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.
If you’re considering starting a business in Oklahoma, you may be wondering how much it will cost to maintain an LLC. The good news is that most of the fees that an LLC will need to pay are one-time and can be paid before your business starts. However, there are still recurring fees that you must pay for. To avoid any surprise costs, here are the most important things that you should know about LLC fees.
– An employer identification number (EIN) is required by law. This is similar to a social security number for people, and is necessary to open a business bank account and manage federal taxes. If you plan to hire employees, you will also need an EIN. In Oklahoma, LLCs are required to have an EIN. You can get one by filing an application for an EIN online or calling the IRS to request one.
– Annual reports are required. Annual reports inform the state of the business’s status, members, and more. This paperwork is called an “annual certificate” and costs $25. Whether you choose to file the report online or mail it in, make sure to submit it on time to avoid any penalties. In Oklahoma, LLCs are required to file annual reports with the Secretary of State. If you file them late, you will be fined.
– Name registration is required. An LLC must be named something different from another business organization. The Oklahoma Secretary of State maintains a list of available business names. You can use a service to search the database to reserve the name of your new business. Alternatively, you can purchase a domain name. You can also buy a domain name and register it as an LLC. One of the most important steps is to file your application for a business name. If you do not find a suitable name for your business, you can always use the one provided by the Secretary of State.
A registered agent is also necessary. This person will act as the point of contact for legal issues relating to your business. Your registered agent will receive and file forms and annual reports on your behalf. If your business is operating in Oklahoma, the registered agent will be a good point of contact for any correspondence with the state. Although it might seem convenient to file these forms yourself, this may not be the best option for your business.
The price of registering a trade name varies between states. Some formation services include a year’s worth of registered agent service. This service is crucial for any business that relies on a good name to distinguish itself from the competition. In addition to the fees that an LLC must pay to register a trade name, the registration of a business name is essential for branding and marketing purposes. You can reserve a name before filing your company’s articles of organization.
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.