Starting a business in Oklahoma can be an exciting and rewarding experience. But it's essential to start on the right foot. In this blog post, we'll cover all the steps you need to take to successfully file your Articles of Organization and get your company up and running.
Filing Your Articles Of Organization
First, file your Articles of Organization with the Secretary of State. You can do this online or on paper for a fee of $100. When filing, include vital information such as name, purpose, and founding members.
Ensure the desired business name is available on both the SOS website and Nolo. If not, you must choose another name before submitting your application. It's also important to note that while the SOS website lists available business names, they do not offer any legal advice or opinions concerning their availability. Therefore, it is always best practice to consult an attorney if you have any questions or doubts about whether or not a particular name is available for use in Oklahoma.
Create An Operating Agreement
Once you have completed all your paperwork and double-checked everything is in order, it's time to create an operating agreement for your LLC. This document outlines how the business will be run and managed, who owns what percentage of the company (if there are multiple owners), and much more. This document should be written by Oklahoma law, so check with an attorney before finalizing anything.
Registered Agent Requirements
When forming an LLC in Oklahoma, you must appoint a registered agent of at least 18 years of age with a physical address within the state. This will ensure that someone is always available during regular business hours to accept mail or legal documents on behalf of your company.
This individual or organization acts as your business' point of contact, receiving essential tax documents on behalf of your LLC from state agencies such as the IRS or the Department of Revenue & Taxation.
Submitting Form 0074
Once all prerequisites are met and you have chosen a name and a registered agent, it's time to submit Form 0074 along with $100 online or by mail. This will officially form your LLC in Oklahoma and create your official documents, such as articles of organization and operating agreement forms.
Create An Operating Agreement
An operating agreement allows everyone involved in the business (including members) to understand their rights and responsibilities so things are clear among everyone involved. This document should include information on decisions, management roles & titles, voting rights, profit distributions, etc. This can help avoid potential conflicts once operations start up again.
Get An Employer Identification Number From IRS
With everything filed with the Secretary of State office, you must apply for an Employer Identification Number (EIN) from the IRS for tax reporting purposes, open bank accounts, or hire staff members if needed. Getting an EIN is free but requires the owner or member's Social Security numbers when applying online. Alternatively, paper filing can be done but requires an additional fee depending on the method used for submission (by mail/fax).
Completing Necessary Paperwork
The final step in forming an LLC in Oklahoma is completing all required paperwork and filing it with the Secretary of State's office. This includes filing Articles of Organization and any other forms required by law before officially starting operations as an LLC. These forms can also be found on the Oklahoma Secretary of State website. They should be filed within seven days after the appointment of your Registered Agent Services provider has been accepted by them.
Appoint Your Manager/Member
When filing for your LLC, you must appoint at least one manager/member. The person may be of any age or residency status as long as they have reached 18 years of age and can legally enter into contracts. You will also need to designate who holds management authority over the LLC - either members or managers only - known as "manager-managed" and "member-managed," respectively.
Filing Your LLC Anniversary Certificate In Oklahoma
An anniversary certificate is a form that must be filed with the Secretary of State each year that your LLC is active in Oklahoma. The purpose of this form is to update the state on any changes in your company's structure or contact information since it was first established. Filing this document annually ensures that your business complies with all relevant rules and regulations.
When filing an anniversary certificate in Oklahoma, you must provide certain information about your business, including its name, number, address, and other details. You will also need to list any changes or updates in structure or contact information since the last time you filed an anniversary certificate. You can easily find blank forms online through the Secretary of State's website, which includes spaces for all required information.
The fee for filing an anniversary certificate in Oklahoma is $25. It's essential to ensure that your LLC stays organized by staying up-to-date on filing deadlines and submitting any required documents as soon as possible! If you do not file timely (within one month after the due date), the state may impose penalties depending on when you submit it late.
Create A Foreign LLC In Oklahoma
In this situation, creating a foreign LLC in Oklahoma is relatively easy. All it takes is submitting an Application for Registration (Form 0081) and paying the $300 fee. Plus, depending on the size of your operation, industry type, and its location within Oklahoma's borders, additional permits/licenses may also be required before operations can begin.
The first step to registering a foreign LLC in Oklahoma is to fill out and submit an Application for Registration (Form 0081). This form can be found on the Secretary of State's website or requested by mail or fax. Once completed and submitted, it must include information about the applicant, such as name, address, contact information, and the purpose of the LLC. After that, you only need to pay the registration fee using one of several payment methods, including a credit card, check, or money order.
Once your application has been accepted and processed by the Secretary of State's office in Tulsa – usually within 10-15 days – your foreign LLC will be officially registered with the state of Oklahoma. From that point forward, any activities conducted by your organization must follow all applicable federal, state, or local laws related to its operations. Additionally, all annual reports must be filed with the Secretary of State's office each year to remain up-to-date on any changes made to your organization since initial registration was approved.
Depending on what type of business you are setting up and where it will operate within Oklahoma's borders – whether it's located near a military base or falls into specific industry categories – there may also be other requirements needed before operations can begin. To determine if your new venture requires additional federal, state, or local permits/licenses beyond what has already been discussed, contact your local county courthouse for more information and assistance navigating this potential obstacle before launching operations.
How To Reserve Your LLC Name In Oklahoma
Reserving your business name is a crucial step. This is done through Form 0034. This form allows entrepreneurs to search for their desired company name and check if it has already been taken. If available, they can reserve it through this form and pay $10 to secure their company name from potential competitors. The reservation lasts 120 days, giving entrepreneurs plenty of time to complete their registration paperwork without worrying about someone else stealing their dream name. This form also helps prevent trademark infringement by ensuring businesses don't accidentally use another company's brand name or logo when creating their own identity.
Once you have secured your LLC name, you may consider adding a "Doing Business As" moniker under which your company will also operate. In Oklahoma, this process involves filing a Trade Name Report (Form 0021) with the Secretary of State's office - all for only $25! This form ensures that similar-sounding companies don't begin offering services under the same trade name, which could lead to customer confusion. Furthermore, having multiple trade names registered prevents businesses from falsely claiming that they are affiliated with other companies who share similar names - ultimately protecting both parties' reputations and avoiding legal issues down the road.
Finally, I also recommend getting a Certificate of Good Standing. This guarantees that your business meets every requirement. Certified document copies are available from the Secretary of State at just ten dollars per copy plus one dollar for each page.
LLC Taxation In Oklahoma
LLCs are known as pass-through entities, meaning taxes due to the federal government aren't paid by the LLC but passed directly to its members. If your LLC employs others, not only will you owe your fair share of Federal employer tax contributions, but you must also pay state withholding and unemployment insurance premiums on set periods throughout the year! While Oklahoma used to have a Business Activity Tax (BAT), it has been removed. An alternate option for taxation is choosing corporate status; this requires filing a separate return and paying 6% of all taxable income earned in Oklahoma.
When choosing LLC status for your business in Oklahoma, you must pay tax on all income generated within the state. The state will not tax those income sources if any part of your business operations occurs outside Oklahoma.
Furthermore, profits generated within the state – regardless of whether they come from sales or services – are subject to taxation by Oklahoma. However, losses can offset earnings up to $25,000 and carry forward indefinitely until used up. Additionally, if you have other businesses operating within other states, those losses can be used against profits earned in Oklahoma.
If you don't want to file taxes as an LLC, choose corporate status instead. This requires filing a separate return and paying 6% of all taxable income earned in Oklahoma. Corporations are also required to pay franchise tax at a rate of 1/10th of one percent on their net worth above $100K per year or 0.2 percent on their first $100K net worth per year – whichever applies more heavily based upon their financial standing during any given year's assessment period. Certain exemptions are available, such as low-income corporations that don't need to pay franchise tax while still enjoying complete legal protection under corporate status taxation laws.
Employers Pay State Withholding & Unemployment Insurance Premiums
When an LLC employs others—not just owners—the IRS considers them employees who must receive federal and state taxes withheld from their wages each payday. This is following standard IRS rules for federal withholding requirements.
Additionally, when an LLC employs people, it must pay unemployment insurance premiums on set periods throughout the year. These premiums are generally calculated as a percentage of each employee's gross wages, with higher-earning employers typically paying more than lesser ones. The amount owed can vary depending on how many employees work at any given time, so it's essential for LLC owners who employ workers to understand these rules before making any hiring decisions or implementing new payroll policies.
Conclusion
With no residency or age requirements needed when forming an LLC in Oklahoma, anyone looking to start their own business can easily do so. By filing the correct paperwork with the Secretary of State and appointing a registered agent services provider, you can successfully form an LLC in Oklahoma and start conducting business.
