How to File an LLC in Oklahoma

Starting a new business presents many opportunities to grow personally and professionally. One of the initial steps in the process is determining the type of business structure that aligns best with your goals and where to file for it. 

In Oklahoma, many entrepreneurs opt to file for a Limited Liability Company (LLC) due to its flexibility and the protection it offers personal assets. However, it’s necessary to note that an LLC is not the only option available. S-Corps and C-Corps are other options you can consider as you begin your small business journey.

Key Takeaways:

• In Oklahoma, many entrepreneurs opt to file for a Limited Liability Company (LLC) due to its flexibility and the protection it offers personal assets.

• Oklahoma boasts a robust small business community, with over 362,000 small businesses in the state. This makes Oklahoma an attractive location for entrepreneurs looking to form an LLC.

• It’s also worth noting that while the basic process of starting an LLC is similar across states, the specific requirements and fees can vary. Therefore, seeking guidance specific to Oklahoma ensures a smooth and successful journey. 

Regarding your filing location, it’s crucial to research your chosen state’s specific laws and regulations. Oklahoma has its unique requirements that you must meet for filing an LLC and maintaining compliance. After you file, you will be responsible for filing each requirement, or you will open up your business and personal assets to potential legal troubles.

According to the Small Business Administration, Oklahoma boasts a robust small business community, with over 362,000 small businesses in the state.[1] This makes Oklahoma an attractive location for entrepreneurs looking to form an LLC. The state also offers many small business owners a wide range of resources and support.

If you want to file an LLC in the state of Oklahoma, this step-by-step guide has you covered. We’ll delve into the process and answer frequently asked questions. Keep reading to learn more about what an LLC is and the steps you’ll need to follow to help ensure compliance and success for your business.

What Is an LLC Formation?

An LLC in Oklahoma is a business entity offering personal liability protection for its owners and providing additional tax benefits.

LLCs protect personal assets in case of legal action against the business that other structures, such as a sole proprietorship, simply cannot provide. Entrepreneurs in Oklahoma often first elect to form their LLCs to protect their personal assets from any business liabilities. 

LLCs in Oklahoma also provide potential tax advantages and savings for their owners. In the state of Oklahoma, an LLC must pay sales tax and annual state fees, but they are not subject to corporate income taxes. Additionally, members of an LLC can choose to be taxed as a partnership, S Corp, or C Corp, which can result in substantial tax savings.

Forming an LLC in Oklahoma is a relatively straightforward process. Entrepreneurs must file the necessary paperwork with the Oklahoma Secretary of State and pay an annual filing fee. Once you form the LLC, members must comply with ongoing compliance and reporting requirements. This makes it an excellent option for small business owners and start-ups looking for a balance of liability protection and tax benefits.

Step-by-Step Guide to Starting Your Oklahoma LLC

Starting an LLC in Oklahoma can be a wild ride, but with the proper guidance, you can easily navigate the terrain. In Oklahoma, small businesses employ over half the private workforce, showing the state’s potential for small business growth.[2]

It’s also worth noting that while the basic process of starting an LLC is similar across states, the specific requirements and fees can vary. Therefore, seeking guidance specific to Oklahoma ensures a smooth and successful journey. 

Step 1: Choose a Business Name for Your LLC

When creating an LLC in Oklahoma, one of the initial steps is picking a suitable and distinctive business name. It’s essential to select a name not already taken by another Oklahoma company and meets the naming requirements set forth by the Oklahoma Secretary of State.

To see if your desired name is available, starting with a name search is a good idea. The Oklahoma Secretary of State provides a business name search tool on their website, which allows you to search for existing LLCs, corporations, and trademarks. You can also use the Business Name Search tool we provide for free at Swyft Filings.

In Oklahoma, small business owners can reserve their desired LLC name before officially forming the LLC. This is done by submitting an Application for Reservation of Name to the Oklahoma Secretary of State.[3] The application can be submitted online, by mail, or in person. The reservation fee is $10 and reserves the name for up to 60 days.[4]

When choosing your Oklahoma LLC name, here are some crucial requirements to keep in mind:

• Comply with naming guidelines established by the Oklahoma Secretary of State.

• Confirm that another Oklahoma business does not already use the chosen name.

• Include “Limited Liability Company” or the abbreviation “LLC” in the name.

• Check that the name is distinguishable from existing business names on file with the Oklahoma Secretary of State.

• Avoid restricted words that may require additional documentation for approval, such as “Bank,” “University,” or “Insurance.”

• Utilize the business name search tool the Oklahoma Secretary of State provides or another free search tool.

• Assess the name’s length, complexity, and memorability.

• Refrain from using offensive or misleading language.

Registering a Domain Name for Your Oklahoma LLC 

When choosing your LLC name, it’s also a good idea to check the availability of the corresponding website domain. This will ensure your business has a solid online presence and make it easier for customers to find you on Google and beyond. 

Trademarking Your Oklahoma LLC Name 

Trademarking your Oklahoma LLC name is vital in protecting your brand and preventing other businesses from using your name. The process of trademarking your name can be done through the United States Patent and Trademark Office (USPTO) and involves a thorough search of existing trademarks and filing and examining your trademark application.[5] 

Trademark registration can provide exclusive rights to use your mark in commerce, preventing others from using similar marks that may confuse consumers. It’s a crucial step in building and maintaining a solid brand identity for your Oklahoma LLC.

Step 2: Fill Out Oklahoma Articles of Organization

After choosing a unique business name, the next step is to fill out the Oklahoma Articles of Organization.[6] This form registers your LLC with the Oklahoma Secretary of State.

When filling out the form, it’s essential to include the following information:

• The name of your LLC

• The names and addresses of the members or managers of the LLC

• The name and address of your registered agent

• The purpose of the LLC

• The duration of the LLC (if not perpetual)

The filing fee for the Oklahoma Articles of Organization is $100 and can be submitted online or by mail to the Oklahoma Secretary of State. It’s essential to ensure that all the information provided is accurate, as any inaccuracies may result in the form getting rejected and delay the formation process. Keep a copy of the form for your records.

Step 3: Hire an Oklahoma Registered Agent

Hiring a registered agent is one of the most critical steps in forming your LLC in Oklahoma. A registered agent is an individual or business entity responsible for receiving legal and business-related documents on behalf of your LLC, such as service of process in case of lawsuits and other legal documents required by the state of Oklahoma.

When choosing a registered agent, they must have an actual and physical street address in Oklahoma. P.O. boxes are not acceptable for an Oklahoma registered agent. The registered agent’s address will also serve as the registered office for your LLC.

All registered agents should be available during normal business hours, partly because your entity can only accept service of process papers during normal operating hours, typically Monday through Friday, 9:00 AM to 5:00 PM, excluding state and national holidays. If your registered agent is unavailable during these times, it can result in your LLC being in non-compliance with Oklahoma state law.

You can choose to be your own registered agent, but hiring a registered agent service may be more beneficial. They will ensure that all legal documents are received and handled promptly to ensure your LLC remains in good standing with the state.

Swyft Filings offers a Registered Agent service trusted by small business professionals in Oklahoma and nationwide. Our service includes dedicated digital tools, such as an online dashboard, which provides secure and reliable access to your official documents. Additionally, our team is available 24/7 to assist you with any questions or concerns.

Step 4: Create an LLC Operating Agreement

Oklahoma does not require LLCs to have an operating agreement, but you should still consider one for your new business. An Operating Agreement is like a roadmap for your LLC. It lays out the rules and regulations for how you’ll run your LLC and ensures that everyone is on the same page. 

Step 5: File for an Employer Identification Number

Congratulations, you’re on the home stretch of creating your Oklahoma LLC! The next step is to get your EIN from the IRS. Think of it as your LLC’s social security number. It’s used for tax purposes and is required for opening bank accounts, hiring employees, and more.

But don’t worry. Getting an EIN is easy! It’s a simple online process you can complete in minutes. The best part? It’s completely free! Just visit the IRS website, fill out the online application, and your EIN will be mailed in a couple of weeks.[7]

Let Us Handle Your LLC Paperwork

Are you tired of navigating the confusing world of LLC paperwork? Want to start your Oklahoma LLC without any headaches or stress? At Swyft Filings, we’re here to be your trusty sidekick on your LLC formation journey.

Don’t waste hours on paperwork and filing fees. Let us take care of it all for you. We’ve got you covered, from filing your Oklahoma Articles of Organization to finding the perfect Registered Agent. With our affordable pricing plans, you’ll have peace of mind knowing you’re getting the best deal possible.

Don’t wait any longer to make your LLC dreams a reality. Contact us today and see why we’re the go-to choice for LLC formation in Oklahoma.

FAQs

How much does it cost to set up an LLC in Oklahoma?

Starting a business in Oklahoma can be a thrilling adventure, but it can also come with a lot of paperwork and expenses. Don’t let that dampen your entrepreneurial spirit! You must budget for a few essential costs to set up an LLC in Oklahoma.

Here’s a breakdown of the expenses you can expect when setting up your Oklahoma LLC:

• LLC Filing Fee: $100

• Registered Agent Service: Around $50 per year

• LLC Operating Agreement: Prices vary but are usually around $50

• Employer Identification Number (EIN): Free

While these costs may seem daunting, remember that an LLC offers several benefits, such as personal asset protection and the ability to have multiple members.

How is an LLC taxed in Oklahoma?

An LLC in Oklahoma is considered a pass-through entity, meaning the business doesn’t pay taxes on its income. Instead, the profits and losses are “passed through” to the individual members, who report it on their personal income taxes. This is known as “pass-through taxation” and can be a significant perk for LLCs.

Oklahoma also offers the option for single-member LLCs to be taxed as a sole proprietorship or partnership, giving you even more flexibility with your tax situation. 

What are the benefits of an Oklahoma LLC?

Some of the benefits of an Oklahoma LLC include:

• Flexibility in management and structure

• Pass-through taxation

• Limited personal liability

• Potential for business deductions

• Professional image

By setting up an Oklahoma LLC, you’ll be free to run your business however you want and have the state of Oklahoma as your trusty sidekick. 

How do you dissolve an LLC in Oklahoma?

When dissolving an LLC in Oklahoma, it is crucial to understand the process and follow the proper steps to ensure compliance with state laws and regulations.

The first step in dissolving an LLC in Oklahoma is to file Articles of Dissolution with the Oklahoma Secretary of State.[8] This document must include the name of the LLC, the date of its formation, and the reason for dissolution.

Next, it is important to notify all creditors and debtors of the LLC’s dissolution. You can do this by publishing a notice in a newspaper of general circulation in the area where the LLC has its principal office.

Once all debts and liabilities have been satisfied and all assets have been distributed to the members, the LLC may file a Certificate of Cancellation with the Oklahoma Tax Commission. This will cancel the LLC’s registration with the state and release it from further tax obligations.

It is essential to remember that the dissolution of an LLC may have tax consequences for its members, so it is recommended to consult with a business attorney or a tax professional before proceeding with the dissolution process.

Bibliography:

1. “Small Business Economic Profile: Oklahoma” https://cdn.advocacy.sba.gov/wp-content/uploads/2021/08/30143128/Small-Business-Economic-Profile-OK.pdf. Accessed February 3, 2023.

2. “2019 Small Business Profiles: Oklahoma” https://cdn.advocacy.sba.gov/wp-content/uploads/2019/04/23142655/2019-Small-Business-Profiles-OK.pdf. Accessed February 3, 2023.

3. “Articles of Organization” form https://www.sos.ok.gov/forms/fm0034.pdf. Accessed February 3, 2023.

4. Oklahoma Secretary of State business fees https://www.sos.ok.gov/business/fees.aspx. Accessed February 3, 2023.

5. United States Patent and Trademark Office https://www.uspto.gov/. Accessed February 3, 2023.

6. “LLC Operating Agreement” form https://www.sos.ok.gov/forms/FM0074.PDF. Accessed February 3, 2023.

7. IRS website for applying for an Employer Identification Number https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online. Accessed February 3, 2023.

8. “Certificate of Dissolution” https://www.sos.ok.gov/forms/Fm0080.PDF. Accessed February 3, 2023.