How to Start an Oklahoma LLC in 2023

How to Start an Oklahoma LLC in 2023

Are you wondering how to start an LLC in Oklahoma? You’ve come to the right place! This guide will take you step-by-step through the LLC formation process and provide you with the useful information you need to keep your Oklahoma LLC viable for years to come.

Starting an LLC in Oklahoma will include the following steps:

  • #1: Choose a name for your business
  • #2: Choose a registered agent
  • #3: Articles of Organization file
  • #4: Create an operating agreement
  • #5: Get your Employer Identification Number (EIN).

Step 1. Choose a name for your business

Choosing a name is the first and most important step in establishing your company. The name must comply with all naming requirements under Oklahoma LLC laws and must be easy to understand and identify.

Your name must include either the phrase “Limited Liability Company” or one of its abbreviations (LLC or LLC). Including this phrase helps those who do business with you understand the limits of your company’s liability.

You cannot use words that might confuse your Oklahoma LLC with a government agency. Suppose Frank Bonney Inkle wants to use his initials as the name of his company, FBI, LLC. If someone saw his company name, they would likely confuse his initials (“FBI”) with the Federal Bureau of Investigation – so Frank can’t use that name.

You also cannot use a name that already belongs to or is reserved for an Oklahoma corporation. If you want to check whether your chosen name is available, you can go to the Oklahoma LLC search function on the Secretary of State’s website and search. If your desired name is already taken, don’t worry, there are ways to modify your name and make it unique without changing it completely.

For example, Sally really wanted to name her company “Sally’s Hot Dogs, LLC,” but that name was already taken. She can try a variation of the name or add a word to make it special. She can use “Hot Dogs by Sally, LLC” or “Sally’s Best Hot Dogs, LLC”, both of which are available.

Inside scoop: Besides searching the entity name database, you should check to see if your company name is available as a domain name. Even if you don’t need a website now, you may need one in the future. You can always purchase a domain name when you are ready to launch your website.

Step 2: Choose a registered agent

There is a lot to consider when considering how to form an LLC in Oklahoma, including who will be responsible for receiving important communications directed to your company. To do business as an LLC in Oklahoma, you must have an agent to accept service in the event your company is sued or to serve as a point of contact between the company and the state.

The agent must have a physical address in Oklahoma and may be:

  • An Oklahoma resident
  • Another Oklahoma LLC
  • A domestic or foreign business entity licensed to do business in Oklahoma

You can also elect yourself or a member of the LLC to be the agent. Depending on your business structure, it may make sense to hire a third party. Some LLCs choose to have their attorney be the agent, so when the LLC is sued, there is one step to take to get legal advice.

Inside scoop: There are many companies that focus exclusively on providing registered agent services for LLCs and other corporations in Oklahoma. Do your research and choose a service that has high ratings and fits your budget.

Step 3: Submit Articles of Organization

The next step when figuring out how to create an LLC in Oklahoma is to file the articles of organization for your Oklahoma LLC so you can officially form your company. This document must include the following:

  • Name your LLC
  • The physical address of the LLC’s place of business
  • LLC email address
  • How long the LLC has been in existence (e.g., perpetual number, fixed number of years, specific dissolution date)
  • Signature of the member, manager, or representative of the limited liability company

If you would like to file regulatory articles electronically, Oklahoma has an entity filing web page or by mailing them to the Oklahoma Secretary of State.

post address:
Oklahoma Secretary of State

Business files section

421 NW 13th Street, Suite 210
Oklahoma City, Oklahoma 73103

Inside scoop: Whether you decide to file online or by mail, the filing fee is $100. It takes about five minutes to fill out the form, and if you submit it online, the processing time is only about one or two business days. If you choose to mail a paper copy, the processing time is approximately three to four weeks.

Step 4: Create an operating agreement

Although having an operating agreement in place is not a requirement for forming an Oklahoma LLC, having one can help avoid any complications in your business. This agreement sets out the financial and functional decisions that the company must make. It organizes the duties and responsibilities of each member and establishes a protocol for daily operations and emergency situations should they arise.

Some single-member LLCs may choose not to have a formal operating agreement because only one member is responsible for running the business. If your LLC has multiple members or employees, operating without an agreement leaves the door open to confusion.

For example, suppose there are only two members of an LLC in Oklahoma and they verbally agree that each year they will each put aside half of their profits to reinvest in the LLC. When the time came to do so a year later, one member denied the agreement had ever been made. This conflict eventually leads to the dissolution of the LLC. If there had been a recorded agreement recording this verbal decision, the conflict would never have occurred.

Inside scoop: You never know what the future holds, and it could even lead to the dissolution of your LLC. Adding a section in your operating agreement about how to dissolve your LLC will supersede Oklahoma’s default rules that may not be in your company’s best interest. For example, by default, there must be unanimous approval of all members for the solution. You may want a majority vote to govern (which you can implement if it is in your operating agreement).

Step 5: Get your Employer Identification Number (EIN).

Now that you know how to create an LLC in Oklahoma, you’re probably thinking about other things that come with maintaining your business. Even if your company has no employees, an Employer Identification Number (EIN) — which you can apply for online — is required for any business operating in Oklahoma. Your Employer Identification Number (EIN) will also be needed to set up things like a line of credit or business checking account.

Cost of Forming an LLC in Oklahoma

Launching an LLC in Oklahoma comes with relatively low initial filing costs, making it an affordable option for entrepreneurs in the state. The fee for filing articles of organization when creating a new Oklahoma LLC is only $100. Hiring a business attorney to handle the formation process typically costs between $300 and $500. Fees for business licenses, permits and name registration at the local level are usually minimal.

Ongoing costs for an LLC located in Oklahoma include annual fees of $25 per member. While the state does not tax personal income, LLCs still must pay federal income taxes, employment taxes, and Oklahoma’s 6% corporate tax rate if organized as a corporation. Owners also need to budget for license renewals, legal and accounting assistance, commercial leasing if renting office space, insurance coverage and other basic operating expenses. Keeping in mind that launching an LLC in Oklahoma can cost between $500 to $1,000 for the first year.

LLCs versus other business entities

Before you learn how to create an LLC in Oklahoma, you may want to make sure that the LLC is the right type of business entity for your company. Here’s a quick overview of the most common business associations in Oklahoma.

Sole proprietorship

A sole proprietor doing business who bears all the responsibilities of the business and claims all profits as personal income is considered a sole proprietor. There is no official filing required with the Secretary of State.

General partnership

A general partnership consists of two or more people who conduct a business, share responsibility for the business, and the partners share profits (and losses). There is no official filing required with the Secretary of State.

institution

The company, owned by shareholders, bears all responsibilities. Income is subject to double taxation in this structure (once at the company level and once when distributed to employees or shareholders). A formal filing with the Secretary of State is required.

A limited liability company

A limited liability company (LLC) entity is created to combine the tax benefits of a sole proprietorship with the liability privileges of a corporation. The company bears all liability, but members are only taxed at the income level. A formal filing with the Secretary of State is required.

An LLC is a good option for medium to high-risk businesses, owners with significant personal assets that need protection or owners who do not want the double taxation associated with the corporation.

If you decide that an LLC is the right fit for your company, learn more about how to create an LLC in Oklahoma by reading this step-by-step guide.

Bottom Line: Forming an LLC in Oklahoma

Creating an LLC in Oklahoma is a fairly straightforward process and can be completed in just a few steps. The state provides ample resources such as step-by-step guides and sample forms to simplify paperwork. In addition, explore The leader in limited liability company formation services The process can be further simplified.

Are you ready to form an Oklahoma LLC?

With all the forms and fees, it can feel overwhelming when starting your own business. But there’s really no need to stress about how to create an LLC in Oklahoma when you can just use a reliable online service to do the hard work for you.

Legal Disclaimer: This article contains general legal information but does not constitute professional legal advice for your particular situation and should not be construed as creating an attorney-client relationship. If you have legal questions, you should seek the advice of an attorney licensed in your jurisdiction.

Methodology: Our system for ranking the best LLC services

Consumers depend on us to provide objective and accurate information, so our certified team of legal experts has created a comprehensive rating system to formulate our rankings of online legal services. To create our list of the best LLC services, we collected information on all providers based on a variety of rating factors and gave ratings from 0.0 to 5.0, with 5.0 being the best, for experiences in the following areas:

  • Features. We look at the basic features the company offers for starting an LLC. We consider the core features to be Enrolled Agent Service, Operating Agreement Form, EIN Application, Licensing Assistance, Expert Advice, Tax Advisory Services, Compliance Assistance and Acceptance Guarantee.
  • Value of money. Did we feel like we got a deal, got short change, or got what we paid for? We evaluated the value of each configuration company’s basic, intermediate, and premium configuration packages.
  • Customer service. Was our customer service experience good, fair, or poor? We reviewed each company’s customer service offerings via email, phone, and chat, based on the timeliness and accuracy of responses.
  • Ease of use. We looked at whether we could navigate the site successfully and where, if any, obstacles appeared. Are we having trouble adding features or logging into our account? We compared our experiences before and after setting up the account.
  • customers satisfaction. We looked at customer reviews via reputable review sites and evaluated our satisfaction with the process.

The result gave us an overall rating of each provider.

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