How to Start a Series LLC in Oklahoma
Planning to expand your company and don't know which way to go? Do you want to achieve maximum protection of all assets? A great idea would be to register a series LLC Oklahoma in 2023.
Want to know how to start a series LLC in Oklahoma? In this article, we will delve into such aspects:
- What is a series LLC?;
- Oklahoma series LLC cost;
- Step-by-step instructions on how to form a series LLC in Oklahoma.
You can either do all the paperwork yourself (using our instructions) and save money or contact one of the best LLC formation services and let the professionals do everything for you:
What Is a Series LLC in Oklahoma?
Before learning how to form a series LLC in Oklahoma, it's worth exploring what it is and why you need it.
A serial LLC (SLLC) is a fairly common type of entity that grants its founders some legal privileges. It is a parent LLC "surrounded" by subsidiaries ("series") which also provide the founder with liability protection.
Since each LLC in the series is a separate entity, it has its own assets, and offers limited liability, in case of any problems in one of them, your other LLCs will not be affected. Thus, you will simply isolate them from the LLC in which the trouble occurred.
Against this background, many entrepreneurs come up with two questions:
- But why don't I just register a few separate LLCs?
- And why should I learn how to form a series LLC in Oklahoma?
The answer is simple: creating a series LLC is cheaper than forming a few separate LLCs.
How to Form a Series LLC in Oklahoma: Step-by-Step
Want to know how to form a Series LLC in Oklahoma? If you follow our step-by-step instructions, you can do it for yourself.
If the process seems too complicated for you, ask the experts for help. They can simplify all the tasks or even do them for you.
Step 1: Choose a Name for Your Series LLC
You probably think this is the easiest step, and you just need to come up with a catchy name that's perfect for customers to remember. But beyond that, there are many business name requirements in Oklahoma that need to be met.
Requirements for series LLC formation in Oklahoma:
- The name has to be 100% unique and not be very similar to any other name registered in Oklahoma;
- To make sure the name is unique, do a business name search on the Secretary of State's website;
- Do not use profanity for the name;
- Do not use words or phrases that may hurt the feelings of religious people, minorities, or other communities in the state;
- Use words and acronyms that identify your entity type: LLC, LC, L.L.C., Limited Liability Company, etc;
- Consequently, do not include words or abbreviations that refer to another type of entity: Inc, incorporated, etc.;
- To use words like "bank," "doctor," or "lawyer," you will need to get permission first.
As you can see, the list is not short. If you go against even one point, the Secretary of State will not accept your Statute. So, you will need to resubmit all the documents. This will take a lot of time and effort.
Step 2: Appoint a Registered Agent to Get a Series LLC in Oklahoma
Want to know how to form a series LLC in Oklahoma and stay in good standing with the Secretary of State? Appoint an RA for your series LLC. This is a requirement you definitely need to comply with.
Who is an RA and what are their responsibilities? Any adult with a permanent address in Oklahoma can be an agent. No special education or license is required.
So, your RA could be:
- A founder of a serial LLC;
- An accountant or any other employee of the company;
- A professional agent who works for a company that provides such services.
The first option might appeal to you right away. If you perform the agent's tasks yourself, you don't have to pay anyone for the services. But let's take a look at the agent's tasks to see how such an economy is unwarranted:
- The agent needs to be at the specified address five days a week during business hours year-round. This means no vacation, sick leave, or breaks;
- The agent makes his or her personal information publicly available (on the Secretary of State's website);
- As the information becomes public, the agent faces a lot of spam because the public address and email are often used for marketing purposes;
- The agent should not lose important notices in the spam pile;
- If RA is not available and cannot receive notice of the claim, the court session will be conducted without your company's representatives;
- If this happens again, state officials will conclude that you are violating the law and operating without an agent. This will result in the dissolution of the LLC.
If you are willing to bear such a burden of responsibility to save a mere $39-$100 per year, then you can put your information in the "statutory agent" section when filling out the Statute.
But if the budget issue isn't particularly acute for you, we recommend contacting the best RA service providers so that you can concentrate on the really critical issues that can't be delegated.
An RA, in addition to the direct responsibilities, will also send you reminders about filing reports, renewing your license, and other matters. Furthermore, you don't have to appoint a different agent for each LLC in the series.
Step 3: File Your Oklahoma Series LLC Articles of Organization
The most fundamental and essential step in your series LLC registration Oklahoma is filing your Statute. After the Secretary of State approves your application, you will be eligible to operate in the state.
The form is easy to fill out. In it, you will provide all the basic information about the company. If you have handled the previous two steps, this document will not cause you any difficulty.
There is no special form for registering a Series LLC. You need to fill out a regular LLC form and add an appropriate statement to it (in which you specify the limitation of liability for each entity).
Steps to follow:
- Fill out the Statute;
- Under 18 OK Stat § 18-2054.4 (2020), fill out the addendum to the main document;
- Submit the forms online or by regular mail;
- Pay the mandatory fee of $100.
In Oklahoma, the fee is only charged when you register the parent LLC, and all the subsidiaries listed come "bundled."
If you apply online, it will take 1-2 business days to process the document, but you will pay an additional fee for bank card payment processing. If sending by mail, you will have to wait 5-7 business days.
Step 4: Draft an Operating Agreement
An OA is an internal company document that is supposed to regulate all aspects of your LLC operations. Lawyers always recommend drafting and legalizing it to avoid conflicts later on.
You can draw up an OA yourself using one of the many templates available online. Or, if you want to be sure the document is properly drafted, contact an experienced lawyer to do so.
Basically, you can include almost any information important to you in the OA:
- Profit-sharing rules for SLLC members and managers;
- The rights and responsibilities of SLLC employees and members;
- Any other operational aspects.
You don't have to create a separate OA for each LLC (although you can), but you have the option of providing information for each entity in one document.
Step 5: Get an EIN for Your Oklahoma Series LLC Registration
Want to know how to start a series LLC in Oklahoma and pay your taxes? You need to get an EIN for that. The IRS gives this number to every single business.
You will not need any help with this, so we do not recommend you pay any services for getting EIN. The entire process of obtaining an EIN takes a few minutes and is completely free.
Visit the IRS website and generate a code. It's quick and easy.
Series LLC Oklahoma Cost: How Much Is a Series LLC in Oklahoma
Trying to find out how to get a series LLC in Oklahoma and how much it costs? Let's do the math!
Your main expense for a series LLC formation Oklahoma will be filing the Statute. You will need to pay a $100 fee. Most of the other costs are optional, but you will probably encounter some:
| Service | Cost |
|---|---|
| RA Services | $39-$100 |
| Annual reports (to be filed each year in the month of registration) | $25 |
| Payment of taxes | individual |
Speaking exclusively about company registration, the Oklahoma series LLC cost is just $100.
First Tasks After Creating a series LLC in Oklahoma
Once you know how to form an LLC in Oklahoma, you should still discover what steps you need to take after that.
Create a Business Bank Account
Lawyers always advise creating a separate bank account for each LLC. This way, it will be easier for the founder to separate his/her holdings from the company's assets. As a result, the corporate veil will not be damaged.
Thus, in the event of a lawsuit, the founders' assets will not be affected.
Get Your Licenses
Depending on the type of your Series LLC activities, you may need various licenses. Oklahoma licensing representatives will be able to consult you.
You may also contact an experienced attorney to learn the specifics of your business and provide guidance.
Hire an Accountant
Sometimes, entrepreneurs do accounting themselves at the beginning of their business journey. Frequently, this leads to unfortunate consequences such as violation of the corporate veil, problems with tax reporting, insurance, and more.
To avoid these troubles and make all financial activities transparent, it is worth hiring an experienced accountant.
Keep Your Company Compliant
For your company to be successful, you have to know not only how to form a series LLC in Oklahoma but also how to keep it going.
Annual Reports Filing
Oklahoma has a requirement of filing an annual report. Every year, you are required to file annual reports until the anniversary of the company's founding ($25).
For example, if you formed your LLC on October 25, 2022, you have to file a report by October 25, 2023.
In the report, you include any related updates to the company: change of an RA, main office address, and more.
Timely Payment of Taxes
We advise you to consult a tax advisor or contact the IRS directly to find out what taxes your company is supposed to pay.