How to start a business in Oklahoma in 14 steps (2025 guide)

Ready to start your entrepreneurial journey in the Sooner State? Whether you're an Oklahoma native or new to the area, launching a business here is an exciting venture filled with opportunity. Known for its pro-business environment, low operating costs, and supportive resources, Oklahoma is an ideal place to make your business dreams a reality. In this guide, we’ll walk you through every step — from creating your business plan and securing funding to handling state registration, licensing, and tax requirements.

Why start a business in Oklahoma in 2025?

Far more than a flyover state, Oklahoma might be the perfect place to launch a small business. Known for its wide-open spaces and rich Native American history and culture, the Sooner State boasts a business-friendly environment with streamlined regulations. Unlike coastal states with higher overhead costs and fierce competition, Oklahoma offers a pro-business climate with low operating costs, business tax breaks, and mentorship programs for would-be entrepreneurs. 

The state's recent job growth tells an even bigger story. According to the Oklahoma Council of Public Affairs, Oklahoma created over 140,000 new jobs from 2019 to 2024, placing it among the top 10 states for job creation. Governor Kevin Stitt’s efforts to reduce regulations and cut taxes have made Oklahoma a standout state with a thriving economy and a welcoming atmosphere for businesses of all sizes.

Here are the topics we’ll cover in this step-by-step guide: 

• 14 steps to starting a business in Oklahoma
• Step 1: Decide what type of industry is best for your business
• Step 2: Conduct industry research
• Step 3: Create a business plan
• Step 4: Choosing your business name 
• Step 5: Choose your business entity
• Step 6: Secure funds: Oklahoma small business funding, loans, and grants
• Step 7: Choosing your Oklahoma business name and Oklahoma DBA
• Step 8: Pick a business location in Oklahoma
• Step 9: Find an Oklahoma registered agent 
• Step 10: Get an Oklahoma EIN, and file your tax and employer identification documents 
• Step 11: Register as a small business in Oklahoma
• Step 12: Secure insurance for your Oklahoma small business 
• Step 13: Prepare to pay taxes on your business in Oklahoma
• Step 14: Set up your business bank account
• Additional resources to get your business started
• Frequently asked questions 

14 steps to starting a business in Oklahoma

Every successful business begins with a vision, and Oklahoma provides an ideal foundation to bring your concept to reality. Whether you're dreaming of opening a café in Tulsa’s Blue Dome District, setting up a boutique in Oklahoma City’s bustling Bricktown, or launching a tech startup in Norman, you’ll find Oklahoma offers the small business resources and support you need. Take the following steps to turn your business idea into a thriving venture.

Step 1: Decide what type of industry is best for your business 

Oklahoma’s top industries include energy, manufacturing, agriculture, and health care. Explore how these sectors may align with your skills, interests, and local market demand. Research market trends, whether you’re starting a business in the state capital of Oklahoma City or the oil-rich environs of Tulsa. And identify any gaps that your business might fill.

Don’t know where to begin? Explore these small business ideas to help get the ball rolling.

Step 2: Conduct industry research

Research your target market, conduct a competitive analysis, and identify any regulations or licensing requirements specific to your chosen field in Oklahoma. Oklahoma’s Small Business Development Centers are a good place to start. They provide free one-on-one business management advice, business management workshops, and business technical assistance.

Step 3: Create a business plan

Create a strong foundation for your Oklahoma business with a clear, detailed business plan.

Use it as a road map to decide what your goals are, what your business concept will be, how to reach your target market, develop a marketing plan, create financial projections, and secure funding for your small business. 

To get started, include these key sections in your business plan:

• Executive summary: Summarize your business and its primary goals.
• Company description: Describe your company’s mission, vision, and what sets it apart.
• Market research and potential: Define your target market and analyze industry trends in Oklahoma.
• Competitive analysis: Identify competitors and highlight your unique strengths.
• Products and services: Explain what you offer and how it meets customer needs.
• Marketing and sales strategy: Outline your approach to attracting and retaining customers.
• Financial projections: Project income, cash flow, and profitability to guide financial decisions.
• Management and leadership: Showcase your team’s skills and experience.
• Funding request: Specify your funding needs and how you’ll use the capital.
• Appendix: Include supporting documents like market research or key team resumes.

Take time to draft a business plan that captures your vision and goals. Use a free business plan template to jumpstart the process. For additional guidance, connect with the Oklahoma Small Business Development Center (OKSBDC), where you’ll find free, expert assistance tailored to Oklahoma entrepreneurs.

Step 4: Choose your business entity: Types of business entities in Oklahoma

Whether you're a one-person show or plan to create a more formal organization structure with shareholders or investors, your business entity structure will determine how you pay taxes, the liabilities in your organization, and your business profitability and growth. Take a look at the main types of structures for Oklahoma small businesses:

Sole proprietorship

A business owned and operated by one person, with no legal distinction between the owner and the business.  

General partnership

A business owned by two or more people who share profits, losses, and management responsibilities.

Corporation 

A legal entity separate from its owners, with shareholders who have limited liability for the company's debts and obligations.

Limited liability company (LLC)

A hybrid business structure combining the limited liability of a corporation with the tax flexibility of a partnership. Learn more about LLCs.

Step 5: Secure funds: Oklahoma small business funding, loans, and grants 

Determine how much funding you’ll need to start your Oklahoma business. If your business plans to sell a product, you’ll need a Sales or Use Tax Permit from the Oklahoma Tax Commission (OTC). This permit costs $20 plus a handling fee. 

Also, plan to budget for additional expenses, such as industry-specific licenses or permits, business registration fees, equipment purchases, supplies, location rentals, and marketing. It can cost as little as $1,000 to file all your permits and licenses, up to tens of thousands of dollars, depending on your industry and how much overhead you have. The Small Business Administration (SBA) is an excellent resource for calculating these costs.

Consider some of the following options for funding your small business:

You should also explore several state-specific funding programs that support small businesses:

Oklahoma Quality Jobs Incentive Program

The Oklahoma Quality Jobs Incentive Program provides quarterly cash payments to companies that create good-paying jobs. To apply, you submit an online pre-application through the Oklahoma Department of Commerce website. 

State Small Business Credit Initiative (SSBCI) in Oklahoma

The SSBCI provides funding to increase access to capital for small businesses, particularly those in underserved communities. 

REI Oklahoma

REI Oklahoma offers microloans for small businesses. To apply, contact REI Oklahoma to discuss eligibility and loan terms. You’ll need to complete and submit an application along with your business plan and financial statements.

Oklahoma Grant Watch

Grant Watch provides a comprehensive database of available grants for small businesses in Oklahoma. Some of the available grants include: 

• Grants for business innovation from the Oklahoma Innovation Expansion Program. These grants, geared toward entrepreneurs, offer some $10 million in funding for manufacturers to invest in impactful new capital.
• Agricultural and farming support programs and grants aimed at enhancing agricultural productivity and sustainable practices. These grant and program offerings include investments in new agricultural equipment, facilitating savings for farming operations, and fostering state-wide security in food production.
• Innovation and tech startup grants are designed to drive technological advancement in Oklahoma by providing capital investment support for business growth and funding options for cutting-edge research, development of new products, and scaling operations.

Step 6: Choosing your Oklahoma business name and Oklahoma DBA

Select a memorable, unique name for your Oklahoma business that reflects your brand identity and appeals to potential customers. Your business name sets the stage for how customers perceive your business and the products or services you offer.

Reserve your business name

Make sure your desired name is available for use and complies with the state’s business naming requirements. To do so, conduct a search with the Oklahoma Department of Commerce. If it’s available, you can reserve it for 60 days while you finalize other details of your business. This reservation costs $10.

Filing a fictitious business name (DBA) in Oklahoma

Register a “Doing Business As” (DBA) name if you want to operate under a name different from your business’s legal name. A DBA, also known as a trade name, allows you to brand your business more descriptively. Registering a DBA in Oklahoma isn’t mandatory, but it’s beneficial for sole proprietorships, partnerships, and corporations that want to use a name different from their registered name.

File your Oklahoma DBA online using the Secretary of State’s website or by completing the Trade Name Report form and submitting it by mail. The filing fee for an Oklahoma DBA is $25. Oklahoma allows you to file online, by mail, or in person. Once submitted, it’ll take about two to three business days to process your DBA application. Oklahoma DBAs don’t expire and don’t require renewal.

Step 7: Pick a business location in Oklahoma

Thinking of opening a cozy café in Norman or setting up a retail shop in the heart of OKC? Picking the right spot for your business will affect everything — your costs, local taxes, and how easy it is for customers and employees to reach you. Before settling on a space, check with local officials to make sure you’re clear on any licenses or permits you’ll need.

If you're aiming to keep overhead low, consider running your business from home, which can be a cost-effective solution for freelancers or online businesses. But if you want a space in one of Oklahoma’s metro areas, look into factors like local business regulations, zoning requirements, and any incentives that different cities may offer. Here’s a closer look at some popular business hubs in Oklahoma and what each has to offer.

Oklahoma City

As the state’s capital and largest city, Oklahoma City is an economic hub with a strong focus on industries like energy, aviation, and health care. The Greater Oklahoma City Chamber offers plenty of support, including incentives to help new businesses grow. Don’t forget to check with the Oklahoma City Planning Department for zoning laws to make sure your business stays compliant. Plus, if you're in a Business Improvement District (BID), like downtown, you could get additional services and support.

Tulsa

Tulsa has a diverse economy, with opportunities in energy, aerospace, manufacturing, and health care. The Tulsa Regional Chamber provides helpful resources, including networking and economic data, to get you started. Make sure to check zoning laws with the city’s Planning Department. Also, if you’re in tech or a startup, the Tulsa Innovation District is an area worth considering for its tech-friendly environment.

Norman

Norman, home to the University of Oklahoma, has a lot to offer for research, technology, and education-based businesses. The Norman Economic Development Coalition can guide you through resources and incentives, especially if you're launching a startup or a tech business.

Edmond

One of Oklahoma’s fastest-growing cities, Edmond offers a strong consumer market and a business-friendly atmosphere. The local chamber of commerce provides various support services to entrepreneurs, including resources for business development and networking opportunities that can help you connect with potential partners or customers.

Lawton

With Fort Sill nearby, Lawton has many opportunities for businesses connected to defense contracting, retail, and services that cater to military personnel. The Lawton-Fort Sill Economic Development Corporation is a good place to find incentives and support.

Broken Arrow

Broken Arrow, a fast-growing suburb of Tulsa, has a strong consumer market that makes it an excellent spot for businesses. The Broken Arrow Chamber of Commerce offers the support and resources you’ll need to succeed in this expanding community.

Step 8: Find an Oklahoma registered agent

In Oklahoma, every business entity registered with the state must have a registered agent, whether a professional service or an individual. Your registered agent acts as a point of contact for receiving important legal documents, government notices, and service of process.

Oklahoma registered agent requirements

Requirements of a registered agent include that they have a physical mailing address (not a P.O. Box or remote location) in the state. They’ll also need to keep regular business hours. 

Who can be your Oklahoma registered agent?

An individual who resides in Oklahoma and meets the requirements can serve as a registered agent. This could be you, an employee, or any other person who consents to the role as long as they meet the above requirements. A business entity authorized to do business in Oklahoma can act as a registered agent, too. This includes professional registered agent services. Many companies offer registered agent services for a fee. 

Step 9: Get an Oklahoma EIN and file your tax and employer identification documents

An EIN (Employer Identification Number) is a nine-digit number the IRS uses to identify your business for tax purposes. Although Oklahoma doesn't require a state EIN, you'll need one to file payroll taxes and federal tax returns, open a business bank account, and apply for loans. 

Do you need an EIN in Oklahoma?

Oklahoma requires you to obtain an EIN if you’re setting up a business bank account, hiring employees, or filing taxes, particularly if you’re working on federal returns for your business. 

Obtaining an EIN in Oklahoma

The fastest way to obtain an EIN is to apply online with the IRS. You can also mail or fax your application using Form SS-4 and mail or fax it to the IRS. 

Oklahoma tax and employer identification requirements

After obtaining your EIN, you need to make sure you comply with state tax and employer identification requirements in Oklahoma:

• Register with the Oklahoma Tax Commission to obtain state tax identification numbers for sales tax, withholding tax, and other applicable taxes.
• File for a sales tax permit through the Oklahoma Tax Commission if your business sells goods or services subject to sales tax. 
• Register for employer taxes with the Oklahoma Employment Security Commission (OESC), including unemployment insurance. If you have employees, register for state employer taxes, including unemployment insurance tax.

Step 10: Register as a small business in Oklahoma

Register your business via mail or online through the Secretary of State website. You may also need to register with the Oklahoma Tax Commission. Here are some specifics to keep in mind depending on your business entity type.

Step 11: Register for your business license and permits in Oklahoma

Oklahoma does not have a general business license requirement at the state level, but many localities require a local business license, so make sure to perform due diligence about requirements within the community where you plan to operate. Depending on your industry, you may also need special licensing and permitting. 

Do you need a business license in Oklahoma?

While there’s not a state-wide, mandatory business license, you’ll need to contact your city or county clerk's office to determine if a local business license is required. Also, be sure to check on the need for industry-specific licenses. Some industries, such as construction, healthcare, and retail, may require state-level licenses or permits. And some professions, such as lawyers, accountants, and real estate agents, require professional licenses.

If you’re starting a business and have questions about your industry and whether you have the right permits and licenses from the state and city, contact the Oklahoma Department of Commerce.

Examples of common licenses and permits in Oklahoma

Common licenses and permits required in Oklahoma across various industries include the following: 

• Seller's permit, which is needed to collect sales tax on products you sell
• Zoning permit, which may be necessary based on your business location and industry type
• Food Establishment License for businesses that prepare and serve food to the public
• Building permit, which may be required for renovations or modifications to your business location
• Oklahoma ABLE Commission license for establishments selling alcoholic beverages
• Agricultural permits and licenses for businesses involved in agriculture, including livestock, poultry, and dairy production
• Oil and gas permits for drilling and extraction activities

Step 12: Secure insurance for your Oklahoma small business

What do you do if a water line breaks and floods your retail shop in Norman? Or what happens if an unexpected weather event in Tulsa takes out one of your oil wells? While it’s yet another step in the process, business insurance acts as a financial safety net, safeguarding your company from lawsuits, property damage, and other liabilities. 

Here are some common types of Oklahoma small business insurance:

Step 13: Prepare to pay taxes on your business in Oklahoma 

Here's a breakdown of key taxes you may need to pay in Oklahoma:

Sales tax

Oklahoma imposes a state sales tax on the sale of tangible personal property and certain services. The current state sales tax rate is 4.5%, but local jurisdictions may impose additional sales taxes.

Use tax

If you purchase goods or services outside Oklahoma for use within the state, you may be liable for use tax, which is typically the same rate as the sales tax.

Payroll taxes

If you have employees, you’ll be liable for payroll taxes. Employers must withhold state income tax from employees' wages and remit it to the Oklahoma Tax Commission. They must also register for unemployment insurance tax with the Oklahoma Employment Security Commission (OESC) and pay taxes based on employee wages.

Gross production tax

Businesses involved in the extraction of oil and gas in Oklahoma must pay a gross production tax.

Ad valorem tax

If your business owns real and personal property, you’ll need to pay ad valorem tax, which is based on an assessment of valuation by county assessors.

Excise tax

Excise taxes are imposed on specific goods such as alcohol, tobacco, and motor fuel.

Corporate income tax

Corporations operating in Oklahoma must file a state corporate income tax return and pay taxes on their net income. Oklahoma’s corporate income tax rate is 4%.

Federal taxes

In addition to state and local taxes, all businesses must pay applicable federal taxes, including:

• Federal income tax
• Self-employment tax (for sole proprietors and partners)
• Employment taxes (if you have employees), including the Federal Unemployment Tax Act (FUTA tax)
• Excise taxes (for certain industries)

To ensure you understand your federal tax obligations, check out these IRS resources: Publication 334, Tax Guide for Small Business and Publication 583, Taxpayers Starting a Business and Keeping Records

Tax credits and incentives for Oklahoma employers

Oklahoma offers a variety of tax credits and incentives for Oklahoma employers: 

• Oklahoma Quality Jobs Incentive Program, which provides cash payments to businesses that create good-paying jobs. Payments are based on the number of jobs created and the wages paid.
• Small Employer Quality Jobs Program: Similar to the Quality Jobs Incentive Program, this incentive is tailored to small businesses and offers incentives to employers paying at least 110% of the average wage.
• Investment/New Jobs Tax Credit: This tax credit is for businesses making significant capital investments or creating new jobs in Oklahoma.

Step 14: Set up your business bank account

One of the first things you need to do when starting your Oklahoma small business is setting up a business bank account to manage your finances. Here’s how: 

1. Get your paperwork in order, from registrations and permits to licenses and your EIN, to open your small business bank account. 
2. Look for a bank that provides the loan products and services you need. 
3. Apply for a credit card either through your bank or a third-party company so you can begin establishing business credit and charging business-related expenses. 
4. Choose an accounting software and tie it to your business bank account to manage everything from payroll to invoicing. 
5. Find a professional accountant who understands your industry and Oklahoma tax laws to help you navigate finances and other bookkeeping items.

Additional resources to get your business started

There are several state and federal resources that can support your business with guidance, training, potential funding, and more. 

State resources

Oklahoma Department of Commerce: This department offers guidance and tools to help new and existing businesses in the state. They provide information on incentives, economic data, and business development programs that can set you up for success.

Oklahoma Small Business Development Centers (OKSBDC): Offering several locations throughout the state, OKSBDC gives free consulting, training, and access to resources tailored for small businesses. 

Oklahoma Secretary of State: You can register your LLC, corporation, or partnership quickly through the Secretary of State’s online portal. It’s your go-to for essential forms and compliance needs.

Oklahoma Tax Commission: The Oklahoma Tax Commission helps you understand state tax obligations, like how to get a sales tax permit and manage income tax withholding for your business.

i2E: i2E supports early-stage startups, particularly those in tech and life sciences, by offering business consulting, mentorship, and funding options to drive innovation and growth.

Federal resources 

Small Business Administration (SBA): The SBA supports small businesses through various loan programs, including the 7(a) loan, provides resources for government contracting, and offers counseling and training programs to help entrepreneurs start and grow their businesses.

Grants.gov: This centralized platform simplifies the process of searching for and applying for federal grants across various sectors. It also provides grant writing tips and has a Grants Learning Center featuring the basics of grants, eligibility, and more. 

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR): SBIR and STTR programs provide research and development funding to innovative tech companies. 

SCORE: SCORE is a national nonprofit organization that partners with the U.S. Small Business Administration (SBA) to provide free mentoring and educational resources to entrepreneurs and small business owners. While not a direct federal agency, SCORE is an independent organization with a network of volunteer business mentors across the United States.   

U.S. Department of Agriculture (USDA): The USDA website lists grants, loans, and other programs and resources for farmers and other businesses serving rural America.

Frequently asked questions

How long does it take to start a small business in Oklahoma?

The process to start a small business in Oklahoma can take as little as a few weeks or as long as a few months, depending on paperwork, registration, funding, and other factors. 

Does my Oklahoma small business have to collect sales tax?

If you sell physical goods rather than a service within the state of Oklahoma, you’ll need to collect sales tax unless you qualify for the small seller exception for businesses with aggregate annual sales under $100,000.

Who must file an Oklahoma business tax return?

All corporations must file business tax returns in Oklahoma. Pass-through entities, LLCs, and sole proprietorships generally report and file business income on their personal tax returns. 

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