Cost of Starting an LLC in Oklahoma 2024: A Comprehensive Guide

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Cost of Starting an LLC in Oklahoma

Embark on your exciting entrepreneurial journey in Oklahoma with confidence, as our comprehensive guide helps you navigate the LLC world. Discover the costs of starting an LLC in Oklahoma, and determine if this flexible business structure aligns with your company’s goals and needs.

LLCBase supports you every step of the way, covering everything from initial setup fees to ongoing expenses. Dive into the dynamic world of Oklahoma LLCs and make informed decisions that make your business successful. Unleash the full potential of your Oklahoma LLC and soar to new heights!

Let’s explore the costs of starting an LLC in Oklahoma together! We’ve broken them down into initial costs, annual costs, and any extra expenses you may need to consider. Happy planning!

Initial Costs of Forming an LLC in Oklahoma

Are you curious about the initial costs of forming an LLC in Oklahoma? Check out the list below for a breakdown of expenses to get your business up and running!

1. Secretary of State Filing Fee

To form an LLC in Oklahoma, you must file Articles of Organization with the Oklahoma Secretary of State. The regular filing fee is $100; if you need expedited processing, it will cost an additional fee.

Oklahoma Domestic LLC
  • Online Filing: $100 + No franchise tax Franchise Tax.
  • Filing Statement of Information within 1 year of registration: $25.
  • By Mail: Complete the application form and mail it to Oklahoma Secretary of State, 421 N.W. 13th Suite 210, Oklahoma City, OK 73103. This costs $100 + Not available for counter drop off (non-refundable).
Oklahoma Foreign LLC
  • Online Filing: $100 + No franchise tax Franchise Tax.
  • Filing Statement of Information within 1 year of registration: $25.
  • By Mail: Complete the application form and mail it to Oklahoma Secretary of State, 421 N.W. 13th Suite 210, Oklahoma City, OK 73103. This costs $100.

2. Name Reservation Fee

If you want to reserve your desired LLC name before filing the Articles of Organization, you can do so for a $25 (online) and $25 (offline) fee. The name reservation is valid for 60 days, giving you ample time to prepare and submit your Articles of Organization. To reserve a name, you must submit a Name Reservation Request form to the Secretary of State by mail or in person, along with the required fee.

3. Registered Agent Fee

Oklahoma requires all LLCs to have Registered Agent for the service of process. Registered Agent services typically cost between $50 – $150 per year, depending on the provider. Some popular Registered Agent service providers in Oklahoma include Northwest Registered Agent, LegalZoom, and Incfile. Besides the annual fee, these providers offer additional services such as mail forwarding and compliance notifications.

4. Business Licenses and Permits

Depending on your business type and location, you may need to obtain various licenses and permits in Oklahoma. The costs for these can vary widely, so it’s essential to research your specific business requirements. To identify the licenses and permits applicable to your business, you can use the Oklahoma Business Licensing & Operating Requirements (https://www.okcommerce.gov/doing-business/startup/step-3/) website.

5. Operating Agreement

Although not required by law, having an operating agreement for your Oklahoma LLC is a good idea. You can draft one yourself or enlist the help of an attorney, which can cost anywhere from $1,000 or more. The operating agreement outlines your LLC’s ownership structure, management, and procedures. It can help prevent member disputes and provide clear decision-making and profit distribution guidelines.

6. Employer Identification Number (EIN)

Most LLCs need an EIN for tax purposes, bank account opening, and hiring employees. You can obtain an EIN in Oklahoma for free from the Internal Revenue Service (IRS) by submitting an online application or mailing Form SS-4. The online application is the fastest method; you will receive your EIN immediately upon completion. If you choose to mail the form, the processing time can take up to four weeks.

Starting an LLC in Oklahoma involves certain costs, making selecting the right support for a smooth experience crucial. The best LLC formation services in Oklahoma offer expert assistance in comprehending, managing, and reducing expenses. Not only do these services simplify the setup process, but they also help identify solutions tailored to your unique needs. Consequently, your new LLC builds a solid foundation, optimally utilizing available resources and budget in Oklahoma.

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Annual Costs of Maintaining an LLC in Oklahoma

Wondering about the yearly expenses for sustaining an LLC in Oklahoma? Peruse the list below to discover the costs of keeping your business compliant and thriving!

1. Annual Franchise Tax

All Oklahoma LLCs are required to pay an annual franchise tax of No franchise tax, regardless of income or activity. This tax is due on the Not applicable in Oklahoma. It’s important to note that newly formed LLCs are not exempt from this tax and must pay the No franchise tax fee for their first year of operation. You can pay the franchise tax online through the Oklahoma Tax Commission website or by mailing a payment voucher.

2. Annual Report

Oklahoma LLCs must file an annual report with the Oklahoma Secretary of State every the end of the month of formation. The filing fee is $25. The Statement of Information is due within 1 year of the initial filing of the Articles of Organization and then every the end of the month of formation during the anniversary month. The Statement of Information form can be submitted online or by mail.

3. Registered Agent Fee

As mentioned earlier, LLCs in Oklahoma must maintain Registered Agent with an annual fee. This fee typically ranges from $50 – $150 per year, depending on the provider. When choosing Registered Agent, consider additional services offered, reputation, and customer support.

4. Business License and Permit Renewals

Depending on your business and location, you may need to renew licenses and permits periodically, which can incur additional fees. It’s essential to stay up-to-date on the renewal requirements and fees for your specific business licenses and permits to maintain compliance and avoid penalties. You can use resources like the Oklahoma Business Licensing & Operating Requirements (https://www.okcommerce.gov/doing-business/startup/step-3/) website and your local city or county government websites for information on renewal requirements and fees.

Recommended: Effortlessly manage your LLC’s annual expenses and obligations in Oklahoma – choose a reliable LLC Formation Service to simplify the maintenance process. Focus on growing your business today! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online LLC Setup

Additional Costs to Consider for Your Oklahoma LLC

Ready to explore the extra expenses you may encounter with your Oklahoma LLC? Browse the list below to be well-prepared, ensuring your business flourishes without surprises!

1. Tax Preparation and Accounting Services

Depending on the complexity of your business finances, you may need to hire a tax professional or accountant, which can cost anywhere from $100 to $1,000 or more per year. The cost of these services typically depends on factors such as the accountant’s experience, the size of your business, and the level of service required. To find a suitable tax professional or accountant, consider seeking recommendations from other business owners or using professional organization directories, such as the American Institute of Certified Public Accountants (AICPA).

2. Legal Services

Enlisting the help of an attorney for legal advice or to draft contracts can add to your LLC’s expenses. Attorney fees can range from $150 to $500 per hour or more, depending on the attorney’s experience and location. To save on legal costs, consider using online legal services, which offer legal document templates and attorney consultations at a fraction of the cost of traditional legal services.

3. Business Insurance

Depending on your industry and business activities, you may need various types of insurance, such as general liability, professional liability, or workers’ compensation. The insurance cost can vary widely based on factors like the size of your business, the amount of coverage needed, and the level of risk associated with your industry. For example, a small consulting business may pay around $500 annually for general liability insurance, while a construction company may pay several thousand dollars annually. To find the best insurance rates, consider getting quotes from multiple insurance providers and working with an insurance agent specializing in your industry.

4. Office Space and Utilities

Depending on your business, you may need to rent office space, which can add to your monthly expenses. The cost of office space in Oklahoma can vary greatly depending on location, size, and amenities. Remember that in addition to rent, you’ll also need to cover utilities, such as electricity, water, and internet service, which can add several hundred dollars per month to your expenses.

5. Marketing and Advertising

To grow your business, you’ll likely need to invest in marketing and advertising, which can vary widely in cost depending on your strategy. Other marketing expenses may include social media advertising, email marketing, and print materials like business cards and brochures. To maximize your marketing budget, consider researching low-cost or free marketing strategies, such as social media engagement, content marketing, and networking events.

How to Save on Oklahoma LLC Costs

Looking for ways to save on your Oklahoma LLC costs? Check out the strategies below to keep expenses in check and ensure your business thrives!

1. Do-It-Yourself (DIY) Formation

You can save on professional fees by handling the LLC formation process yourself. You can file the Articles of Organization, obtain an EIN, and draft an operating agreement by researching the necessary steps and required documents. The Oklahoma Secretary of State‘s website provides detailed information on forming an LLC, and the IRS website allows you to apply for an EIN online at no cost.

2. Utilize Online Resources

Many free or low-cost resources are available online to help with various aspects of your business, such as drafting an operating agreement or creating a marketing plan. For example, websites like SCORE and the U.S. Small Business Administration (SBA) offer free business templates, guides, and resources. Additionally, you can find low-cost marketing tools and platforms like Canva for designing marketing materials or Mailchimp for email marketing campaigns.

3. Shop For Professional Services

We recommend exploring various providers, including LegalZoom, for services such as Registered Agents and legal assistance to find the best value. By comparing rates and service offerings, you can ensure you obtain the most cost-effective solution for your business needs. Don’t hesitate to negotiate prices or inquire about discounts, as numerous providers are often willing to work with you to win your business.

4. Bundle Services

Some companies offer packages for LLC formation, Registered Agent services, and other business essentials, potentially saving you money. By bundling these services, you may save on individual service costs and streamline setting up and maintaining your Oklahoma LLC. However, carefully compare bundled packages to ensure they include the services you need and offer true cost savings compared to purchasing services individually.

FAQs

How much does it cost to form an LLC in Oklahoma?
The cost to form an LLC in Oklahoma is $100, or $300 expedited.
How long does it take to form an LLC in Oklahoma?
It typically takes 2-3 business days to process an Oklahoma LLC.
Are there any annual fees associated with maintaining an LLC in Oklahoma?
Yes, there is an annual fee of $25 to maintain an Oklahoma LLC.
Can I form an LLC myself in Oklahoma, or do I need an attorney?
You can file an LLC yourself in Oklahoma, however, consulting with a qualified attorney is recommended in some cases.
Do I need to have a physical address in Oklahoma to form an LLC in the state?
Yes, to form an LLC in Oklahoma, you must have a physical address within the state.
What types of businesses can form an LLC in Oklahoma?
Most businesses can form an LLC in Oklahoma, with a few exceptions such as banking and insurance companies.
Can out-of-state residents form an LLC in Oklahoma?
Yes, out-of-state residents can form an LLC in Oklahoma as long as they have a registered agent in the state.
What is a registered agent, and do I need one for my Oklahoma LLC?
A registered agent is a person or company designated to receive legal notices and other official documents on behalf of the LLC. An Oklahoma LLC is required to have one.
Can I be the registered agent for my Oklahoma LLC?
Yes, you can be your own registered agent in Oklahoma, but it is recommended to hire a professional one.
What is the minimum number of members needed to form an LLC in Oklahoma?
An Oklahoma LLC can be formed with a single member.
What is the maximum number of members allowed in an Oklahoma LLC?
There is no limit on the maximum number of members in an Oklahoma LLC.
Are there any residency requirements for members of an Oklahoma LLC?
No, there are no residency requirements for members of an Oklahoma LLC.
What steps do I need to take to form an LLC in Oklahoma?
The basic steps for forming an Oklahoma LLC include choosing a name, filing articles of organization with the Oklahoma Secretary of State, appointing a registered agent, and obtaining any necessary business licenses and permits.
Is an operating agreement required for an LLC in Oklahoma?
No, but it is highly recommended to create an operating agreement to outline the rules and structure of the LLC.
Can an LLC in Oklahoma be taxed as an S corporation?
Yes, an Oklahoma LLC can choose to be taxed as an S corporation.
Can I change my LLC’s tax status in Oklahoma?
Yes, an Oklahoma LLC can change its tax status by filing Form 8832 or Form 2553 with the IRS.
Can I use a business name that is already taken for another LLC in Oklahoma?
No, you cannot use a name that is already in use by another LLC in Oklahoma.
How long does an Oklahoma LLC remain active before it needs to be renewed?
An Oklahoma LLC remains active until it dissolves voluntarily or involuntarily.
How do I dissolve an LLC in Oklahoma?
You can dissolve an LLC in Oklahoma by filing articles of termination with the Secretary of State.
Can an Oklahoma LLC be converted to a different entity type?
Yes, an Oklahoma LLC can be converted to a different entity type by filing appropriate paperwork with the Oklahoma Secretary of State.
Is a business license required to form an LLC in Oklahoma?
Depending on the nature of the business being operated, a business license may be required in Oklahoma.
What are the naming requirements for an Oklahoma LLC?
The LLC name must include the words “limited liability company,” “LLC,” or “LC” as the last words of the name.
Are there any special requirements or restrictions when naming an LLC in Oklahoma?
Yes, the name of the LLC must be distinguishable from the names of other business entities on file with the Oklahoma Secretary of State.
Can I reserve a name for my Oklahoma LLC before filing for the LLC?
Yes, you can reserve a name for 60 days with the Oklahoma Secretary of State for a $10 fee.
Can I change my LLC name after it has been approved in Oklahoma?
Yes, you can change your LLC name by filing an amendment with the Oklahoma Secretary of State.
Are there any securities laws that I need to be aware of when forming an LLC in Oklahoma?
Yes, there are state and federal securities laws that govern how LLC interests may be sold to investors in Oklahoma.
Do I need to publish my LLC formation in Oklahoma?
No, you do not need to publish your LLC formation in Oklahoma.
What type of insurance do I need for my LLC in Oklahoma?
The types of insurance needed for an Oklahoma LLC depend on the nature of the business being operated. Common types of insurance include liability insurance, property insurance, and worker’s compensation insurance.
Are there any ongoing reporting requirements for an LLC in Oklahoma?
Yes, an Oklahoma LLC must file an annual report and a franchise tax return with the secretary of state each year.
How much does it cost to start an LLC in Oklahoma?
The filing fee for starting an LLC in Oklahoma is $100.
Can I file my LLC paperwork online in Oklahoma?
Yes, you can file your LLC paperwork online through the Oklahoma Secretary of State website.
Do I need to have a physical presence in Oklahoma to start an LLC?
No, you do not need to have a physical presence in Oklahoma to start an LLC in the state.
Is there a specific name format that I need to follow when naming my LLC in Oklahoma?
Yes, the name of your LLC must end with “Limited Liability Company” or the abbreviations “LLC” or “L.L.C.” This rule applies to all states within the US.
Do I need to get a tax id number for my LLC in Oklahoma?
Yes, you need to get an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) to open a bank account and file your taxes.
What is the minimum age requirement to start an LLC in Oklahoma?
You must be at least 18 years old or older to start an LLC in Oklahoma.
Do I need a registered agent for my LLC in Oklahoma?
Yes, you need a registered agent in Oklahoma to receive legal paperwork and other documents on behalf of your business.
Is there a publication requirement to start an LLC in Oklahoma?
No, there is no publication requirement to start an LLC in Oklahoma, unlike some of the other states that have such a requirement.
Are there any ongoing fees or renewal requirements for maintaining an LLC in Oklahoma?
Yes, there is an annual report that needs to be filed with the Oklahoma Secretary of State at a fee of $25.
Can an LLC be owned by a non-US citizen or non-US residents in Oklahoma?
Yes, both US citizens and non-US citizens can own an LLC in Oklahoma.
Can I use a PO Box as my LLC’s mailing address in Oklahoma?
No, you must provide a physical residential or business address for your LLC’s mailing address in Oklahoma.
Do I need to pay a franchise tax for my Oklahoma LLC?
No, Oklahoma does not have a franchise tax.
What is the Oklahoma Limited Liability Tax?
This tax applies to those businesses that file income tax as a partnership, sole proprietorship, or LLC. At the time of writing, the annual amount for this tax is $190.
Can I have a single-member LLC in Oklahoma?
Yes, but it still requires an operating agreement, an EIN, and other formalities of a general LLC.
Is professional business certification mandatory for LLC owners in Oklahoma?
No, it is not mandatory for LLC owners in Oklahoma unless one is opening a professional practice LLC.
Can I make changes to my LLC after filing it in Oklahoma?
Yes, you can file an amendment with the Oklahoma Secretary of State to update or make changes to your LLC.
Are there any special licenses or permits needed to start certain types of LLC businesses in Oklahoma?
It may depend on the category of the LLC’s business. For example, foodservice providers may require permission to operate from the state health department.
Can an LLC in Oklahoma have the same name as another business?
No, the name of your Oklahoma LLC must be unique, and the Oklahoma Secretary of State has a database of names that are already in use for that purpose.
Can I be personally sued for my LLC’s bank debts in Oklahoma?
No, debts owed by the LLC typically cannot be assigned to the owner to pay using their personal estate or property in Oklahoma.
How many people are required to start an LLC in Oklahoma?
Oklahoma allows a single person to start an LLC.
Can an LLC in Oklahoma be formed in-person at the Oklahoma Secretary of State office?
No, LLC applications are submitted online.
Do I need insurance for my Oklahoma LLC?
It’s not necessary to have a certain insurance, but consult the industry requirement for your business type.
Can I change the name of my LLC in Oklahoma?
Yes, you can submit an amendment to change your LLC’s name in Oklahoma.
Are there any publication or notice required for dissolution of the LLC in Oklahoma?
Publishing notice of dissolution is not required in Oklahoma.
Can I transfer my LLC from another state to Oklahoma?
Yes, you can transfer your LLC to Oklahoma by filing foreign LLC registration.
What happens after submitting the paperwork to start an LLC in Oklahoma?
After submitting the paperwork, you should receive notice about any problems or approvals from Oklahoma State authorities.

Also Read

How to Save Money While Starting Your Business LLC in Oklahoma

First and foremost, it is important to create a detailed business plan. A well-thought-out business plan will not only map out your company’s goals and objectives but also help you allocate your resources more efficiently. By identifying your target market, competition, and financial projections, you can make informed decisions that will ultimately save you money in the long run.

Another crucial aspect of saving money when starting a business in Oklahoma is to choose the right legal structure for your LLC. While LLCs offer liability protection and tax benefits, they can also be expensive to establish. To save on costs, consider preparing and filing the necessary documents yourself or using online services that offer affordable rates.

In addition to choosing the right legal structure, finding ways to save on overhead costs is vital for new businesses. Consider leasing office space in a shared workspace or operating out of your home initially to reduce rental expenses. You can also save money by outsourcing certain tasks, such as bookkeeping or marketing, instead of hiring full-time employees.

When it comes to hiring employees for your business, consider utilizing freelancers or contractors instead of bringing on permanent staff. Freelancers and contractors can be a more cost-effective solution for tasks that do not require a full-time employee. Additionally, freelancers offer flexibility, allowing you to scale your workforce up or down as needed without the burden of salaries and benefits.

As you establish your business in Oklahoma, be mindful of tax incentives and grants that may be available to you. Research state and local programs that offer financial assistance to small businesses, such as tax credits or low-interest loans. Taking advantage of these incentives can help lower your startup costs and improve your cash flow in the early stages of your business.

Lastly, consider networking with other small business owners in your area. Building relationships with fellow entrepreneurs can lead to cost-saving opportunities, such as shared resources or group discounts on supplies and services. By collaborating with others, you can leverage your collective purchasing power and negotiate better deals with vendors.

Ultimately, saving money while starting your business LLC in Oklahoma requires careful planning, strategic decision-making, and a willingness to be resourceful. By implementing cost-saving measures in the early stages of your business, you can set a solid foundation for future growth and success. Remember that every dollar saved is a dollar reinvested back into your business, helping to fuel its sustainability and profitability in the long run.

Conclusion

Forming and maintaining an LLC in Oklahoma comes with various costs, from initial filing fees to ongoing franchise taxes and Registered Agent fees. However, you can successfully establish and operate your Oklahoma LLC by understanding these expenses and finding ways to save on costs. We hope this guide has provided you with the information you need to decide to form an LLC in Oklahoma. Visit LLCBase for more information about starting an LLC in Oklahoma. We wish you the best of luck on your entrepreneurial journey.

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