By G.W. Schulz
Ever heard of an “LLC”? It stands for Limited Liability Company. Maybe you heard a friend or family member talking about it and the advantages for their business. LLCs are among the most popular structures for new businesses, because of the flexibility they afford and the fact that they separate the owners from the company itself.
Limited liability companies can range from a local coffee shop to a cross-state coffee chain. They grant you the benefits of both a corporation and a business. They can also enable you to enjoy various tax benefits as well as certain protections from personal liability for the company’s debts. A sole proprietorship, by contrast, doesn’t offer the same protections as an LLC.
“Without this personal liability protection, you could lose your personal assets in a lawsuit against your company,” writes the legal information site FindLaw. “Additionally, LLCs have fewer reporting and record-keeping requirements than corporations.” If you’re thinking about forming your own business in Oklahoma, check out this list below created with help from FindLaw. The list’s goal is to share what you need to know about LLCs. Keep reading to learn more.
If you’re planning a business in Oklahoma, let us help to protect your hard work and advocate for you. In addition to business law, we practice personal injury, family, defense, and more. Need help with a will, trust, or estate? We do those, too. Explore Norwood.Law or call us for a free consultation at 918-582-6464.
- Starting a new business? You’ll want to obtain any necessary licenses and permits and register your business with the Oklahoma Secretary of State. You’ll also want to set up tax and insurance accounts. If along the way you want to expand your business to another state, you’ll need permission from officials in the new state. What are additional benefits to creating an LLC? To avoid corporate taxes, profits and losses can be passed through to your personal income. LLCs can be the right move for business owners who want to pay fewer taxes, have major personal assets to protect, or are operating a higher-risk business. It’s important to point out, however, that the LLC’s individual members are viewed as self-employed.
- How do I get an LLC in Oklahoma? You’ll need a $100 filing fee and a good name unique from other businesses, even those that are defunct but have existed in the previous three years. You’ll also need a finished application for the Oklahoma Secretary of State that includes information about other associates involved with your LLC beyond just yourself.
- Naming your new LLC You can search online at the Web site of the Oklahoma Secretary of State to determine if a business name is available. You’ll want it to be as distinct as possible from other businesses. Also important is whether the name has already been taken as an online Web address. To protect your name, you can register a trademark with the Oklahoma Secretary of State or with the federal government through the U.S. Patent and Trademark Office.
- What’s a registered agent? You’ll need a registered agent who can serve as a point of contact for receiving key legal documents on the entity’s behalf. And you’ll need a brick-and-mortar address for the designated agent. The agent does not need to be a friend or business partner and can be your attorney or someone you hire for these services. They can help keep your business confidential and in good standing with tax and regulatory authorities.
- File your Articles of Organization Your articles in Oklahoma will include the name of the LLC, the name and street address of the registered agent, an email address for the lead contact of the company, and a street address of the business. Any company doing business in Oklahoma must certify each year that they are continuing to do business and haven’t shut down. Companies cannot operate anonymously in Oklahoma, although that is allowed in some other states.
- Get an Employer identification Number This is what the Internal Revenue Service uses to identify businesses. You’ll need it to open a bank account or hire workers. You’ll also want to author an operating agreement that, among other things, articulates how your business will conduct business. Such an agreement establishes rules for how profits and losses are shared and who owns how much of the business. Operating agreements also include how you structure for tax purposes and the purpose of the business itself. A bank might require an operating agreement before extending a loan.