If you’ve ever thought about starting a business, or you’re in the process of getting your business started, the Oklahoma Department of Commerce is here to help.
There are a few essential steps required to forming a business in Oklahoma. While forming a business may not be challenging to some, others may find it difficult, and don’t know where to start. Therefore, you may want to contact a financial and legal business advisor such as an attorney, accountant, and banker before making decisions or taking action.
After a self assessment and market research, to find out if starting a business is for you, there are a few steps you need to follow in order to forming a business.
The first step in forming a business is to select a legal business structure. This decision is based on how your business will operate and who will own it, along with legal and tax considerations. – okcommerce.gov
Business Structure
Basic Business Structures
The two basic structures in Oklahoma are:
- Sole Proprietorship – an individual or married couple in business alone.
- General Partnership – two or more people who agree to create a business together.
These are sometimes called informal structures. You do not need to file with the state to operate as either of these two basic structures. You may choose to create an operating agreement or legal documents with an attorney to specify company ownership and responsibilities.
Complex Business Structures
The four complex business sturctures in Oklahoma are:
- Limited Partnership
- Limited Liability Partnership
- Limited Liability Company (LLC)
- Corporation (including C-Corporation and S-Corporation)
These four structures are called formal structures and must be registered with the Secretary of State to be formed. Learn about these structures and how to form them at the Secretary of State’s Business Organization page.
Business Name
Choosing a name is a creative decision, but there are some steps you may need to take with the state or federal government in order to protect you intellectual property.
Oklahoma
Filing a Trade Name with the Oklahoma Secretary of State will protect the use of your business name within Oklahoma. The filing will also check for conflicts with existing Oklahoma businesses.
Nationally
Filing for a federal trademark protects your name nation-wide. Check business, product and service name ideas to see if they are already protected and file your own trademarks with the United States Patent and Trademark Office.
Business Licenses + Permits
In Oklahoma, there is no license required just to start or own a business, but there are specific licenses and permits for different industries and business activities.
The terms license and permit are often used by different government agencies, cities and towns to mean a qualification or permission from an authority to engage in some kind of activity.
Some of these licenses or permits apply to individuals, companies, or the types of items being sold or services being offered.
Sales Tax Permit
One of the most common permits is the sales tax permit. It is required for retailers, resellers, or others that sell tangible property on an ongoing basis.
Obtain a sales tax permit from the Oklahoma Tax Commission.
Other Permits
The Department of Commerce doesn’t license businesses. You will obtain required licenses or permits from the agencies or local governments that issue them. Those agencies and county or city departments will also provide information on regulations and other operating requirements.
Research license and permit requirements for your type of business and the counties and cities in which you will operate. The Oklahoma Department of Commerce provides a list of the most common licenses. Call their Business Customer Services team at 405-815-5218 for information. You may also need to consult an attorney.
Federal Employer Identification Number
The federal EIN isn’t just for businesses with employees. Your accountant may recommend that you establish an EIN for your business and your bank may require one to set up business banking accounts and services.
All employers must obtain a Federal Employer Identification Number, so if you will have employees, you must file for an EIN.
File for a Federal Employer Identification Number with the Internal Revenue Service.
Employer Responsibilities
Income Tax Withholding
Employers must set up a withholding account for state income taxes through the Oklahoma Tax Commission.
The Internal Revenue Service requires employers to have an EIN and withhold income and payroll taxes for their employees.
Unemployment
You will need to set up an account for employees’ unemployment taxes through the Oklahoma Employment Security Commission.
Worker's Compensation
Obtain a workers’ compensation insurance policy through a private insurer.
For additional assistance through the Oklahoma Department of Commerce, please click here to visit their website.
