Starting an LLC is easy and affordable. You don’t even need a lawyer to do it. In fact, you can start one for under $100. If you’re looking to protect yourself against liability, however, there are some things you’ll want to know about starting an LLC in Oklahoma.
The process begins with filing a Certificate of Formation with the Secretary of State’s office. This document officially creates your LLC. Once filed, the secretary will issue your business a “Certificate Number.” Your LLC must file annual reports with the secretary; each report includes information like your company name, address, contact info, and the date the report was filed.
You’ll also need to pay a fee. Depending on how long you plan to operate your LLC, the cost varies. For example, if you plan to operate your company for less than six months, you’ll pay $100 plus state fees. However, if you plan to run your LLC for longer than six months, you could end up paying thousands of dollars.
Once you’ve paid the initial fee, you’ll still need to hire a registered agent. A registered agent is someone who represents your company and accepts legal documents on your behalf. Most states require companies to register with the Secretary of State, but in Oklahoma, you can choose whether to use a local agent or go online.
If you decide to go online, you’ll find several options. One option is LegalZoom.com. They offer free basic forms and a variety of plans for different types of businesses. Another option is Rocket Lawyer. Rocket offers free basic forms and a range of plans based on your needs. Both sites allow you to customize your registration and provide 24/7 customer support.
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How to Register Online an Oklahoma LLC Yourself
An Oklahoma Limited Liability Company (LLC) is a great way to protect your personal assets while forming a business entity. However, it takes some legwork to set up properly. Here are three steps to help you form an LLC in Oklahoma.
Step #1 – File Articles of Organization With the Secretary of State
The first step to setting up an LLC in Oklahoma is filing articles of organization with the Secretary of State. This document is called the “Articles of Organization.” You’ll find it online at www.ok.gov/businesses/forms_and_fees/articles_of_organization.htm. Once you’ve filed the Articles of Organization, you’re ready to start operating your LLC.
Step #2 – Form an Operating Agreement
Once you have filed the Articles of Organization with the secretary of state, you’ll want to draft an operating agreement. This document lays out how the members of the LLC will interact with each other. For example, it might say that one member owns 51% of the shares, another member owns 49%, and that those percentages remain constant throughout the life of the LLC.
You can download sample operating agreements on the Secretary of State’s website. If you don’t feel like drafting your own operating agreement, there are plenty of templates available online. Just make sure that whatever template you use includes the following sections:
• Purpose
Do you need an LLC for your business?
An LLC protects your personal assets in case you lose money in your business. If you are self-employed, it could protect you against losing everything. However, it does come with a price tag. You must form an LLC, register it with the state, obtain tax identification numbers, and file annual reports. In addition, most states require an LLC to pay taxes.
If you don’t mind doing a little work, you can form your own LLC. In fact, there are several online resources where you can find forms and instructions to make it easier. For example, you can use LegalZoom’s free LLC kit. They even provide step-by-step instructions on how to fill out the paperwork. However, LegalZoom does charge $49 per member ($39 for individuals) plus state filing fees.
Another popular choice is LegalFormation.com. Their free LLC kits include everything you need to start up your company. All you need to do is print out the documents and sign them. Then, send them in along with copies of your personal identification information. LegalFormation charges $99 for each member ($69 for individuals), plus state filing fees. Another option is MyFreeCorporation.org. They offer a free LLC kit that includes everything you need to start your company. Simply download the kit, print it out, sign it, and mail it in. Afterward, you’ll receive a letter confirming your membership.
You could also consider starting an LLC with one of the many online companies that specialize in doing just that. These companies usually charge around $100-$200 per person.
Option #2 – Hire A Lawyer To Help You With Formation
If you prefer to take advantage of professional advice, you can always hire a lawyer to assist you in forming your LLC. Depending on your needs, you might be able to find a good deal on legal services. For instance, you can find lawyers that specialize in small businesses for less than $300 per month.
Can I pay myself an annual salary from my LLC?
If you are considering starting an LLC, you might wonder whether you can legally pay yourself a salary while still keeping your personal assets separate from those of the business. This is possible, but there are some important considerations to keep in mind.
You can pay yourself a salary from your LLC, but it will be treated like ordinary income. In other words, you won’t be able to deduct the amount paid out of your LLC against your federal tax bill. However, you could take advantage of certain state tax deductions. For example, New York allows individuals to deduct 20% of their self-employment income.
Your LLC must file Form 8812 to claim the deduction. To do so, you must complete Schedule K-1, Partner’s Share of Income, Deductions, Credits, etc., and attach it to your return.
If you want to avoid paying federal taxes, you should consider establishing an S corporation. An S corporation is a pass-through entity where profits flow directly to shareholders without being taxed twice.
Which one is better for business owners: S corps or LLCs?
There are pros and cons to being taxed as either an S corporation or an LLC. If you’re considering incorporating, there are several options to choose from. You might want to incorporate as an LLC because it gives you the flexibility to take advantage of certain tax benefits. Or maybe you prefer the simplicity of operating as an S corporation. In this article, we’ll explain what those benefits and drawbacks are for both types of entities. We’ll also help you decide whether one type of entity is best for your particular situation.
Why Incorporate As An S Corporation?
An S corporation provides some significant advantages over an LLC. For example, an S corporation doesn’t pay corporate income taxes, while an LLC does. Also, an S corporation can deduct losses against taxable profits, while an LLC cannot. Finally, an S corporation allows shareholders to pass along losses to their heirs without paying capital gains tax.
The main drawback of incorporating as an S corporation is that you must file federal tax returns as such. This means that you’ll have to deal with the IRS every year, even though you don’t owe any money. In addition, you won’t be able to claim deductions like depreciation and interest expenses.
What Are The Pros And Cons Of Operating As A Limited Liability Company?
In contrast to an S corporation, an LLC offers a lot of advantages. First, an LLC isn’t subject to the same filing requirements as an S corporation. Second, an LLC can provide limited liability protection for owners and managers. Third, an LLC can deduct ordinary business expenses, including rent, salaries, and advertising costs. Fourth, an LLC can issue stock and sell shares to investors. Fifth, an LLC can offer a variety of different ownership structures, including single member, multiple members, and general partnerships.
Limited liability protection is probably the most important benefit of forming an LLC. When you form an LLC, you become personally liable for the debts of the company unless you purchase insurance to protect yourself. This means that if someone sues you for damages, he could collect against your personal assets. However, you wouldn’t face any liabilities for the company itself.
Article of Organization
The Articles of Organization are the first step in creating an Oklahoma limited liability company. They must be filed prior to beginning operations. If you want to start a business in Oklahoma, it is important to understand what type of entity you are setting up. An LLC is the most common form of business structure used in Oklahoma. This article explains how to set up an LLC in Oklahoma.
Annual Certificate
The annual certificate is required by law. You must send it to the IRS within 45 days of filing your tax return. If you do not file your return electronically, you must mail it. This requirement applies even if you use an electronic filing system.
State Business Tax
Some states charge an additional business/LLC tax on LLCs. This is called a franchise tax. The exact percentage varies by state. For example, California charges 2.3% while Texas charges 3%. In addition, some states charge an annual fee or registration fee. These fees vary by state. For example: Delaware $50; Indiana $100; New York $150; Ohio $250; Pennsylvania $200.
An LLC can choose to be taxed like a corporation or pass-through entity. If it chooses to be taxed like a pass-through entity, the LLC pays no federal income tax and passes the profits down to owners. However, the owners must report their share of the profits on their individual tax returns.
If an LLC chooses to be taxed like an S Corporation, the owner reports his or her share of the profits on Schedule E of Form 1040.
The choice between being taxed like a corporation or a pass-through entity depends on how you want to run your business. You might decide to be taxed like an S Corp because you want to keep your books separate from your personal finances. Or perhaps you prefer to be taxed like a partnership because you are trying to minimize your tax burden.
In addition, there are certain advantages to being taxed like a corporation. A corporation can deduct expenses such as rent, salaries, and advertising. Corporations can also take advantage of depreciation schedules and write off equipment purchases.
Frequently Asked Questions
Who Can File an Oklahoma Annual Report?
Anyone with authority to prepare and file an Oklahoma Annual Certificate/Annual Report can do it. But making sure you comply with state regulations can become complex. In fact, there are over 60 different agencies, boards and commissions that require annual reporting. This includes federal, state and local governments, nonprofit organizations, foreign companies and individuals.
Harbor Compliance eliminates the hassle of researching requirements, creating due date reminders and navigating government forms and filing portals by providing a single solution for managing your annual report compliance. Through our managed service, we replace legacy systems for tracking due documents and filing annual reports. By automating your annual report process, we save you time and ensure accuracy in filing.
What does a registered agent do?
The Oklahoma Registered Agent Act requires anyone doing business in the state of Oklahoma to register a corporation or limited liability company (LLC). If you don’t already know what a “registered agent” is, it’s someone who represents another person or entity in court proceedings. In some states, the secretary of state administers the process. But in Oklahoma, it’s handled by the county clerk where the business is located.
At a minimum, your registered agents must:
Have a physical address (no P.O. Boxes or virtual offices) in Oklahoma.
Keep regular business hours.
Accept legal mail and correspondence from Oklahoma’s Secretary of State on behalf your business and get them out to you fast.
Does Oklahoma require an LLC to have an operating agreement?
Oklahoma does not require an operating Agreement for Limited Liability Companies (LLCs). However, having one can help protect against potential problems. An operating agreement is typically used to address issues such as how much equity each member holds, what happens if someone leaves the organization, etc. You might use it to set up a board of directors, decide how to handle finances, and many other things.
If you are considering forming an LLC, we recommend getting an attorney to draft an operating agreement. They can walk you through the process and make sure everything is covered.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.
