Starting a small business in Oklahoma often means registering with several federal, state, and local agencies. Let’s review common Oklahoma business license registrations so your business starts off right.
Related: Guide to starting a business in Oklahoma
Setting Up the Business
Before you can apply for business licenses, you should first establish the business structure. This decision impacts your legal responsibilities, taxes, and how much personal liability you might face. Here’s a brief explanation of each type of structure:
Sole proprietorship: This is the simplest form of business structure, where one person owns and runs everything. There’s no separation between the owner and the business, meaning the owner is personally responsible for all debts and legal actions against the business. Taxes are straightforward as the owner reports business income on their personal tax return.
General partnership: Similar to a sole proprietorship, but with two or more people running the business. Partners share profits and losses, and like sole proprietors, they are personally responsible for the business’s debts and legal issues. Partnerships also don’t pay taxes as a separate entity; instead, each partner includes their share of profits or losses in their personal tax filings.
Corporation: A corporation is a more complex entity that is separate from its owners, providing personal liability protection. Owners, known as shareholders, are not personally responsible for the corporation’s debts or legal problems. Corporations can raise money by selling stock and are taxed separately from their owners. This entity requires more requirements, like having board meetings and record-keeping.
Limited Liability Company (LLC): An LLC blends elements of sole proprietorships, partnerships, and corporations. Owners (members) have limited personal liability for business debts and actions. Like sole proprietorships and partnerships, an LLC can pass income directly to owners to avoid double taxation, a common issue with corporations. This structure offers flexibility in management and less strict requirements than a corporation.
Related: Comparison of Business Structures
What Licenses Do Oklahoma Businesses Need?
With the business structure out of the way, we can begin looking at the different types of registrations businesses in Oklahoma may need. There isn’t a standard business license, as requirements vary depending on where the business is located and what it does. Here is a general overview of the different registrations your business may need.
General Business License
There is no general state of Oklahoma business license; however, many cities require businesses to register. Rules for business registration vary depending on location and the business’s activities. Below are a few cities that have licensing requirements.
- Oklahoma City: The Business Licensing Office of the City of Oklahoma requires business licenses for certain businesses. A few of these include daycares, kennels, pawn shops, contractors, and more.
- Tulsa: The City of Tulsa issues business licenses to businesses operating within city limits selling food or alcohol, pawnbrokers, contractors, and more.
- Norman: Businesses such as mobile food vendors, coin-operated vending, kennels, contractors, and others will need to register with the city.
- Lawton: Child care facilities, food establishments, secondhand dealers, tow trucks, and others are required to obtain a business license from the City of Lawton.
- Moore: The City Clerk’s Office issues business licenses for entities offering catering, selling alcohol, operating as a pawn broker, along with a few others
For as little as $99, you can save a lot of time and know your business is in compliance with local, state, and federal requirements.
Trade Name Registration
While not a business license, it’s common for Sole Proprietorships and Partnerships operating under a fictitious business name that is different from the full name of the owner(s) to register for a Trade Name (also known as a Doing Business As, DBA, or Fictitious Name) with the Oklahoma Secretary of State’s Office.
Building & Zoning Permits
- Zoning: Oklahoma businesses should check for proper zoning permits from their local planning department to be sure they align with local land use laws. Zoning requirements vary between cities and counties, so businesses should consult their municipal planning or zoning office where the business will be located.
- Building Permit: Oklahoma businesses must secure building permits for new construction or significant alterations. The local building department issues these permits and reviews plans to meet state and local codes.
- Signage Permit: Oklahoma businesses must obtain sign permits from their local building department or planning department before installing exterior signage. Sign permits ensure compliance with local sign ordinances, which regulate the size, location, and design of signs.
Sales Tax Permit
Most businesses selling a product or offering certain services will need to register for an Oklahoma sales tax permit. The sales tax permit is issued after applying for the Oklahoma Business Registration from the Oklahoma Tax Commission.
Resale Certificate
Businesses purchasing merchandise to resell will usually want to obtain an Oklahoma Resale Certificate to avoid paying sales tax on merchandise they will resell to customers.
Occupational License
A variety of occupations in the state are regulated and require registration before offering certain services. A few common professions that require licensing in Oklahoma include contractors, personal trainers, barbers, and many more.
Employer Identification Number (EIN)
Many businesses register with the Internal Revenue Service (IRS) for an EIN (also referred to as a FEIN, Federal Employer Identification Number, or Federal Tax ID Number). The EIN is the business equivalent of an individual’s Social Security Number.
Next Steps
These are some of the most common business licenses a new business in Oklahoma will need to register for. While it’s a good start, there are so many different licenses that may be needed, be sure to double-check with the City Clerk’s Office, Chamber of Commerce, and/or Economic Development office in your area before opening your doors.
