Starting an LLC in Oklahoma is a great way to protect your personal assets and gain flexibility in how you operate your business. Limited liability companies (LLCs) are popular because they offer the limited liability of a corporation but with the pass-through taxation of a partnership.
In other words, LLCs combine the best of both worlds. And starting an LLC in Oklahoma is relatively simple and inexpensive. You’ll need to file some paperwork with the state and pay a filing fee, but that’s about it.
Once your LLC is up and running, you’ll need to take care of some ongoing maintenance, such as keeping accurate financial records and filing an annual certificate.
Before we dive in, here’s a really good explanation video on starting an LLC in Oklahoma for those who prefer a video guide.
Benefits of starting an LLC in Oklahoma
There are many benefits to starting your LLC in Oklahoma. As expert start-up guides will advise you, it has the advantage of limited liability protection for its members. It’s more compact than a Corporation or S Corporation.
Limited Liability Protection
One of the most significant benefits of starting your Oklahoma business as an LLC is that it offers limited liability protection, which means that if a lawsuit arises from a customer or client for something you did while operating your business – it won’t follow you home. Rather than the people who own it, the business itself is liable for paying out any damages.
Your personal assets, such as your car or house, are separated from your Oklahoma business assets and aren’t at risk of being taken away if someone sues your business for something you did wrong. Many entrepreneurs start their businesses as LLCs because of this benefit.
An LLC in Oklahoma has the choice of being taxed as a Sole Proprietorship, Partnership, or Corporation. It’s a good deal for start-ups since they don’t have to worry about finding an accountant or anything like that just yet.
Note: Single-Member LLCs are treated as Sole Proprietorships by default.
Minutes of meetings not required
Lastly, one of the benefits of starting your LLC in Oklahoma is that no minutes are required for meetings. People don’t have to travel for monthly meetings or anything like that. They need to follow the operating agreement, which doesn’t take too many hours out of the day.
Oklahoma LLC Rules & Requirements
This is a quick summary of the most important rules and requirements that this article will go through in-depth.
To apply for permission to form an LLC in Oklahoma, the company must have a in Oklahoma. Your LLC’s name must include “Limited Liability Company,” or their abbreviation, “LLC.” It can’t be something that resembles another already existing business. Ensure you as a business owner keep accurate records and reports of your business transactions.
Best Oklahoma LLC Formation Services
If you’re thinking about starting your LLC in Oklahoma, it’s a good idea to use a professional service that can handle the process for you. These services will ensure you get all the necessary paperwork filed correctly and timely so that you don’t have to worry about anything going wrong with your business registration.
Finding the Best LLC Formation Services in Oklahoma
Choosing the best LLC formation services in Oklahoma is an essential first step for anyone looking to start their own. Here are some of the most critical factors you’ll want to consider:
- Customer service/communication
- Integration with accounting software (if necessary)
These factors will help you narrow down your list of potential providers to find the one that provides you with the professional service you need at an affordable price. We have reviewed some of Oklahoma’s best LLC formation services here: Best LLC Formation Services.
As mentioned above, it’s usually recommended that if you’re unfamiliar with this kind of thing, then you should consider allowing LLC formation service providers to help you start your own business here in Oklahoma. These services will ensure that you comply with state law and all the rules and requirements. If anything goes wrong, they’ll have your back so that you don’t have to worry about it.
However, if you’re looking to do it on your own, then you can continue reading our guide on how to start an LLC in the state of Oklahoma.
The following is a step-by-step guide of what you can expect when forming an LLC in Oklahoma:
5 Steps to Starting an LLC in Oklahoma
- Name your Oklahoma LLC
- Choose your Oklahoma Registered Agent
- File your Oklahoma LLC Articles of Organization
- Create your Oklahoma LLC Operating Agreement
- Get an EIN for your Oklahoma LLC
Step 1: Name your Oklahoma LLC
Choosing your name can be one of the most challenging parts of starting your Oklahoma LLC. You’ll have to choose a name that’s not already in use by another Oklahoma LLC or restricted by the state.
The rules for naming your Oklahoma limited liability company are as follows:
- Your name cannot mislead people into thinking the Oklahoma LLC was set up by the government or is a federal government agency.
- The name can’t be too similar to another Oklahoma company’s
- Your name has to end with an LLC designator (LLC, LTD., etc.)
- You may need to fill out additional paperwork if you want to use certain words in your Oklahoma LLC name, including bank, trust, trustee, incorporated, Inc., and corporation.
- If you want to see if a specific LLC name is available, you can run a business name search on the Business Entity Search page of the Oklahoma state website.
After choosing the perfect name for your new Oklahoma business, you can also secure a good domain name. A domain name is also helpful if you want a business email address @yourllc.com.We recommend using Namecheap to register your domain. They have great prices, fast service, and an easy-to-use website.
Step 2: Choose your Oklahoma Registered Agent
Before you form your LLC in Oklahoma, you’ll need to appoint a registered agent with a physical street address in the state of Oklahoma. This person or entity would be responsible for receiving essential documents on your behalf if anything happened that would require that sort of thing (lawsuits, etc.). You can name yourself as your Oklahoma registered agent, but that isn’t advisable because you would not be able to claim any anonymity.
What is a Registered Agent?
An Oklahoma registered agent is an individual or business entity that agrees to accept the service of process on behalf of a Limited Liability Company.
When you create a Limited Liability Company in Oklahoma, the State of Oklahoma requires that this registered agent be appointed for your LLC to become effective. The Oklahoma Secretary of State’s Office will not file your Articles of Organization unless you designate a registered agent on your application form.
Who can be a Registered Agent in Oklahoma?
For a registered agent, you can select a person or an organization. The individual can be an Oklahoma resident, an Oklahoma corporation, or a non-Oklahoma corporation with a business presence in Oklahoma.
You can also use an Oklahoma registered agent service to appoint a registered agent and obtain a business address. Services such as Zenbusiness and Northwest Registered Agent offer this service as a feature of some of their packages when you register an Oklahoma company with them.
What does a Registered Agent in Oklahoma do?
A registered agent in Oklahoma is available during normal business hours to accept important documents and notices on behalf of your LLC. These can be official court papers such as lawsuits or service of process documents that will require the registered agent’s signature.
A registered agent is not responsible for the management of your Oklahoma LLC, nor are they required to do anything with the documents once they are received at their business address except for filing them under Oklahoma law.
Step 3: File your Oklahoma LLC Articles of Organization
You’ve chosen your Oklahoma name and appointed a registered agent, and now it’s time to create your LLC and become a recognized legal entity.
Before filing, you will need to decide between a member-managed and manager-managed LLC. The members run a member-managed LLC, while a designated manager runs a manager-managed LLC.
To start an LLC in Oklahoma, you’ll need to file your Articles of Organization with the Oklahoma Secretary of State, which can be done online. The online filing fee is $100, and a person must file this with authority to do so on behalf of the Oklahoma LLC.
File your Oklahoma LLC Articles of Organization Online
You’ll need the following documents to submit your papers:
- The official name of your Oklahoma LLC
- A brief description of the purpose of your Oklahoma LLC
- Your Oklahoma LLC’s street address
- Your Oklahoma registered agent’s name and address
- The signature of your registered agent
- Your LLC’s authorized person’s signature
- Your return address
You can submit your Articles of Organization through Oklahoma’s online business filing system.
File your Oklahoma LLC Articles of Organization by Mail
If you choose not to file online, you can also mail your Articles of Organization to the Secretary of State. The filing fee is $100 and a person must sign the formation documents with authority to do so on behalf of your Oklahoma LLC. You’ll need the download the filing form and mail it.
Oklahoma Secretary of State
421 N.W. 13th Suite 210
Oklahoma City, OK 73103
Step 4: Create your Oklahoma LLC Operating Agreement
After filing your Oklahoma LLC Articles of Organization, you will want to create an Operating Agreement.
An operating agreement is an internal document that sets out the internal rules of your Oklahoma LLC. These rules address issues such as how LLC owners will spend the money, whether voting takes place within your business, what happens if someone wants to sell their interest in the company etc.
Oklahoma does not require an LLC to have an operating agreement, but it is recommended that you create one. An operating agreement ensures that all members know and understand their roles within the company. If they ever need to take legal action, they will show a court of law that the company functions as more than just an unincorporated association.
This operating agreement should be thorough but concise, outlining everything you want to include regarding the membership responsibilities of your Oklahoma LLC, so there are no misunderstandings down the line.
The operating agreement will also be necessary when you open a business bank account in Oklahoma.
Step 5: Get an EIN for your Oklahoma LLC
An EIN, or Employer Identification Number, is a unique number that the IRS issues to businesses for tax purposes. An EIN is like your business’s social security number. You can use it to file state or federal-level tax returns and financial statements with different government agencies or open a business bank account.
An EIN is required for several reasons. First, as mentioned above, it is needed to open a business bank account for your Oklahoma LLC. You will also need an EIN to hire employees, as it is used on employment tax forms. Finally, an EIN is often required when filing your business taxes.
After you receive your EIN, you will be informed of your Oklahoma LLC’s various tax classification options.
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Applying for an EIN for your business is free of charge.
Oklahoma LLC Processing Time
Online filings take 1-2 business days for the state of Oklahoma to process your Articles of Organization and approve your LLC.
If you choose to file by mail, the processing time is approximately 7-10 business days.
Oklahoma LLC Frequently Asked Questions
How much does it cost to start an LLC in Oklahoma?
The online filing fee is $100, and the mail filing fee is $100 in Oklahoma.
How do I set up an LLC in Oklahoma?
Step 1: Choose a name for your Oklahoma LLC
Step 2: Choose an Oklahoma Registered Agent
Step 3: File the Articles of Organization
Step 4: Create an Operating Agreement
Step 5: Get an EIN
Is there an annual fee for LLC in Oklahoma?
The annual filing fee is $25 in the state of Oklahoma.
How long does it take to start an LLC in Oklahoma?
It takes 7-10 business days to start an LLC in Oklahoma when filing by mail and 1-2 business days when filing online.