Although similar to an LLC in many ways, a PLLC tends to have more stringent requirements to receive tax and liability benefits.
The personal assets of individuals working within a PLLC are protected from lawsuits or claims made against other PLLC members. There are several important steps to follow if you’d like to form a PLLC in Oklahoma.
Steps to form an Oklahoma PLLC
Who can form a PLLC in Oklahoma?
One or more individuals working within the same profession are eligible to become a PLLC. Examples include a team of accountants, surgeons, or attorneys. In Oklahoma, each member must possess the required state and local licenses to work in the chosen profession of the PLLC.
Should you form a Professional Corporation (PC), a Professional Limited Liability Partnership (LLP), or a PLLC?
Professional corporations provide the most protection against liabilities, while LLPs or PLLCs are easier to form. An LLP only protects you from being personally liable for any financial obligations associated with the business. They’re also not required to file annual reports. Choosing the right option depends on the number of employees you expect to have and what kind of protection against liabilities your business needs.
Choose a name for your Oklahoma PLLC
You’ll want to select a distinctive, original name for your Oklahoma PLLC that best represents your business. In Oklahoma, professional limited companies need to include PLLC, LLC, or P.L.L.C in the name they choose. You also want to ensure the name of your PLLC is not currently in use. Check on the state website and if the name you want for your business is available, reserve it using our name reservation service. After that, you’ll want to register your domain name. ZenBusiness offers help with that, too. Go here to register your domain name. This will help your PLLC gain momentum.
Select an Oklahoma Registered Agent
A registered agent accepts legal documents and any state related documents on behalf of your PLLC. A registered agent for an Oklahoma PLLC is required to be present at a physical address within the state during normal business hours. ZenBusiness can help you find a registered agent.
Complete and File Oklahoma Articles of Organization
Articles of Organization are filed at the office of the Oklahoma Secretary of State or through the mail. These Articles of Organization should clearly define the professional service provided by the applying entity. Oklahoma law states that a PLLC must provide proof of professional certification of all practicing members. Before filing, you’ll want to decide if the PLLC will be manager-managed or member-managed.
Member-managed means that the PLLC is managed by its members. Manager-managed means that one or more managers run things without any stake in the ownership of the PLLC.
Create an Oklahoma Operating Agreement for the PLLC
An operating agreement is a document that defines:
- The management structure of the PLLC
- How ownership is shared
- What rules govern the business
The document also outlines how ownership would be transferred if a member leaves the business. The operating agreement should account for a wide range of circumstances that could have an impact on the company. Additional details in the operating agreement include:
- Voting rights of members
- Meeting rules
- Profit-sharing/loss allocation
- Provisions for buyouts
Handle Tax Obligations
ZenBusiness will help you acquire an Employer Identification Number (EIN) to help ensure personal assets and business finances remain separate. An EIN is required to open a bank account for your business or hire employees. In Oklahoma, a state tax ID number is also required to keep up with sales and excise taxes. Tax requirements may change from county to city, to town, so check with the appropriate local tax offices to remain informed on your tax obligations.
Obtain Business Licenses and Permits
There are multiple kinds of licenses one might need: tax permits, building permits, health permits, occupational permits, signage permits, alarm permits, zoning permits, alcohol and tobacco permits, liquor licenses, and seller/reseller permits to name a few.
It’s the owner’s responsibility to acquire all the necessary licenses and permits required to provide professional services in the state. The appropriate regulatory board for your profession must provide a certificate that confirms all PLLC members meet state license requirements. However, federal, state, and local licensing requirements may vary depending on the industry.
Acquire Insurance for your Oklahoma PLLC
An Oklahoma PLLC needs to provide workers’ compensation through a private insurer or by meeting the requirements of a “qualified employer” under federal law. The Workers’ Compensation Commission may also allow a PLLC to handle employee insurance internally. Professional liability insurance will protect each PLLC member from personal claims of malpractice, negligence, or injury. A PLLC is only protected from claims against the company as a whole and not the individuals who work for it.
Open a Business Bank Account
A separate bank account for your business is strongly encouraged to help keep business expenses and personal assets separate. A second account dedicated to PLLC income and expenditures makes bookkeeping and taxes much easier to manage. To open a PLLC bank account, you need a signed Operator or Member Control Agreement, EIN number, and valid ID and social security numbers for all owners and authorized signers of your PLLC.
Looking/Ready to Kick Start Your Business?
At ZenBusiness, we are proud to support small businesses through a variety of different tools and services. Whether you need a registered agent service, want to reserve a business name, or looking to register a domain, our goal is to help you stay on the road to success. Check out our services, and contact us today to see how we can help you grow your company.
Oklahoma PLLC FAQ
What are the filing fees for an Oklahoma PLLC?
Articles of Organization cost $100 to file, and it costs $25 to submit an annual certificate with the state.
Do I need a lawyer to form an Oklahoma PLLC?
No, the documents needed to form a PLLC can be filled out and submitted personally.
Does Oklahoma have a professional corporation (PC) entity?
Yes, entities are eligible for professional corporation status in Oklahoma. Can professionals from different fields form an Oklahoma PLLC together? No. In Oklahoma, PLLC members must work within the same field.
How will I be taxed as an Oklahoma professional limited liability company?
Because a PLLC is a pass-through tax entity, only members pay income taxes on the company’s profits. The PLLC itself doesn’t pay income tax.