its own business license in Oklahoma.
How do I trademark my business name in Oklahoma?
You can trademark your business name through the U.S. Patent and Trademark Office.
Does Oklahoma provide any tax credits for businesses that are environmentally friendly?
Yes, Oklahoma has a tax credit available to businesses that take steps towards sustainability.
Should I hire a lawyer when starting a business in Oklahoma?
It’s best to consult a lawyer to help with legal matters when starting a business in Oklahoma.
How do I trademark my business logo in Oklahoma?
Like a business name, you can trademark a business logo through the U.S. Patent and Trademark Office.
Where can I find resources for hiring employees in Oklahoma?
Websites like okjobmatch.com and Oklahoma Works can help employers in Oklahoma with recruiting and hiring tasks.
Are there any grants available for small businesses in Oklahoma?
Yes, there are various federal and local grants available for small businesses in Oklahoma.
Do I need to incorporate my business in Oklahoma?
No, but incorporating in Oklahoma offers some advantages, including protections for personal assets and easier access to credit.
Can I operate an online retail business from Oklahoma?
Yes, you can operate an online retail business from Oklahoma.

Also Read

Why You Should Start Business in Oklahoma

First and foremost, Oklahoma boasts a low cost of living, making it an affordable place to live and work. This means you can stretch your budget further when it comes to everything from office space to employee salaries. Lower operating costs can give your business a competitive edge, allowing you to invest more in growth and innovation.

Furthermore, Oklahoma has a business-friendly environment with favorable tax policies. The state offers various tax incentives, including tax credits for businesses that create jobs or invest in specific industries. This means you can potentially save money on taxes, freeing up funds to reinvest in your business. Additionally, the state has a relatively simple tax structure compared to other states, making it easier to navigate and comply with regulations.

In addition to its cost advantages, Oklahoma also offers a skilled workforce. The state is home to a strong educational system, including several universities and technical schools that produce talented graduates in various fields. Whether you need engineers, marketers, or technicians, Oklahoma’s workforce can provide the skills and expertise your business needs to succeed. Additionally, the state’s central location makes it a convenient hub for distribution and logistics, allowing you to reach customers across the country easily.

Beyond its financial and workforce advantages, Oklahoma offers a high quality of life for residents. The state is known for its friendly people, strong sense of community, and outdoor recreational opportunities. Whether you enjoy hiking in the mountains, fishing in the lakes, or attending local festivals, Oklahoma has something to offer everyone. This quality of life can help attract top talent to your business and foster a positive work culture.

When considering where to start your business, it’s essential to weigh the benefits and drawbacks of different locations. While Oklahoma may not always be top of mind for entrepreneurs, the state’s cost advantages, business-friendly environment, skilled workforce, and quality of life make it a compelling choice for aspiring business owners. By choosing to start your business in Oklahoma, you can position yourself for success and growth in the long term.

Conclusion

Starting a business in Oklahoma has unique advantages and challenges since it offers a large and diverse market, access to skilled talent, and numerous networking opportunities, making it an attractive location for entrepreneurs. However, business owners must also contend with a high cost of living, intense competition, and potentially complex regulations.

Ultimately, whether starting a business in Oklahoma is the right decision depends on the entrepreneur’s specific needs, goals, and industry. It is crucial to conduct thorough research and consider factors such as taxes, regulations, workforce availability, and target market when choosing a location for a new business. By carefully weighing the pros and cons, entrepreneurs can make informed decisions and set themselves up for success in the competitive Oklahoma business landscape.

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