Form an Oklahoma LLC

LLC Oklahoma - Everything You Need To Know

A limited liability company, or LLC, is a type of business entity created to lower an owner’s liability for business debts. This means that if your LLC has unpaid debts, creditors can only go after the assets of your company. Your personal assets such as your home, car or bank account is off limits.

An Oklahoma LLC is also a legal structure used to protect personal assets in the event that your company is sued by a creditor or customer. Starting an LLC in Oklahoma is done for two reasons. The first reason is to operate a business. The second reason is to hold certain assets such as real estate, boats, vehicles or aircraft.Forming an LLC in Oklahoma is done in five steps:

1. LLC Name Search
2. Pick a Registered Agent
3. File Articles of Organization
4. Draft an Operating Agreement
5. Apply for an EIN

Creating an LLC in Oklahoma also takes additional steps that do not involve filing LLC documents with the state. These steps are:

  • Submit the LLC’s Annual Certificate
  • Obtain Business Licenses and Permits
  • Pay Taxes

1. LLC Name Search

Before you file any paperwork to form your Oklahoma LLC, you must decide on a business name. That fact you may already know. However, Oklahoma requires you to follow three requirements when choosing a name:

1. Use the abbreviations of “L.L.C.” or “LLC” at the end of your business name. Most people use “LLC.”
2. Don’t include any names that make your LLC appear like another type of legal entity such as “Corporation”, “Corp.”, “Incorporated” or “Inc.”
3. Pick a distinctive business name. This means your business name must be so unique that it can’t be the same and/or resemble any other business registered in the state.

You must also make sure that your business name is available to use in Oklahoma. To do this, conduct an Oklahoma LLC search at the state’s Business Entities Search webpage. Your next step is to type in your potential LLC name. When you are searching for your business name in the database, be sure to:

  • Exclude any LLC abbreviations
  • Enter the first word and/or second word of your business name. This will help determine if your business name is unique enough.
  • Enter the words in lowercase or uppercase.

After you click the search button, one of four things will happen. The results will show:

1. Your business name isn’t too similar to any other existing business name
2. No results are found that meet your criteria. The name is available.
3. Your business name appears in the search results. You can’t use the name because it’s already in use.
4. Results show that your business name is deceptively similar to one or more business names in the database. This means you can’t use your potential business name. You must think of a more unique LLC name.

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2. Pick a Registered Agent

Another step you must complete before starting your Oklahoma LLC filing is picking your LLC’s registered agent. A registered agent is a business or person who accepts all legal mail on behalf of your LLC. In other words, a registered agent is your LLC’s point of contact with the state of Oklahoma. For example, the secretary of state will send all legal notices to your registered agent. This is called a service of process. Your registered agent will receive all legal documents such as lawsuits, tax notices and payment reminders.

Oklahoma has two requirements for you to follow when selecting a registered agent. The first requirement is that the person or business has an Oklahoma street address. No post office box address is allowed. The second requirement is whomever you pick must be available during normal business hours. Service of process typically arrives during the hours of 9 a.m. to 5 p.m. If you need futher assistance you can also reach out to a professional agency like LLC Formations.

 

You have four options when choosing a registered agent:

  • You select yourself as the LLC’s registered agent.
  • You select your LLC as its own registered agent.
  • You select a family member or friend to be your LLC’s registered agent.
  • You hire a commercial registered agent.

3. File Articles of Organization

The third step is your Oklahoma LLC filing. An LLC Oklahoma articles of organization is a legal document which outlines the important information about your LLC. Your LLC doesn’t exist until the secretary of state approves your articles of organization. The information outlined in this legal document includes, but are not limited to:

  • LLC name and address
  • Statement of general purpose. This means you must indicate whether you LLC is operating a business or holding assets.
  • Names and addresses of each member. If you are the sole owner of the LLC, you have a single-member LLC. However, if you co-own the LLC, you have a multi-member LLC. This means everyone who owns a percentage of the company is listed in the document.
  • Name and address of your LLC’s registered agent.
  • The procedures of buying out existing members.
  • How a member’s shares is divided if they die or leave the company.
  • The procedures for any new member’ to buy into the LLC.
  • Duration of your LLC. This refers to how long your LLC will operate. If you plan on the LLC operating for a long time, choose “perpetual.” If you have an ending date, include the date.

Once you’ve created your LLC articles of organization, submit the document along with the filing fee to the secretary of state. The secretary of state will process your document within seven to 10 business days. If your LLC is rejected, your registered agent will be notified by mail. If you file online, the processing time is one to two business days.

If your LLC is approved, your registered agent will receive three things in the mail:

1. Stamped copy of your articles of organization
2. Approved copy of your article of organization
3. Certificate of Organization. This is considered your LLC’s birth certificate. It means that your LLC is now active and approved to operate in the state.

4. Draft an Operating Agreement

An LLC operating agreement Oklahoma is an internal document for your LLC. Thus, the secretary of state doesn’t require you to include it in your LLC formation documents. The purpose of an operating agreement is to detail how your LLC will be managed, operated and financed.

For example, the agreement spells out who are the LLC members and what percentage of the business they own. It also includes a description of the taxes are paid, how profits and losses are distributed to members and who manages the LLC.

The type of operating agreement needed will depend on whether you are a sole LLC owner or a multi-member LLC. The latter will be more detailed because you have more LLC members. Some single-member LLC owners believe they don’t need an operating agreement because they are the company’s sole owner.

That’s not true.

Every LLC needs an operating agreement. When a single-member LLC owner has an operating agreement, it provides more credibility to the company. Also, it ensures that LLC assets and losses remain separate from your personal finances. Always keep the operating agreement with your business records.

5. Apply for an EIN

Once your LLC is approved, your next step is getting an Employer Identification Number (EIN). This is your LLC’s Social Security Number (SSN). It identifies your LLC for tax and filing purposes. You can also use the number conduct other types of business transactions. For example, with an EIN you can open a business account and obtain a line of business credit.

Use your EIN to:

  • Hire employees
  • File local, state and federal taxes
  • Handle employee payroll

Apply for your LLC’s EIN via the Internal Revenue Service (IRS). You can submit an online application via the IRS website or send the application by mail. There’s no fee to obtain your LLC’s EIN. However, you must have an SSN to apply online and apply during business hours. If you don’t have an SSN, complete the paper form and send it to the IRS.

The IRS requires an LLC owner to use their personal SSN to obtain an EIN. If you have more than one co-owner, any member can use their SSN to apply for an EIN.

Submit the LLC’s Annual Certificate

All LLCs operating in Oklahoma must file a report each year. This is called an Annual Certificate. If you have owned an LLC in another state, “Annual Certificate” is the same thing as an annual report. The Annual Certificate is required to remain in good standing with the secretary of state. You may file your certificate via mail or online. In both instances, a filing fee is required.

The processing time for the secretary of state to approve your certificate depends on whether you send it via mail or online. Processing time is seven to 10 business days when received by mail. It is one to two business days when submitted online.

Your Annual Certificate is due on your LLC’s anniversary date. This is the date your LLC was approved. If you fail to send the secretary of state your Certificate, your LLC will be marked as “not in good standing.” The state gives you 60 days past your anniversary date to comply. If you don’t your registered agent won’t be allowed to file any legal documents. Your LLC is cancelled after the third year of not filing your Annual Certificate. After six years of not receiving your Annual Certificate, your LLC business name will be available for anyone to use.

Obtain Business Licenses and Permits

Once you have your EIN, you can comply with local and county business requirements such as getting licenses and permits. Whether you need to take this step depends on your industry and where you’re located in Oklahoma. These licenses and permits include alarm permits, building permits and tax permits.

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Pay Taxes

Your last step is to pay any taxes due. For example, if you are a retailer, reseller or sell any goods, you need to obtain a sales tax permit. Other taxes depend on the goods you’re selling such as property tax, fuel tax or alcohol tax.

You’re also required to keep all federal taxes up-to-date. The IRS taxes a single-member LLC as a sole proprietorship. The IRS taxes a multi-member LLC as a partnership. It’s best to have a tax professional guide you through the process of keeping up to date with your LLC’s taxes.

How to Form an LLC in Oklahoma

You’re ready to run your own business. You have your business idea, financing and the determination to make your endeavor successful. Your first step is making your LLC Oklahoma reality. Starting an LLC in Oklahoma is done in five steps. They sound easy, but can be a challenging task if you’ve never formed an LLC.
To avoid mistakes and missteps that could lead to the secretary of state rejecting your LLC or dissolving it later, use a professional service. A professional LLC service makes the process easier for you. In fact, it is your stress free way to form your LLC without going through the five steps. Check out our Oregon LLC step by step guide.