How to Start an LLC in Oklahoma (May 2024 Update)
Starting a business can be an exciting yet daunting task. Choosing the right business structure is a crucial first step that provides your business key protections and tax benefits. A limited liability company (LLC) combines aspects of partnerships and corporations to offer business owners personal liability protection along with operational flexibility and tax efficiency.
Forming an LLC in Oklahoma is a relatively straightforward process that can be broken down into six key steps:
- Choosing a business name
- Appointing a registered agent
- Filing articles of organization
- Getting an official certificate from the state
- Creating an operating agreement
- Obtaining an Employer Identification Number (EIN)
Walking through each of these steps will legally establish your LLC and allow you to start operating. This guide will explore the specifics of each requirement to help you form your Oklahoma LLC smoothly.
Choosing a Name
The first official step is selecting a name for your LLC that meets Oklahoma's naming requirements. Your LLC name needs to include a designator like "Limited Liability Company," "LLC," or "L.L.C" to identify the business structure. You also want to ensure the name is distinguishable from other entities registered in Oklahoma. The state provides an online search tool to look up availability as well as a complete list of naming guidelines.
When brainstorming names, start by considering your brand identity, products/services offered, and target audience. You’ll also want to check domain name availability if you plan on having a website. Additionally, Oklahoma allows you to preemptively reserve a name for 60 days for a small fee in case you need more time to prepare.
Key naming steps:
- Include LLC designator
- Check name distinguishes your business
- Verify website domain availability
- Can reserve for 60 days
Appointing a Registered Agent
Oklahoma requires all LLCs to designate a registered agent authorized to receive service of process and official documents on behalf of the business. This agent must be accessible at a physical address in Oklahoma during normal business hours.
You have the option to appoint yourself, a company member, or your attorney as the registered agent. There are also third-party services available to act as commercial registered agents usually for an annual fee. Consider logistics and costs to determine the best fit. If appointing yourself or an employee, ensure there are sufficient processes in place to handle legal communications.
Key registered agent steps:
- Must meet accessibility criteria
- Can be a person or a service company
- Factor in costs and responsibilities
Filing Articles of Organization
The formation document that legally establishes your LLC is called the Certificate of Organization or Articles of Organization. To complete this document, you’ll provide the Oklahoma Secretary of State details like your business’s name, address, email, ownership structure, registered agent information, and duration period.
You can submit your articles through the Secretary of State’s online filing system, by mail, or in-person along with payment of the $100 formation fee. If the state approves your submission, that means your LLC has all legal rights and privileges to start operating.
Key article steps:
- Provide required LLC details
- File with $100 fee through SOS website or mail
- Gain authorization to operate upon approval
Getting an Official Certificate
After approving your filed articles, the Oklahoma Secretary of State will send you an official certificate demonstrating that your LLC formally exists. This certificate can serve as proof of company registration as you start doing business.
Specifically, the formation certificate allows you to move forward with important tasks like obtaining an EIN from the IRS, registering for state/local licenses, and opening a bank account. Display this critical document when handling any government agency or vendor requests.
Key certificate steps:
- Receive in mail following article approval
- Use for EIN, licenses, bank account
- Keep available as business proof
Creating an Operating Agreement
While an operating agreement is not strictly required, it is highly recommended for any Oklahoma LLC. This document outlines member responsibilities, financial structures, voting procedures, and other internal processes critical for running your business smoothly.
Even single member LLCs benefit from an operating agreement for liability protection purposes. Going through the process provides helpful legal and operational clarity. If you ever intend on taking on partners or offering ownership stakes, having an agreement already drafted makes that process simpler.
Typical operating agreement contents include:
- Member roles, contributions and compensation
- How profits and losses are divided
- Procedures for admitting new members
- How business decisions and voting are handled
- Rules and provisions for members departing
Key operating agreement steps:
- Not required but highly recommended
- Specifies internal business processes
- Good preparation for future changes
Obtaining an EIN
An Employer Identification Number or EIN is a unique nine-digit number the IRS assigns to business entities used for tax purposes. Similar to an individual’s social security number, your LLC’s EIN identifies your company to federal and state tax agencies.
Applying for this number is free through the IRS website. You typically need your LLC formation certificate mentioned earlier. An EIN is required if you plan to do any of the following:
- Hire employees and pay payroll taxes
- Open a business bank account
- File state or federal business tax returns
Key EIN steps:
- Free and instant from IRS website
- Required for taxes, banking, employees
- Submit with your formation certificate
Next Steps
After completing all the major formation steps, your Oklahoma LLC has legal status allowing you to start doing business. Be sure to maintain your company’s good standing by staying on top of all compliance requirements and filings.
Here are some important next things to consider:
Licenses & Permits
Look into whether your LLC needs specific state or local licenses, permits, or registrations related to your industry in order to legally operate. Common examples include reseller permits, food service permits, professional licenses, zoning permits, and more.
Register with Tax Authorities
As mentioned, you’ll need to register with both state and federal tax agencies using your brand new EIN. Keep up with all taxation reporting and payments like sales tax, income tax, payroll tax, etc. Consider hiring an accountant or tax advisor.
Open Business Bank Accounts
Your LLC certificate and EIN allow you to open dedicated business bank accounts to keep company finances separate from your personal. Explore account options to find those with suitable features and pricing.
For more information, take a look at our article on the key benefits of business checking accounts.
Insurance Coverage
Depending on your industry, you may need certain insurance policies like general liability insurance, professional liability insurance, vehicle coverage and more. Review options to find adequate coverage levels within your budget.
Formalize Branding & IP
Consider trademarks and copyrights to protect your business name, logo, branding, products, services, written content and other intellectual property. Formalize this early when possible.
Conclusion
We covered the core steps for starting an LLC in Oklahoma including choosing a name, assigning a registered agent, filing formation documents, getting your formation certificate, creating an operating agreement, and obtaining an EIN.
Completing these requirements establishes the legal validity of your LLC so you can start tackling operational logistics like permits, taxes, banking, insurance, branding, and more. Revisit the Oklahoma Secretary of State website as well as the IRS website anytime for the latest compliance policies, requirements, forms, and filing procedures to keep your business legally compliant. Consider enlisting professional help like attorneys and accountants as needed throughout the process.