How To Start An LLC In Oklahoma (2024 Guide)

Prior to filing your paperwork, you will need to handle a few essential details. Those items are covered in the following sections, and each plays a key role in helping you succeed in setting up your LLC in Oklahoma.

Step 1: Reserve Your LLC Business Name

A new limited liability company’s name must be distinguishable from the names of other Oklahoma businesses. That means the business name you want might not be available. You can double-check your desired name’s availability through the Oklahoma Secretary of State’s official search engine. Failing to do a name availability search could delay your LLC approval and ultimately lead to a rejection.

If your business name is available but you aren’t ready to form your Oklahoma LLC yet, you can reserve the name for 60 days by completing an application. It is relatively cheap to do so, as the fee is just $10.

Oklahoma LLC Naming Laws

Naming an LLC in Oklahoma requires adhering to specific guidelines set by the Oklahoma Secretary of State. These regulations ensure that your chosen name meets specific standards regarding distinctness, accuracy and transparency.

Oklahoma LLC names must:

• Be distinct from existing business entities
• Include a designator such as “limited liability company” or “limited company” or the abbreviations “LLC,” “LC,” “L.L.C.” or “L.C.” that indicate its limited liability status
• Not be misleading or suggest a purpose different from the actual nature of your business

Purchase a Web Domain (Optional)

A website is a necessity for many small businesses, and you’ll probably want a domain name that closely matches your business name. While you’re researching and deciding on a business name, it’s a good idea to check whether the domain name you’d want is also available.

If you find an available domain name you like, registration is cheap, and you don’t have to set up a website right away. It’s better to buy a domain now and work with it later than hesitate and find that the domain name is unavailable.

Step 2: Hire a Registered Agent

Oklahoma requires all LLCs to have a registered agent or someone who can accept service of lawsuits on the company’s behalf. The LLC can act as its own agent, or the agent can be an Oklahoma resident or another business. The agent must have a “registered office,” which is a street address within the state that is open during normal business hours.

If you don’t assign the role of registered agent to someone within the LLC, you can hire a third-party business. Typically, the pricing ranges from $50 to $300 a year, with many businesses charging an average of about $100. That said, you should think about your Oklahoma LLC’s annual needs; seek out registered agents most likely to cover everything you need at a fair price.

Step 3: Complete Your LLC Documents

Once you handle the preliminary steps, you can finally move on to setting up an LLC in Oklahoma. There are a few different LLCs that can be formed in Oklahoma.

These are the three most common LLCs in Oklahoma:
Domestic LLC
Professional LLC
Foreign LLC

Depending on the type of LLC, you may be able to file the forms online.

What To Include in the Articles of Organization

Articles of Organization are the legal documents that must be filed with the Oklahoma Secretary of State when forming a domestic or professional LLC in Oklahoma. The following information should be included in the Articles of Organization:

• Name of the LLC.
• The principal place of business for the LLC, which cannot be a P.O. box.
• Email address of the LLC to receive annual filing notice from Oklahoma.
• Name and address of the registered agent for the LLC. The registered agent is the person or entity designated to receive legal documents on behalf of the LLC. The address cannot be a P.O. box either.
• Indicate the duration of the LLC, whether its existence is perpetual or for a specific time. Most LLCs are formed with perpetual existence, meaning they will continue until they are dissolved.

Step 4: Get an Employer Identification Number (EIN)

EINs are required by most businesses, though single-member LLCs may be fine just using a Social Security number instead. These numbers are sometimes referred to as Federal Tax Identification Numbers (FTIN) or Federal Employer Identification Numbers (FEIN). EINs are free to obtain and use, and you can get one through the IRS website.

Once you set up your Oklahoma LLC, keeping it going and in good standing should be the next priority. Below are crucial requirements and suggestions for meeting your long-term business goals.

Obtain Business Licenses and Permits

While Oklahoma lacks a general business license, many cities and counties do. For example, Oklahoma City requires businesses operating within its limits to obtain a general business license.

Instead, the type of license or permit your business requires will depend on the kind of business you are operating and where it is located. Here is a look at some of the potential licenses and permits you might encounter:

1. Sales Tax Permit
2. Professional and Occupational Licenses
3. Liquor License
4. Health Permits
5. Home Occupation Permit
6. Building and Construction Permits
7. Environmental Permits
8. Agricultural Permits

For a full list of activities that require licenses or permits, visit the Oklahoma Department of Commerce website.

Federal Permits and Licenses

Specific federal licenses and permits may be necessary depending on your business’s activities or the industries it operates in. Here are some examples of federal agencies that issue business licenses or permits:

• Alcohol and Tobacco Tax and Trade Bureau (TTB) permits: Businesses involved in producing, distributing or selling alcohol, tobacco or firearms may require permits from the TTB to operate legally.
• Federal Communications Commission (FCC) license: Businesses operating within the telecom industry often need an FCC license to operate legally.
• Food and Drug Administration (FDA) registration: If your business involves producing or distributing food, drugs, medical devices or cosmetics for consumption by humans or animals, as well as cosmetic products sold directly or indirectly for sale on the market, then registration with FDA may be required.
• Transportation-related permits: Businesses engaged in trans-state transportation of goods or passengers may require federal licenses from agencies such as the Department of Transportation (DOT).
• Environmental permits: Businesses dealing with hazardous materials or engaging in activities that impact the environment may need permits from federal agencies such as the Environmental Protection Agency (EPA).
• Aviation and aerospace licenses: Companies operating within the aviation and aerospace industries may require licenses or permits from the Federal Aviation Administration (FAA).

Annual Certificate Renewal

LLCs in Oklahoma must complete a yearly certificate renewal form, which gets submitted to the Secretary of State’s office. The paperwork is due annually on the anniversary date of your LLC’s registration. The filing fee is $25.

Pay Your Taxes

Most Oklahoma LLCs are taxed as sole proprietorships or partnerships, with the owners (members) reporting LLC income and expenses on their personal tax returns, just as they would if the LLC had never been formed. Owners will usually pay self-employment taxes and are responsible for making quarterly estimated tax payments.

But Oklahoma LLCs can also elect to be taxed as C-corporations, which pay a corporate income tax and a flat 6% Oklahoma income tax. Some LLCs qualify for S-corp taxation—a pass-through tax structure that may save on self-employment taxes.

A consultation with a good small business accountant can help you understand your tax options, obligations and deductions, as well as the best way to minimize your overall tax burden.

Create an LLC Operating Agreement

Oklahoma does not require LLCs to have an operating agreement. Even so, writing an operating agreement is still a very good idea. An operating agreement is useful for establishing how your Oklahoma LLC will run, including member financial obligations and the expectations for day-to-day operations.

In addition to preventing confusion about member responsibilities and roles, a detailed LLC operating agreement provides your business with a sense of legitimacy which can contribute to its long-term good standing.

The cost to file your Oklahoma LLC is currently $100. This is paid directly to the Secretary of State. If you made an error or want to add anything to your Articles of Organization, you can file an amendment for $25. There is an annual fee for Oklahoma LLCs of $25.

In addition, Oklahoma requires your LLC to pay a yearly Agent fee of $40.

Foreign LLCs are LLCs formed in another state but registered to do business in Oklahoma. They are required to pay slightly higher fees. The Articles of Organization fee is $300.

Remember that these fees are subject to change, and verifying the current prices is essential.

You can visit the Oklahoma Secretary of State’s website or contact their office for the most accurate and up-to-date information on filing fees and processes for forming an LLC in Oklahoma.

Check out these organizations that assist individuals starting an LLC in Oklahoma:

• Oklahoma Secretary of State: The Oklahoma Secretary of State’s website is a good starting point for learning about the different types of business structures available in Oklahoma and the requirements for forming an Oklahoma LLC.
• Oklahoma Department of Commerce: The Oklahoma Department of Commerce’s website provides various business resources, including information on business formation, financing and marketing.
• REI Women’s Business Center: The REI Women’s Business Center is a nonprofit organization that provides resources and support to women entrepreneurs. The center’s website offers a variety of resources on how to start an LLC in Oklahoma.
• Small Business Development Centers (SBDCs): SBDCs are federally funded nonprofit organizations that provide free business consulting services to small businesses. There are several SBDCs located in Oklahoma that can assist with how to start an LLC in Oklahoma.

In addition to the above resources, check out these additional guides for help on the following topics. These resources will help you with the following needs:

• Getting a business license in Oklahoma
• Paying yourself as an employee of your LLC
• Changing your LLC name