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.
Maintaining a Limited Liability Company (LLC) in Oklahoma requires owners to consider a variety of factors that contribute to its operating costs. These expenses include various fees related to compliance, taxation, insurance, and other operational expenses. Additionally, LLC owners must have a clear understanding of state law requirements and regulations to avoid any violations or liabilities that may incur added costs.
Starting an LLC is an excellent way to invest in a business venture as it offers legal protections to the owners while maintaining a simpler management structure. However, like any other business, operating costs must be incurred to maintain the LLC status legally. The expenses involved typically vary depending on the size of the business, industry, and compliance enforcements. That said, fully understanding the ongoing costs required in Oklahoma is crucial.
One ongoing expense associated with maintaining an LLC in Oklahoma is the filing and registration fees. New LLCs are to be registered with the Secretary of State, and annual reports must be filed to ensure compliance with state laws. These fees can vary depending on the state-of-registration of the LLC, and are renewed annually, although failing to pay on time may attract added penalties.
Another critical factor to consider is taxation requirements. While LLC itself isn’t taxed, each member’s income from the business is subject to scrutiny from both the federal and state governments, where Oklahoma imposes a state tax rate of 5%. It’s essential to keep records of all income earned in the LLC and to consult with a tax expert to ensure compliance as incorrect filings can attract added expenses in the form of penalties.
Additionally, state-level legal requirements on designated insurance types may impact the running costs of an LLC. Companies are legally required to buy employee workers’ compensation insurance, unemployment and disability insurance, and general liability and property insurance in Oklahoma based on business type. Insurance fee schedules differ depending on multiple factors, including prevalent risks in the industry, so it’s critical to shop around and compare rates. Not all insurance companies are created equal, and some may have either better coverage options or affordable prices, depending on the coverages.
Maintaining communication with the state they are registered regularly plays a critical factor in staying informed of current legislation in an LLC’s operating region. Oklahoma law necessitates staff of LLCs to document and present internal during entity audits for state tax compliance. If goods or services driven by the LLC crosses state lines, the business needs to keep abreast of tax schedules from tax agencies from across those borders.
In the end, an LLC in Oklahoma overall tends to have slightly lower fees than those in other similar states, and it offers the added advantages of tax classifications and unique legal protections enshrined in state and local area legislation. While there may be ongoing operating and compliance costs associated with LLCs, navigating the process effectively and with the appropriate financial warrant can minimize the costs while ensuring long-term and stable business growth. It is pertinent to review regulatory changes regularly, keep accurate and current records, and obtain guidance or counsel with highly-regarded professionals with a vested interest in LLC management and trends.
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.