The Limited Liability Company (LLC) is a popular business entity choice structure for many businesses starting in Oklahoma The LLC provides personal liability protection and has the potential to save money on taxes. With a little research, you can learn how to form an LLC in Oklahoma without an attorney.

Unlike a sole proprietorship or partnership where the small business owner can be personally liable for lawsuits against the business, the LLC is a separate legal structure, protecting for the business owner’s personal assets.

Related: How Does an LLC Protect You?

Besides the liability protection, the Limited Liability Company provides several other benefits over the sole proprietorship, partnership, and corporation because of the multiple tax options, ease of administration and management flexibility.

Forming an LLC in Oklahom is fairly straightforward, but it’s nice to have some support in case you have questions or get stuck.  IncFile and Inc Authority provide LLC formation guidance for only the cost of the state fees!

Related: Should you use a Formation Service, Hire an Attorney or Do it Yourself?

To form a Limited Liability Company in Oklahoma, file the Articles of Organization with the Oklahoma Secretary of State.  The LLC filing fee is $100.

Approval for the LLC is typically under 2 weeks when filing by mail or 1-2 business days when filing online.  Walk-in expedited filing is available and an additional $25, the LLC is approved in about 1 hour.

 

HOW TO FILE THE ARTICLES OF ORGANIZATION AND FORM AN OKLAHOMA LLC

The steps for filing online or by mail are largely the same.  The screenshots show how to file online.  To file by mail, fill out the Oklahoma LLC Articles of Organization (SOS Form 0073).

  • Begin by creating an account at the Oklahoma Secretary of State’s website.
  • Note that the business name you enter in the contact information may not be available.  We will explain how to get the business name later.
  • Next, click on “Business Services” and then “Business Entity” Under “File Online”

How to Form an Oklahoma LLC

  • Then we want to look for and select “Domestic Limited Liability Company”.

Select Domestic Limited Liability Company

 

  • On the next page enter your name and email, again..
  • Then click on the “Start New” button to finally begin forming an LLC.

 

Special Instructions

Just click next to continue.

Name the LLC

Enter the name you want for the LLC.  The name of the LLC also has to differ from other entity names registered with the Secretary of State.  Check on available Oklahoma LLC names before filing to be sure the one you want is available.

The name of the LLC must include one of the following designators at the end of the business name:

  • Limited Liability Company
  • Limited Company
  • L.L.C.
  • LLC
  • L.C.
  • LC

A comma may be used after the business name and before the designator.  “Cowboy Cleaners LLC” and “Cowboy Cleaners, LLC” are both acceptable.

Enter the name you want in the box (be sure to include the designator) and click on the search icon.  If the name you want isn’t taken, click on the “Next” button, otherwise, come up with a different name.  Even if it looks like the LLC name is available, the Secretary of State will do a search before approving the LLC formation.

Before settling on a name, you may want to see if a domain name is also available in order to match your business name and website address.

Register an Oklahoma LLC Name

Effective Date

If you want the LLC to start immediately, choose “Filing Date”.  If you want to LLC to start later, enter a date less than 90 days in the future to start.  The main reason for delaying the LLC start date is when the filing is being done close to the end of a calendar year and the business isn’t going to have any activity until the start of the year.  By delaying until the following year they will reduce the number of end-of-year filings.

Most people choose “Filing Date”

Choose Oklahoma LLC Effective Date

Address

In this section, enter the street address, city, state and zip code of the initial principal office.  This address can be the physical address of the LLC or it can be the address where the business records are stored.  You may not use a PO Box for the designated office.  This address is where the annual certificate reminder will be sent.

Principal Office Oklahoma LLC

Duration

In this section, you can indicate how long the LLC intends to remain in existence.  Most LLCs will choose a Perpetual duration, however, some businesses (usually investment related) will have a specific closure date.

Oklahoma LLC Duration

Registered Agent

To have an LLC in Oklahoma, a Registered Agent must be identified.  The Registered Agent can either be a resident of Oklahoma (Select “Individual”) or a Resident Agent service (Select “Business”).  The agent must have a physical address in the state (PO Boxes are not allowed) and act as a point of contact to receive legal documents, tax notices, summons, subpoenas, etc on behalf of the LLC.

Even though the business owner can be the registered agent, their name and address become public record and with that comes a loss of privacy. This is more important for some entrepreneurs, especially when they are doing business from home.

Enter the Registered Agent’s name and the registered office address and click “Next” to continue.

Oklahoma LLC Registered Agent

Attachments

This is an optional section and not used by most LLCs.  Here you would include additional rules for the operation of the LLC.

Signature

An organizer of the LLC has to certify that the information provided in the Articles of Organization are correct to the best of their knowledge.  Click “Add Signature” and electronically sign.

Review

Review that all the information is correct.  If there are no corrections, click “Continue”

Pay and File

Pay and file the Articles of Organization.

Tasks After Forming Your LLC

Once the LLC has been formed, there are a few additional steps to take care of. Below is a list of the most common tasks.

Prepare an Operating Agreement

The operating agreement is a document that governs the framework of an LLC.  This document covers items like ownership rights, member responsibilities, how profits and losses are distributed and more.

Most states do not require an LLC to have an operating agreement but it is still worth considering. Without an operating agreement:

  • The LLC could be subject to generic state rules that may be detrimental in the event of a lawsuit
  • Member’s personal liability protection may be diminished
  • Members may not have a full understanding of their roles and responsibilities which could lead to costly disputes in the future

Related: Oklahoma operating agreement template

Obtain an EIN

The EIN or Employer Identification Number is a unique 9-digit number for a business. Similar to a social security number for an individual, the EIN identifies business entities for tax purposes.  

The EIN will be needed in order to open a bank account, register for business licenses and permits, file tax returns, pay payroll taxes and more. 

Related: How to Apply for an EIN

Open an LLC Bank Account

Opening a bank account for your LLC is important for liability protection as the account separates the business’s funds from the member’s personal funds.

Several documents will be needed to open a business bank account such as:

  • A banking resolution is a document that authorizes the members to open a business bank account on behalf of the LLC.
  • Copies of the original formation paperwork from the state showing the creation of the LLC.
  • Driver’s licenses of the members.
  • Depending on the age of the LLC, an Oklahoma Certificate of Good Standing may be needed to prove the LLC is active and in good standing with the state.

Related: How to Open a Business Bank Account for your LLC 

Apply for Business Licenses and Permits

Depending on what your business does and where it is located, there will likely be a variety of business licenses and permits to register for before starting. Some common registrations include:

  • Business License – Some cities require businesses to obtain licensing before they can start. In some cases, even home-based businesses must have licensing in order to legally operate. 
  • Professional License – Certain services such as barbershops, accountants, salons and others must be licensed.
  • Sales Tax Permit – In order to sell products and certain services, registration with the Oklahoma Tax Commission will be necessary.

Related: What Business Licenses are Needed in Oklahoma?

File Annual Certificate

LLCs are required to file an annual certificate with the Oklahoma Secretary of State.  The annual report updates ownership information and other details.

Related: How to File a Oklahoma LLC Annual Certificate