Learning how to get an LLC in Oklahoma has never been easier. Not only is there a wealth of information available, but all the forms you need can also be found online. A limited liability company (LLC) offers a variety of benefits to new business owners, including flexible taxation and personal asset protection.
They are simple and easy to set up, although you are required to follow the necessary protocols outlined by the state legislature to keep your business legal and active. Here is everything you need to know about how to start an LLC in Oklahoma.
Is an LLC Operating Agreement Required in Oklahoma
No, an operating agreement is not required in the state of Oklahoma, but they are often encouraged by legal professionals. An Oklahoma LLC operating agreement is an official document that states the intended purpose of a business. It helps members of the LLC establish how the business will be run and outlines all the financial and operational rules of the company. An Oklahoma LLC operating agreement gives a business more legitimacy and the ability to adjust the bylaws to meet the needs of its members.
Oklahoma Operating Agreement Laws
The Oklahoma State Legislature outlined the laws governing the creation of an operating agreement for a limited liability company in Title 18-2012.2 of the Oklahoma Statutes. The law states that the operating agreement of a limited liability company governs:
- The relations between members and other members
- The relationship between members and the company
- The rights and duties of the person acting as the company’s manager
- The activities and conduct of the company
- The means and conditions for amending the agreement.
Members of the LLC are bound by law to uphold the conditions outlined in the operating agreement. Members and managers have a legal obligation to abide by the rules stated in this document, even if not enforced by other members or managers.
How Much Does it Cost to Form an LLC in Oklahoma?
It costs $100 to set up an LLC in Oklahoma for domestic applicants. The foreign filing fee to set up an LLC in Oklahoma is $300.
The Oklahoma Secretary of State charges a $100 fee to file the paperwork needed to set up an LLC, known as the articles of organization of an Oklahoma Limited Liability Company. Members or managers of an LLC are also required to submit a yearly report to the Secretary of State to keep the business active, known as an annual certificate. The filing fee for the annual certificate is an additional $25.
If you’re not quite ready to set up the business but want to make sure no one takes the name you had in mind, you can also pay $10 to reserve it ahead of time.
How to Form an LLC in Oklahoma?
So, if you want to know how to apply for an LLC in Oklahoma, it’s actually quite simple. Just follow these easy steps to get your business set up the right way.
Step 1 – Choose a Name
The first step is to pick a name. The name must be unique from any other registered business. You can search the business name database of the Secretary of State of Oklahoma to see what names are available.
Besides being unique, the state laws also mandate that the name must include one of the following phrases or abbreviations:
- Limited Company or Limited Liability Company
- LC or LLC
- L.C. or L.L.C.
The word limited may be abbreviated as “Ltd.” and Company may be abbreviated as Co. But the name must contain some reference to its status as an LLC.
Step 2 – Choose a Registered Agent
The next step in how to create an LLC in Oklahoma is to decide who will be the registered agent. The registered agent is someone who is appointed to accept all official paperwork on behalf of the business, including tax and legal documents. So if the business gets sued, the registered agent will receive the papers.
The Oklahoma Statutes allow the registered agent to be any of the following individuals or entities:
- An Oklahoma resident
- an LLC registered in Oklahoma
- a domestic or foreign business entity registered to do business in Oklahoma
The registered agent must also have a physical location in the state of Oklahoma, where documents can be sent. Oklahoma also has an annual agent fee of $40.
Step 3 – File the Articles of Organization
To officially become a recognized business, you have to know how to register an LLC in Oklahoma. The articles of organization of an Oklahoma Limited Liability Company can be submitted to the Secretary of State to officially establish the business.
The articles of organization will state:
- The name of the business
- The name and address of the registered agent
- The purpose of the business
- The duration of the business (if applicable)
- The primary address of the business
- The company’s email address
You’ll also want to choose what type of LLC you’re looking to set up. Oklahoma has three different types of LLCs; single member, multi-member, and series. Each offers unique benefits for differing circumstances.
Step 4 – Get an EIN Number
Once the paperwork has been approved and the fee has been paid, you are all set to start doing business. But before you accept any payments, you should set up an EIN number with the IRS. This multi-digit number is needed to perform important financial functions like filing a tax return and setting up a bank account.
Step 5 – Get an Annual Certificate
Don’t forget to file your annual certificate every year and pay the $25 fee. It’s due annually on the date that the LLC was originally registered. Failure to file an annual report could result in late fees and the potential dissolution of your business.
Oklahoma LLC Operating Agreement Template
Once you’re ready to start your new company, you should begin to prepare the paperwork. You can use this free Oklahoma operating agreement template to get started planning your business.
LLC Operating Agreeement