Having an Oklahoma LLC is a better and cheaper option than having other business structures. A limited liability company (LLC) reduces the owners’ personal liability and protects their personal assets. One can start an LLC in two ways, domestic LLCs or foreign LLCs (LLCs in more than one state). By following some basic steps, you can easily form an LLC in Oklahoma.
On this page, you’ll learn about the following:
- How to Start an LLC in Oklahoma
- After Starting your Oklahoma LLC
- Oklahoma Foreign LLC
- Why an LLC in Oklahoma
- Top Businesses in Oklahoma
- Oklahoma LLC Formation Review
How to Start an LLC in Oklahoma
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. 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
Deciding on a business name is the first step to start an LLC. In Oklahoma, before you name your LLC, it is important to note a few things. Firstly, make sure the name is available to use. If the name is available, then check if the name complies with all the Oklahoma business naming requirements. Once you pass through them, you can successfully name your business.
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.
Requirements when deciding a name for your LLC
LLC Name Search: A business name search is required to check if the desired name is available or not. If the name is available then the business owner has to fill up a name reservation form and send it to the Secretary of State, Oklahoma. To do the name search, one has to visit the Business Entity Search page on the official Secretary of State website. Send the name reservation form to the below address by mail to reserve your LLC name in Oklahoma. The cost of a name reservation is $10.
Important Quick Links:
Oklahoma Secretary of State
421 N.W. 13th, Suite 210
Oklahoma City, Oklahoma 73103
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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:
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Note that availing of the services of professional registered agents would be your best option since you are guaranteed that whoever is handling your legal affairs knows their stuff well. You will enjoy peace of mind and focus only on running your business, as the ‘professionals’ take care of all legal matters.
These LLC formation services are recommended registered agent services as they are authorized to conduct business in Oklahoma. Compare them to check the best yet cheapest option for you. Besides, they can guarantee you professional service 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. LLC cost in Oklahoma includes other fees and taxes. You may file them online or by mail.
This Oklahoma 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. Read about Oklahoma Certificate of Formation online registration.
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.
Mail To: Oklahoma Secretary of State
421 N.W. 13th Suite 210
Oklahoma City, OK 73103
Step 4: Create Your Oklahoma LLC Operating Agreement
An 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.
When it comes to an LLC operating agreement Oklahoma does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all your details of business operation. This document would be useful if you decide to dissolve Oklahoma LLC later.
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 and taxes in general. It is like a Social Security number dedicated to a business’ taxes. The EIN is necessary for any active business or any form of business for that matter.
To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Before sending the form, ask for EIN Assistant. Enter details of your LLC, and finally complete the form and send it to the address given.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Note: You don’t need 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.
And that’s all! Congratulation, you are now done with all the necessary steps to form your Oklahoma LLC. If you still haven’t used a professional service from here, I strongly recommend having one to handle the remaining tasks.
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 bank account
- File Oklahoma business permits & licenses
- Get liability for business and professional liability insurance with coverage for employees
- File a Oklahoma LLC annual report or biennial report
- Already existing LLCs that wish to operate in Oklahoma must register as Oklahoma foreign LLC.
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.
Oklahoma Foreign LLC
To register an Oklahoma foreign LLC, one has to file the foreign LLC formation certificate with the Secretary of State, Oklahoma. Forming a foreign LLC allows you to operate your business in more than one state in the USA as a single business entity. Check Oklahoma Foreign LLC to know more about having a foreign LLC.
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: 5 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 be unique, easy to find, and available in the state.
- 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.
If you are a resident of Oklahoma, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $100 (domestic LLC) and $300 (foreign LLC), LLC costs in Oklahoma include $25 for Annual Reports every year. LLCs are liable to pay sales tax of 4.5% every year
It takes 2 business days to get an LLC in Oklahoma if you file it online. For the mail filing, it takes 7-10 business days to get an LLC.
Every year all the LLC have to submit an Annual Report and pay $25 to the Oklahoma Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for the LLCs, it is a default tax structure. Once you will obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens.
Having an LLC is easier than other forms of business. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. On the other side, the formation of LLCs requires less paperwork and fewer legal complexities. If you have any questions, leave a comment below.