Forming an LLC (Limited Liability Company) in Oklahoma is easy and affordable. The following are few procedural steps on how to start an LLC in Oklahoma. LLCs can be formed in two ways, domestic and/or foreign. If you are planning to set up an LLC in states other than Oklahoma, visit How to Start an LLC.
On this page, you’ll learn about the following:
- How to Start an Oklahoma LLC
- After Starting your Oklahoma LLC
- Why an LLC in Oklahoma
- Top Businesses in Oklahoma
- Oklahoma LLC Formation Review
How to Start an Oklahoma LLC
Suppose you’re planning to invest in some profitable business or maybe about to set up your business in Oklahoma. In that case, forming an LLC in Oklahoma is the simplest form of business for you. It is better to have LLC for the business owners as it reduces the personal liability for company or business debt.
An LLC or a Limited Liability Company a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. This section gives you a step-by-step guide on How to Start an LLC in Oklahoma.
Step 1: Decide a Name for Your LLC
If you are to start an LLC in Oklahoma, the first thing you do is decide on a business or company name, and how to name your LLC may be tricky. Thus, you have the option to choose a name that complies with the Oklahoma business naming requirements. It must also be easily searchable for potential clients. Here is a step-by-step guide to follow when naming your Oklahoma LLC.
Why do you need a proper business name?
If you want your LLC to have special identification, your company name is essential. However, many people face lots of issues by avoiding focus on choosing a business name for their LLC business formation filings.
Because of this, here are some of the major benefits of choosing the best LLC corporate names.
- To help establish a company’s presence in the market, a proper business entity type will help you. This also creates a new identity that will resemble your LLC.
- After you’ve properly chosen the name for your LLC, you will have no problems finishing the registration process.
- You can only get the EIN number when you have your name registration certificate with you.
What are the requirements when deciding a name for your LLC?
A name search is vital to make sure your business’ name is unique. Check the availability of your name with Business Entity Search on the Oklahoma Secretary of State’s website. Reserve the name by completing the Name Reservation Request Form for Domestic Entities.
- Don’t include words that could confuse people about your company. Words like ‘treasury, state department.’
- You should also avoid restricted words like ‘bank, attorney, university,’ because they may require a lawyer and more paperwork.
- As for a business website and your URL name, check if your name is still available for domain use with NameCheap.
Reserve a business domain
Even if you don’t have plans to set up a website today, it will help if you buy a domain to avoid others from using your name for their website, so do visit NameCheap for your domain name and Kinsta for web hosting.
If you have decided on your URL name and have reserved it, set up a professional email account with Google GSuite.
Step 2: Assign a Registered Agent in Oklahoma
A registered agent, or business entity, is a person that will act or work on your behalf. This person or business will receive significant tax forms, legal forms, formation documents, any internal document, a notice of lawsuits, and other official government correspondence in Oklahoma. Choosing an Oklahoma-registered agent for service of process for your LLC is required.
Make sure your registered agents are residents of Oklahoma having a physical street address. It could also be a business. Here are the recommended agents and employees for you:
Our Rating & Pricing
#1 TOP PICK
$49 + State Fees
$299 + State Fees
$399 + State Fees
These five LLC formation services are recommended agents’ registered services as they are authorized to conduct business in Oklahoma. Compare them to check service charge and for the best yet cheapest option for you. Besides, these professional service providers can guarantee you professional service to their potential customers because they have been in the business for years.
Step 3: File Articles of Organization in Oklahoma
A Certificate of Name Reservation is needed to file Articles of Organization, as other states call it. You need to make reports of this certificate with the Oklahoma Secretary of State, which costs $100. You may file them online or by mail.
This Certificate of Formation is a legal document needed to form your business officially. It will indicate details about your LLC in Oklahoma, like if it is a member-managed or managers-managed. LLCs with employees need to check for the guidelines to hire employees in the Oklahoma government portal.
Before you start filings, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the services that your Oklahoma LLC will offer.
How to File Online
Go to the Secretary of State Online Service. Select “non-subscriber.” Fill out the online form. The website will alert you if your county does not support online filings after selecting your principal county.
How to File by Mail
If you prefer filing real-life forms for your Oklahoma LLC registration, then you can download the Oklahoma Limited Company Certificate of Formation. Read the form thoroughly and fill it out. It will have to fill, among others, your name, city, state, zip code, and signature.
Step 4: Create Your Oklahoma LLC Operating Agreement
A limited liability company operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
Starting an LLC in Oklahoma does not require you to have a limited liability operating agreement, but it is ideal to have one that contains all your details of business operation. Hence, it is recommended to have a liability company agreement.
Step 5: Filing a Oklahoma LLC EIN
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify types of business for tax purposes. It is like a Social Security number dedicated to a business.
It is also called a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN). You will need this number for tax filing and to determine tax classification options.
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
After Starting your Oklahoma LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business account
- File Oklahoma business permits & licenses
- Get liability for business insurance with coverage for employees
- File an Oklahoma LLC annual report or biennial report
- Already existing LLCs that wish to operate in Oklahoma must register as a foreign Oklahoma LLC.
This page has provided you with steps to LLC formation and filing processes. You now have to remember the upcoming filing deadline and filing fee, annual costs, or filing costs, including fees for late filings to make sure your LLC is up-to-date. If you have a registered service provider then it will be even easier to keep things up-do-date.
Why an LLC in Oklahoma
Oklahoma is becoming a dream destination for a start-up to incorporate and start an LLC. This is the cost of labor low in the state, which will provide the same qualified labor as in the other states. Other than this, the state offers various business funding options, reduction in tax liabilities as well. Also, it provides a supportive environment for business flourishment to the business with the help of several incentives, out of which some are discussed below.
Oklahoma Quality Job Program
When an LLC is set up in Oklahoma, it is sure that it will require some extraordinary people to work for them. For this, the entrepreneurs also start hiring for such quality people and start providing them jobs. Still, little they are known that with providing quality jobs, an Oklahoma LLC is also going to be benefited financially.
- LLC will receive a 5% return on the yearly package of the quality jobs they are offering. The government is offering this incentive quarterly for a duration of 10 long years.
- If the LLC provides a high-impacting quality job, it will receive a rebate of 2.5% on the employee’s taxable wage. This policy lasts for 6 years duration.
- The last program is for small employers who will receive 5% as a cashback of their employee’s payroll for 7 years in a row.
Oklahoma Enterprise Zone
If we consider Oklahoma state, then more than 30% of people in the state live below poverty, and the government is making continuous efforts to lift their status. For this reason, they have formed Enterprise Zone in such areas to attract LLCs and entrepreneurs. They bring along with their investment and unique ideas, which will create jobs in the enterprise zones.
Many tax benefits are given to such people to keep on generating jobs in the state and expand their business. Oklahoma Local Development handles this incentive program and provides timely incentives to LLC in Oklahoma.
Tax Credit Programs Of Oklahoma
If you want to start an LLC in Oklahoma, you must get yourself ready to receive tax benefits bundles. Some of them are:-
- There are some certified Community Development Entities in which the small businesses make some equity investment. From this investment, the LLC will get a tax rebate.
- After that, there is an incentive to create new jobs in the manufacturing sector and by property. A tax credit will be provided to the businessman on both activities.
Top Businesses in Oklahoma
Oklahoma is one of the most significant industrial areas with lots of ups and downs in its economy. That is why before a businessman thinks of starting an LLC in Oklahoma State, one should know the details about the state’s top businesses.
Forestry and Agriculture
The forestry industry flourished in Oklahoma from time immemorial. It is noticed that the state is one of the largest producers of sandalwood timber in the state, with 20% of forest cover. Also, the state is known for the production of the below-mentioned products.
- Wheat accounts for 6.1% of the state total.
- Hogs and Broilers
- Dairy products
- Pigs and cattle
The overall contribution of this sector to the economy of the state is $6.1 billion.
The energy production sector of Oklahoma is dependent mainly on non-renewable resources, primarily coal and natural gas. Renewable energy is significantly less manufactured in the state due to the non-supporting environment. Still, the business sector is the main contributor to the state’s economy that is $41.47. This value includes the value of oil and gas extraction and the production sector of energy.
The value of minerals that is present in the soil of Oklahoma is enormous. There are various stones and elements found in the statistics of soil testing. Iodine is produced the most in Oklahoma state and also supports its refineries businesses.
Apart from that, it is the 3rd largest producer of natural gases and 5th in crude oil. This important sector of the state contributes around $35 billion to its overall GDP, which is the highest for any sector. Also, the labor force of this sector is happy due to their higher pay scales.
Some small businesses that are established in the state are:-
- Recycling and its pick up
- Food truck
- Healthcare consultancy
Oklahoma LLC Formation Review
Time needed: 30 minutes.
Just to recap, here are the easy steps again when forming an LLC in Oklahoma. Click on the steps in this list to read the full detail.
- Name your Oklahoma LLC
The first thing you must do is to choose a company name, which should include the phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.).
- Choose a registered agent
In Oklahoma, it is mandatory to select a registered agent for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
- File a formation certificate
Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create operating agreement
An operating agreement is not a strict requirement but something encouraged when you start an LLC.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
A “domestic LLC” is one that conducts business in a state where it was formed. Meanwhile, a “foreign LLC” is an existing LLC that extended business to another state.
For Domestic LLCs, it is vital to have a Certificate of Name Reservation and Certificate of Formation. For the foreign LLCs, you must have a Certificate of Good Standing.
The cost to form an LLC varies per state.
Seldom do L.L.C.s use D.B.A. or a ‘Doing Business As’ name nor a fictitious business name. However, if you want to have one, you make read more about DBAs here.
This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
>Your name should have “L.L.C. or LLC” or the phrase “limited liability the business.”
>Do not include words that could create confusion between your LLC and any government business.
>Words like ‘bank, attorney, university’ are restricted as well.
>Lastly, your name should distinguish from other limited liability corporations, limited partnerships, or registered limited liability partnerships.
Typically, you can file your LLC name online or by mail. Check with the state where you will set up your LLC name. Take note that the fees for business names may also vary per state.
As for a website and your URL name, check if your name is still available for URL use with NameCheap to see if your name is available as a web domain. Even if you don’t have plans to set up a website today, it will help if you buy a URL. Buying it can help to prevent others from getting your name; check out WPEngine, Kinsta, and GoDaddy for hosting and building your website.
No. Never mail these documents or payments to the Secretary of State directly.
The reason you might need an E.I.N. is that it would help for three reasons:
>Opening a business bank account
>Filing and managing federal and state taxes
>Hiring employees or agents
You are not required a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
International EIN applicants do not need an SSN to get an EIN.