How to Start an LLC in Oklahoma

Do you want to form a limited liability company (LLC) in Oklahoma? This article is a great place to start.

In this article, we will teach you:

• The steps you need to follow to start an LLC in Oklahoma
• Essential tasks to handle after your LLC has been registered
• The cost of starting an LLC and how long it takes

Read on for a rundown of the steps you’ll need to take to get an Oklahoma LLC.

Last updated: Dec 2024

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Step 1: Name your Oklahoma LLC

The first step to forming an Oklahoma limited liability company is to come up with a name that follows state law. Let’s take a look at some of the regulations for LLC names in Oklahoma.

Words You Have to Use

Oklahoma Statutes Title 18, Section 2008 requires LLC names to include one of the following terms:

• “limited liability company”
• “limited company”
• “LLC”
• “LC”
• “L.L.C.”
• “L.C.”

Additionally, the word “limited” can be abbreviated as “LTD.” and the word “company” can be abbreviated as “CO.”

Words You Can’t Use

You can’t choose a name for your LLC that makes it seem like it’s a different type of business entity, such as a corporation or partnership.

You also can’t imply that your business does something it is not legally permitted to do. So, if you aren’t licensed to perform certain services, you’re not allowed to name your LLC something that implies you offer those services.

Title 18, Section 2008 also states that your LLC name may not be the same as or “indistinguishable” from any other business name registered with the Oklahoma Secretary of State. This rule exists to help avoid any confusion between two companies with the same name.

Research the LLC Name You Want

Once you choose a name for your LLC, you can use the Oklahoma Secretary of State’s Name Availability Search to check if it has been registered. 

If you find out that the business name you want is already taken, you can still use it if the other entity consents in writing and is planning to change its name or cease doing business in the state. You can also use the name if you get a court order that says you have the right to do so.

If your chosen name is available, Oklahoma Statutes, Title 18, Section 2009 lets you reserve it for 60 days. To reserve a name, you must submit an Application for Reservation of Name to the Secretary of State. There is a $10 filing fee for this form.

You can either reserve your name online or mail or ship the form to the following address:

Oklahoma DBA: Using a Trade Name

An Oklahoma LLC can use its formal name when doing business, but you can also use a “Doing Business As” or “DBA” name. Many business owners actually prefer to go with the DBA instead of their official company name for things like marketing.

One of the benefits of using a DBA is that you don’t have to use your business’ full legal name. This is especially helpful if you don’t want to use “LLC” in your company name. However, it’s important to note that you must use your official name on legal documents and records.

In Oklahoma, DBAs are called “trade names.” If you want to use a DBA for your LLC, Oklahoma Statute Title 18 Section 1140 says you must report it to the Secretary of State.

You can do this by submitting a Trade Name Report form by mail or reporting your name online. There is a $25 processing fee.

When online filing is available, we recommend using it to keep the process as quick as possible.

Step 2: Appoint a Registered Agent for your LLC

A registered agent is a person or business that receives legal documents and other official papers on behalf of a business.

Oklahoma Statutes Title 18 Section 2010 says that every LLC must appoint a registered agent to receive service of process. They must have an office in the state and be able to receive service of process during normal business hours.

Many entrepreneurs think that being their own LLC’s registered agent might be easier. And, there are some advantages to doing so: 

• It’s cheap: You’re not paying someone else to do it for you.
• It’s easy: The only address and contact information you have to keep current is your own.
• It’s reliable: You will receive all important documents personally.

However, many business owners learn the hard way that naming themselves as registered agents can create issues.

A few examples of the problems it can create include:

• No privacy: Your name and address will be published on the Secretary of State’s website. This means that anyone with an internet connection can find your personal information. 
• Junk mail/spam: You will get a ton of junk mail in addition to a small amount of real mail and any service of process.
• No breaks: You also must be available at all times during regular business hours to receive documents. This means no vacations, sick days, or leaving the office for lunch.
• Business interruptions: Client meetings can be interrupted by people serving process. That could be embarrassing or hurt your reputation.
• It’s your fault if you miss something: You always have to make sure your address is correct and up to date. If you make a mistake or miss something, you are held responsible.

A professional registered agent may seem like an unnecessary luxury at first, but they are usually worth it in the long run. They cost about $100 per year to hire, and you will be notified when there is mail or documents for your business to deal with.

If you intend to do business in other states, you will have to register your business as a foreign LLC and name a registered agent in that state. So, if you plan to conduct business outside of Oklahoma, we suggest that you use a national registered agent service.

You can use one national registered agent service provider, and they will act as your registered agent for every state where you need one. This means you can focus on more important things like growing your company instead of spending time looking for agents for each state.

Step 3: File Your Oklahoma LLC Articles of Organization

Articles of Organization are the legal documents that establish LLCs in Oklahoma. They include key information about each new business. You’ll need to file them with the Secretary of State to start your LLC.

What to include in my Oklahoma Articles of Organization?

Oklahoma Statutes Title 18 Section 2005 says that your articles of organization must list:

• The LLC’s name.
• The term of the LLC’s existence.
• The street address of the LLC’s principal place of business.
• The name and address of the LLC’s registered agent.

The articles of organization can also cover any other matters that you want to include.

You can file online using the Secretary of State’s online registration system. You can also submit an articles of organization form by mail or in person.

Oklahoma LLC Filing Fee

According to the Oklahoma Secretary of State’s fee list, the processing fee for articles of organization is $100.

Read More: How Much Does It Cost to Form an LLC in Oklahoma

Oklahoma LLC Processing Time

The processing time for your Oklahoma LLC will usually be one to two business days if you file online and up to two weeks if you file by mail. If you deliver your articles in person, they will be filed the same day for an additional $25 fee.

Step 4: Draft your Oklahoma LLC Operating Agreement

Operating agreements are a type of contract that LLC owners make to outline how they want their business to run. They also detail each members’ rights and duties.

Oklahoma does not require LLCs to have operating agreements. However, making one will help you set the rules so you will know in advance what to do in different situations. This can help you avoid problems before they even happen!

For instance, let’s say a member wants to sell their stake in the company. The contract should explain the steps you must take to conduct the sale and decide on who will take over the selling member’s duties.

Operating agreement can also be helpful because:

• They determine the rights and duties of LLC members. If one LLC member is responsible for running the business or managing the books, the operating agreement should say so. 
• They say what the manager has the right to do. Managers also have special duties to the company and the members. The operating agreement should state these.
• They outline what the LLC is legally able to do. The operating agreement should also set down how the company is allowed to conduct its business from day to day.
• They say how new members can join the company. They also have rules about how exiting members can leave.
• They set down how and when profits are paid to members. They can also create different types of membership and payment schemes.
• They say whether members or managers are in charge. They also say how to hire and fire managers.
• They say how and under what circumstances the LLC should end. You might not want to dissolve your business now, but you might in the future. It’s best to think about it and plan before it becomes an issue.
• They say how to change the rules. You may need to amend your operating agreement in the future. The operating agreement should set down the rules for making changes.

Having an LLC operating agreement helps you to keep all of the owners on the same page about how the LLC should be run. Each member should be involved in creating the contract. That way, you’ll all have a clearer understanding of what is going on and be able to make more informed decisions about the terms.

Check out Oklahoma Statutes Title 18 Section 2012.2 to learn more about the rules for operating agreements.

Step 5: Get an EIN (Employer Identification Number) for Your Oklahoma LLC

A federal employer identification number (EIN) is a 9-digit identifier that the IRS assigns to businesses. They can be used like an SSN to file taxes and deal with the government. The main difference with EINs is that they are issued to LLCs and other types of business entities rather than to individuals.

Here are the most common times when you need an EIN:

• Does your LLC have more than one member? 
• Does your LLC have any employees? 
• Is your LLC taxed as a C corporation or S corporation?

If your answer to one or more of these questions was “yes,” your LLC is legally required to get an EIN.

If you have an LLC with only one member (“single-member LLC”), you can avoid filing for an EIN by using your social security number to pay taxes. However, it’s always better to get an EIN, as they help you avoid fraud and keep your business and personal finances separate. You will also likely need an EIN to open a bank account for your LLC.

You can get an EIN right away by requesting one on the IRS site. You can also mail Form SS-4 to the IRS if you prefer. The process is completely free, so there is no need to hire someone to do it for you; you can get an EIN yourself in just a few minutes.

Read More: How to Get an Employer Identification Number in Oklahoma

First Tasks After Registering your Oklahoma LLC

After you register your business, there are a few other things you’ll need to do. These tasks will help you prepare to open your doors to the public.

Open a Business Bank Account

You are not required to have a business bank account for your LLC. However, it’s much easier to have one. 

Using a separate bank account for your LLC is helpful because it keeps your personal assets separate from those of the business. This means that if your LLC runs into any legal problems, your personal assets will not be at risk.

The advantages of opening a business bank account for your LLC include:

• Convenience: Keeping things separate makes your LLC’s bookkeeping much simpler.

• More business opportunities: Your LLC can only receive credit card payments through a business account. You can also do business with people who won’t take personal payments. 
• Personal asset protection: Mixing your personal and business funds could cause you to be held responsible for the LLC’s debts. 

Of these three benefits, asset protection is the most crucial.

LLCs are designed to offer protection from liability. Their owners are generally not responsible for any debts incurred by the business. Creditors can only collect debts from property owned by the business. So, they can’t touch any personal funds of an individual member. This is an important concept in law known as the “corporate veil.”

However, if you use personal funds for business purposes or mix it up with company money, the corporate veil may be “pierced” when the company is sued. If this happens, you might have to pay for any debts that the company has using your personal assets.

For this reason, we suggest that you open a bank account for your LLC. If you use it exclusively for the business, it will help protect your personal funds from being seized to pay company liabilities.

Get Business Insurance For Your Oklahoma LLC

We strongly advise you to purchase at least one type of business insurance for your LLC. Do some research before deciding what type of insurance will best suit your business. 

Remember to consider the particular risks in your industry when choosing your coverage. Your company’s specific needs will dictate the type of insurance coverage you’ll need.

Here are the types of business insurance you should investigate:

• General liability insurance: You’ll need this if there’s an injury on your property. It pays for damages and a lawyer if you need one.
• Commercial automobile insurance: This works like your own car insurance. It covers drivers and vehicles for your business.
• Workers’ compensation insurance: Oklahoma law requires all employers to have workers’ compensation insurance, with a few exceptions. You can buy a policy from a private insurance company or become self-insured.
• Commercial property insurance: This protects your property in the event of damage. Keep in mind that flood insurance is often a separate policy.
• Professional liability insurance: Lawyers, doctors, architects, and other professionals need this insurance. It provides coverage and legal defense in the event of a malpractice case.
• Business income insurance: If you have to close for some time, business income insurance can pay back the loss of income. Policies vary, though. Make sure that you know exactly what kinds of losses will be covered.

Keep Your Oklahoma Company Compliant

If you have an Oklahoma LLC, there are some requirements you must follow to stay on the right side of the law. For instance, you may need to get a business license or pay taxes depending on the type of business you start.

It is vital to stay up-to-date on the legal changes in your state. This will help you make sure that you comply with local regulations.

Oklahoma Business Permits and Licenses

In Oklahoma, you will need to obtain business licenses and permits to operate certain types of businesses. You can review the Department of Commerce’s Business Licensing and Operating Requirements page to learn more about the requirements.

Oklahoma Tax Requirements

Generally, LLCs are not subject to state income taxes. However, your business may still have to pay some taxes, such as sales and use taxes on tangible goods. Check out the Oklahoma Tax Commission’s website for more details.

Federal LLC Tax Filing Requirements

LLCs are considered “pass-through” entities for tax purposes, which means that your business will not be taxed on its profits. Instead, you’ll need to report the LLC’s profits and losses on Schedule C of your personal income tax return.

Your LLC will also need to pay Social Security and Medicare taxes, even if you don’t plan on hiring employees anytime soon. If you decide to hire employees, you must take out payroll taxes from their paychecks.

Annual Certificate and other Filing Requirements 

Oklahoma Statutes Title 18, Section 2055.2 says that LLCs must file an annual certificate with the Secretary of State. You can submit your Oklahoma annual certificate online or by mail, and there is a $25 filing fee.

Oklahoma Business Formation Quick Links

• Internal Revenue Service  — apply for an EIN online
• IRS information regarding the federal tax treatment of LLCs
• Name Availability Search (SOS)
• Online Filing (SOS)
• Business Filing Fee List (SOS)
• Business Licensing and Operating Requirements
• Oklahoma Tax Commission

Statutes:

• Official Oklahoma Statutes
• LLC Name Requirements: Oklahoma Statutes Title 18 Section 2008
• Name Reservation: Oklahoma Statutes Title 18 Section 2009
• Trade Name: Oklahoma Statute Title 18 Section 1140
• Registered Agent: Oklahoma Statutes Title 18 Section 2010
• Articles of Organization: Oklahoma Statutes Title 18 Section 2005
• Operating Agreement: Oklahoma Statutes Title 18 Section 2012.2
• Annual Certificate: Oklahoma Statutes Title 18, Section 2055.2