Perhaps you are hoping to form an Oklahoma LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Oklahoma.
On this page, you’ll learn about the following:
- Oklahoma LLC Cost of Filing
- Taxes Payable to Oklahoma Department of Revenue
- Cost Comparison Between States
- Other Costs
Oklahoma LLC Cost of Filing
Here are the costs involved in forming an LLC in Oklahoma.
Cost of Filing Formation Certificates
The Oklahoma Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Oklahoma Secretary of State.
Oklahoma Domestic LLC
- Online Filing costs $100.
- Annual Report filing costs $25
- Name Reservation fee costs $10
- By Mail: Fill out the application form, and send it to Oklahoma Secretary of State 421 NW 13th St, Suite #210 Oklahoma City, OK 73103. Costs $100.
Oklahoma Foreign LLC
- Online Filing costs $300.
- Annual Report filing costs $25
- Name Reservation fee costs $10
- By Mail: Fill out the application form, and send it to Oklahoma Secretary of State 421 NW 13th St, Suite #210 Oklahoma City, OK 73103. Costs $300.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Oklahoma LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Oklahoma, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Oklahoma Department of Revenue for regulatory boards or agencies requiring licensing.
Taxes Payable to Oklahoma Department of Revenue
At the stage of its formation, an LLC has to pay certain taxes to the Federal & State Governments. This article is the list of all such important taxes that are to be paid by LLCs in Oklahoma. The state taxes are to be paid to the Oklahoma Tax Commission. The main state and federal taxes that an LLC has to pay are:
State Income Tax
As the owner of the LLC, one has to pay State Income tax on all the earnings that he makes through the LLC. These earnings will be taxed through personal tax returns. The standard income tax rate in Oklahoma ranges between 0.5 and 5.25 percent. You can file for all the standard allowances and deductions at the time of filing.
State Sales & Use Tax
If your LLC is a seller of goods, selling tangible goods & a service provider providing services, it has to collect sales & use taxes & then pay them to the Oklahoma Department of Revenue. The Sales & Use Tax varies in different regions, counties, & cities. The current state sales & use tax rate on LLC in Oklahoma is 4.5%
Federal Self-Employment Tax
Federal Self Employment Tax is to be paid by all the LLC Business members or managers. This kind of tax applies to all the earnings you withdraw from your business. The Federal self-employment tax rate in Oklahoma is 15.3 percent.
Federal Income Tax
The Federal Income Tax is levied on the Income & the amount of the Federal Income Tax depends upon your earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing.
You pay Federal Income Tax on all the profits your LLC makes after calculating the deductions & allowances such as Healthcare or Retirement Plans.
Employee & Employer Taxes
An LLC with several employees drawing monthly salaries will have to bear some added Employee-Employer taxes. These tax implications vary, depending on various factors, e.g., the amount, number of employees, etc.
Cost Comparison Between States
Oklahoma is surrounded by many states, namely Colorado, Kansas, Missouri, Arkansas, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.
|States||Filing Fee||Annual/Biennial Fee||Sales Tax|
Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. For Example, if your LLC is in the sector of import & export, you have to pay the import-export duty. You should consult with a professional to verify the tax rates or business costs of registering an LLC in Oklahoma.
- Oklahoma Name Reservation: $10 for online filings or filing by mail
- Doing Business As (DBA): $50/class for online filing or if filing by mail
- Certified Document Copies: $10 + $1 per page.
- Certificate of Good Standing: $20
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/month at Kinsta.
- Online workspace: at least $4.20/month for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Oklahoma LLC: $50
How Much Does It Cost to Maintain an LLC in Oklahoma
To maintain an LLC in Oklahoma you will need to pay an annual fee of $25 along with state sales & use tax at 4.5%, state income tax at 0.5% to 5.25% and federal taxes.
Whether you’re forming a Limited Liability Company (LLC) in Oklahoma or planning to expand your business to Oklahoma, there are a few costs that you’ll want to consider. These costs vary by type of business, but most businesses can expect to pay a fee each year. You’ll also need to pay federal and state taxes. You’ll also want to keep detailed records of your financial transactions, including invoices, contractors, and employees.
The first cost to consider when starting a business in Oklahoma is filing an Articles of Organization. These documents will need to be filed with the Oklahoma Secretary of State. An Articles of Organization is an official form that outlines the formation of your LLC. It also contains the date of formation and your official business name. The cost for an Articles of Organization is $100.
The second cost you may encounter is maintaining an LLC. This may include fees for filing annual reports, taxes, and maintenance fees. It is also possible that you’ll need to open a business bank account. Opening a business bank account is important because it allows you to separate your personal and business expenses.
A Registered Agent is an important part of your business. This agent acts as the primary point of contact with the state and receives legal notices that may be sent to the LLC. A registered agent will also file articles of organization for your LLC with the state. Your registered agent must be a resident of Oklahoma and have a physical address in the state. This is a common requirement for every LLC in Oklahoma.
You’ll need to open a business bank Account for your LLC. A business bank account will help you track your financial transactions and tax payments. The Oklahoma Secretary of State provides a comprehensive list of business forms. It will also process your incorporation documents in five to 10 business days. You can also process your incorporation documents online for $25. The Oklahoma SOS also accepts credit card payments. It will also charge a 4% service fee for credit card payments.
A Sales Tax Permit is another cost to consider. Oklahoma retail businesses that sell taxable goods must have a sales tax permit. You can register for a sales tax permit online. You can also register to receive a free employer identification number from the IRS.
Your LLC will also need to pay sales and use tax. In Oklahoma, sales and use tax rates range from 4.5% to 5.25%. You’ll also need to pay state income tax at 0.5% to 5.25%. If you have employees, you’ll also need to pay unemployment insurance tax. If you fail to pay these taxes, you’ll face severe penalties.
Aside from these basic costs, your LLC may have other expenses down the road. In Oklahoma, your LLC may need to pay for a professional license, industry-specific licenses, or industry-specific taxes. You may also need to pay payroll taxes. You’ll need to pay sales and use taxes for your business, and you’ll also need to pay state and federal taxes.
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
The cost of Oklahoma is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.