How to Start a Business in Oklahoma

Starting a business in Oklahoma involves several key steps, including choosing a business structure, registering with the state, and obtaining necessary licenses and permits. Entrepreneurs should also consider market research and business planning to ensure a successful launch.

Oklahoma Economy Trends

Small Business Statistics: Oklahoma is home to approximately 383,000 small businesses, which employ about 51.7% of the state's workforce. Notable industries include energy, agriculture, and aerospace. For more detailed statistics, visit the U.S. Small Business Administration.

New Business Application Statistics: In Oklahoma, there were 57,747 new business applications. For more information, see the Census Bureau's visualization.

Exports and GDP: Oklahoma's economy is bolstered by significant exports in oil and gas, machinery, and agricultural products. The state's GDP was approximately $200 billion in recent years, according to the U.S. Census Bureau.

Economic Highlights: Major employers in Oklahoma include Boeing, which has a significant presence in the state, and the University of Oklahoma. The state offers a favorable tax climate for businesses, with key cities like Oklahoma City and Tulsa serving as industry hubs.

• Step 1: Perform Market Research
• Step 2: Write a Business Plan
• Step 3: Get Licenses and Permits
• Step 4: Acquire Funding
• Step 5: Choose a Business Entity
• Step 6: Select a Business Location
• Step 7: Register the Company

Step 1: What Kind of Business Should I Start in Oklahoma

Selecting a business type in Oklahoma depends on factors such as personal interests, market demand, and regional economic strengths. Dominant industries in Oklahoma include:

• Energy (oil and gas)
• Agriculture
• Aerospace and defense

For more information, visit the Oklahoma Department of Commerce.

How to Do Market Research in Oklahoma: Market research involves gathering information to understand consumer needs and market conditions. Primary research methods include surveys and interviews, while secondary research involves analyzing existing data. Key areas to analyze include consumer demographics, buying behavior, and market gaps. Conducting a competitive analysis is also recommended to understand other businesses in the area. This research helps entrepreneurs make data-driven decisions when launching a new business in Oklahoma.

Step 2: How to Write a Business Plan in Oklahoma

A business plan is essential for clarifying goals, attracting investors, securing funding, organizing operations, and evaluating progress. It is valuable for both new and scaling businesses and can evolve over time.

Executive Summary: This section provides a snapshot of the business, including its mission statement, product or service offerings, and basic information about the leadership team, employees, and location.

Company Description: Detail the nature of the business, the marketplace needs it aims to satisfy, and the specific consumers, organizations, or businesses it serves.

Market Analysis: Include industry insights, target market demographics, and competitive analysis. Highlight Oklahoma-specific market trends if applicable.

Organization and Management: Outline the business's organizational structure, detailing ownership, management team, and board of directors if applicable.

Product/Service Line: Describe the products or services offered, including the benefits and competitive advantages.

Marketing Plan: Explain the marketing strategy, including advertising, promotions, and sales tactics.

Financial Plan: Provide financial projections, including income statements, cash flow statements, and capital expenditure budgets.

Appendix: Include any additional information such as resumes, permits, lease agreements, or legal documentation.

Step 3: Do I Need a Business License in Oklahoma?

Yes, in most cases, businesses in Oklahoma need a license. However, there is no universal business license issued at the state level. Licensing depends on factors such as the type of business, its physical location, and whether it is regulated. Common types of licenses include sales and use tax permits, local city or county business licenses, and regulatory or professional licenses.

Business owners can determine which licenses apply to them by using the Oklahoma Business Registration System or contacting the Oklahoma Department of Commerce.

How Much Does a Business License Cost in Oklahoma?

Business license costs in Oklahoma vary based on business type, jurisdiction, and the type of license or permit required. Some registrations, like sales tax permits, may be free, while general business licenses can range from $15 to $100. Certain groups, such as veterans or nonprofits, may qualify for exemptions or fee waivers. Business owners should check with the appropriate issuing agency for exact fee amounts and payment policies.

How to Register for a Seller’s Permit in Oklahoma

In Oklahoma, a seller’s permit is known as a sales tax permit. It authorizes the sale of taxable goods or services. The Oklahoma Tax Commission issues these permits, and applications can be submitted through the Oklahoma Taxpayer Access Point (OkTAP).

Applicants need to provide information such as the business name, address, ownership details, and expected sales. There is no cost for the permit, but it must be renewed annually. For further assistance, contact the Oklahoma Tax Commission.

Step 4: How Much Does it Cost to Start a Business in Oklahoma?

The cost of starting a business in Oklahoma varies based on factors such as business type, industry, location, and scale of operation. According to the U.S. Small Business Administration, startup costs can range widely, with larger businesses or those in certain industries incurring higher expenses. Common startup expenses include registration and incorporation fees, licensing and permits, equipment, insurance, professional services, and marketing. Filing fees for LLC formation or corporation registration typically range from $50 to $300.

How to Get Business Funding in Oklahoma

Startups in Oklahoma have access to multiple funding options. Business owners should estimate their capital needs and choose suitable funding options based on their goals and eligibility. Common funding sources include:

• Self-funding (bootstrapping)
• Loans
• Grants
• Investors
• Crowdfunding

How to Self-Fund a Business in Oklahoma

Self-funding, or bootstrapping, involves using personal financial resources to start or run a business. Common methods include using savings, selling personal assets, earning supplemental income, pre-ordering, or borrowing from friends or family. Advantages include full ownership and control, while risks involve limited capital and personal financial exposure. Entrepreneurs should budget carefully and optimize resources. For assistance, consult the Oklahoma Chamber of Commerce.

How to Find Investors in Oklahoma

An investor provides capital and may offer mentorship, networking, or strategic guidance. Compensation can involve equity, dividends, or board positions. Business owners in Oklahoma can connect with investors by attending industry events, using local investment networks, contacting state-level organizations like the Oklahoma Commerce Authority, and preparing a compelling pitch. Types of investors include angel investors, venture capitalists, and crowdfunding investors.

How to Get a Loan to Start a Business in Oklahoma

Business loans are a common funding method for new businesses in Oklahoma. Options include traditional bank loans, SBA-backed loans, and non-traditional options like peer-to-peer lending and microloans. Steps to obtain a loan include choosing the right loan type, meeting eligibility criteria, providing collateral, and preparing documentation such as financial statements and business plans. Required documents usually include:

• Financial statements
• Business plan
• Proof of income
• Tax returns

Consult financial professionals and compare loan offers to find the best terms.

How to Find Oklahoma Business Grants

Business grants are funding sources that do not require repayment. Each grant program has different eligibility requirements and application processes. In Oklahoma, business owners can find grants through the Oklahoma Commerce Authority, local economic development offices, state agencies, and dedicated grant portals. Use grant search tools and consult local business support centers for assistance.

Can I Start a Business with No Money in Oklahoma?

Starting a business with no money in Oklahoma is not possible, as some capital is required for essentials like registration fees, licenses, equipment, and marketing. However, it is possible to launch a low-cost business by starting from home, choosing a service-based model, using free resources, applying for grants, and networking locally. Oklahoma offers free or low-cost business tools, such as online registration portals.

Step 5: Choosing a Business Structure in Oklahoma

Choosing a business structure in Oklahoma is important for taxation, liability, management, and registration requirements. Available structures include sole proprietorships, partnerships, LLCs, and corporations. Each structure has implications for taxation, liability, operations, and ownership. Consulting a tax accountant or attorney is recommended. For more information, visit the SBA.

How to Start a Sole Proprietorship in Oklahoma

A sole proprietorship is a business owned and operated by one individual, offering full control and simple tax treatment but with personal liability. Key characteristics include:

• Full control by the owner
• Personal liability for debts
• Simplified tax filing

Starting a Sole Proprietorship in Oklahoma:

Step 1: Choose a business name. You can use your legal name or a trade name.

Step 2: File a DBA (“Doing Business As”) with the local county clerk if using a trade name.

Step 3: Obtain necessary licenses and permits, which vary by business type and location. An EIN is required if you have employees.

Sole proprietorships do not need to be formally registered with the Secretary of State in Oklahoma.

How to Start a Corporation in Oklahoma

A corporation is a legal entity separate from its owners, providing limited liability to shareholders. Different types include C-Corp, S-Corp, and nonprofit, with varying tax treatments. Core features include:

• Legal separation of owners and business
• Limited liability for shareholders
• Centralized management
• Transferable ownership through stock
• Taxation of profits

Step 1: Choose a Corporation Name. Ensure it includes words like “Corporation” or “Inc.” and is unique.

Step 2: Appoint a Registered Agent and Registered Office. This can be an individual or company with a physical address in Oklahoma.

Step 3: File the Articles of Incorporation with the Oklahoma Secretary of State. Include the corporation's name, shares, incorporators, address, and agent. Filing fees apply.

Step 4 (Optional): Foreign Corporations must file a Certificate of Good Standing and a Statement of Foreign Corporation.

Step 5 (Optional): For S-Corp election, file IRS Form 2553 after formation.

How to Start an LLC in Oklahoma

An LLC (Limited Liability Company) combines elements of corporations and partnerships, offering limited liability, pass-through taxation, and flexible management.

Step 1: Name Search/Selection. Use the Oklahoma Secretary of State's portal to search for or reserve a business name. Fees apply.

Step 2: File Articles of Organization with the Secretary of State. Include the LLC's name, address, and member details. Filing fees apply.

Further steps may include obtaining an EIN and appointing a registered agent.

How to Start a Business Partnership in Oklahoma

A business partnership is owned by two or more individuals. Types include general partnerships, limited partnerships, and limited liability partnerships. Each type has different liability and management structures.

How to Start a Limited Partnership in Oklahoma: A Limited Partnership (LP) includes at least one general partner with full liability and one or more limited partners with limited liability. File a Certificate of Limited Partnership with the Oklahoma Secretary of State.

How to Start a General Partnership in Oklahoma: A general partnership is jointly owned and managed by partners who share profits, losses, and liability. Registration is optional, but a Statement of Partnership Authority can be filed with the county recorder’s office.

How to Start a Nonprofit in Oklahoma

A nonprofit is a corporation formed for purposes other than profit, such as charity or education. File Articles of Incorporation with the Oklahoma Secretary of State and apply for 501(c)(3) status with the IRS using Form 1023 or 1023-EZ. Additional state tax exemption forms may be required.

Step 6: Choosing a Business Location in Oklahoma

Choosing a business location is critical for success, visibility, and compliance. Common setups in Oklahoma include brick-and-mortar, online, home-based, and mobile businesses. Consider factors like proximity to the target market, accessibility, local competition, costs, zoning laws, and brand visibility. Contact local zoning boards or safety inspection offices for regulations.

What Kind of Business Can I Run From Home in Oklahoma?

Running a home-based business in Oklahoma is influenced by local regulations such as zoning ordinances and homeowner association rules. Some businesses are typically allowed if they do not affect the neighborhood's character, while others may be prohibited due to noise or safety concerns. Always check with local zoning departments and review HOA rules.

How Do I Start a Small Business From Home in Oklahoma

Home-based businesses in Oklahoma must comply with legal requirements, including business formation, registration, licensing, and zoning compliance. Local governments enforce zoning laws, and a Home Occupation Permit may be required. Contact local governing agencies for compliance.

Starting a Business Online in Oklahoma

An online business is conducted over the internet and must meet the same legal requirements as other businesses in Oklahoma. Steps include choosing a business name, selecting a legal structure, filing formation documents, obtaining an EIN, and acquiring licenses. Additional regulations may apply, such as consumer protection laws.

Step 7: Legal Requirements for Starting a Business in Oklahoma

Oklahoma does not limit who can start a business, but all new businesses must follow state laws and local ordinances. Requirements depend on business structure, industry, location, and products or services. Businesses must file formation documents, obtain licenses, comply with tax obligations, and designate a registered agent.

How to Get an EIN Number in Oklahoma

An EIN (Employer Identification Number) is a unique nine-digit number issued by the IRS for tax identification. It is required for hiring employees, opening business bank accounts, and filing taxes. Apply for an EIN through the IRS online, by mail, or fax using Form SS-4. U.S. entities can mail to:

Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Foreign applicants with no U.S. office can fax to:
(855) 641-6935

How to Get an Oklahoma Registered Agent

A registered agent receives legal documents on behalf of a business. In Oklahoma, LLCs, corporations, and limited partnerships must appoint a registered agent. The agent can be an individual over 18 with a physical address in Oklahoma or a business entity authorized to operate in the state. Appoint the agent in the formation paperwork. Fees may apply for using a registered agent service.

Patents, Trademarks, and Copyrights in Oklahoma

Patents, trademarks, and copyrights are forms of intellectual property protection.

Patents: Provide exclusive rights to inventors, governed by the U.S. Patent and Trademark Office under Title 35 of the U.S. Code, lasting 20 years from the filing date.

Trademarks: Distinguish goods or services, managed federally by the USPTO and at the state level by the Oklahoma Secretary of State. They last 10 years and are renewable.

Copyrights: Protect original creative works, overseen by the U.S. Copyright Office under Title 17 of the U.S. Code, lasting the life of the author plus 70 years.

Oklahoma Business Tax

The Oklahoma Tax Commission oversees business taxation. Tax obligations vary by business structure, industry, and activity. Common taxes include:

• Income or Corporate/Franchise Tax: Levied on business profits.
• Sales and Use Tax: Applied to sales of goods and services.
• Employment or Payroll Taxes: Withheld from employee wages.
• Property Tax: Based on the value of business property.
• Specialty/Excise Taxes: Industry-specific taxes like liquor tax.

Are Business Records Public in Oklahoma?

Yes, business records in Oklahoma are generally public under the Oklahoma Open Records Act. They can be inspected or copied unless exempted by law. Agencies maintaining records include the Secretary of State, Corporation Commission, and Department of Revenue. Some information, like Social Security Numbers and trade secrets, is exempt from public access.