Maintaining a business might be more difficult than owning one, particularly when it comes to legal issues. The Limited Liability Company (LLC) is one of the most popular company entities in Oklahoma. Numerous advantages, including limited liability protection and tax flexibility, are provided by an LLC. An LLC must be maintained, though, which takes time and careful consideration. This post will cover additional pertinent issues as well as how to run an LLC in Oklahoma.
A “doing business as” (DBA) is a made-up name that a company uses in addition to its legal name. A DBA can be registered easily in Oklahoma. To make sure the name is available, you must first check the corporate entity database maintained by the Oklahoma Secretary of State. The Oklahoma Secretary of State will then accept your DBA form for filing. In Oklahoma, registering a DBA costs $25. Keep in mind that creating a DBA does not establish a new legal organization; your LLC must continue to exist.
While a DBA is merely the name a firm uses to conduct its operations under a different name, an LLC is a legal entity that offers its owners limited liability protection. DBAs lack the protection and legitimacy that LLCs do. A DBA does not establish a different legal entity or provide the business owners with any legal protection. Therefore, for business owners who want to shield their personal assets from corporate obligations, an LLC is a superior choice.
The name you filed with the Oklahoma Secretary of State is the official name of your company. A trade name, on the other hand, is a name that your company uses to conduct business under a different name. As an illustration, if your LLC is called “ABC LLC,” but you conduct business under the name “XYZ,” then “XYZ” serves as your trade name. It is crucial to keep in mind that while your trade name can be used for marketing and branding, your legal name should always be used for legal and tax purposes.
You have two options for paying yourself as an LLC owner: a salary or distributions. Payroll taxes must be withheld from any salary you pay to yourself, and you must file payroll tax forms with the IRS. As an alternative, you can withdraw money from your LLC’s earnings. Payroll taxes are not applied to distributions; nonetheless, you must declare them on your personal income tax filings. The ideal technique to pay yourself from your LLC should be determined in consultation with a tax expert.
In Oklahoma, maintaining an LLC necessitates paying attention to legal and tax issues. Although registering a DBA is an easy process, it does not result in the formation of a new legal company. An LLC provides greater security and legitimacy than a DBA. It’s critical to understand the distinction between your legal name and business name and to use both appropriately. Last but not least, LLC owners can pay themselves a salary or distributions, but they must adhere to tax laws. You may keep your LLC in good standing and concentrate on expanding your business by adhering to these rules.