When starting a business in Oklahoma, one of the first things you’ll need to do is choose the proper business structure. Several options are available, but one of the most popular is the limited liability company (LLC).
What is a limited liability company?
An LLC is a business entity that offers its owner limited liability protection. If the business gets sued, the owner’s assets will be safe. An LLC can also help shield business owners from personal liability for business debts. LLCs have a relatively simple business formation process and management, which makes them a popular choice for small businesses.
What do you need to do to form an LLC?
First, you’ll need to choose a business name and file articles of incorporation with your state’s secretary of state office. Once that’s done, you’ll need to create an operating agreement and file it with the state. An operating agreement is a document that outlines how the LLC will be run and includes essential information, such as the roles of each member, how decisions will get made, and what happens if a member leaves the LLC.
Next, you’ll need the IRS’s employer identification number (EIN). This is a nine-digit number that’s used for tax purposes. Once you have your EIN, you can open a business bank account and apply for business licenses and permits – if required.
When forming an LLC, one mistake you’ll want to avoid is failing to comply with your state’s requirements. Each state has its rules and regulations for business entities, so it’s essential to ensure you’re following all the necessary steps. Additionally, you’ll want to be careful about operating your business without an operating agreement. This document is not required by law, but it can help prevent disagreements and misunderstandings.