How To Start An LLC In Oklahoma

ByMatija Kolaric

Have you ever wondered what it takes to start an LLC in Oklahoma? This ultimate guide answers all the questions you might have. Read on to learn how to start an LLC in Oklahoma.

Start An LLC In Oklahoma

You’re here to learn about creating an LLC in Oklahoma. That means discussing the steps to take, the price you pay, and how taxes work for LLCs and their members. 

We also focus on marketing, what to do after formation, and dissolving the limited liability company in the future. Let’s get started!

But first, let’s analyze how Oklahoma compares to other states as a place to start an LLC.

StateOklahomaTexasArkansasKansasUS Average
Population3,959,35329,527,9413,025,8912,937,8806,619,825
LLC Filing Fee$100$300$45$160$130.38
LLC Annual/Biennial Fee$25 (every year)$0 for most LLCs (however a No Tax Due Report and Public Information Report must be filed every year)$150 (every year)$50 (every year)$89.34 (every year)
Corporate Tax Rate4.00%0%*1-5.9%*1.0-5.9%5.60%
Nominal GDP per capita$51,861$67,235$47,770$65,530$64, 773.08

Before You Set Up An LLC In Oklahoma

Learning how to start an LLC in Oklahoma begins by getting organized and reading this guide. Here, you focus on the steps to take, which forms to fill out, and the fees involved.

Once you have that information, you can begin filling out forms and sending them to the appropriate places for approval.

How Much Does It Cost To Start An LLC In Oklahoma?

You might be wondering how to start an LLC in Oklahoma for free. Unfortunately, that’s not possible. There are costs associated with limited liability company creation, but they’re small.

Let’s break down the amounts required and how much to start an LLC in Oklahoma.

The only official cost associated with creating an LLC in Oklahoma is the Articles of Organization, which is $100. 

However, you may prefer to hire a registered agent service, which runs $99. Business licenses and permits might also be needed, though they vary.

If you already own an LLC in another state, you must file for a foreign LLC, which costs $300 extra.

Overall, LLC owners in Oklahoma can expect to pay $199 for a domestic LLC or $399 for a foreign one.

Steps To Start An LLC In Oklahoma

Steps to set up an LLC

Here are the steps needed when forming an LLC in Oklahoma.

Pick A Name For Your LLC 

You should always focus on your business name first when starting an LLC in Oklahoma. Make sure it complies with the state’s rules for naming and can be found by your customers and fans.

Here are a few guidelines:

  • The name has to include “limited liability company” or “LLC.” Therefore, it should look like this: Company Name, Limited Liability Company.
  • You can’t include confusing words that might be associated with a government agency, such as State Department, FBI, and Treasury.
  • Restricted words could require more paperwork and a licensed individual to be part of the LLC. Examples include attorneys, banks, and universities.
  • The LLC name has to be distinguishable from other limited partnerships, limited liability partnerships, corporations, and limited liability companies.

Perform an Oklahoma LLC name search to see if your preferred name is available.

Find A Registered Agent In Oklahoma

The registered agent receives your company’s important documents, such as tax forms, lawsuit notices, and government correspondence. You can use a business entity or individual to be the point of contact.

Registered agents must be authorized to do business in the state if they’re corporations or be a resident of Oklahoma if they’re an individual. Many people choose to work with a registered agent service like ZenBusiness.

Do You Need A Registered Agent In Oklahoma?

Yes, you must nominate a registered agent for the Oklahoma LLC. You can be your own registered agent.

ZenBusiness – $49 + state fees to register your LLC (read review)
Incfile – $0 + $50 state fees to register your LLC (read review)

Articles Of Organization

You register your Oklahoma LLC by filing the Articles of Organization with the Secretary of State. Do so online or by mail. There’s a $100 non-refundable fee required.

Articles of Organization

Other Required Documents

A Certificate of Good Standing isn’t required, but many people prefer to have one. This document verifies the LLC and promises that it’s being maintained. It helps you:

  • Get/renew licenses and permits
  • Form a foreign LLC in another state
  • Get funds from lenders

Order your Certificate of Good Standing online for $20.

Operating Agreement

LLCs in Oklahoma doesn’t require an operating agreement, but it’s ideal to have one. The legal document outlines the information needed, such as operating procedures and ownership. Everyone is on the same page, so there are fewer issues and conflicts.

Get An EIN 

The Internal Revenue Service requires all businesses to have a nine-digit EIN. The employer identification number is like your company’s Social Security Number.

You need this EIN to hire employees, file state and federal taxes, and open business bank accounts. Generally, you should get a new one when you convert an existing sole proprietorship to an LLC.

There’s no fee to get an EIN, and you may apply online or by mail/fax.

The Forms You Need To Register An LLC In Oklahoma

Did You Know?

The Oklahoma Limited Liability Company Act makes it easier and cheaper to form an LLC. You can set a specific term of existence if you only want to own the LLC for a few years. The state adopted the LLC act in 1992, giving small business owners another option for owning a company.

LLC Taxes In Oklahoma

Forming an LLC in Oklahoma often means figuring out how to file taxes each year. This is one of the most important things because you don’t want to get in trouble with the state or IRS. Here’s what to know:

How Much Do LLCs Have To Pay In Taxes In Oklahoma?

LLCs don’t actually pay taxes because they are pass-through entities. Therefore, they’re not subjected to federal corporate tax. Instead, owners receive the profits as personal income, which is divided among all. Each individual must pay taxes themselves.

Differences Between Federal And State Taxes

Since LLCs don’t pay taxes, it’s up to the members to do so, whether there’s one person or multiple. However, that’s on a federal level.

Your EIN determines your tax classification, but you’ve got options. Single-member LLCs are taxed as the sole proprietorship, while multi-member LLCs use the partnership option.

Some LLCs choose to file as a corporation because they have high earnings or fewer members.

LLCs still have to pay state taxes, such as:

  • Sales and use tax
  • Unemployment insurance tax
  • Employer tax

How Much State Taxes Do LLCs In Oklahoma Have To Pay?

There’s a six percent flat corporate tax on taxable income, but LLC members don’t have to pay that; they’re exempt if they’re not filing as a corporation.

How Much Federal Taxes Do LLCs in Oklahoma Have to Pay?

On the federal level, you pay 15.3 percent through self-employment taxes. That’s 7.65 percent for the individual and 7.65 percent for the employer.

Is Oklahoma A Good Place To Start An LLC?

Overall, Oklahoma is an excellent place to start your LLC. You’ve got more flexibility, don’t have double taxation issues, and less personal liability if something happens.

However, LLCs aren’t taxed, so the owners or members must cover tax as the employer and employee. In a sense, they’re treated like self-employed people.

Corporate Tax Rate North Oklahoma

How Long To Form An LLC In Oklahoma

It takes less than a week to get approved once you file your Articles of Organization. However, it might take a few weeks or a month to get everything organized and fill out the paperwork.

You’re still not finished after creating an LLC in Oklahoma. You’ve got to find a property to rent for business purposes, choose a business name, and much more. It’s best to give yourself at least six months. Follow this guide to ensure that each step is done efficiently.

How Much Does It Cost To Run An LLC In Oklahoma?

Starting an LLC in Oklahoma isn’t the only thing to think about. There are ongoing fees to pay to run the business. Many business licenses and permits must be renewed each year. Registered agent services charge annual fees, too.

You’ve also got many operating costs, including:

  • Repairs and maintenance of the equipment
  • Purchasing new equipment
  • Marketing
  • Employee wages
  • Rent of the property (or mortgage)
  • Utilities
  • Insurance

What To Do After Formation

After creating an LLC in Oklahoma, you’re not quite finished. You’re excited to start earning money, but there are other things to focus on so that the company runs smoothly when it’s set up. These include:

  • Create a Logo – When people visit your store or website, they need something to associate it with. A logo is a perfect solution!
  • Build a Website/eCommerce Store – Businesses need a website. You want to be the authority figure in the market, and the site builds trust and shows legitimacy.
  • Bank Account – Most people have personal bank accounts to pay bills and write checks. However, a business protects those assets and keeps things separate.
  • Business Insurance – Insurance helps you manage risk. It’s best to have business insurance on your property, but you should also think about worker’s compensation and general liability insurance.
  • Annual Reports – Members and shareholders should be updated periodically on what’s happening with the company. That helps them get a good sense of the future.
  • Create Social Media Accounts – Social media is crucial for new and established businesses. You want people to find you and build rapport.

Resources To Start A Successful LLC In Oklahoma

Start Marketing Your LLC In Oklahoma

The first step to marketing yourself effectively is to create a website. Then, you need to start a blog and include helpful tips and information. It’s called content marketing, and it ensures that people frequently visit your website to read new content.

When done correctly, content marketing builds authority and credibility. You effortlessly move people through their buyer’s journey because you understand their pain points and learn more about them.

It’s also wise to create social media accounts to engage with others. Email marketing and SEO services are crucial, as well.

How To Dissolve An LLC In Oklahoma

You might decide not to do business through the Oklahoma LLC anymore. If that’s the case, officially dissolve it. Otherwise, you run the risk of paying penalties.

File the Articles of Dissolution form online or by mail and close your business tax accounts.

Conclusion

You’ve learned how to start an LLC in Oklahoma. We took you through the steps needed, determining how much it costs, and provided forms to fill out.

Then, you learned about the time it takes, what to do after forming an LLC in Oklahoma, and how to market your brand. You’re now ready to start your journey!

Frequently Asked Questions (FAQ)

LLCs don’t pay taxes because they’re pass-through entities. Instead, each owner receives the profits as their personal income, so they pay federal and state taxes from there. Therefore, you don’t pay the corporate income tax unless you decide to file as a corporation. Still, you might have other taxes, such as: Sales and use tax State unemployment insurance tax State employer taxes

It generally takes about two business days for the Articles of Organization to be processed through the Secretary of State. However, you might wait up to 10 days if there are delays.

Yes, single-member LLCs are allowed and might have a different tax structure. Generally, the default status for single-member LLCs is to be taxed as the sole proprietorship. If you have high earnings, it might be beneficial to file your taxes as a corporation

Every LLC must file an Annual Certificate or annual report with the Secretary of State in Oklahoma. It costs $25 and can be done online or by mail.

Limited liability companies are exempt from paying franchise tax. Because the liability is zero, you still file the tax return. Foreign LLCs don’t have that tax to pay but have a $100 registered agent fee

Technically, yes. LLCs do expire in Oklahoma after one year. Therefore, you must file your annual report to remain in good standing.

Author

Matija Kolaric

Matija Kolaric

Amazing content is the core of what we do. With more than 5 years of experience in branding, name development, and business, Matija helps create and manage content production.

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