The Oklahoma limited liability company (LLC) operating agreement is a legal document that regulates the operating procedures of the company and the mutual relationships between the company members.
The LLC operating agreement, or business operating agreement, also includes information about each member's initial contribution to the company’s capital and, based on that, determines their share of the company’s profits. It also determines each member’s rights and duties in the company.
Is an Operating Agreement Required in Oklahoma?
No, the operating agreement is not required in Oklahoma. However, this document can help you structure and optimize your company and prevent potential misunderstandings between the company members.
4 Main Types of Operating Agreements
This section presents the four most commonly used operating agreement types in Oklahoma:
Types of Operating Agreements
Single-member LLC operating agreement: Companies with only one member use this type of operating agreement since it includes only provisions about the company's operation without regulating the mutual relationship between the members.
Multi-member LLC operating agreement: Here, two or more members create the operating agreement to determine how the company will be operated and each member’s rights and duties.
Member-managed LLC operating agreement: If members decide to manage their company personally, this type of operating agreement will outline each member’s managerial rights and duties.
Manager-managed LLC operating agreement: However, if members decide to hire a professional manager to hire the company, this type of operating agreement will outline the manager’s rights and responsibilities.
Laws and Legal Requirements for LLC Operating Agreements in Oklahoma
Sections 18-2000 to 18-2060 of the Oklahoma Statutes regulate the status of limited liability companies.
Moreover, Section 18-2012.2 especially regulates the operating agreement of an LLC.
Section 18-2001(17) provides the definition of the operating agreement as follows:
“‘Operating agreement,’ regardless of whether referred to as an operating agreement and whether oral, in a record, implied, or in any combination thereof, means any agreement of the members, including a sole member, as to the affairs of a limited liability company and the conduct of its business, including the agreement as amended or restated.”
How to Form a Limited Liability Company (LLC) in Oklahoma
The easiest way to form a limited liability company in Oklahoma is to follow the steps below:
How to Form a LLC in Oklahoma
#1. Reserve a Name For Your LLC
The first step in your LLC formation process is to choose a business name for your LLC that is distinguishable from other business names registered in Oklahoma. Otherwise, your application might be rejected.
The Oklahoma Secretary of State provides a database of all the registered businesses in the state, where you can do a business search and check if your business name is distinguishable.
#2. Choose the Type of LLC
You can choose between two main types of LLCs based on the place of the company’s establishment:
Domestic LLCs: Companies that are both established and registered in Oklahoma.
Foreign LLCs: Companies initially registered outside Oklahoma but are registering in Oklahoma due to their business expansion there.
#3. Nominate an Agent
Here, you should appoint a person who is going to receive official notifications and documents on behalf of the company.
You can appoint someone from your company or hire a professional agency that provides such services. The only requirement is that the agent be an individual with a registered address in Oklahoma or a company with the authority to operate in Oklahoma.
#4. File the Formation Documents
If you are registering a foreign LLC, you should file the Application for Registration. You can file this document online or by filling out Form 0081. Moreover, the foreign LLCs should also file the Certificate of Existence issued from the state of the company’s initial establishment.
#5. Pay the Required Fee
The application fee for domestic LLCs is $100, while the fee for foreign LLCs is $300. If you are paying online, the platform will provide you with the option to pay using your credit or debit card at the end of the application process.
However, if you are applying via mail, you should write the check and mail it to the following address:
Oklahoma Secretary of State, 421 N.W. 13th, Suite 210, Oklahoma City, Oklahoma 73103
#6. Create your LLC Operating Agreement
After registering your LLC, you should create an operating agreement and optimize your business operations.
#7. Apply For an Employer Identification Number (EIN)
This number will enable you to open a company bank account, hire employees, and more.
There are two ways to get the EIN: