Forming an LLC in the State of Oklahoma

Starting a business and forming an LLC in the State of Oklahoma, follow our steps and read our FAQ’s helping you navigate starting your own LLC.

What is an LLC?

LLC stands for Limited Liability Company. An LLC is a legal structure for the business in which it combines the limited liability of a corporation with the flexibility and lack of formalities provided by a sole proprietorship or partnership. If you are a business owner who wishes to limit your own personal liability for debts and lawsuits pertaining to your business then you should consider forming an LLC.

Below you will find the steps you need to take to form an LLC in Oklahoma.

  1. Naming your LLC
  2. Appointing a Registered Agent
  3. Filing Articles of Organization
  4. Create an Operating Agreement
  5. Tax and Regulation Requirements
  6. Annual Certificate filing

1. Naming your LLC

The name of your LLC but differentiate and be noticeably different from those currently listed on file with the Oklahoma Secretary of State ( SOS ) website here . You may check for availability on the SOS website as well as reserve a name by filing their Application for Reservation of name here . The fee for filing is $10.00

Be aware that under Oklahoma law, an LLC name must include certain words such as “Limited Company” or “Limited Liability Company” You may abbreviate the word “Limited” as “Ltd.,” and “Company” to “Co.” 

Other abbreviations are “LLC” , “LC” , “L.L.C” , or “L.C.”

If you don’t wish to use your LLC’s official legal name that is registered in your Articles of Organization when doing business in the real world , you can use what is called a “Trade name”. This is also known as an “assumed name “ or ‘ DBA” ( short for “doing business as” ) or a  “Fictitious  Business Name” .

If you wish to use a Trade name then you must register your trade name with the ( SOS ) here .

Filing fee is $25.00

2. Appointing a Registered Agent

A registered agent is an individual or business entity that agrees to accept papers and documents, for service of process, on behalf of the LLC if in the event that the LLC is being sued. 

Every LLC in the state of Oklahoma must have a registered agent. The registered agent may be a resident of Oklahoma state, an LLC of Oklahoma state itself or a domestic or foreign business authorized to do business in Oklahoma. Be aware that the registered agent must have a physical street address in Oklahoma.

3. Filing Articles of Organization

An LLC in Oklahoma is created by filing “ Articles of Organization of an Oklahoma Limited Liability Company “ with the Oklahoma Secretary of State ( SOS ). 

You may file the articles online through the Oklahoma ( SOS ) website here or by posting mail. Filing fee is $100.00

The articles must include;

  • The name of the LLC
  • The LLC’s principal place of business street address
  • LLC’s email address
  • LLC’s term of existence – fixed date, term of years or perpetual
  • Signature of a member, manager or representative

4. Create an Operating Agreement

An Operating Agreement is the dominant document that institutes the rights, powers, liabilities, and obligations of the members among themselves and to the LLC. The Operating Agreement is an internal document only and is not filed with the ( SOS ). If an existing or newly created LLC does not adopt an operating agreement, its existing articles of organization, bylaws or operating agreement, and/or its member control or limited liability company agreement will collectively become its operating agreement. 

Although, while an Operating Agreement is not required Oklahoma, it is strongly advisable.

5. Tax and Regulation Requirements

Your LLC may require additional taxation and regulation requirements. These may be but not limited to:

EIN:  ( Employer identification Number ) is required if your LLC has more than one member, even if it has no employees. If in the case of a One-Member LLC you will only be required to have an EIN if you have employees or you have chosen to have it taxed as a corporation and not as a sole proprietorship – ( disregarded entity ). You may acquire an EIN through the IRS website by completing their EIN Application here.

Business Licenses:  Your LLC may need to acquire certain local and state business licenses , depending on what type of business is run and where it is located.  For Local Licenses, check with the city clerk for the city where your LLC’s primary place of business is located ( county if it is in an unincorporated area ). For business licensing and operating requirements consult the Oklahoma Department of Commerce website here.

Tax Commission:  If you have employees or will be selling goods and collecting sales tax, you will need to register with the Oklahoma Tax Commission ( OTC ) here .  Depending on the taxing involved you may be able to register online using the Oklahoma Taxpayer Access Point here

6. Annual Certificate filing

Any and all LLCs authorized to do business in the state of Oklahoma must file an Annual Certificate with the Oklahoma Secretary of State ( SOS ) .You must file your LLC’s annual certificate, once a year, on the anniversary of your LLC’s creation. The filing fee is $25.00, but be aware that there are penalties for filing late.  You may file your annual certificate online at the Oklahoma Secretary of State website here.

Oklahoma LLC Frequently Asked Questions

  1. How much will it cost to form my LLC in Oklahoma

    Your cost for starting an LLC will vary, why you ask? Firstly state fees will vary from state to state. You can expect to be paying somewhere between $50 and $500 to get the LLC formation up and running.

    You will then have annual expenses for filings approx. $100 – $200 a year dependable on your state of registration.

  2. What is a registered agent, do I need one?

    A person or business that is nominated to receive all mail and to send legal documents on behalf of your company. In some states they are referred to as the agent for service of process. All LLC’s will require a registered agent regardless of state.

  3. What is an LLC operating agreement?

    Firstly an operating agreement is not required in each and every state. However the value of ensuring you have an operating agreement is crucial for protection of the running of your company.

    Also if you are a multi member LLC this agreement will outline each member's responsibility to the LLC. Having an operating agreement in place is very important in the unfortunate event of a member dispute or lawsuit from a third party.

  4. How will an LLC be taxed in Oklahoma?

    One of the advantages and attractions of an LLC is called pass-through taxation. Meaning that the profits generated by the LLC will “pass-through” to its member/s. Your accountant will issue each member with a K1 who then reports the additional income on their personal taxes.

    Checking with your state is always advisable as although LLCs are pass-through entities, there are several types of state-level tax that may still apply to your LLC and should be researched.

  5. What are the main benefits of an LLC?

    The main benefits of an LLC and why it is a popular business entity are as follows.
    An LLC offers the liability protection of a corporation with the benefit of pass-through taxation. In addition to this an LLC is affordable and very easy to maintain. Making it the most popular of business entities.

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