How to Form an LLC in Oklahoma

Oklahoma is seeing an increase in new business filings. It is not surprising that entrepreneurs continue to launch limited liability companies aka LLCs.

You are not the only one who wants to know how to appoint a registered agent, draft an LLC operating agreement, and create an LLC in Oklahoma. Although the process is not difficult, it is important to follow the correct steps and pay all fees.

Before you set up your Oklahoma LLC

Before you file your paperwork, there are some essential details that you need to take care of. These details are discussed in the sections below. Each plays an important role in your success in setting up an LLC in Oklahoma.

If you want to use an LLC formation service, visit our list of the best LLC services in Oklahoma.

Reserve an Oklahoma business name by researching and registering

The name of a new limited liability company must be distinct from other Oklahoma businesses. This means that the name you are looking for might not be available. The Oklahoma Secretary of State’s Official Search Engine can help you double-check the availability of your chosen name.

Filling out an application will allow you to reserve your business name for 60 days if it is still available. The fee for this is only $10, so it is very affordable.

Buy a web domain

Small businesses need a website. You’ll want to choose a domain name that matches your business name. It’s a smart idea to research and decide on a business name. Also, make sure you check if the domain name you want is available.

Registering a domain name that you like is easy and inexpensive. You don’t need to start a website immediately. It is better to purchase a domain and then work with it, than wait and discover that the domain name has been taken.

A registered agent must be appointed

Oklahoma law requires that all LLCs have a registered agent. This is someone who can accept service on lawsuits on behalf of the company. An LLC can either act as its own agent or can have an agent who is an Oklahoma resident or business. An agent must have a registered office, which is a street address in the state that is accessible during normal business hours.

You can also hire a third-party business to take on the role of a registered agent if you don’t want to assign it to someone in the LLC. The average annual cost is between $50 and $300, with most businesses charging around $100. However, it is important to consider the annual needs of your Oklahoma LLC and find registered agents who can cover them at a fair rate.

Complete your LLC documents

After you have completed the initial steps, you can move on to setting up an LLC in Oklahoma. You can fill out forms for domestic LLCs or professional LLCs. Nonprofessional LLCs have the option of completing the entire process online. There is a $100 filing fee. Out-of-state entities that wish to register LLCs in Oklahoma must fill out a separate form and pay $300.

What to do after setting up an LLC in Oklahoma

After you have set up your LLC, it is important to keep it in good standing. These are some key requirements and suggestions to help you achieve your long-term goals in business.

Register for an Employer Identification Number (EIN).

Most businesses require an EIN, but single-member LLCs can use a Social Security number. These numbers are also known as Federal Tax Identification Numbers, (FTIN), or Federal Employer Identification Numbers, (FEIN). EINs can be obtained and used for free through The IRS website.

Annual Certificate Renewal

Oklahoma LLCs must submit a renewal form each year to the Secretary Of State. Annual paperwork must be submitted on the anniversary of your LLC’s registered date. $25 filing fee

Pay your taxes

LLCs are treated as sole proprietorships and partnerships. Members (owners) report LLC income and expenses on personal tax returns just as if they had never formed the LLC. Owners are usually responsible for quarterly estimated taxes.

However, LLCs have the option to elect to be taxed under C-corporations. These pay a corporate tax as well as a flat 6% Oklahoma income tax. S-corp taxation is available to some LLCs. This structure allows for self-employment tax savings.

Consulting with a qualified small business accountant will help you to understand your tax options and obligations, as well as how to reduce your tax burden.

Make an LLC Operating Agreement

Oklahoma doesn’t require LLCs to have operating agreements. An operating agreement is still a good idea. An operating agreement can be used to establish how your LLC will operate, including financial obligations for members and expectations for day-to-day operations.

A detailed LLC operating agreement will not only prevent confusion over member roles and responsibilities, but it will also give your business a sense of legitimacy that can help you to maintain long-term good standing.

Most Frequently Asked Questions

What is an LLC?

A limited liability company combines the flexibility and ease of a sole proprietorship or partnership structure with the greater risk protection offered by a corporate structure. LLC owners, also known as “members”, have limited liability. This means that their personal liability to the company is limited to what they have invested. It does not cover losses or debts beyond that amount.

Members of an LLC are subject to taxes by default. This is the same as for owners of a general partnership or sole proprietorship. This structure is commonly referred to as a “pass-through” tax structure. If the LLC meets certain criteria, it can choose to be taxed either as a C corporation (C-corp) or as an S corporation (S-corp). Small business owners prefer LLCs because of their simplicity and flexibility.

What is the cost of an LLC filing in Oklahoma?

Foreign entities can register LLCs for $300, but domestic LLCs will need to pay $100.

Can I create an LLC in Oklahoma online?

Online filing is possible. You can also download PDF forms and fill them out to file later. Online filing is not possible for professional LLCs. Pay the filing fee. It can range from $100 to $300 for foreign and domestic business entities.

What are the advantages of starting an LLC?

LLCs can be a cost-effective way to start a business. LLCs have a more flexible structure than corporations and require less record-keeping. They can also provide limited liability protection for personal assets and act as a pass-through entity when filing taxes.