How To Set Up An LLC In Oklahoma: Everything You Need to Know
Setting up an LLC in Oklahoma means you’ll need to learn state laws.4 min read
How to Set Up an LLC in Oklahoma
Setting up an LLC in Oklahoma means you’ll need to learn state laws. An LLC provides the LLC’s owners, or “members,” with personal liability protection.
The LLC and its owners are considered two separate entities. Thus, the owners will not be held personally liable for any of the LLC’s debts or legal liabilities, and their personal assets are protected from any of the LLC’s creditors. In those situations, only the assets of the LLC are at risk, except in very narrow circumstances.
Forming an LLC has many benefits, including the personal liability protection mentioned above, but also certain tax advantages. If you would like to know how to set up an LLC in Oklahoma, you can reach out to an attorney who specializes in forming LLCs in the state.
However, an LLC is only one type of business structure. A business owner should do some background research to decide if an LLC is the right match for the business. In Oklahoma, other business structures include:
- Sole proprietorships
What Are the Requirements for Forming an LLC in Oklahoma?
Because LLCs are regulated by state law, the requirements for forming an LLC will vary by state. In Oklahoma, there are a few requirements that must be met in order to form an LLC:
- The business owner must be eighteen years of age or older
- The business owner must be a resident of Oklahoma, or if the business is a foreign LLC registering to do business in Oklahoma, it must keep a physical office within the state.
- The business owner must pay the $100 filing fee
What Are Some Advantages of Forming an LLC?
A limited liability company is one of the most common forms of business structure. It has become a very appealing option for many entrepreneurs who are looking for the advantages of a corporation without having to deal with the formalities.
An LLC may only have one member, so if you are the sole owner of a business, you can form an LLC even with just one person. Especially if your business does not have shareholders, and is not expecting to ever have shareholders in the future, an LLC may be the right way to go.
An LLC may be right for you if you are looking for personal liability protection. As stated above, Oklahoma considers the LLC and its owners as separate legal entities. Thus, if an LLC has certain debts or legal liabilities, the creditors generally cannot reach the owner.
The only time the court can “pierce the corporate veil,” and come after the owner personally is if the owner acted unethically or negligently. Thus, if an owner has the tendencies to act in such ways, they should think twice about forming an LLC.
If you are not going into the business of forming a bank or insurance company, an LLC may also be right for your business. In Oklahoma, state law prohibits a bank or insurance company from structuring as an LLC.
How to Form an LLC in Oklahoma
If a business owner has decided that an LLC is the right choice for their business, there are a number of steps to take in order to form the LLC.
First and foremost, the owner must choose a name for the business. The name must be unique and cannot be one that is already in existence in Oklahoma. To search business names that are currently in use, you can go to Oklahoma’s Secretary of State website. Once you have found a name that is available, you must attach an identifier onto the end, such as “LLC,” “Limited Co.,” “Ltd.,” or some version thereof.
Once you have filed your business name, you must designate a registered agent. A registered agent is a person or corporation residing in Oklahoma that sends and accepts legal documents on the LLC’s behalf. The registered agent is required under state law to have a physical street address in the state.
Next, the LLC must file their Articles of Organization. In Oklahoma, you can download a free form located on the Secretary of State’s website. The Articles of Organization include basic information about the LLC, such as the name, address, information about the registered agent, information about each of the LLC’s owners, and how long the LLC is expected to operate. Once an LLC files their Articles of Organization and pays the required filing fee, the LLC will now be officially up and running.
If you need help setting up an LLC in Oklahoma, you can post your legal need (or post your job) on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.