How to start an Oklahoma corporation

It might seem like a lot at first, but once you understand the steps, it’s very doable. This guide will walk you through everything you need to know to start your Oklahoma corporation.

How to start a corporation in Oklahoma

Incorporating means registering your business as a corporation so the law sees it as its own entity, separate from you. Each state has its own rules for how to do this, so the process can seem confusing. Let’s go through each step: 

1. Choose a name for your Oklahoma corporation

Your corporation’s name should be unique and make a statement about your business. Make sure it complies with the following Oklahoma requirements:

• Your name must include the words "Association," "Club," "Company," "Corporation," "Foundation," "Fund," "Incorporated," "Institute," "Society," "Union," "Syndicate," "Limited," or the abbreviations "Co.," "Corp.," "Inc.," or "Ltd."
• The name must be distinguishable from any other name already on file with the Secretary of State.

Need help coming up with a business name for your corporation? Try the Rocket Copilot™ AI Business Name Generator, a free tool to help you brainstorm business names and get started registering your corporation.

2. Decide between an Oklahoma S-Corp and C-Corp tax designation

There are similarities between an Oklahoma S-Corp and a C-Corp regarding personal liability, management, structure, and compliance. The differences, however, come down to the following:

• Ownership Rules: A C-Corp can have unlimited shareholders and unlimited stock classes, but an S-Corp is limited to a maximum number of shareholders, usually 100, and only one stock class.
• Taxes: A C-Corp is taxed separately. It files taxes at the corporate level, and shareholders may also be taxed on dividends they receive. S-Corps are considered "pass-through" tax entities. No taxes are paid at the corporate level. Instead, tax is paid individually by the owners.
• Documents: An S-Corp must file IRS Form 2553 to elect S-Corp status.

3. Appoint directors and shareholders for your Oklahoma corporation

Each state has its own personnel requirements for incorporating. Oklahoma requires at least one incorporator or director per corporation. Incorporators may be individuals or companies. There is no age requirement for incorporators or directors. There are no state residency requirements for incorporators or directors, but registered agents must be Oklahoma residents.

You may state the number of your corporation's directors in either your Bylaws or your business's Articles of Incorporation. 

4. Choose a Registered Agent

A Registered Agent is the person or business responsible for receiving tax, legal, and government documents during regular business hours. It's important that every business has one. You can either serve as your own registered agent (if you have an Oklahoma address) or choose one to do that service for you (if you are not located in Oklahoma or would like an extra layer of privacy).

5. File your Articles of Incorporation with the state of Oklahoma

Once you have a business name and registered agent, you can register your business as an Oklahoma corporation with the state by filing your Articles of Incorporation. This document may be referred to informally as a corporation's "Articles," or in other states, it may be called a "Certificate of Organization," "Certificate of Filing," or "Certificate of Formation."

6. Get an Employer Identification Number (EIN)

Before opening your doors for business, apply to the IRS for an employer identification number, or EIN. All corporations with employees in Oklahoma must have an EIN. An EIN is similar to your Social Security number, but it's for businesses. You'll also need an EIN to open your corporate bank account.

Congratulations! After you have completed all these steps, you have formed your Oklahoma corporation.

What to do after incorporating in Oklahoma

Oklahoma does not require that corporations create records like bylaws and meeting minutes to maintain your corporate status. However, it's recommended that you keep these documents regardless of whether they're required by the state. They help protect the legality of your corporate status. Rocket Lawyer can help you prepare both Corporate Bylaws and Corporate Minutes, and can give you a comparison of Bylaw requirements and Meeting Minutes requirements from state to state.

Still have questions? Learn more about how to start your own business with Rocket Lawyer and get started today!
 

Key takeaways Starting a corporation in Oklahoma means following state rules, like choosing a unique name, filling out paperwork, and paying fees to make it official. One important choice is deciding how your corporation will be taxed in Oklahoma, either as an S-Corp or a C-Corp. This affects how the business and owners pay taxes, and the differences between the two change from state to state. After forming the corporation, you are suggested to keep records like bylaws and meeting notes to stay in good standing with the state and prove your business is real and operating correctly.

Additional resources

Learning how to enforce a contract is just one step. Explore these additional topics to learn more and take the next steps.

• What is a corporation?
• What is an S-corporation?
• How are corporations taxed?
• How to start a corporation
• How to register a corporation by state