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Starting an LLC in Oklahoma (Step-by-Step Guideline)

Max Smith

Reading Time: 6 minutes

Are you about to open an LLC but don’t know which state to choose? Starting an LLC in Oklahoma offers opportunities and benefits for the LLC to succeed and grow. 

It will be better for you to get some help with all the ins and outs of forming LLCs in Oklahoma. This will help you to find out the solid reasons behind choosing Oklahoma for your new LLC. 

However, in order to open an LLC smoothly, you must follow a specific process. Plus, it can cost you money, so be ready to spend. 

Without further ado, let’s dive deep to explore the starting journey of an LLC in Oklahoma.

Of course! Oklahoma has immense features and benefits for LLCs. See below the reasons that will make you compelled to run an LLC in Oklahoma. 

  • Limited Liability Protection

An LLC in Oklahoma is wise if you need limited liability protection. That means protecting your business assets from business liabilities.

  • Flexibility in Management and Ownership 

LLC ownership and management styles are flexible. You can easily choose between a member-managed or manager-managed LLC.

  • Pass-Through Taxation

In Oklahoma, members’ individual tax returns contain information about the business’s gains and losses. It enables pass-through taxation.

  • Easy Formation and Maintenance

Oklahoma LLC is less complicated and more affordable than other Oklahoma business entities. They have low administrative and compliance requirements.

  • Credible and Professional Image

Having “LLC” in your company name shows credibility and professionalism to customers, clients, and business partners.

  • Privacy Protection

Although LLC ownership information is usually a matter of public record, your personal information will be partially protected.

Lastly, you may realize that you should open an LLC in Oklahoma. But do you know the steps to follow to open an LLC? If not, then please read the next section! 

How to Start an LLC in Oklahoma?

Every state has its own set of rules and regulations for forming an LLC. But almost all of the states follow a legal pattern. In fact, you must follow a formal process to form an LLC in Oklahoma. You just cannot apply for an LLC without the papers and a solid process.  

So, if you have decided to start an LLC in Oklahoma, here is a step-by-step guide for a smooth process.

Steps to Starting an LLC in Oklahoma

Check out the following steps to create an LLC in Oklahoma.

1. Choose a Name for Your LLC

Choosing a name for your LLC that is both unique and distinguishable. Also, it must be compliant with Oklahoma’s naming regulations.

In that name, the words “Limited Liability Company” and “LLC” should be present. Or there can be acronyms like “LLC” or “Ltd. Liability Co.”

2. Hire a Registered Agent

Designate a registered agent for your Oklahoma LLC. The agent should have a physical address in that state and be available during standard office hours. Ultimately, they are appointed to receive legal documents on behalf of your company.

An agent can be a professional individual or a company with permission to do this. Plus, you can also act as your registered agent.

3. File Article of Organization

Draft and submit the Articles of Organization to the Oklahoma Secretary of State. You can file for it online or by mail, along with the filing fee. While filing, you will need to include information like:

  • Your chosen LLC’s name.
  • Registered agent’s name and address.
  • Principal place of business.
  • Duration of the LLC.

4. Create An Operating Agreement

Oklahoma law does not require this but strongly advises creating an operating agreement. This document helps the members at the internal level. It records:

  • Ownership outline.
  • Management structure.
  • Member rights, roles, and responsibilities.
  • Internal operations.
  • Profit and loss sharing.
  • Member admission or withdrawal procedures.

5. Obtain an EIN

EIN is your Employer Identification Number, which you obtain from the Internal Revenue Service or IRS. When applying for it online via the IRS website, there is no filing fee. You will need it if you

  • Have more than 1 member in the LLC.
  • Hire employees.
  • Opt to be taxed as a corporation.
  • Open business bank accounts.

6. Additional Requirement Compliance

Consult the Oklahoma Tax Commission, the Oklahoma Secretary of State, and local authorities to determine if you must comply with additional requirements.

Also, depending on your business nature and activities, you might need local, state, or federal licenses, permits, or registrations.

7. Deliver Annual Reports

Even after your LLC’s formation, submitting an annual report to the Oklahoma Secretary of State is essential. It is to maintain your LLC’s status as active.

In this report, you will include your LLC’s updated information. If you fail to deliver your annual reports, your LLC might get administratively dissolved.

You know now how to start an LLC. But what about the costs of creating it in Oklahoma? After all, financial issues are also crucial in this decision. So, let’s get into that now.

Cost to Start an LLC in Oklahoma

There are several expenses if you intend to start an LLC in Oklahoma. These can be divided into essential costs and additional ones.

1. Key Costs

There are two critical costs to starting an Oklahoma LLC.

  • Articles of Organization Filing Fee 

The Article of Organization filing fee is the main cost of forming an LLC in Oklahoma. The Oklahoma Secretary of State charges $100 for it. 

And, if you are paying with a credit card, it will take $104. In the end, you will pay the fee when formally submitting the paperwork to register the LLC.

  • Annual Certificate Fee

In Oklahoma, LLC owners are required to pay an annual certificate fee. It should be paid each year. The cost is $25.

  • Registered Agent Fee

Like many other states, Oklahoma LLCs must designate a registered agent. That agent must have a physical address in the state and will accept legal documents on the company’s behalf.

People typically do this by hiring a professional registered agent service. The cost of this hiring can be expensive. It usually ranges from $50 to $300 per year.

  • Avoid Professional services

You can avoid hiring a professional registered agent service if you prefer. It is also legal. People decide to do this to save on the costs of forming an LLC.

2. Additional Costs

There are a few additional costs, depending on your situation. However, some of them are optional.

  • Expedited Processing Fee

By adding extra charges, Oklahoma offers expedited processing for LLC formation. You can go for this option if you need the process to be quicker than the standard processing pace.

  • Other Optional Fees

Besides the costs mentioned above, you must pay several types of taxes. Also, you should spend for your specific needs. For example:

  • Employer Identification Number (EIN) from the IRS.
  • Drafting an operating agreement.
  • Professional licenses.
  • Local business licenses. 
  • Business permits and insurance.
  • Name Reservation (before Articles of Organization).
  • Trade name report.
  • Business bank account.
  • Business website.
  • Certified copies of business documents.
  • Oklahoma Certificate of Good Standing.
  • Register as a foreign LLC.

Conclusion​

Starting an LLC in Oklahoma is easy if you know the steps better.. Wherever you go to open an LLC, you may face challenges. It may cost you a bit, but choose the best state to form an LLC that will give you more flexibility to run your business smoothly, just like Oklahoma. 

Besides, Florida also allows you to open an LLC. Do you know how to start an LLC in Florida for free?

Key Points

Are you confused? Let’s clear it down!

  • Whether you should start an LLC in Oklahoma depends on various factors. Consider the advantages of forming an Oklahoma LLC, then calculate the personal benefits you will receive.
  • You will have limited liability protection, privacy protection, and a credible and professional image. Also, management and ownership will be flexible, whereas formation and maintenance will be easy.
  • There are 7 steps to form an LLC in Oklahoma. Name your LLC, appoint a registered agent, file an Article of Organization, and more.
  • Creating an operating agreement and obtaining an EIN depend on some specific situations. Also, it would help if you were careful about complying with additional requirements and delivering annual reports.
  • The essential costs of building an LLC in Oklahoma include the Article of Organization filing fee, annual certificate fee, and agent fee.
  • Before starting your Oklahoma LLC, know about the additional cost, too. You might need them for a smoother business experience.

Frequently Asked Questions

Is the Oklahoma LLC application online available?

Yes! You can visit the Oklahoma Secretary of State website and apply for your LLC. So, you can easily apply for an LLC in Oklahoma from anywhere online.

How long does it take to get an LLC in Oklahoma?

An LLC in Oklahoma takes 5–10 business days. Actually, the LLC processing time depends on how the LLC is filled. For example, it will take 5-7 business days if you do it by mail. Plus, it takes around 2-3 days to complete online. Submitting an LLC in person takes 1 hour to process and will cost around $25.

Can I get a free LLC in Oklahoma?

No! You must pay a filing fee of $100 to create an LLC in Oklahoma. You can apply online or offline. But it’s really not free of charge. You must pay the associated fees.

Max Smith - LLC Formation

He is a seasoned entrepreneur and legal expert at LLC Formation Hub. With a stellar track record in both business and law, Max simplifies the complexities of LLCs. His practical insights, featured on LLC Formation Hub, empower entrepreneurs across the USA. Max merges business finesse with legal acuity to guide businesses toward success.


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