Are you an entrepreneur wanting to learn how to form an LLC in Oklahoma? If so, then you’re reading the right article.
An LLC is a great choice for a business entity as it provides several benefits, including flexibility in how it is fixed and limited liability for its owners.
This guide provides an overview of the process of forming an Oklahoma LLC and some key things you should know to get started. Read on to learn more!
First, Choose a Name for Your Oklahoma LLC
Choosing a business name is often the first thing you should do when forming your LLC in Oklahoma. You probably have a preferred name in mind, but make sure it complies with the general LLC naming requirements in Oklahoma, which include the following:
- Your Oklahoma LLC name must have the words “limited liability company” or one of its acronyms (LLC or L.L.C.) at the end
- Your Oklahoma LLC name must be unique and distinguishable from any other LLC in Oklahoma.
- Restricted words, such as Bank, Attorney, and University, will need extra paperwork and a licensed professional, like a doctor or lawyer, to be part of your LLC.
- Your Oklahoma LLC should not include words that confuse your business entity with any government agency, such as FBI, Treasury, State Department, etc.
If it does, then run an Oklahoma Business Name Search to ensure that your preferred name is available in the state and is not being used by another business entity.
We also recommend checking if your chosen Oklahoma LLC is available as a web domain, as having a relevant URL will help you establish an online presence for your business.
Hire a Registered Agent
A registered agent is a person or service provider designated to accept and forward legal documents on behalf of your Oklahoma LLC.
You can appoint yourself as your own registered agent, provided you have a physical address in Oklahoma and are 18+ years old. But bear in mind that your Oklahoma registered agent must also be available during all regular working hours to receive and sign documents on behalf of the LLC.
It’s a lot of work. That’s why we highly recommend hiring a registered service provider to act as a registered agent for your Oklahoma LLC. Here are our top three recommendations for registered agent service providers:
Oklahoma Registered Agent
If you want an affordable option, Oklahoma Registered Agent is a perfect option that you should consider. At only $49 per year, this registered agent service provider will offer outstanding perks, including email notifications, online document storage, annual report reminders, and pre-filled state forms — and all at a great price.
Oklahoma Registered Agent does not have auto-renewals or unplanned costs you should worry about. Their fee is constant every year. What more could you want?
ZenBusiness is among the most reputable and recognized registered agent companies in Oklahoma. Ranked #1 on Forbes and Investopedia, they are an excellent option for both large and small businesses. Their registered agent services will cost you $199 per year.
ZenBusiness is dedicated to assisting business owners with their $5K Grant Program. A part of their income goes to supporting entrepreneurs just starting and assisting them in growing their businesses.
Their website is intuitive, and the set-up process is seamless and fast. If you wish, you can upgrade your $199 package to include more perks, such as two free filing amendments a year and annual report reminders.
Northwest is among our top recommendations for the best registered agent service providers in Oklahoma. This is because of their outstanding customer support, amazing compliance tools, and reasonable prices.
Many entrepreneurs love Northwest’s Corporate Guides, which includes a dedicated team of professionals who offer premium customer support services. They are also always available and ready to help with all the compliance-related issues.
Their annual fee is $125, which is relatively affordable compared to other service providers. You can also get a discounted price of $100 per year if you use the company’s services in more than four states.
File Articles of Organization
Finally, it’s time to make your business official by registering it with the Oklahoma Secretary of State.
The simplest method to register your Oklahoma business is to file an Article of Organization with the Oklahoma Online Business Formation Portal. You’ll need to fill in the online form and pay a $100 filing fee.
You can also register your Oklahoma business in person or via mail. If you opt for this option, you must download and fill out the Oklahoma LLC Articles of Organization Form. Then, mail the form with a money order or check for the $100 filing fee to the following address:
Oklahoma Secretary of State
421 N.W. 13th Suite 210
Oklahoma City, OK 73103
Either way, your Oklahoma Article of Organization should include the following information:
- The chosen name and address of your Oklahoma LLC
- The effective date of your Oklahoma LLC
- The business purpose of your LLC
- Correspondence name and email
- The physical address, name, and signature of the hired registered agent
Think About Writing an Operating Agreement
An Operating Agreement is an internal document that defines how your LLC will conduct its operations. Business owners in Oklahoma are not required to draft a comprehensive Operating Agreement. However, we recommend creating one as it serves the following purposes:
- Outlines the roles and responsibilities of members
- Clarifies how the LLC can be dissolved
- Outlines how profits will be distributed
- Solves any potential disputes that may arise in the future
A well-created Operating Agreement for your Oklahoma LLC should include the following details:
- LLC purpose
- LLC management structure
- Name and address of your LLC
- Name and address of your LLC’s registered agent
- Duration of the LLC
- Procedure for admitting and removing members.
- Losses and profits distribution ratio
If in doubt, consult an attorney.
Obtain Licenses and Permits
In order to operate certain businesses in Oklahoma, you will require licenses and/or permits. Exactly what you need will depend on your location, type of business, and sector. Some permits and licenses are issued by the Oklahoma Secretary of State, while others are issued by the Oklahoma local municipalities.
For example, bars, hotels, and restaurants in Oklahoma must obtain food establishment licenses and food handlers’ permits for some of their employees from the county health department. Other businesses, such as transport and trucking with Oklahoma, need state-issued licenses through the Oklahoma Government Corporation Commission.
You can find a list of licensing requirements and fees on the Oklahoma Business Licenses page.
Finally, any retailer in Oklahoma, including real-estate sellers, resellers, shop owners, etc, must get a sales tax permit via the Oklahoma Taxpayer Access Point.
Obtain Federal and State Tax IDs
A Federal and State Tax ID is an employee identification number (EIN) assigned by the IRS to help identify your LLC for tax purposes. You can think of it as a Social Security Number for your Oklahoma business. You will also need it to open a business bank and credit account for your LLC.
Oklahoma state laws require all LLCs with two or more members to get a Federal and State Tax ID. Single-member LLCs will also need a Federal and State Tax ID if they plan to hire employees or have their LLCs taxed as a corporation.
Acquiring a Federal and State Tax ID in Oklahoma is straightforward. You just need to complete an online Federal and State Tax ID application on the IRS website. The good news is that you won’t have to pay any filing or processing fees.
Open a Business Bank Account in the State
It is vital to keep your LLC’s finances separate from your personal finances. If your business funds are mixed with personal funds, the “limited liability” part of your LLC will not apply, as your assets will still be regarded as part of the LLC-related lawsuits.
Most financial institutions in Oklahoma offer business savings and checking accounts. The requirements for opening a business bank and credit account in Oklahoma vary. So, we recommend contacting the bank in advance.
However, at a minimum, you will require a Federal and State Tax ID, a business license, and a small opening deposit. Some banks may also need an Article of Organization and Operating Agreement.
There are many highly regarded financial institutions in the state of Oklahoma, including:
Purchase Oklahoma Business Insurance
One of the most important things you can do as a new LLC owner in Oklahoma is to purchase business insurance.
While business owners in Oklahoma are not legally required to get general liability insurance, we recommend purchasing it as it will protect your LLC against lawsuits and damages.
Further, all LLCs with employees, whether full-time or part-time, are required under Oklahoma’s Administrative Workers’ Compensation Act to purchase a worker’s compensation insurance. It protects employees against on-the-job illnesses, injuries, or even death.
Property insurance is another popular policy among LLC owners in Oklahoma. It helps pay for replacing your equipment or storefront after vandalism, theft, natural disaster, flood, or fire. Landlords may need you to purchase this business insurance if you rent a commercial space.
Get an accurate quote on your business insurance needs by visiting a comparison site like Insureon.
Buy an LLC Formation Package to Speed Up the Process
If you do not want to go through the steps of forming an LLC in Oklahoma on your own, or if you find the process time-consuming and would like your Oklahoma LLC formed as fast as possible, consider hiring an LLC formation company.
LegalZoom is one of the top recommendations for an LLC formation company that offers both free and premium packages. Their Basic pricing plan is entirely free of charge. You will only need to pay for the necessary state filing fees. If you want additional perks, including expedited processing, consider their Pro plan ($249 per year) and Premium plan ($299 per year).
Some companies, such as IncFile, offer to streamline and speed up the LLC formation process completely free of charge. You will only need to pay for the state filing fee.
FAQs About Forming an LLC in Oklahoma
How Long Will It Take to Form My Oklahoma LLC?
It takes 2-3 business days to form an LLC in Oklahoma if you file the Article of Organization online and 5-7 working days if you file via mail.
How Much Does It Cost to Set Up an LLC in Oklahoma?
The Oklahoma Secretary of State charges an Article of Organization fee of $100 to register and form your LLC. You will also be required to pay an Annual Certificate fee of $25.
Can I Act as my Own Registered Agent in Oklahoma?
Yes. The state of Oklahoma allows business owners to appoint themselves as registered agents of their LLCs, provided they meet the following requirements:
- You should be over 18 years
- You must have a permanent street address in Oklahoma (a P.O. box address is not accepted).
- You must be available to receive state and legal correspondence documents during the regular Oklahoma working hours.
Can I Form a Single-Member LLC in Oklahoma?
Yes. The state of Oklahoma allows business owners to form single-member LLCs. The formation process is straightforward, as you only need to follow the LLC formation guidelines and steps discussed in this article.
We hope you found our guide on forming an LLC in Oklahoma helpful and informative.
Our article features top recommendations for LLC formation companies. So, if you find the steps discussed in this article time-consuming or daunting, consider hiring the services of one of our top recommendations. They will all streamline and speed up the process of forming an LLC in Oklahoma.