How to Start an LLC in Oklahoma (Step-by-Step Guide)

If you’re considering forming an Oklahoma LLC, you’re making a smart choice for protecting your assets while enjoying flexibility in business operations.

To establish your LLC successfully, you must choose a unique business name, designate a registered agent, and file Oklahoma LLC Articles of Organization.

But there’s more.

Filing your Articles of Organization in Oklahoma costs $100. If you file online, your application will be approved in two to three business days, and filing by mail will take five to seven days.

If you want expedited processing, walk into the Secretary of State’s office and have your LLC approved immediately. This costs $125.

This guide compiles all the information you need to start an LLC in Oklahoma today.

What Are the Steps to Start an LLC in Oklahoma?

To start an LLC in Oklahoma, you need to:

• Step 1. Search and choose a name for your Oklahoma LLC
• Step 2. Designate an Oklahoma registered agent
• Step 3. File Articles of Organization with the state
• Step 4. Create an Operating Agreement
• Step 5. Get an EIN from the IRS
• Step 6. File a BOI Report
• Step 7. File your Oklahoma annual certificate

Let us dive more in-depth into these steps so I can show you how to get them:

Step 1: Search and Choose a Name for Your Oklahoma LLC

Choosing a name for your LLC is crucial. It should reflect your business while meeting Oklahoma naming rules.

Your name must include “limited liability company” or its abbreviations: LLC or L.L.C.

Avoid using words that can confuse your business with government agencies. For example, using the word “FBI” might lead to confusion with the Federal Bureau of Investigations.

To see if your name is available, visit the Secretary of State’s website. Use their search function to find existing LLC names. If your desired name is taken, try adjusting it.

It’s wise to check if your LLC name is available as a domain name. Even if you don’t need a website immediately, securing the domain can be beneficial later.

You can submit a Name Reservation application to hold a name. For a small fee of $10, you can reserve your name for 60 days.

Step 2: Select a Registered Agent in Oklahoma

A registered agent is a person or business you appoint to receive legal documents for your LLC. This can include tax notices or court documents. A registered agent ensures that essential papers are promptly delivered to your business.

Who Can Be a Registered Agent?

You have a few options for who can be your Registered Agent in Oklahoma:

• You: You can act as your registered agent, but remember you must be available during business hours to receive documents.
• A Family Member: A trusted family member can be your registered agent.
• An LLC Formation Service: Professional services offer expertise in handling official correspondence and ensuring compliance with state regulations.
• A Lawyer: A legal service firm can also serve as your registered agent, providing additional legal support if needed.

Requirements for Oklahoma Registered Agents

Oklahoma law requires registered agents to have a physical street address, not just a P.O. Box. The address must be where the agent can consistently receive legal documents and official mail during regular business hours.

Additionally, the registered agent must be at least 18 years old and available to accept service of process. This means they must be present to handle any legal notices or court documents delivered to the LLC.

What registered agents do I recommend for Oklahoma?

I highly recommend Northwest registered agent services for obvious reasons.

They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.

You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure. My favorite part? Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.

Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.

Step 3: File Oklahoma LLC Articles of Organization

Filing the Articles of Organization is crucial in starting your LLC in Oklahoma. This document officially establishes your business entity and includes essential details such as your LLC’s name, address, registered agent, and members’ or managers’ names.

To file your Articles of Organization in Oklahoma, follow these steps:

Step #1. Complete the Form: Obtain and complete the Articles of Organization form from the Oklahoma Secretary of State website.

Make sure your Articles of Organization contain the following:

• Name of your LLC
• Physical address of your business
• Email address of your LLC
• Term of existence (perpetual, fixed years, or a specific dissolution date)
• Signature of a member or manager

Step #2: File Online, by Mail or Walk-in: You can file your Articles of Organization online through the Oklahoma Entity Filing Webpage or by mailing the completed form to:

Oklahoma Secretary of State
Business Filing Department
421 N.W. 13th, Suite 210, Oklahoma City, OK 73103

Or by walk-in to:

Secretary of State
421 NW 13th Street
Suite 210
Oklahoma City, OK 73103

Step #3: Pay the Filing Fee: The filing fee is $100 if you file online or by mail. The walk-in option costs $125 ($100 filing fee + $25 expedited fee).

Once your articles are filed, the state will review and approve them. This process usually takes two to three business days if filed online and five to seven business days by mail. It takes one hour or less if filed by walk-in.

After approval, your LLC is officially recognized, and you can start your business activities, obtain your EIN, open a bank account, etc.

Step 4: Prepare an Operating Agreement for your LLC

An operating agreement is an essential internal document for your LLC. It outlines how your business will run and details the rights and responsibilities of its members.

In Oklahoma, an operating agreement is crucial. It clearly states each person’s role and helps prevent misunderstandings among members, which can be especially helpful if you ever have to make tough decisions.

Here are some key elements to include:

• Ownership Structure: Listing all members and their ownership percentages.
• Management Roles: Specify who will manage the LLC. This can be member-managed or manager-managed.
• Voting Rights: Define how decisions will be made. Will all members have equal votes?
• Profit Distribution: Explain how profits and losses will be shared among members.
• Meeting Procedures: Outline how often meetings will occur and how members will be notified.
• Amendment Process: Describe how changes can be made to the agreement in the future.

While Oklahoma does not require an operating agreement, it is wise to have one. It protects your limited liability status and shows that your business is separate from your personal affairs.

Make sure all members review this document. Each person should sign and date it to confirm the agreement. Keeping this document updated is also essential as your business changes over time.

Step 5: Obtain an EIN for Your OK LLC

An Employer Identification Number (EIN) is a unique identifier for your LLC, similar to a Social Security number for individuals. You will need this number for various tasks, such as opening a business banking account, applying for permits, and making contracts with wholesale vendors.

In Oklahoma, obtaining an EIN is necessary for your LLC to operate legally. It allows you to hire employees and file taxes. Fortunately, getting an EIN is free and can be completed quickly.

How to Apply for an EIN:

• Online: Visit the IRS website. This is the fastest way to get your EIN.
• By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
• By Fax: You can also fax the completed Form SS-4.
• Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.

How Much Does It Cost To Get EIN?

Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.

How Does it Take to Obtain my EIN?

• Online: Get it immediately.
• By Mail: Expect 4 to 6 weeks.
• By Fax: Usually within 1-2 weeks.

Step 6: File a BOI Report

Filing a Beneficial Ownership Information (BOI) report is essential for your LLC in Oklahoma. This report helps ensure transparency and compliance with state and federal laws.

Who Needs to File:

• Companies created before January 1, 2024, have until January 1, 2025.
• New companies formed between January 1, 2024, and January 1, 2025, must file within 90 days.
• LLCs formed after January 1, 2025, must report within 30 days.

How to File:

• Visit the FinCEN BOIR e-filing page.
• Choose from the options available:
  • Initial Report
  • Correct Prior Report
  • Update Prior Report
  • Newly Exempt Entity
• Select “Initial Report” for new filings and click NEXT.

Information Needed:

• Name of the LLC
• Business address
• Details of beneficial owners (individuals who own or control the business)

Filing the BOI report is crucial for maintaining your LLC’s good standing. It provides information about the individuals who own or control the company. This step helps reduce illegal activities tied to businesses.

Follow filing deadlines to avoid penalties. Stay informed about any changes in reporting requirements as they can evolve.

Step 7: File an Annual Certificate for your Oklahoma LLC

Every Oklahoma LLC operating within the state must file an Annual Certificate, commonly called the Annual Report in other states. Although Oklahoma uses the term “Annual Certificate,” the terms are often used interchangeably.

Filing this certificate is essential to keep your LLC compliant and in good standing with the Secretary of State.

The filing fee for the Annual Certificate is $25. You can submit it by mail or online.

Processing times vary depending on the filing method. For mailed submissions, expect a 7-10 business day processing time. Online filings are processed much faster, typically within 1-2 business days.

The due date for filing is the yearly anniversary of your LLC’s formation. The date can be found on your Certificate of Organization or by searching your LLC’s name on the state’s website.

Filing the Annual Certificate about a month before your LLC’s anniversary is wise to avoid last-minute issues.

Failing to submit your Annual Certificate within 60 days of the due date will mark your LLC as “not in good standing.” This can prevent your LLC from filing documents or engaging in legal proceedings.

If the Annual Certificate is still not filed by the third anniversary of its due date, your LLC will be placed in “Cancelled” status. After six years of cancellation, your LLC’s name becomes publicly available unless you file for reinstatement along with the overdue certificates and fees.

To help you stay on top of this, the Secretary of State sends reminder emails 60 days before the due date. You can file your Annual Certificate as soon as you receive this reminder.

After your certificate has been filed with the state, they will email you back a certificate and receipt.

What are the Different Methods To Start an Oklahoma LLC?

You have several options for starting your LLC in Oklahoma. Each method has its steps, costs, and benefits.

Here are the primary methods to consider.

DIY LLC Formation in Oklahoma

If you form your LLC, you will handle all the steps yourself. This includes filling out and filing the necessary paperwork with the Oklahoma Secretary of State.

All by yourself, no third party!

Pros:

• Cost-Effective: You save money by not hiring anyone.
• Control: You have complete oversight of each step.
• Learning Opportunity: You gain knowledge about the process.

Cons:

• Time-Consuming: It may take longer if you are unfamiliar with the process.
• Complexity: You must ensure all forms are correctly filled out.
• Privacy issue: If you serve as your registered agent, you risk having your address out there.
• Lack of Guidance: You might miss the necessary steps.

Using a Professional/Online LLC Formation Services

Many online services can help you form your LLC. These platforms guide you through the entire process, handling most paperwork.

Pros:

• Convenient: They manage the filing, saving you time.
• User-Friendly: Most platforms have easy-to-understand instructions.
• Support Available: Many offer customer service for questions.
• Privacy benefits: Most services allow you to use their address for free, so your address doesn’t get compromised

Cons:

• Costs: You’ll pay a service fee.
• Variable Quality: Some services may not be as reliable as others.

Hiring an Attorney

Working with an attorney is another option for forming your LLC. This method ensures you have professional legal guidance throughout the process.

Pros:

• Expertise: An attorney knows the legal requirements and can avoid pitfalls.
• Customization: Your LLC can be tailored to your specific business needs.
• Support with Complex Situations: Ideal for businesses with unique circumstances.

Cons:

• Higher Costs: Legal fees can be expensive.
• Dependence on Others: You may rely heavily on the attorney’s schedule.
• Potential Delays: The process may take longer due to attorney workloads.

What is The Cheapest Alternative Way to Form an LLC in Oklahoma?

If you’re looking to start an LLC in Oklahoma on a budget, the most affordable option is to do it online. By filing the Articles of Organization directly with the Oklahoma Secretary of State, you can keep costs between $100 and $125, depending on your needs.

This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.

However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.

Consider using a registered agent if you prefer not to handle everything yourself.

They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.

Who Provides the Best LLC Services in Oklahoma?

There are a myriad of Oklahoma LLC services from which to choose. Choosing the wrong one can affect your Oklahoma LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.

Here are some top-rated options you should consider:

Best Oklahoma LLC Service	Google Rating	LLC Formation Cost	Registered Agent Fee
Northwest Registered Agent	4.7/5	$39	Free for one year
Doola	4.6/5	$0 (plus state fees)	$297/year
Tailor Brands	4.4/5	$0 (plus state fees)	$199/year
ZenBusiness	N/A	$0 (plus state fees)	$199/year

Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.

Northwest Registered Agent stands out in Oklahoma LLC formation due to its commitment to transparency, customer service, and privacy. Using their address helps protect your personal information, making them a reliable choice.

How Much Does It Cost To Form an LLC in Oklahoma?

Forming an LLC in Oklahoma costs around $100, which covers the Oklahoma LLC formation fees. However, there are other fees you need to be aware of.

Here’s a breakdown of the entire Oklahoma LLC costs:

Requirement	Cost
New LLC Filing Fee (Articles of Organization)	$100
Name Reservation (optional)	$10
LLC Formation Service (optional)	$39 (via Northwest)
Registered Agent fee (optional)	$0 (via Northwest)
Annual Certificate Fee	$25
Total Estimated Cost	$125 – $175

When forming a new company in OK, budgeting about $125-$175 for the first year is ideal. Then, if you want to go further, you can get other bells and whistles like a virtual mailbox, custom website, trademark services, premium EIN services, etc.

The most significant (and essential) expense for every Oklahoma business owner is filing the Articles of Organization, which costs $100.

Pros and Cons of Forming an LLC in Oklahoma

6 Important Things To Do After Creating Your Oklahoma LLC

After forming your LLC in Oklahoma, there are vital steps to ensure its smooth operation. These tasks include understanding regulations, creating financial accounts, and establishing an online presence.

1. Research the Best Licenses and Permits for Your Business

Each business needs specific licenses and permits to operate legally. The requirements could vary depending on your industry and location. Check with the Oklahoma Secretary of State and local county or city offices.

Standard licenses include sales tax permits and health department permits. Research thoroughly to avoid fines or business interruptions.

Websites like the SBA (Small Business Administration) can help you find the right licenses. Before starting operations, list necessary permits and apply for them.

2. Create Business Accounts for Your Oklahoma LLC

Opening a separate bank account for your LLC is essential for keeping your business finances organized and distinct from your funds.

This separation simplifies your accounting and helps safeguard your assets by clearly distinguishing between personal and business transactions.

When choosing a bank, look for one that offers business-friendly services, such as waived fees, free online banking, and other features that can benefit your business. To open the account, be prepared to provide your EIN and a copy of your Articles of Organization.

A dedicated business account streamlines your financial management and simplifies tax preparation.

Having all your business transactions in one place lets you easily track your income and expenses, ensuring everything is well-organized and accessible when tax season rolls around.

3. Understanding Oklahoma Tax Requirements and Managing Your Taxes

A single-member LLC records net earnings on the member’s tax return as “self-employed” income. In a multi-member organization, the LLC must file a tax return, and each member must file a K-1 with their returns.

As an LLC in Oklahoma, you need to know your tax obligations. You may be subject to:

• Sales Tax: Register for a sales tax permit if you sell goods.
• Income Tax: Ensure you report profits and losses on your tax returns.

4. File Your Annual Certificate

Every Oklahoma LLC operating within the state must file an Annual Certificate, commonly called the Annual Report in other states. Although Oklahoma uses the term “Annual Certificate,” the terms are often used interchangeably.

Filing this certificate is essential to keep your LLC compliant and in good standing with the Secretary of State.

The filing fee for the Annual Certificate is $25. You can submit it by mail or online.

Processing times vary depending on the filing method. For mailed submissions, expect a 7-10 business day processing time. Online filings are processed much faster, typically within 1-2 business days.

The due date for filing is the yearly anniversary of your LLC’s formation. Filing the Annual Certificate about a month before your LLC’s anniversary is wise to avoid last-minute issues.

Failing to submit your Annual Certificate within 60 days of the due date will mark your LLC as “not in good standing.” This can prevent your LLC from filing documents or engaging in legal proceedings.

If the Annual Certificate is still not filed by the third anniversary of its due date, your LLC will be placed in “Cancelled” status.

After six years of cancellation, your LLC’s name becomes publicly available unless you file for reinstatement along with the overdue certificates and fees.

After your certificate has been filed with the state, they will email you back a certificate and receipt.

5. Get Business Insurance for an LLC

Just as you wouldn’t leave your home without coverage, your LLC also needs the right business insurance to guard against potential risks and liabilities. Insurance protects your company’s assets and ensures financial stability in case of unforeseen issues or legal claims.

Your insurance needs will vary based on your business operations.

For example, general liability insurance covers risks such as slip-and-fall accidents or property damage if your LLC operates from a physical storefront.

Conversely, if you run your business as a consultant and work remotely, you might only need professional liability insurance to cover potential service errors or omissions.

Assessing your business needs helps you choose the appropriate coverage to protect your LLC.

6. Setup Your Business Online Presence (optional)

In today’s digital age, online presence can significantly benefit your business. Start by creating a professional website. This platform allows you to showcase your services and connect with customers.

Consider using social media to engage your audience. Platforms like Facebook, Instagram, and LinkedIn can enhance your visibility.

An online identity enhances visibility and connects you with more customers, which is valuable for business growth.

Oklahoma LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations

When starting a business in Oklahoma, understand the differences between various structures. Each has its pros and cons. Knowing these options helps you choose what best suits your business.

Sole Proprietorship

An Oklahoma sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.

However, there’s no legal separation between you and your business. If your lemonade stand faces financial trouble or legal issues, your assets, like your car or home, could be at risk.

It’s easy to set up and manage, but it does leave you personally responsible for any business debts.

Partnership

An Oklahoma partnership involves teaming up with one or more people to run a business together.

Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.

However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your assets could be at risk, too.

Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.

LLC (Limited Liability Company)

An LLC offers a blend of flexibility and protection.

Picture it as a protective umbrella over your lemonade stand. This structure separates your assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe.

LLCs are more formal than sole proprietorships or partnerships but offer management and tax treatment flexibility. They are ideal for small—to medium-sized businesses that want liability protection without the complexity of a corporation.

S-Corporation

An S Corporation is a more structured business form.

Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.

This means you report the income and losses on your tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.

Corporation

An Oklahoma corporation is the most complex structure, suitable for larger businesses aiming for significant growth. Imagine a big company with many shareholders.

A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your assets are protected.

Corporations can raise capital more efficiently by issuing stock and can offer employee benefits. However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.

My Final Thoughts: Forming an LLC in Oklahoma

Starting an LLC in Oklahoma is an exciting step toward bringing your business idea to life. Although it might seem like many steps initially, breaking them down makes the process more manageable and ensures you cover all the essential bases.

To start an LLC in Oklahoma, you will need to follow these key steps:

• Choose a name for your LLC.
• Select a registered agent to receive legal documents.
• File Articles of Organization with the state.
• Create an operating agreement to outline the management structure
• Obtain an EIN from the IRS.
• File a BOI Report
• File annual certificate for your LLC.

The filing fee for the Articles of Organization is $100.

After forming your LLC, prepare for annual reports, which cost $25 yearly.

Following the steps and understanding the costs set a solid foundation for your new venture. You can manage your LLC efficiently and focus on your business goals.

Learn More About Starting an LLC in Oklahoma

If you need additional help to start an LLC in Oklahoma, check out these valuable resources:

Frequently Asked Questions

Can I change my registered agent in Oklahoma?

Yes, you can change your registered agent in Oklahoma. You must file a form with the Secretary of State and provide the new agent’s information. The process might involve a small fee.

How do I change my Oklahoma LLC’s name?

To change your LLC’s name in Oklahoma, you must file an amendment to your Articles of Organization with the Secretary of State. You’ll pay a filing fee and include the new name you want to use.

How do I renew my Oklahoma LLC?

Oklahoma LLCs need to file an Annual Certificate each year to stay active. Pay the filing fee by the deadline to keep your LLC in good standing.

How do I dissolve an LLC in Oklahoma?

To dissolve your LLC in Oklahoma, you must file a Certificate of Dissolution with the Secretary of State. You must pay the required fee and settle all business debts before dissolving.

How do I add a member to an Oklahoma LLC?

To add a member to your Oklahoma LLC, you must update your Operating Agreement, which outlines the roles and responsibilities of all members. If your LLC is member-managed, inform the Secretary of State of any changes.

How do I add a DBA to an LLC in Oklahoma?

To add a DBA (Doing Business As) to your LLC in Oklahoma, you must file a Certificate of Assumed Name with the Secretary of State. There is a filing fee, and the DBA must be unique and not already in use.

Can a minor own an LLC in Oklahoma?

Yes, a minor can own an LLC in Oklahoma, but they cannot manage it until they reach the age of majority. An adult may need to be a manager or responsible party for legal matters.

When is the Oklahoma Annual Certificate due?

The Oklahoma Annual Certificate is due yearly on your LLC formation anniversary. File it on time to avoid penalties and maintain your LLC’s good standing.

Does LLC expire in Oklahoma?

An LLC does not expire in Oklahoma as long as you continue to file your Annual Certificates and pay the necessary fees. Failure to file on time may lead to penalty fees or administrative dissolution.

Can a non-resident open an LLC in Oklahoma?

Yes, a non-resident can open an LLC in Oklahoma. There are no residency requirements, but you will need a registered agent with a physical address in the state.

Can I buy a house or car with my LLC in Oklahoma?

You can buy a house or car through your LLC in Oklahoma. This can provide liability protection and potential tax benefits for your assets.

Can you have multiple businesses under one LLC in Oklahoma?

In Oklahoma, you can operate multiple businesses under one LLC, but keeping detailed records for each business is advisable. You may also consider using DBAs to distinguish different brands or services.

Is Oklahoma an excellent state in which to form an LLC? Is it worth it?

Oklahoma can be an excellent place to form due to its business-friendly environment and low filing fees. Evaluate your business goals to determine if it’s the right fit for you.

Can one person form an LLC in Oklahoma?

Yes, one person can form a single-member LLC in Oklahoma. This offers the benefit of limited liability while maintaining complete control over the business.