Disclaimer: These guides are for informational purposes online and do not constitute professional legal advice. See more below*
Oklahoma has nearly 70,000 square miles of prairies, farmland, mountains, oak savannas, marshes, mesas, and forests.
Historically, it’s known for its agricultural sector, but there’s so much more: aviation, aerospace, manufacturing, food processing, natural gas, and wind power businesses operate there.
Directly north of Texas, Oklahoma touches five other US states, and its central location makes it an ideal hub for the transportation sector and headquarters for national businesses.
Oklahoma is ranked among the easiest cities to do business, and its low cost of living makes it an ideal place to start a business and create positive change.
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11 steps for starting an Oklahoma LLC
- Name your Oklahoma LLC
- Create a business plan
- Get a federal employer identification number (EIN)
- File your Oklahoma articles of organization
- Choose a registered agent in Oklahoma
- Obtain business licenses and permits
- Prepare an operating agreement
- Examine Oklahoma business insurance options
- File an annual certificate
- File your BOI report
- Get a Certificate of Good Standing
Use this step-by-step guide to help you work through all the facets of your new enterprise:
1. Name your Oklahoma LLC
The creative side of naming a business can be a fun puzzle to solve. Questions to ask yourself at this step include: Does the name explain the business? Does it need to? Is it easy to remember? Will it help potential customers find your business? Is it too generic, obscure, or cute?
In addition to the creative aspects, naming an LLC in Oklahoma also includes more meticulous steps:
- Uniqueness. Verify there isn’t another legal business entity with the same or similar name as yours in the state. Business names must be unique and adhere to the Oklahoma LLC naming guidelines, so search the Oklahoma Secretary of State’s business entity search page for active business names.
- Doman availability. Confirm your chosen domain name is available and purchase it before it’s taken.
- LLC inclusion. Make sure the business name includes “Limited Liability Company,” “Limited Company,” or one of the abbreviations “LLC” or “LC.” An eatery, for example, might be named, “Hot Diggity Prairie Dawg LLC.”
However, if the chosen legal name is too clunky for marketing or advertising, it’s possible to change it by filing a DBA (doing business as). This is also called a trade name, assumed name, or fictitious name.
For example, Hot Diggity Prairie Dawg LLC, could become the more simplified, easier on the eyes and ears, Hot Diggity Prairie Dawg (omitting the LLC) by filing a DBA. In fact, the name can be changed to anything by filing a DBA, provided a company with that name doesn’t already exist in Oklahoma. Complete this form online via the Oklahoma Secretary of State page and pay $25 to file.
2. Create a business plan
A thorough business plan outlines the basics of your LLC. During the writing process, clarify what your business needs, such as financing or a method to reach your desired customer base.
Writing and editing your business plan will reveal where your business ideas are solid and falling into place, as well as the overlooked gaps. Keep your LLC business plan concise so it’s useful for potential investors or bank loan officers. Let templates and examples be your guide, or follow this basic structure:
- Summary of business. A brief statement describing the LLC.
- Business structure. A section identifying the LLC structure.
- Description. Getting more granular on the specifics of the business: Is it a physical or virtual shop? Will offerings include products, services, or both?
- Market analysis. This section explains why the products or services are needed, and why customers would purchase from your business.
- Sales plan. How your business plans to sell and market its goods or services.
- Operations plan. A brief outline of the operational aspects of the LLC, like staffing or fulfillment.
- Financial outlook. A recent financial history, how the launch will be funded, and financial projections.
3. Get a federal employer identification number (EIN)
If you’re planning on hiring employees, you’ll need to get a federal employer identification number, also called a federal EIN or IRS employer identification number. Even if you don’t plan to hire any employees, it can still be beneficial to have an EIN, as banks often require it to open a business account. An EIN is free and can be obtained through the Internal Revenue Service.
4. File your Oklahoma articles of organization
Forming an LLC in Oklahoma requires filling out an Oklahoma articles of organization form (sometimes called a certificate of formation) and registering with the Secretary of State. Filing the articles of organization requires:
- Business name. The business’s name, including whether “Limited Liability Company” or “Limited Company” will be spelled out or used as an abbreviation (either with or without periods between the letters).
- Address. The street address of the company’s primary location (you cannot use a PO box).
- Email. The email address of the business’s primary contact person.
- Registered agent. The name and address of the business’s designated registered agent—someone with an Oklahoma street address.
- Payment. The filing fee is $100 (each subsequent year costs $25).
5. Choose a registered agent in Oklahoma
A registered agent is someone with a physical Oklahoma street address who can be reached during most business hours to address any LLC-related legal activity.
A friend or relative with an Oklahoma street address who is available during normal business hours can also be appointed the registered agent. However, their personal address could potentially be made public. Another option is choosing from various registered agent services, which typically cost about $50 to $125 a year.
6. Obtain business licenses and permits
To operate certain LLCs in Oklahoma, licenses and/or permits may be required, depending on the sector, type of business, and location. Some business licenses and permits are issued by the state of Oklahoma; others are issued by local municipalities.
For example, restaurants and bars in Oklahoma must get food establishment licenses and food handlers’ permits for some employees at their local county health departments. Various other businesses—from lawn services to IT consulting—might also be required to get licenses and/or permits depending on the policies of the local county and municipality.
Other businesses like trucking and transport within Oklahoma, for example, require various state-issued licenses from the Oklahoma Corporation Commission. A list of licensing and operating requirements in Oklahoma can be found on the Oklahoma Department of Commerce website.
Additionally, any retailer in Oklahoma—including shop owners, resellers, and real estate sellers, among other types of businesses—must obtain a sales tax permit through the Oklahoma Taxpayer Access Point (OkTAP).
7. Prepare an operating agreement
If you co-own your LLC with other people, consider creating an LLC operating agreement. This internal, legal document serves as the framework for how a business operates and its ownership structure.
While not required, it helps navigate disagreements and lays out crisis management protocols to follow, should disaster strike. You can use a template as a starting point to craft a thorough operating agreement, which likely will include the following details:
- LLC name and address. Name and place of business for the company.
- LLC owners’ names. The name of each owner with an ownership stake in the company.
- Registered agent. Name and address of the registered agent.
- Voting. Outline of owner/member voting rights.
- Management. How the business is run.
- Compensation. Payment structure for owner/LLC members and possibly employees.
- Rules of operation. A company overview, including how profits and losses are handled.
An operating agreement stays within the company and does not need to be filed with the state. However, it can be used to help establish LLC status or open business bank accounts.
8. Examine Oklahoma business insurance options
Oklahoma business owners need various types of business insurance policies depending on their businesses.
For example, an LLC operating in a physical space might need fire insurance while another business using cars needs auto insurance. Some other types of insurance coverage for Oklahoma LLCs are:
- Liability insurance. All businesses should have liability insurance—coverage that helps protect a business against lawsuits. Generally, a small business might pay $300 to $5,000 a year for liability insurance.
- Workers’ compensation insurance. When a business owner has employees in Oklahoma, workers’ compensation is required. Nearly all employees are covered, but there are a few exceptions.
- Employer liability. This insurance is also required if a business has employees. It covers the owner if an employee sues for a work-related injury or illness.
- Health insurance. This is optional insurance coverage for businesses in the state. Insure Oklahoma provides a few options for employers.
- Auto insurance. Commercial auto insurance is required. Prices and types of insurance vary depending on the type of service—delivery or taxi service, for example—and type of vehicle, from car to truck.
9. File an annual certificate
Every Oklahoma LLC has to file an annual certificate with the Oklahoma Secretary of State. This report confirms and updates your business information. You need to submit it by your LLC’s anniversary date each year and pay a $25 filing fee.
Mark this date on your calendar. Missing it can result in late fees or even your LLC being dissolved. You can file online through the Secretary of State’s website, which makes the process easy.
10. File your BOI report
Beginning January 1, 2024, most LLCs have to file a Beneficial Ownership Information (BOI) report with FinCEN (Financial Crimes Enforcement Network). The report identifies who owns and controls your business.
You’ll need to provide information about yourself and any other owners who hold at least 25% of the company or have significant control over it. The filing is free and must be done within 90 days of forming your LLC.
11. Get a Certificate of Good Standing
A Certificate of Good Standing proves your LLC is legitimate and up to date with state requirements. You might need it to open a business bank account, apply for a loan, or do business in other states.
You can request it from the Secretary of State website for $20. Make sure you’re current on all state filings and taxes before requesting one, as any issues will prevent you from getting the certificate.
Understanding the cost of forming an LLC in Oklahoma
Most business owners need capital before launching and in the early stages of the business. There are multiple ways to finance a business, including:
- Small business loan. Apply for a small business loan through a bank, community organization, nonprofit, or various CDFIs (community development financial institutions).
- Fundraising. Consider available grants, crowdfunding, and bootstrapping, which is money raised through friends and family.
- Other loans. Other funding resources, like Shopify Capital, offer access to capital.
Oklahoma also offers multiple incentives for new and seasoned business owners, from tax credits to training.
To help prepare for the financial realities of launching a business, LLC owners can calculate the dollar amount needed to stay afloat, taking rent, insurance payments, utilities, and possibly wages into consideration. Then, budget accordingly.
Market your LLC
It’s time well spent to think about what makes your business more appealing to customers over similar businesses.
This stage includes addressing the messaging your business aims to project to potential customers—whether that’s high-quality and luxurious or budget-friendly finds. A marketing plan can help with that.
A comprehensive marketing plan requires several key components:
- Defining the ideal consumer base. Identify potential customers by researching demographics, household income, geographic location, values, and more. Researching your target audience and where they spend their time will help inform every other aspect of your marketing plan.
- Market research. Market research helps you go deeper, analyzing how big your target market is, how your competitors operate, and the best channels for reaching your audience.
- Marketing strategy. Create a marketing strategy that outlines your visual brand identity and messaging strategy. Explore how to best use social media campaigns, digital ads, strategic partnerships, and events (virtual and/or physical) to reach customers.
- Customer retention strategy. Bravo, you have a slew of customers shopping at your new business but don’t take it for granted. Attentive customer service, a pleasant shopping experience, and special discounts and offers keep customers returning.
Know the Oklahoma state tax requirements
On a federal level, an Oklahoma LLC business owner can choose to get taxed as a sole proprietorship, a partnership (if there is more than one business owner), or a corporation. But there are state tax considerations as well:
Corporate tax rate
If the LLC owners want to get taxed as a corporation, they can file similarly to a C corp; Oklahoma’s corporate tax rate is 4% of taxable income. LLCs can also opt to file as an S corp if eligible, which is another pass-through structure.
State sales taxes
In Oklahoma, the state sales tax is 4.5%, which applies to most physical goods sold like home appliances, property, and groceries, with a few exceptions such as medications.
Most services, such as cleaning or yard work, are not taxable. To collect state sales tax, you must first register the business at OkTAP. Oklahoma business owners purchasing certain machinery or medical equipment, among other work-related supplies, can be exempt from paying sales tax.
Income tax withholding
If an Oklahoma LLC is going to have employees, the owner must set up an income tax withholding account with the Oklahoma Tax Commission and file quarterly or monthly. An employee unemployment tax account is also required, which can be done through the Oklahoma Employment Security Commission.
Is an LLC right for you?
Business owners can change the structures of their businesses after launching, so choosing a structure is not a “now or never” proposition. However, forming a suitable business structure from the start can save time, money, and headaches. To assess whether an LLC structure is the right fit for your Oklahoma business, keep in mind these considerations:
- Is there a need for personal asset protection? Liability protection is an advantage of LLCs. If an LLC business owner gets sued, their personal assets, such as a house or car, cannot be touched.
- How important is a limit on tax liability? LLC owners can pay taxes similar to a sole proprietor or corporation, meaning filing personal or corporate tax returns. There are pros and cons to both, contingent on the income earned and how much money an LLC owner wants to reinvest in the business. LLC owners can also deduct startup costs—such as marketing and travel—from their taxes.
*This post is for information only. You are responsible for reviewing and using this information appropriately. This content doesn’t contain and isn’t meant to provide legal, tax, or business advice. Requirements are updated frequently and you should make sure to do your own research and reach out to professional legal, tax, and business advisers, as needed. Businesses outside of Oklahoma will have different steps and requirements. To sell products using the Shopify platform, you must comply with the laws of the jurisdiction of your business and your customers, the Shopify Terms of Service, the Shopify Acceptable Use Policy, and any other applicable policies.
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Oklahoma LLC FAQ
Are there any resources for entrepreneurs in Oklahoma?
Yes, the Oklahoma Department of Commerce offers support for startups and entrepreneurs starting a business with no money. Oklahoma Small Business Development Centers (OKSBDC) also offer advising, workshops, and resources to help small businesses start and grow.
Do you need an Oklahoma registered agent for your LLC in-state?
Yes. A registered agent is someone with an Oklahoma street address and could be the LLC’s owner, the owner’s friend or relative, or even a professional registered agent service in Oklahoma.
How do state taxes work for an Oklahoma limited liability company?
An LLC can be taxed as a sole proprietorship, partnership, or corporation.
