When you open a new business you should know the ways to organize a business in Oklahoma. Under Oklahoma business law, there are a handful of ways to organize a new business, depending on the type of work you will be doing, the amount of time you want to spend on taking care of business details, and your ideals for the size of the business and the degree of separation you want to have, personally, from the business. All the rules have varying tax and financial consequences, so it is wise to consult with a skilled business attorney to understand your options.
The simplest business organization with the least paperwork and legal complications is called a sole proprietorship. This form of business also has the most potential for personal responsibility for business debts or other obligations, so it is worth some thought whether this is the business form that is best for you. If you are planning to run your business under any name other than your actual personal name, you will be required to file a “Doing Business As”, or DBA, with the state, to identify you as the owner of the company.
A partnership is two or more people (and the “people” can be other companies that are partners in the business) who come together to own and operate a business. In the simplest form, much like a sole proprietorship, there are few, if any, requirements of filing with the state. It is a good idea to have a
partnership agreement that explains the rights and duties of all the partners, and anticipates how profits, losses, and costs are distributed among the group.
In a limited partnership, there are two groups of partners. The general partners are in charge of routine management and operations of the business, and they share in its profits and losses. The limited partners take a share of the profits, but their losses are only the amount that they put into the company. Usually, limited partners are not involved in running the partnership’s business. This form of company must be registered with the state to operate as a limited partnership.
LLCs and LLPs A limited liability company, or a limited liability partnership, is a popular form of business because they combine benefits of corporations with some of the ease of having less formalities to follow than a corporation has. In many cases, LLCs are popular with small businesses where the owners want to shield their personal property from legal risks faced by their companies (e.g. creditors, judgement holders), while still having operational and managerial control. Both LLCs and LLPs must be registered with the state and follow the steps of being organized and maintaining the company’s form over time.
A corporation has full rights to act on its own behalf, to own property, hire and pay employees, sue and be sued, and basically do anything that an individual could do. Many corporations are owned, at least in part, by shareholders who buy and sell stock in the company, but other corporations are privately held. Whichever type of corporation it is, though, the requirements of following the corporate formalities to meet strict government filing requirements are very thorough, and must be followed properly to maintain the corporate structure. The Tulsa chamber of commerce is full of business ideas for corporations.
A non-profit organization is a special kind of company that is funded mostly, or totally, by donations, grants, and fund-raising. While a non-profit pays its employees and pays other bills, it is designed not to generate profits, but to perform social services. The registration and filing requirements to start and operate a non-profit organization are fairly complicated and detailed.
Tulsa Business Law Attorneys Near You
Kania Law Office is comprised of experienced business lawyers who are prepared to help you organize your business in Oklahoma. Our attorneys help in areas of business law ranging from construction law to all areas of intellectual property and other business litigation. For more information on organizing and running an Oklahoma business, reach out to our Tulsa business law attorneys by calling (918) 743-2233 or by contacting us online.