Learn How to Start an LLC in Oklahoma
Starting a limited liability company (LLC) in Oklahoma is a popular choice among start-ups and SME's since this business entity combines the flexibility of a sole proprietorship with the limited liability of corporations.
Here is how to start an LLC in Oklahoma:
- Select an original name for your LLC;
- Assign a Registered Agent;
- File the Articles of Organization with the Secretary of State in Oklahoma and pay the filing fee of $100;
- Get an EIN Tax ID from the IRS;
- File the Annual Certificate each year and pay the fee of $25
Many entrepreneurs choose to have their companies taxed as partnerships, so they can avoid the double taxation that comes with being taxed in the same manner as corporations.
Select a Suitable Name for Your LLC
Your Oklahoma LLC should have a name. This is a requirement under the law and your new company cannot be formed without a name that meets the guidelines set out by the Secretary of State.
Your name must indicate that it is an LLC. This is done by using an identifier such as LLC or Limited Liability Co. at the end. It does not matter which version you use, as all of them are considered the same.
Pluralization also does not make your name unique. So, for example, John's Apple Treats LLC is the same as John's Apple Treat Limited Liability Company.
Oklahoma Business Name Search
You must ensure that your LLC's name is unlike any other in the state. To do that, you can use the Oklahoma Business Entity Search webpage that is available through the Oklahoma Secretary of State.
Oklahoma LLC Name Reservation
If you think another company may register the name you have in mind, you can reserve it for 60 days. This can be done by visiting the Entity Filing page of the Oklahoma Secretary of State's website.
You can also mail in the Application for Reservation of Name. The cost is $10 in either case, but it is faster when you do it online.
Decide on a Registered Agent
If you are forming an Oklahoma LLC, you may want your personal contact information to be kept separate from that of your business. This is easy to do when your LLC has a registered agent.
Under the law, every LLC in Oklahoma must have a registered agent, who can receive official documents on your behalf. For example, if you get sued, the legal papers will be sent to your registered agent.
Tax documents will also be sent to your registered agent. For this reason, your registered agent should be available during business hours and must have a physical address in Oklahoma.
A P.O. box will not be sufficient. You can also ask a business to serve in this capacity if they have their principal place of business in Oklahoma.
Filing Your LLC Articles of Organization
Your Articles of Organization will let the government know what the name of your company is, who the organizer is and how they can contact you.
It should also have information on the LLC'S term of existence. Your principal place of business should also be on the document.
They will also send your receipt and a more official copy of your Articles of Organization, which is known as a Certificate of Organization.
What is the Cost of Starting an LLC in Delaware?
When you file your Articles of Organization, you have to pay a fee of $100. Once your filing is approved, the Secretary of State will let you know by mail and this usually happens within ten days.
When your LLC approval arrives in the mail, you will get a copy of your Articles of Organization. This will be stamped and approved.
Create an Operating Agreement
When a company is first created, the members are usually in agreement about how it will be run. This is the best time to create a formal document with details on how the LLC will be operated daily.
This document is called an operating agreement and all the members will be required to sign it. It is legally binding, although changes that are approved by all members can be made to it afterward.
The operating agreement of your Oklahoma LLC should contain details on the number of shares allocated to each member, their rights, and their responsibilities.
It should also state whether a member will be responsible for managing the LLC or you will hire an external manager. The operating agreement is important because it helps to remove any doubts as to who owns the company.
An Operating Agreement also makes it clear that your LLC is a separate business entity.
Get an EIN for Your OK LLC
Once your LLC has been formed, you can open a business bank account. You can also prepare for paying state and federal taxes.
All these tasks will require your LLC to have an Employer Identification Number or EIN. This number is like your SSN, but it is used by businesses. It is also called your Federal Tax ID Number.
If you are the only member of your LLC and you do not plan to hire any employees, you can use your SSN instead of an EIN. If your LLC has more than one member or you need employees in your business, you will also need to use an EIN.
You can get one for free by visiting the IRS and applying there. You can also use your EIN to apply for specific licenses in Oklahoma.
File Annual Certificate
Many states require LLCs to submit annual reports, but Oklahoma is different. In this state, you should file an Annual Certificate each year.
It is due one year from the date on which your LLC was formed. However, you can file a month before, to avoid any problems.
By filing, you will keep your LLC in good standing. If you do not file your Annual certificate, the state could mark your company as not being in good standing.
You will have up to two months after your anniversary date to file your Annual Certificate.
The fee is $25 and should be paid to the Oklahoma Secretary of State. You can file online or by mail.
Your Oklahoma LLC's Annual Certificate will be processed within a day or two if you file via their website. If you choose to file by mail, it will be processed within 10 days.